President Donald Trump signed an executive order establishing a federal task force to challenge state artificial intelligence laws he says threaten innovation, and creating conditions that could strip funding from states with “onerous” AI regulations.
The order, published on December 11, directs the Attorney General to create an AI Litigation Task Force within 30 days to sue states over laws the administration deems hostile to AI development.
The move escalates tensions between federal and state governments over who controls AI regulation. Trump argues state-by-state rules create a patchwork that burdens companies, especially startups.
“State laws are increasingly responsible for requiring entities to embed ideological bias within models,” the order states.
It singles out Colorado’s algorithmic discrimination law, claiming it “may even force AI models to produce false results in order to avoid a ‘differential treatment or impact’ on protected groups.”
The Commerce Secretary must evaluate existing state AI laws within 90 days. States with regulations deemed burdensome could lose eligibility for federal broadband funding.
The order targets laws requiring AI models to alter truthful outputs or compelling disclosure that might violate the First Amendment. Agency heads must also evaluate whether to make discretionary grants conditional on states agreeing not to enforce any state AI laws that conflict with federal policy.
Trump frames the issue as essential to maintaining U.S. dominance over adversaries in AI development.
“To win, United States AI companies must be free to innovate without cumbersome regulation,” the order states.
The chairs of the Federal Trade Commission and Federal Communications Commission must explore federal standards that would preempt state laws. The FTC will issue guidance on when state requirements for AI outputs constitute deceptive practices under federal law.
Trump’s AI advisors will draft legislation establishing a uniform federal framework. The proposal would preserve state authority over child safety protections, AI infrastructure, and government procurement of AI.
The order follows Trump’s January executive action removing barriers to AI development. His administration claims those efforts have already generated “trillions of dollars of investments across the country.”
