The Trump administration is preparing a sweeping executive order that would direct the Justice Department to sue states that enact their own artificial intelligence regulations, according to a draft reviewed by Fox News Digital. The six-page document, titled "Eliminating State Law Obstruction of National AI Policy," is marked as "Deliberative / Predecisional / Draft," indicating it is part of ongoing policy discussions and exempt from public release under the Freedom of Information Act until a final decision is made.
The draft outlines a multiagency plan to centralize AI regulation under federal authority, emphasizing Washington’s control over the technology sector. It directs the Justice Department to create an AI Litigation Task Force within 30 days to challenge states that pass their own AI rules, while also instructing the Commerce Department to review state AI laws within 90 days and potentially withhold federal broadband and infrastructure funds from non-compliant states. This represents a significant escalation in the administration’s effort to centralize regulation, marking one of the strongest federal interventions yet in this area.
According to the document, states such as California and Colorado are specifically named as examples of jurisdictions whose "fear-based" AI regulations are seen as obstructing "America’s domination of this new frontier." The order calls on the Federal Trade Commission and Federal Communications Commission to set nationwide rules for AI transparency, preempting states from enforcing their own, potentially stricter, versions. The Special Advisor for AI and Crypto is directed to develop legislative proposals to make the federal framework permanent, ensuring long-term federal oversight.
The proposal follows a failed congressional effort earlier this year to block all state AI regulation through a broader tax and immigration bill, which collapsed after pushback from Senate Republicans who argued that oversight was necessary to protect consumers and workers. Concerns about AI’s impact on jobs, children, and the energy grid have become central political issues across party lines, with Republicans traditionally championing state sovereignty in such matters. This endorsement of federal authority marks a notable departure from that stance.
Additionally, the Trump administration has recently taken similar legal action against several states over climate and policing laws, arguing that these measures violate federal prerogatives. If enacted, the AI order would test the limits of presidential power by asserting federal control over a critical technology sector, potentially reshaping the regulatory landscape for years to come.