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White House Drafts Order to Undercut State AI Laws as Trump Presses for One Federal Standard

A draft order would trigger lawsuits against state AI rules, putting some federal grants at risk.

Overview

  • A draft executive order seen by Axios would create an AI Litigation Task Force within 30 days to challenge state AI laws, including on interstate commerce grounds.
  • The proposal directs agencies to flag conflicting state rules, asks the FCC to consider a federal reporting standard that preempts state disclosures, and instructs the FTC to issue an AI policy statement.
  • Commerce would set eligibility conditions for remaining BEAD broadband funds, and agencies would review grant programs to identify states whose AI statutes conflict with federal priorities.
  • Trump publicly urged Congress to impose a single national framework via the NDAA or a standalone bill, as House leaders weigh inserting preemption language into the must-pass defense package.
  • Republicans are split, with DeSantis, Blackburn and Hawley resisting broad preemption and Cruz and Scalise backing it, while leaders like Sen. John Thune call for preserving some state role after a prior moratorium was rejected 99-1 in the Senate.