Trump Administration Proposes Strong Federal Control Over AI Regulation
The Trump administration is actively preparing a sweeping executive order that would direct the Justice Department to sue states that attempt to regulate artificial intelligence, according to a leaked six-page draft document. This proposal aims to centralize AI regulation under federal authority, potentially overriding state laws and creating a nationally coordinated framework for AI oversight. The document outlines a multiagency approach to ensure Washington’s dominance over the rapidly evolving AI sector.
The proposal, titled ‘Eliminating State Law Obstruction of National AI Policy,’ marks a significant shift in favor of federal authority over AI regulation. It would empower the Justice Department to challenge state regulations, potentially leading to legal battles over state laws deemed to undermine national AI policies. The draft is marked ‘Deliberative / Predecisional / Draft,’ indicating it is still under discussion and not yet finalized. This label also means the document is exempt from public release under the Freedom of Information Act until a final decision is made.
According to the draft, the administration would direct the Justice Department to create an AI Litigation Task Force within 30 days to challenge states that pass their own AI rules. It also instructs the Commerce Department to review state AI laws within 90 days and allows the agency to withhold federal broadband and infrastructure funds from states that do not comply. California and Colorado are specifically named in the draft as examples of states whose ‘fear-based’ AI regulations are seen as obstructing ‘America’s domination of this new frontier.’
The proposal follows a failed congressional effort earlier this year to block all state AI regulation through a broader tax and immigration bill. That bill collapsed after pushback from Senate Republicans who argued for state oversight to protect consumers and workers. The Trump administration’s initiative could test the limits of presidential power by seeking to override state authority in AI regulation, raising questions about the balance of power between the federal government and state legislatures.
Concerns about AI’s impact on jobs, children, and the energy grid have become central political issues across party lines. Meanwhile, Republicans have traditionally championed state sovereignty, making the proposal’s endorsement of federal authority a notable departure from previous positions. The Trump administration has previously taken similar legal action against states over climate and policing laws, arguing that such regulations violate federal prerogatives.
The draft order 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, versions. The administration’s push for federal control over AI reflects its broader economic and national security agenda, with AI dominance positioned as a key pillar of the administration’s strategy. The Special Advisor for AI and Crypto is directed to develop legislative proposals to make the federal framework permanent, signaling the administration’s intention to institutionalize this regulatory approach long-term.