The Trump administration is considering a sweeping executive order that would centralize artificial intelligence regulation at the federal level, potentially overriding state authority. A six-page internal draft, labeled as deliberative and predecisional, outlines a multi-agency plan to consolidate Washington’s control over the fast-evolving AI sector. The document, reviewed by Fox News Digital, suggests the Justice Department would be directed to sue states that enact their than, with the aim of preventing so-called ‘fear-based’ state laws that could hinder national dominance in AI.
The proposed order would establish an AI Litigation Task Force within 30 days, tasked with challenging state regulations. The Commerce Department would be required to assess state laws and withhold federal broadband and infrastructure funds from non-compliant states. Additionally, the Federal Trade Commission and Federal Communications Commission would be directed to set nationwide transparency rules for AI, blocking states from enforcing stricter versions. The draft specifically names California and Colorado as states whose regulations could undermine U.S. AI dominance.
This proposal follows a failed congressional effort to block state AI regulation through a broader tax and immigration bill, which collapsed after Senate Republican opposition. Concerns about AI’s impact on jobs, children, and the energy grid have become central political issues, with Republicans generally championing state sovereignty. The Trump administration has previously taken legal action against states over climate and policing laws, signaling a broader trend of federal overreach in regulatory matters.