Trump Administration Moves to Block State AI Regulations with New Executive Order

Executive Order Signed to Centralize AI Regulation

On Thursday, December 11, 2025, President Donald Trump signed an executive order titled 'Ensuring a National Policy Framework for Artificial Intelligence,' designed to prevent individual U.S. states from creating their own artificial intelligence regulations. The administration's stated goal is to foster a unified national approach to AI governance, arguing that a fragmented regulatory environment across the 50 states could impede technological advancement and economic competitiveness.

During the signing ceremony, President Trump emphasized the importance of a single regulatory standard for AI developers. 'If they had to get 50 different approvals from 50 different states, you could forget it,' he remarked, highlighting the potential burden on AI companies and the need for a streamlined process to ensure American leadership in the rapidly evolving field.

Key Provisions of the Executive Order

The executive order outlines several mechanisms to achieve its objectives:

• AI Litigation Task Force: The order directs the Department of Justice to establish an 'AI Litigation Task Force.' This task force will be responsible for challenging state AI laws deemed unconstitutional, preempted by federal regulations, or otherwise unlawful.
• Commerce Department Review: The Department of Commerce is mandated to evaluate existing state AI laws that conflict with national AI policy priorities. This includes identifying regulations considered 'onerous' or detrimental to innovation.
• Federal Funding Restrictions: The order threatens to restrict federal funding, including Broadband Equity Access and Deployment (BEAD) funds, for states that implement AI laws conflicting with the federal framework.
• National Legislative Framework: It calls for the development of a comprehensive national AI legislative framework intended to preempt conflicting state AI laws.

While the order aims to curb state-level regulations, it includes carve-outs for certain areas, such as child safety measures, regulations concerning data center infrastructure, and state government use of AI.

Rationale and Industry Impact

The Trump administration's rationale for the executive order centers on maintaining the United States' global dominance in AI. Officials and industry stakeholders have argued that a 'patchwork' of diverse state regulations could create significant compliance challenges for AI companies, particularly startups, thereby hindering investment and innovation. This approach is seen by some as a victory for Silicon Valley and AI firms that have actively lobbied against state-specific regulatory burdens.

The order follows previous unsuccessful attempts by Republicans in Congress to enact a similar moratorium on state AI laws, underscoring the administration's commitment to a federal-first approach.

Reactions and Potential Challenges

The executive order has drawn criticism from various groups, including civil liberties organizations and some members of Congress. The American Civil Liberties Union (ACLU), for instance, has voiced concerns that the order represents a dangerous overreach of executive authority and could be unconstitutional. Critics argue that it undermines the crucial role states play in ensuring the development of safe, trustworthy, and non-discriminatory AI technologies.

States such as California and Colorado, which have already implemented or are considering their own AI regulations, could be directly impacted by the executive order. California's laws include requirements for disclosing safety testing for new AI models, while Colorado has addressed algorithmic discrimination in hiring practices. These state-level initiatives could become targets for the newly formed AI Litigation Task Force.