Trump Orders Federal Preemption of State AI Laws to Ensure National Dominance

President Donald J. Trump signed an executive order on December 11, 2025, designed to eliminate state-level regulations that the administration claims obstruct national artificial intelligence policy. The directive aims to establish a single, minimally burdensome federal standard to ensure U.S. dominance in the global AI race. By centralizing oversight, the White House seeks to prevent a patchwork of 50 different state regimes from stifling innovation and investment in the White House executive action. A new AI Litigation Task Force will be formed within the Department of Justice to challenge state laws that conflict with federal objectives. This task force is specifically authorized to sue states over regulations that unconstitutionally regulate interstate commerce or violate the First Amendment. The administration argues that certain state mandates, such as the Colorado AI Act, force developers to embed ideological bias or produce false results to satisfy diversity metrics.

The order introduces significant financial consequences for states that maintain onerous AI regulations by targeting federal broadband funding. The Secretary of Commerce is directed to condition remaining Broadband Equity Access and Deployment funds on the removal of restrictive state AI policies. This move effectively leverages billions in infrastructure grants to pressure state governments into aligning with the new federal deregulatory framework.

Federal agencies including the FCC and FTC are directed to create new standards that preempt conflicting state rules regarding model reporting and disclosure. The FTC will specifically address state laws that require alterations to AI outputs, framing such mandates as potential deceptive acts under federal law. These agency actions are intended to provide an immediate check on state power while the administration seeks permanent legislative solutions.

Beyond immediate executive action, the order calls for the preparation of a legislative recommendation to establish a uniform federal AI policy. This proposed legislation would solidify the preemption of state laws while maintaining specific protections for child safety and intellectual property. The ultimate goal is to create a predictable environment where American AI companies can innovate without the threat of fragmented local oversight.