WASHINGTON, D.C., President Donald Trump signed an executive order Thursday sharply limiting states’ ability to regulate artificial intelligence, asserting that fragmented state rulemaking threatens U.S. competitiveness as China advances its own centralized AI strategy. Flanked by Sen. Ted Cruz of Texas and Commerce Secretary Howard Lutnick, Trump said the country needs “one winner” in the global AI race and warned that companies cannot navigate “50 different approvals from 50 different states.”
The order directs the Attorney General to form a task force to challenge state AI laws and instructs the Commerce Department to identify regulations deemed burdensome for the industry. It also threatens to restrict broadband and other federal grant funding to states that maintain conflicting AI rules. Supporters, including venture capitalist David Sacks, argue that a unified framework is necessary to avoid regulatory chaos, though he said the administration will not oppose “kid safety” protections.
Several states, including Colorado, California, Utah, and Texas, have enacted AI laws aimed at improving transparency and limiting discriminatory data practices. These measures emerged as AI systems increasingly influence who gets jobs, housing, loans, and medical care, with research showing the technology can amplify racial and gender biases.
Civil liberties advocates and bipartisan lawmakers criticized the executive order as an overreach that could strip states of needed autonomy. Legal challenges are expected, with some policy experts predicting courts may block portions of the directive as federal agencies test the limits of preemption.
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