Particle.news
Download on the App Store

Trump Orders Federal Push to Curb State AI Rules, Creating DOJ Task Force and Tying Funds to Compliance

The directive leverages lawsuits alongside federal grants to pressure states toward a single national framework.

Overview

  • Signed Dec. 11, the executive order instructs the Justice Department to form an AI Litigation Task Force to challenge state laws viewed as conflicting with a minimally burdensome national policy.
  • The Commerce Department has 90 days to publicly identify state AI laws it deems onerous, a list that legal analysts expect to include Colorado’s AI Act and California’s ADMT rules.
  • States flagged as noncompliant could lose eligibility for remaining Broadband Equity, Access and Deployment funds, and agencies will examine conditioning other discretionary grants on nonenforcement of conflicting laws.
  • The FCC must consider a federal reporting and disclosure standard that would override conflicting state requirements, and the FTC will outline when state mandates to alter truthful model outputs are preempted as deceptive practices.
  • The order does not itself nullify state laws, and observers expect court challenges over preemption and funding conditions as companies continue complying with existing state regimes across 38 states that enacted AI measures in 2025.