President Donald Trump on Thursday signed an executive order aimed at curbing what he described as an increasingly confusing array of state-level rules on artificial intelligence, escalating a long-running dispute between the tech industry and state regulators. The order marks a significant victory for technology companies and their allies, who have spent months warning that a patchwork of AI laws could slow innovation and undermine U.S. competitiveness.
The directive calls for a “minimally burdensome” federal approach to regulating AI and signals the administration’s willingness to challenge stringent state laws through litigation and the withholding of certain federal funds. According to the order, until Congress establishes a national AI framework, the administration will try to limit what it sees as overly restrictive state efforts.
At the signing ceremony, Trump framed the initiative as central to the United States’ ability to outpace China in AI development. Calling AI “really the biggest industry that anybody’s seen,” he argued that the country must act in a unified manner. “China is unified,” he added, warning that fragmented domestic rules could hinder national competitiveness. He was joined by senior administration officials and Senator Ted Cruz of Texas, who chairs the Senate Commerce Committee and has been a leading advocate for a light-touch regulatory approach.
Under the order, Attorney General Pam Bondi is instructed to assemble an AI litigation task force to challenge state regulations on interstate commerce grounds. Commerce Secretary Howard Lutnick is directed to review state AI rules, flag those deemed too stringent, and publish an assessment of their impact. Lutnick is also given authority to withhold certain federal broadband funds from states that maintain regulations the administration views as excessively burdensome.
The structure of the order closely resembles a draft circulated in November during an unsuccessful push for federal legislation that would have pre-empted state AI regulations. Other drafts, according to administration officials, had explored themes such as human flourishing and concerns about so-called “woke” AI, but the White House ultimately settled on an approach centered on federal supremacy and economic competitiveness.
David Sacks, Trump’s AI and crypto czar, reiterated the administration’s belief that 50 different state regimes are unworkable. “We’ve got 50 states running in 50 different directions. It just doesn’t make sense,” he said, arguing that the U.S. is “creating a confusing patchwork of regulation” and needs “a single federal standard.” Sacks said the White House intends to work with Congress on such a standard, as outlined in the order.
Cruz, who will be a key figure in any legislative effort, praised the move, saying Trump had taken “an important step” to bolster American leadership in AI. He warned against allowing China’s “values of surveillance and communist control” to influence global AI norms and advocated for what he described as American values: “free speech, individual liberty, and respect for the individual.” He echoed those points both online and at the ceremony.
Supporters of the administration’s approach say the order clarifies the federal government’s role in overseeing technologies that operate across state and national boundaries. Neil Chilson, head of AI policy at the Abundance Institute, said the order “properly acknowledges” that while states have a role in addressing specific harms, the federal government must “safeguard national priorities in technologies that operate at global scale.” He called the order a “meaningful step toward clarity and coherence,” but argued that Congress must “finish the job.”
But AI safety advocates and several state-focused policy groups sharply criticized Trump’s directive, calling it an overreach designed to satisfy industry interests. Brendan Steinhauser, CEO of the Alliance for Secure AI, argued that the order “violates the very principles of federalism,” punishes what he views as responsible state-level innovation, and threatens states’ ability to govern technology within their borders. He accused Sacks and his allies of “silencing local authority through fear and manipulation” and warned that the order could undermine America’s long-term AI security and competitiveness.
The executive order is expected to intensify tensions among federal officials, state policymakers, and technology companies as they negotiate the future of AI oversight. With Congress yet to agree on national legislation, the battle over who governs AI—and how—now appears poised to shift decisively into the courts.
