In short
- President Trump is considering an executive order to block states’ AI laws and create a federal regulatory framework.
- The draft decision would direct AG Pam Bondi to challenge state measures and limit funding to states with “onerous” laws.
- House Republicans are exploring adding similar language to the must-pass defense spending bill after its 99-1 Senate defeat in July.
President Donald Trump is reportedly seeking to abolish states’ AI laws through an executive order that would override regulations in California and other states in an effort to centralize control in Washington.
The draft decision, seen by Axioswould direct Attorney General Pam Bondi to create a task force to challenge state AI measures and limit federal funding to states that pass laws deemed “onerous.”
It would also direct the Federal Trade Commission to issue guidance on how existing consumer protection laws can pre-empt state AI regulations.
AI and crypto czar David Sacks would oversee much of the implementation work outlined in the order, according to the summary, which is still under review and could change before a final release.
Declutter has contacted the White House for further comment.
Sharon Klein, partner at Blank Rome and co-chair of the firm’s Privacy, Security & Data Protection Practice, explains Declutter that such a mandate would “provide a foundation for states that do not have AI statutes” and “could be beneficial to companies in providing a basis for compliance.”
But she noted that concerns about whether “a one-size-fits-all rulebook” could “delay emergency responses when AI-generated damage occurs locally.”
It would also depend heavily on “how the statute is implemented, funded and enforced.”
The move comes as Republicans in the House of Representatives consider using the National Defense Authorization Act (NDAA) as their last chance this year to advance AI preemption at the state level, with Majority Leader Steve Scalise telling Punchbowl News they are “looking at” including the provision in the defense bill.
The effort faces an uphill battle in July’s Senate voted 99-1 to remove a 10-year moratorium on state AI laws from President Trump’s ‘One Big Beautiful Bill’, with Senator Marsha Blackburn reverse its support for even an abbreviated five-year compromise, just one day after the deal was struck with Senate President Ted Cruz.
Urgency required?
Trump reinforced the urgency again on Wednesday Truth Socialwarning that state over-regulation threatens America’s lead in the AI race.
“Some states are even trying to integrate DEI ideology into AI models and produce ‘Woke AI,’” he wrote. “We MUST have one federal standard instead of a patchwork of 50 state regulatory regimes. If we don’t, China will easily catch us in the AI race.”
The draft order states that American companies should have the freedom to innovate “without burdensome regulation,” noting how state legislatures have introduced “more than 1,000 AI bills” that could undermine the “innovative culture.”
Under the proposal, the Secretary of Commerce would review broadband financing eligibility under states’ AI laws within 90 days, while FCC Chairman Brendan Carr would initiate a process to establish federal disclosure standards that prevent conflicting state rules.
The draft order specifically criticizes California’s SB 53and calls its risk disclosure mandates for major AI developers “complex and burdensome.”
California recently too enacted SB 243a separate law that regulates AI companion chatbots and requires them to identify themselves and restrict certain content to minors.
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