President Donald Trump signed an executive order (EO) on Thursday aimed at overriding state-level artificial intelligence regulations, arguing that a patchwork of conflicting laws threatens to cripple the technology’s development and America’s global lead in AI. The move is a direct attempt to establish a “One Rulebook” for AI, despite Congress twice striking down similar federal preemption provisions.
The EO calls on several federal department heads to immediately identify and challenge state-level AI laws deemed “objectionable” or “onerous” by the administration. Attorney General Pam Bondi has 30 days to establish an AI Litigation Task Force specifically to challenge these burdensome state regulations in court.
Within 90 days, Commerce Secretary Howard Lutnick must publish an evaluation of existing state AI laws. Crucially, the order indicates that states found to have “onerous laws that conflict with [White House] policy” may be deemed ineligible to receive funds from the multi-billion dollar Broadband Equity Access and Deployment (BEAD) Program.
The White House explicitly criticized state laws banning algorithmic discrimination, such as Colorado’s AI law. The administration argues that such laws “may even force AI models to produce false results in order to avoid a ‘differential treatment or impact’ on protected groups.”
The EO also mandates that FCC Chair Brendan Carr initiate a proceeding to adopt a federal AI reporting and disclosure standard that would preempt conflicting state laws. All involved agencies will be consulting with David Sacks, Trump’s Special Advisor for AI and Crypto.
The President acknowledged that federal legislation from Congress would be the ideal solution, but stated that “until such a national standard exists… it is imperative that my Administration takes action to check the most onerous and excessive laws emerging from the States.”
However, the order faces immediate legal pushback. Cody Venzke, senior policy counsel with the ACLU, argued that the EO is “unconstitutional,” particularly the threat to withhold unrelated federal funds like BEAD grants. Venzke noted that the Supreme Court has made clear the president cannot unilaterally and retroactively change the conditions on federal grants to states.
Despite the legal challenges ahead, this executive action is seen as a victory for technology companies seeking to rapidly deploy new models and build data centers without navigating 50 different regulatory regimes. It signals a dramatic escalation in the federal-state conflict over regulating one of the world’s most transformative technologies.