Trump Moves to Curb State-Level AI Regulations With New Executive Order

In partnership with

Learn AI in 5 minutes a day

This is the easiest way for a busy person wanting to learn AI in as little time as possible:

1. Sign up for The Rundown AI newsletter

2. They send you 5-minute email updates on the latest AI news and how to use it

3. You learn how to become 2x more productive by leveraging AI

Sign up to start learning.

In a significant move that could reshape the landscape of artificial intelligence oversight in the United States, President Donald Trump has signed an executive order aimed at limiting the ability of individual states to regulate AI technologies. The order, signed during an Oval Office ceremony on December 11, reflects the administration’s commitment to strengthening the AI sector by preventing what it views as inconsistent and burdensome state-level rules.

The directive marks a major win for influential tech companies and venture capital groups that have long pushed for a uniform national policy. Companies such as OpenAI, Google, Nvidia, and leading venture firm Andreessen Horowitz have reportedly urged the White House to prevent a patchwork of state regulations that could slow down innovation and weaken US competitiveness against global rivals, particularly China.

Centralizing AI Oversight

Speaking in the Oval Office alongside Senator Ted Cruz and Commerce Secretary Howard Lutnick, President Trump emphasized the need for a unified approach to AI governance.

“You have to have a central source of approval,” Trump said. “Things have to come to one source. They can’t go to California, New York and various other places.”

The executive order directs the Department of Justice to establish an AI Litigation Task Force, which will challenge state laws that the administration considers inconsistent with its national AI policy. In parallel, the Commerce Department has been given 90 days to evaluate existing state AI laws and identify regulations deemed overly burdensome or conflicting with federal policy.

The Commerce Secretary will also issue guidance on whether states remain eligible for funding under the Broadband Equity Access and Deployment Program, creating financial pressure on states that enact their own AI rules.

Furthermore, federal agencies may consider conditioning grants on states refraining from enforcing AI laws that conflict with the administration’s vision. This could influence billions of dollars in discretionary federal funding.

A Boost for the Tech Industry

The order follows months of intense lobbying from leading AI companies and investors. Advocates argue that strict or contradictory state rules could hinder innovation in a field critical to national security and economic growth.

Nvidia CEO Jensen Huang and other leaders have warned that splintered regulations risk overwhelming an industry that is still evolving, while potentially giving China a competitive advantage.

Trump indicated he had consulted several top tech executives, including Apple CEO Tim Cook, during the drafting of the order. The administration has already taken multiple steps to accelerate AI development, including efforts to ease data center construction and increase access to energy for AI infrastructure.

Treasury Secretary Scott Bessent underscored the urgency: “It is pass/fail versus China. We have the lead, we’ve got to maintain it.”

Criticism From Civil Rights Groups and Lawmakers

Critics, however, warn that the order undermines important consumer protections. Alexandra Givens, president of the Center for Democracy & Technology, argued that the administration’s move is a direct attempt to chill state-level initiatives designed to ensure accountability in AI systems.

“This executive order is designed to chill state-level action… while doing nothing to address real harms these systems create,” she said.

Her concerns reflect broader public unease about the rapid expansion of AI into hiring decisions, law enforcement, healthcare claims, and deepfake creation — areas where advocates believe clear guardrails are essential.

Some governors, including Democrats like New York's Kathy Hochul and even Republicans such as Ron DeSantis of Florida and Arkansas Governor Sarah Huckabee Sanders, have opposed the move. Hochul accused the White House of “shielding big corporations” from responsibility when their AI systems cause harm.

Congress Still Struggling on AI Legislation

The executive order arrives as Congress continues to face difficulties passing comprehensive AI legislation. Although multiple committees have discussed federal AI frameworks, no national standard currently exists. Attempts earlier this year to include preemption of state AI laws in a defense bill failed, forcing the White House to pursue executive action instead.

The order acknowledges this legislative gridlock, stating that federal action is needed to avoid “50 discordant state standards.” It also tasks the White House’s AI and crypto advisor, along with the president’s science and technology assistant, with crafting a legislative proposal for a unified national framework.

Implications for States and the Future of AI Governance

As AI becomes more embedded in daily life, states have increasingly acted to regulate the technology. California and New York, in particular, have proposed laws to hold companies accountable for AI-driven harm. Trump’s executive order places such efforts in direct conflict with federal policy, potentially setting up significant legal battles.

For now, the administration’s approach signals a strong stance: rapid AI development is a national priority, and the government is prepared to override state-level caution to achieve it.