President Trump is moving to crush what the White House calls a fast-growing patchwork of state AI rules, seeing it as a direct threat to America’s ability to stay ahead in the AI race.
In a new executive order announcement, the White House says the administration will use legal pressure and federal funding leverage to push states away from AI laws it views as inconsistent with national policy priorities.
The order directs the Attorney General to establish an “AI Litigation Task Force” aimed at challenging state AI laws the administration describes as anti-innovation, unconstitutional, preempted or otherwise unlawful.
It also directs the Secretary of Commerce to publish an evaluation of state AI laws that conflict with national AI policy priorities, and the White House says it will withhold non-deployment Broadband Equity Access and Deployment (BEAD) funding from any state with such laws. The White House says other agencies are being told to consider tying applicable discretionary grants to an absence of similar laws, or to a policy of enforcement discretion for existing laws.
The White House says the Federal Trade Commission and Federal Communications Commission are instructed to take actions that would limit states’ ability to force AI companies to deceive consumers, including reviewing whether laws that force companies to embed DEI into models would cause violations of the Federal Trade Commission Act, and considering a federal reporting and disclosure standard for AI models.
The White House says state legislatures have introduced over 1,000 different AI bills, creating a patchwork of rules, disclosures and reporting requirements.
“States such as California and Colorado are considering requiring AI companies to censor outputs and insert left-wing ideology in their programming.”
President Trump warns that the overregulation of AI could stifle the growth of the industry, which he sees as a “major growth engine” for the US economy.
“We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes. If we don’t, then China will easily catch us in the AI race.”
The White House says the order calls for developing a national AI legislative framework that would preempt state AI laws it believes impede innovation, positioning the fight as a bid to keep AI investment and competitive advantage centered in the US.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.

