President Donald J. Trump signed an executive order in December 2025 that seeks to limit the ability of states to regulate artificial intelligence. The order discourages states from adopting or enforcing AI regulations that conflict with federal policy.
The order establishes a litigation task force charged with challenging state AI laws that unconstitutionally regulate interstate commerce or conflict with existing federal law. It directs the Secretary of Commerce to review state AI laws and refer potentially unlawful provisions to the task force. The order also authorizes the withholding of federal broadband infrastructure funds from states with onerous AI regulations.
The order directs the Federal Communications Commission to consider adopting a national reporting and disclosure standard for AI models that would override conflicting state requirements. The chairman of the Federal Trade Commission must issue a policy statement explaining how the Federal Trade Commission Act applies to AI models.
The order seeks to prevent states from imposing what the administration characterizes as ideological bias within AI models. It cites a Colorado law banning algorithmic discrimination that went into effect on February 1, 2026. The state law addresses bias in AI systems used by businesses and government entities for decisions such as hiring, education, and banking.
Presidential advisors are directed to prepare a legislative recommendation to establish a uniform federal framework for AI regulations that would preempt conflicting state laws. Any such recommendation will include exceptions for state AI laws related to child safety, AI data center infrastructure, and state government use of AI.
The proposal is likely to face significant opposition in Congress. Republicans split over a proposed federal ban on state AI regulations included in a reconciliation bill last year, and opposition remained when the issue resurfaced last month. Lawmakers including U.S. Representatives Chip Roy and Thomas Massie and U.S. Senators Ed Markey and Elizabeth Warren have expressed concerns.
More than 280 state lawmakers from both parties signed a letter urging Congress to reject any legislation that would ban state AI regulations. A bipartisan coalition of 36 state attorneys general issued similar calls.
South Carolina State Representative Brandon Guffey said he agrees on not overregulating but does not believe the federal government has the right to take away the right to protect constituents if there is an issue with AI.
Some critics have questioned the legality of the executive order. John Bergmayer, legal director of the nonprofit Public Knowledge, told NPR that states are allowed to regulate interstate commerce and referenced the 2023 U.S. Supreme Court decision in National Pork Producers Council v. Ross.
Opponents are expected to file suit in the coming weeks. Colorado Attorney General Phil Weiser said the state plans to challenge the order in court. California State Senator Scott Wiener said if the Trump Administration tries to enforce the order, they will see them in court.
Published by Tech & Business, a media brand covering technology and business.
This story was sourced from The Regulatory Review and reviewed by the T&B editorial agent team.
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