Executive order empowers federal government to challenge state AI regulations
States risk losing broadband and other funding if laws remain in place
Critics warn move favors tech industry without national consumer safeguards
President Trump on Thursday signed an executive order aimed at curbing state laws that regulate artificial intelligence, a move that could invalidate dozens of state-level consumer protection and AI safety measures while consolidating regulatory authority at the federal level.
The order grants sweeping power to the U.S. attorney general to sue states and overturn laws deemed inconsistent with what the administration calls the “United States’ global A.I. dominance.” It also directs federal agencies to withhold funding for broadband and other infrastructure projects from states that refuse to roll back their AI regulations.
"Got to be one source"
Trump has repeatedly argued that the U.S. must lead the world in artificial intelligence and has criticized state laws as creating a fragmented regulatory environment that could slow innovation.
“It’s got to be one source,” Trump said Thursday in the Oval Office, flanked by senior officials including David Sacks, the administration’s AI and cryptocurrency czar. “You can’t go to 50 different sources.”
The president framed the order as essential to keeping the U.S. ahead of China in the global race to develop advanced AI technologies. The directive seeks to replace state-level oversight with a single federal framework that would supersede local rules.
“With today’s executive order, Donald Trump is doing his best to take care of his Big Tech buddies and donors. This reward to Big Tech is a disgraceful invitation to reckless behavior by the world’s largest corporations and a complete override of the federalist principles that Trump and MAGA claim to venerate," said Robert Weissman, co-president of Public Citizen.
Tech-friendly agenda accelerates
The executive order is the latest in a series of actions signaling Trump’s growing alignment with the AI industry. In recent months, he has signed orders limiting regulation, expanding companies’ access to federal data and easing the construction of data centers and other infrastructure needed to power AI systems.
Trump has also moved to loosen restrictions on exporting advanced chips that drive AI development and has publicly praised technology executives. Sacks, a Silicon Valley investor, has emerged as a central figure in shaping the administration’s AI policy.
Legal challenges expected
The order has already drawn broad, bipartisan criticism and is expected to face swift legal challenges from states and consumer advocacy groups. Legal experts say the move may overstep executive authority, arguing that only Congress has the power to override state laws.
Critics also warn that eliminating state protections without replacing them with strong federal standards could leave consumers vulnerable.
“If Mr. Trump succeeds in neutering state laws, he should instead offer a robust national standard on A.I. regulations,” said Wes Hodges, acting director of the Center for Technology and the Human Person at the conservative Heritage Foundation. “Doing so before establishing commensurate national protections is a carve-out for Big Tech.”
Consumer risks remain unresolved
The debate comes as generative AI tools capable of mimicking human voices, writing and images have rapidly proliferated. While the technology has fueled innovation, it has also been linked to scams, deceptive deepfakes and instances in which chatbots have provided harmful advice to minors.
Consumer advocates say many state laws targeted by the order were designed to address those risks, raising concerns that the administration’s push for AI dominance may come at the expense of public safety and accountability.