The Trump administration has drafted an executive order aimed at blocking states from enacting their own artificial intelligence regulations, marking a significant shift toward centralized federal control over AI governance.
What the Draft Executive Order Would Do
The draft proposal, titled “Eliminating State Law Obstruction of National AI Policy,” outlines an aggressive multi-agency strategy to curtail state-level AI regulations. The executive order would direct federal agencies to identify what the administration characterizes as “burdensome” state AI regulations and pressure states to abandon them.
The mechanism for enforcement includes multiple tools at the federal government’s disposal. Federal agencies could withhold discretionary funding from states that maintain AI regulations deemed incompatible with national priorities, and the administration could challenge state laws directly in court.
The Administration’s Rationale
The Trump administration argues that the current patchwork of AI regulations across the 50 states creates unnecessary obstacles for AI companies seeking to scale operations. Officials contend that this regulatory fragmentation disadvantages the United States in global competition, particularly against China, which has pursued a more unified regulatory approach to AI development.
Additionally, the administration has characterized certain state regulations as producing “Woke AI,” framing federal preemption as necessary to prevent ideologically-driven regulatory constraints on AI development.
Multi-Pronged Federal Approach
The draft executive order deploys several tactics beyond funding restrictions. It directs the Federal Communications Commission (FCC) to develop a “federal reporting and disclosure standard for AI models that preempts conflicting state laws”. The Federal Trade Commission (FTC) would be tasked with explaining circumstances under which state laws requiring alterations to AI model outputs conflict with existing federal prohibitions on deceptive practices.
The administration also proposes developing a uniform national AI regulatory framework through legislative recommendations that would formally preempt conflicting state statutes.
Broader Context
This executive order aligns with the Trump administration’s broader AI Action Plan, which emphasizes a deregulatory approach centered on accelerating innovation and building American AI infrastructure. The administration’s preference for centralized federal regulation represents a departure from the recent trend of individual states like California implementing their own AI safeguards and transparency requirements.
The draft order leaves room for what officials might consider “prudent” state regulations that don’t unduly restrict innovation, though the criteria for such distinctions remain unclear.