- President Donald Trump plans an executive order to override state AI laws and centralize AI regulation at the federal level.
- The order directs Attorney General Pam Bondi to challenge state AI regulations and withhold funds from states with “onerous” laws.
- House Republicans aim to include AI preemption language in the National Defense Authorization Act after a Senate rejection of similar efforts.
- The draft targets California’s AI regulations, highlighting concerns over complex requirements that could hinder innovation.
- David Sacks is assigned to oversee much of the impending executive order’s implementation process.
President Donald Trump is preparing an executive order to eliminate state-level Artificial Intelligence (AI) laws, including those in California, to create a uniform federal regulatory framework. The move targets recent state legislation perceived as potentially restrictive to innovation and aims to consolidate AI oversight within federal agencies.
The draft order, reviewed by Axios, instructs Attorney General Pam Bondi to form a task force to challenge state AI laws. It proposes limiting federal funding to states with rules deemed “onerous.” Additionally, the Federal Trade Commission would provide guidance on how current consumer protection laws might override conflicting state AI regulations.
According to the summary, AI and crypto expert David Sacks will oversee much of the order’s implementation. The plan also calls for the Commerce Secretary to evaluate state eligibility for broadband funding based on their AI laws. Federal Communications Commission Chair Brendan Carr would initiate proceedings to develop nationwide disclosure standards to preempt inconsistent state rules.
Legal expert Sharon Klein of Blank Rome highlighted the order’s potential to standardize compliance by setting a minimum regulatory floor for states without AI laws but cautioned against a uniform approach that might delay responses to AI-related harms locally.
The executive order criticizes California’s SB 53 for its detailed risk disclosure requirements for large AI developers, labeling these mandates as “complex and burdensome.” California also passed SB 243, requiring AI chatbots to identify themselves and limit certain content for minors.
House Republicans are considering inserting similar AI preemption language into the must-pass National Defense Authorization Act (NDAA), with Majority Leader Steve Scalise stating they are actively exploring this option. This follows a Senate vote where lawmakers overwhelmingly discarded a 10-year moratorium on state AI laws in July, with a 99-1 margin, as reported by Reuters.
On social media platform Truth Social, Trump warned that state-level overregulation threatens U.S. leadership in AI development, citing concerns about some states embedding diversity, equity, and inclusion (DEI) ideology into AI systems. He emphasized the need for a single federal standard to avoid a fragmented regulatory environment and maintain competitiveness against China.
The draft order encourages innovation without heavy regulation while expressing concern over more than 1,000 state AI bills that could hinder the country’s innovative culture.
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