Trump Executive Order Limits Regulations on AI

Donald Trump signed an executive order this week aimed at limiting the ability of individual states to regulate artificial intelligence, directing the federal government to pursue a single national policy framework for A.I.

According to the order and administration statements, the goal is to reduce what the White House describes as a growing patchwork of state rules and to reinforce U.S. competitiveness in A.I. development and deployment.

Attorney General Directed to Challenge State Laws

The executive order grants the U.S. attorney general broad authority to pursue legal challenges against state A.I. laws that the administration views as conflicting with federal priorities. The order also directs the Commerce Department to evaluate existing state A.I. laws and identify those that should be referred for enforcement review.

Broadband and Other Federal Funding Put on the Table

In addition to litigation, the order signals that federal agencies may condition certain discretionary grant programs on states aligning with federal A.I. policy priorities. Reporting on the order indicates this could include withholding broadband-related funding and other federal grants from states that maintain targeted A.I. regulations.

For state and local leaders, the most immediate policy implication is that A.I. governance may become linked to infrastructure and broadband funding decisions, potentially raising the stakes for states that have recently enacted A.I. safety, transparency, or consumer protection requirements.

States Have Moved Quickly in the Absence of Federal A.I. Legislation

State lawmakers have adopted A.I. rules in response to the rapid spread of generative A.I. and related concerns, including deceptive content, election-related deepfakes, and consumer protection. The National Conference of State Legislatures reports that in 2025, all 50 states and U.S. territories introduced A.I.-related legislation, with 38 states adopting or enacting roughly 100 measures.

Legal Challenges Likely

The executive order is expected to face legal scrutiny, with critics arguing that Congress — not the executive branch — is typically required to establish broad preemption of state laws. Regardless of outcome, the order sets up a new phase of conflict between federal and state approaches to A.I. regulation, with potential implications for broadband grant administration and other funding programs.