The Trump administration is reportedly preparing a sweeping executive order that would direct the Justice Department to sue states enacting their own AI regulations, as revealed by a draft document reviewed by Fox News Digital. The order aims to centralize AI regulation under federal authority, potentially overriding state laws and testing the limits of presidential power.
The six-page draft, marked as Deliberative / Predecisional / Draft, outlines a multiagency plan to consolidate control over the fast-moving AI sector. It includes directives for the Justice Department to create an AI Litigation Task Force within 30 days and for the Commerce Department to review state AI laws within 90 days, with the possibility of withholding federal broadband and infrastructure funds from non-compliant states. The document names California and Colorado as examples of states whose ‘fear-based’ AI regulations are seen as obstructing ‘America’s domination of this new frontier.’
This executive order follows a failed congressional effort earlier this year to block all state AI regulation through a broader tax and immigration bill. The proposal collapsed after pushback from Senate Republicans, who argued that oversight was needed to protect consumers and workers. Concerns about AI’s impact on jobs, children, and the energy grid have become central political issues, with Republicans championing state sovereignty. The administration’s recent legal actions against states for climate and policing laws further indicate a pattern of seeking to assert federal authority over state legislation.
If enacted, the order would mark one of the strongest federal efforts yet to override state authority on technology regulation. It also calls on the Federal Trade Commission and Federal Communications Commission to set nationwide rules for AI transparency, blocking states from enforcing their own, potentially stricter, regulations. The Special Advisor for AI and Crypto is directed to develop legislative proposals to make the federal framework permanent, as suggested by the draft. The Trump administration’s focus on energy and AI dominance underscores its broader economic and national security agenda.