The Trump administration is reportedly drafting an executive order that would prompt the U.S. Department of Justice (DOJ) to sue or withhold federal funds to states that pass laws regulating artificial intelligence, according to multiple news outlets. The move is likely to face resistance from states and illustrates President Donald Trump’s push to help AI companies overcome state measures that he argues stifle innovation and competitiveness with China.
What would the executive order do?
According to Reuters, U.S. Attorney General Pam Bondi would be tasked under the order to establish a task force to challenge state AI regulations, arguing that the laws either violate the Constitution due to restrictions on interstate commerce, are superseded by existing federal rules or are considered illegal by the DOJ.
The proposed executive order would also require the Department of Commerce to review state regulations and publish guidelines that may result in the withholding of broadband funding in some instances.
Previous effort killed by Senate
The reported draft comes after a disagreement among Senate Republicans in July tabled a proposal backed by the Trump administration to ban all state AI regulations as part of the president’s signature “One Big Beautiful Bill Act.” The measure failed after bipartisan criticism over concerns about the potential threat to Americans from AI.
Growing concerns over artificial intelligence
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Researchers say artificial intelligence is predicted to contribute $15.7 trillion to the world economy by 2030.
Fears are on the rise among Americans over AI’s impact on jobs, dangers posed by deepfakes and AI-generated imagery used to produce child sexual abuse material, as well as a potential increase in electricity prices and greater energy consumption required for AI data centers.
According to a Pew Research Center survey in June, 50% of Americans are more worried than enthusiastic about more AI in their everyday lives.
The GOP has often been opposed to increased federal power over states, traditionally citing the Constitutional limits on federal authority over states.
The Trump administration’s motivations
The Trump administration is also interested in preventing so-called “woke AI” to ensure that AI models used by the federal government are free of ideological influence, including from initiatives such as diversity, equity and inclusion (DEI). The White House stated that too much red tape will likely harm innovation among AI companies and competitiveness as well.
Trump has not ruled out going through Congress to ban state AI regulations.
The president wrote on Truth Social on Tuesday that the U.S. needs one federal standard for AI. He also suggested that lawmakers should add such a measure to the defense authorization bill currently before House lawmakers after it passed the Senate in October.
“We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes,” Trump wrote. “If we don’t, then China will easily catch us in the AI race.”
Opposition from some Republicans
Some prominent Republicans, including governors Ron DeSantis of Florida and Spencer Cox of Utah, voiced opposition to such a move this week in social media posts.
“Sneaking it into the defense bill is an insult to voters,” DeSantis posted.
Some argue it would be unconstitutional
Other critics of the proposed executive order argue that the move would likely be unconstitutional.
“Preemption is a question for Congress, which they have considered and rejected, and should continue to reject,” Travis Hall, state director at the nonprofit Center for Democracy & Technology, told The Washington Post. “This proposal is shocking in its disregard for the democratic process of state governments in their work to address the real and documented harms arising from AI tools.”
A source within the White House told Reuters that, until the move is officially announced, the reports are just speculation.
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