White House Readies Executive Order to Block State AI Regulations
The White House is drafting an executive order to challenge state-level AI regulations, aiming for unified federal oversight and restricting contested states’ funding.
Key Takeaways
- Draft executive order would empower federal authorities to challenge state AI laws and restrict certain federal funds.
- Directs creation of a federal AI Litigation Task Force within 30 days to dispute state regulations.
- States enforcing contested rules could lose eligibility for BEAD grants from a $42B internet access program.
- Tech leaders back unified federal standards; state legislators warn of weakened public protections.
- White House is also exploring a congressional moratorium on some state AI laws; the order may lack an expiration.
A Shift Toward Federal Oversight
The White House is drafting an executive order that could curtail state-level regulations of artificial intelligence, signaling a major shift toward federal oversight of AI in the United States. President Donald Trump is expected to sign the order, which would empower federal authorities to legally oppose state laws governing AI and restrict federal funding to states that enforce contested rules.
What the Draft Order Would Do
According to a draft obtained by CNBC, the order directs Attorney General Pam Bondi to create an AI Litigation Task Force within 30 days to dispute state AI laws. These lawsuits would argue that such legislation improperly governs interstate commerce, is trumped by existing federal regulations, or is otherwise deemed unlawful.
Funding Implications: BEAD Program
The order instructs Commerce Secretary Howard Lutnick to notify affected states that they would no longer qualify for grants under the federal Broadband Equity Access and Deployment (BEAD) program—a $42 billion initiative supporting internet access nationwide.
Support and Pushback
This move follows President Trump’s call for unified federal AI standards to replace what he described as a confusing mixture of state regulations. Major tech and investment figures, including OpenAI’s Sam Altman and venture firm Andreessen Horowitz, have opposed state-by-state approaches, citing concerns about inconsistent regulations that could hinder innovation.
However, state legislators have voiced strong opposition. New York State Assemblymember Alex Bores, who supported AI safety legislation, criticized the draft executive order as favoring wealthy tech leaders at the expense of public protections. Bores recently encountered political backlash from a super PAC backed by industry leaders due to his support for tighter AI oversight.
Proponents argue a strong federal stance is necessary for global competitiveness, while critics say blocking state action could slow essential safeguards.
Congressional Angle and Moratorium Talk
Simultaneously, the White House is collaborating with Republican lawmakers on potentially adding a moratorium against certain state AI laws to broader congressional legislation. Early proposals, such as a decade-long ban on state AI regulation, were previously excluded from bills but may return in future drafts.
Sources indicate the current version of the executive order might continue indefinitely, lacking a clear expiration.
A Divided Washington
Lawmakers from both parties are split. Some support a federal AI policy to ensure national consistency, while others argue that preventing states from acting would delay crucial regulations. Critics caution that without local efforts, Congress may be slow to establish national rules—much like what happened with social media oversight.
Meanwhile, proponents insist that a strong federal stance is necessary to compete globally, particularly against countries like China, which is advancing rapidly in AI development.
Status: Not Final
The draft executive order is not yet finalized, and White House officials have clarified that no official announcements have been made. As the debate continues, the outcome will shape how AI is governed in the U.S., affecting both the technology industry and state policymakers.
Headline
White House Prepares Executive Order to Challenge State AI Laws
