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Trump Eyes Executive Order to Bypass State AI Regulations

Artificial Intelligence AI Regulation Executive Order State Laws Trump Administration Broadband Funding Digital Safety Act
November 19, 2025
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Federal Foot Forward
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Article Summary

President Donald Trump is moving swiftly to assert federal control over artificial intelligence, initiating a strategy aimed at dismantling state-level regulations. A draft executive order, expected to be signed as soon as Friday, establishes an ‘AI Litigation Task Force’ overseen by the Attorney General, tasked with challenging state laws obstructing AI growth. This Task Force would have the authority to sue states over regulations concerning California’s AI safety measures and Colorado’s algorithmic discrimination prohibitions. The plan is part of a broader ‘AI Action Plan’ already underway, leveraging agencies like the FCC to bypass “onerous” regulations. The core of the initiative involves a 90-day roadmap for agencies to implement the plan, culminating in the Secretary of Commerce identifying violating states and assessing eligibility for the Broadband Equity Access and Deployment (BEAD) program – a key funding source for rural broadband. Furthermore, the Federal Trade Commission (FTC) will assess violations related to AI company algorithms and potential FCC regulatory overreach. This approach faces significant legal challenges, but the potential for withholding broadband funding represents a powerful pressure tactic, mirroring previous moratorium attempts. The strategy is primarily a backup plan should Congress fail to pass a moratorium, possibly via the upcoming National Defense Authorization Act, and echoes previous struggles to secure a moratorium through the ‘Big, Beautiful Bill’ budget. The scale of the BEAD program makes California, in particular, a key target.

Key Points

  • Trump is preparing an executive order to unilaterally regulate AI, bypassing state laws.
  • The ‘AI Litigation Task Force’ will have the power to sue states over AI regulations and potentially withhold federal funding.
  • This initiative leverages existing federal agency powers and aims to utilize the BEAD program funding as a pressure point.

Why It Matters

This news represents a significant escalation in the federal government’s approach to AI regulation. The move underscores a deep distrust of state-level oversight and signals a willingness to use significant financial leverage – specifically, the withholding of crucial federal funding – to shape the landscape of AI development. This has broader implications for the future of AI policy, potentially leading to a fragmented regulatory environment and a protracted legal battle. It's of particular importance to tech companies, policymakers, and legal professionals, given the potential impact on innovation, investment, and the very definition of how AI is developed and deployed.

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