The White House is considering an executive order that would push back against state-level AI laws. This move comes after President Trump voiced support for a unified federal approach to AI regulation. According to a draft obtained by sources, the order would involve legal actions and tie federal funding to compliance.
This step highlights the administration’s push to streamline AI policies across the country. David Sacks, the AI and crypto advisor, plays a key role in overseeing agency efforts outlined in the draft. However, the document is still changing, and any final version might differ. Experts note that an executive order lacks the full force of law and could invite court challenges.
The proposed order, titled “Eliminating State Law Obstruction of National AI Policy,” directs agencies to promote a light-touch national framework over varied state rules. the Attorney General would form an AI Litigation Task Force within 30 days to contest state laws, arguing they interfere with interstate commerce or violate free speech by forcing disclosures from AI companies.
Other agencies get specific assignments. The FCC chair, Brendan Carr, must start a process within 90 days to create federal standards for AI reporting that overrides conflicting state ones. FTC chair Andrew Ferguson would release guidance on how consumer protection laws apply to AI. Sacks and legislative affairs staff would draft proposals for Congress on a preemptive federal AI law.
States ignoring the order could lose out on federal grants. The Commerce Secretary would set conditions for broadband expansion funds, and all agencies would review their programs to penalize non-compliant states.
A White House spokesperson said discussions about potential orders remain speculative until announced.
On Capitol Hill, Republicans are trying to add similar provisions to the defense bill before year-end, though past efforts failed. Senate Majority Leader John Thune mentioned that lawmakers are balancing state interests with national needs. He added that Trump’s input will carry significant weight.
The plan has sparked debate among Republicans. Figures like Florida Governor Ron DeSantis, Arkansas Governor Sarah Huckabee Sanders, and commentator Mike Davis criticize it as favoring big tech firms. Ultimately, the White House cannot outright nullify state laws, but it can guide agencies, spur lawsuits, and influence legislation.
This development underscores growing tensions over AI governance as the U.S. seeks to lead globally while avoiding regulatory hurdles.
