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President Donald Trump plans to issue an executive order potentially as early as Friday, granting the federal government exclusive authority to oversee artificial intelligence regulations and overriding state-level rules. The proposed measure includes establishing an AI Litigation Task Force under the attorney general, dedicated exclusively to contesting state AI laws that hinder industry expansion.
A draft version of the order, secured by The Verge, outlines how the task force would target states with legislation seen as impeding AI development. Examples include Californias measures addressing AI safety and risks of major failures, as well as Colorados protections against bias in algorithms. The group would periodically seek input from White House experts, such as David Sacks, the venture capitalist appointed as special adviser on AI and cryptocurrency.
Trump has voiced support for halting new state AI regulations in social media updates lately, and he emphasized this stance again on Wednesday at the US-Saudi Investment Forum. He described the approach as essential to counter progressive influences, stating that navigating rules across 50 states would lead to inconsistencies driven by a few ideologically driven areas, potentially reviving outdated policies nationwide.
This initiative builds on the AI Action Plan unveiled earlier in the year, which instructed agencies like the Federal Communications Commission to find methods to bypass restrictive local and state rules fostering AI innovation. The order details a 90-day timeline for implementation involving the Department of Justice, Federal Trade Commission, Department of Commerce, and FCC.
Within that period, the commerce secretary must release a report pinpointing states conflicting with the administrations AI guidelines and evaluating their eligibility for the Broadband Equity Access and Deployment program, which supports internet access in rural regions. Separately, the FTC would clarify if state mandates forcing AI firms to alter their systems breach federal standards on deceptive business practices.
At a Politico AI and Tech Summit in September, FCC Chairman Brendan Carr suggested the agency could use the Communications Act to supersede state restrictions, arguing that barriers to advanced tech deployment justify federal intervention. He also addressed a prospective California requirement for AI developers to reveal safety evaluation processes, viewing it as aligned with efforts to prevent biased, ideologically slanted AI systems.
Carr referenced the European Unions Digital Services Act as a cautionary example, warning that similar regulations might promote diversity, equity, and inclusion agendas over objective AI models. He noted that the administrations strategy aims to avoid such influences domestically, and Californias potential moves in that vein could invite federal scrutiny if they stray from neutral, fact-based development.
Elements of the order, including the FCCs potential override authority, face likely legal hurdles in court. Nonetheless, the litigation task force could still complicate states independent AI oversight. Punchbowl News reported Wednesday that this executive action serves as a contingency if lawmakers cannot incorporate a nationwide pause on state AI rules into the National Defense Authorization Act, a critical funding bill for defense priorities.
Prior efforts to embed a moratorium in Trumps major spending package earlier this year collapsed amid pushback from senators across party lines. This week, House Majority Leader Steve Scalise indicated to Punchbowl News that attaching it to the NDAA remains an option. Yet, resistance may persist, especially regarding penalties like cutting broadband funds. Adam Thierer, a senior fellow at the R Street Institute and originator of the moratorium idea, questioned its effectiveness against large states like California, suggesting that broader financial incentives or multiple restrictions might be needed to influence policy changes.
