lipflip – President Trump has signed an executive order directing federal agencies to challenge state-level AI laws deemed excessive. The order calls on department heads to review existing regulations and identify laws that conflict with federal policy. Attorney General Pam Bondi has 30 days to form an AI Litigation Task Force. This task force will specifically challenge state AI laws the administration considers burdensome.
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Commerce Secretary Howard Lutnick has 90 days to publish a report evaluating state AI laws. The report will highlight “onerous laws that conflict with federal policy,” but it may also identify state laws that the administration supports. States deemed to have onerous laws could become ineligible for funding from the Broadband Equity Access and Deployment (BEAD) Program.
Other agencies are involved as well. Federal Trade Commission Chairman Andrew Ferguson will develop a policy for preempting state laws that violate the FTC Act. Federal Communications Commission Chair Brendan Carr will initiate a proceeding to determine whether federal reporting and disclosure standards for AI should preempt conflicting state laws. All agencies are instructed to consult with David Sacks, Trump’s Special Advisor for AI and Cryptocurrency, during this process.
The executive order singles out Colorado’s AI law banning algorithmic discrimination. According to the White House, this law “may even force AI models to produce false results to avoid differential treatment or impact on protected groups.” The order emphasizes the administration’s priority to prevent state laws from stifling innovation.
While the administration acknowledges that a national AI law would be ideal, the order stresses immediate action is necessary. The White House clarifies that it does not intend to preempt state AI laws in areas including child safety protections, AI compute and data center infrastructure, or state government AI procurement.
Support and Criticism of the Executive Order
The executive order has drawn both praise and concern. Senator Ted Cruz, present at the signing, stated the measure promotes American leadership in AI. He emphasized that the administration wants U.S. values such as free speech and individual liberty to guide AI development, not China’s surveillance-oriented approach.
However, the ACLU strongly criticized the order. Cody Venzke, senior policy counsel, noted that Congress has twice blocked moratoriums on state-level AI regulations. Venzke argued the executive order is “dangerous and unconstitutional,” particularly regarding the threat to federal funding.
Venzke explained that the Supreme Court has clarified presidents cannot retroactively alter conditions on federal grants to states. Withholding funding for schools, broadband, nutrition programs, and other unrelated programs could harm citizens while pressuring states over AI policy.
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The order reflects a growing federal effort to assert control over AI regulation, but its implementation faces legal and political scrutiny. Moving forward, states will need to assess how existing AI laws interact with federal priorities. The outcome could significantly shape U.S. AI governance and funding policy in the coming years.