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President Donald Trump on Thursday signed a sweeping executive order at the White House that dramatically reshapes how artificial intelligence will be regulated across the United States. The new directive effectively strips individual states of the ability to enact their own AI laws and instead centralizes regulatory authority under the federal government. Washington will now be able to use lawsuits, financial pressure, and the leverage of federal grants to enforce a unified national approach.
During the signing ceremony in the Oval Office, Trump said that businesses cannot operate in an environment where they must seek approval from dozens of state governments:

“When companies need approval, there must be one central authority,” he said. “They can’t go to California, New York, and all sorts of different places.”

Federal Government to Challenge State-Level AI Legislation
The order instructs U.S. Attorney General Pamela Bondi to establish a special litigation task force focused on AI-related disputes. This group will:
challenge state AI laws that diverge from federal strategyfile lawsuits against states whose rules conflict with the administration’s prioritiesuse federal courts to block enforcement of those laws
Within 90 days, the Secretary of Commerce must produce a comprehensive review of existing state AI laws, identifying which are too restrictive or in conflict with federal policy.
The secretary must also publish guidelines outlining the conditions states must meet to remain eligible for funding from the Broadband Equity, Access, and Deployment Program. In practice, this means that broadband infrastructure money will flow only to states that align with federal AI priorities.
Federal agencies will also gain new leverage through the grant system. Grants may now be conditioned on states avoiding restrictive or conflicting AI legislation. This gives federal agencies a way to pressure states without requiring Congress to pass new laws.

David Sacks and Tech Giants Helped Drive the Strategy
The directive was largely shaped by David Sacks, Trump’s White House AI and crypto adviser. According to sources, Sacks spent months pushing the initiative, backed by heavy lobbying from major AI players including OpenAI, Google, and Andreessen Horowitz.
Industry leaders have repeatedly warned that the rapid expansion of state-level AI laws:
burdens companies with excessive compliance,slows innovation,and threatens U.S. competitiveness against China.
Nvidia CEO Jensen Huang was among the most vocal critics of fragmented regulation.
Trump said he discussed the directive with several technology executives, including Apple CEO Tim Cook during Cook’s visit to Washington earlier this week.

“Companies won’t be able to move forward,” Trump said, “unless approval comes from a single decision-making body.”

Congress Deadlocked as the White House Moves Ahead With Its Own Framework
The executive order follows failed attempts by Trump officials and Republican lawmakers to insert similar language into the annual defense bill. In July, the Senate overwhelmingly rejected a standalone proposal to halt state AI laws — the vote was 99 to 1 — leaving no federal statute governing artificial intelligence and allowing states to act on their own.
Trump’s directive states that the administration must work with Congress to create “a minimally burdensome national standard — not 50 conflicting state standards.”
White House AI adviser David Sacks and the president’s chief science and technology adviser have been tasked with drafting legislation for a unified federal AI framework.
Treasury Secretary Scott Bessent, who attended the signing, summarized the stakes:

“It comes down to this — either we succeed, or China does,” he said. “We have a lead, and we have to keep it.”

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in direct conflict with several states that created their own rules for artificial intelligence. The order tells the Justice Department to challenge state laws that the federal agencies believe may block or interfere with national AI plans. It also creates a new group inside the Justice Department called the AI Litigation Task Force. This group will look at state rules and decide which ones should be taken to court.
One of the first state laws that the order points to is the new Colorado rule known as the algorithmic discrimination law. This law aims to prevent unfair treatment that might come from the use of automated systems. The federal government says that this new Colorado rule might get in the way of a single national approach to AI. The order notes that other state laws could also be reviewed soon. The federal government seems to believe that too many different rules across the country could slow down AI work and create confusion for companies and developers.
The executive order says that federal agencies must look at every state rule that deals with AI and decide if those rules fit with what the national policy wants. If any state rules do not match the national plan the agencies are told to think about funding limits. This means that states might lose certain federal funds if they keep rules that the federal government says go against national goals for AI use. The order also says that agencies have to work together and share what they find as they study these state rules.
The federal government argues that AI is a fast growing field and that it touches many parts of life from health to transport to education. Because of this the administration says that only a national standard can make sure that AI is safe fair and useful. They say that a long list of different state laws could break the flow of business between states and could create problems for people or groups who work with AI systems in more than one state.
Supporters of the order say that the country needs one clear path so that builders and users of AI can trust the rules. They say that one strong national standard will help new projects grow without fear of facing different limits after crossing a state line. They also say that a single approach can help make sure that AI tools are tested and checked in a fair way.
People who support strict state rules say that local leaders understand the risks that affect their people and that states should have the right to protect them. They warn that removing state rules could leave gaps where people might not have protection from harm caused by AI tools. They say that the federal plan must still give room for states to act when needed.
This executive order marks the start of what could be a long debate. The question is how much power each state should have when it comes to AI laws. The answer will shape how AI grows in the country and how people are kept safe as these new tools become part of daily life.
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