Trump Signs Executive Order Blocking State AI Regulations

President Donald Trump signed the executive order Ensuring a National Policy Framework for Artificial Intelligence on December 11, 2025, to establish a unified federal regulatory standard. The administration argues that a patchwork of 50 different state regulatory regimes stifles innovation and threatens American competitiveness in the global AI race against China. The order directs Attorney General Pam Bondi to establish an AI Litigation Task Force within 30 days to challenge inconsistent state laws and tasks Commerce Secretary Howard Lutnick with identifying onerous regulations by March 11, 2026.

To enforce compliance, the federal government may withhold grants from the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program. The order specifically targets mandates regarding algorithmic discrimination—such as the Colorado AI Act—and requirements that AI models alter truthful outputs. However, it explicitly exempts state authority over child safety, state government procurement, and AI infrastructure.

The move is supported by major tech firms like OpenAI, Google, and Nvidia, as well as White House AI czar David Sacks. Conversely, it has faced sharp criticism from Democratic lawmakers, consumer rights groups, and Republican governors. Florida Governor Ron DeSantis described the order as an unacceptable subsidy to Big Tech and vowed to proceed with Florida's own AI Bill of Rights. Similarly, a coalition of 36 state attorneys general has rejected the order, signaling imminent legal battles over federalism and the Dormant Commerce Clause. States including California, Colorado, Texas, and Pennsylvania have signaled they may challenge the order in court to protect existing safety and transparency laws.