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Trump’s AI Order Moves to Preempt State Rules With Lawsuits, Funding Conditions and Tight Deadlines

Businesses are told to keep following state rules pending federal actions.

Overview

  • The Attorney General must create an AI Litigation Task Force within 30 days to challenge state statutes deemed inconsistent with a "minimally burdensome" national policy or otherwise unlawful.
  • The Commerce Department is directed to publish by March 11, 2026 an evaluation identifying "onerous" state AI laws and referring targets for DOJ action.
  • States flagged by Commerce could lose access to certain BEAD non-deployment funds under a forthcoming notice, and agencies will examine conditioning other discretionary grants.
  • Following Commerce’s report, the FCC will open a proceeding on a federal AI reporting and disclosure standard, while the FTC must issue a policy statement on how the FTC Act applies to AI models.
  • The order does not invalidate existing state AI laws, with states preparing federalism and Spending Clause challenges and employers advised to maintain compliance and bolster AI governance and documentation.