Trump Targets State AI Rules with Sweeping Federal Order

Donald Trump Targets State AI Rules with Sweeping Federal Order

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 20, 2025

Key Takeaways

Donald Trump plans an executive order to block states like California from setting independent AI rules and centralize regulation federally;
The draft directs Attorney General Pam Bondi to form a team to challenge state AI laws and possibly cut federal funding for strict states;
The proposal aims to boost innovation by having the Commerce Department review broadband funding based on states’ AI policies.

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US President Donald Trump is preparing an executive order that would stop states like California from setting their own rules for artificial intelligence (AI).

According to a draft seen by Axios, the order would tell Attorney General Pam Bondi to form a federal team to review and challenge state AI laws. This team could also suggest limiting federal funding to states that pass rules deemed too restrictive.

The Federal Trade Commission would be asked to explain how existing consumer protection laws could take the place of new state regulations.

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David Sacks, who advises Trump on AI and cryptocurrency issues, would lead much of the follow-up work.

Trump has warned that state-level AI laws could slow progress and harm US leadership in technology. On Truth Social, he stated that local rules risk dividing the country’s AI policy and giving competitors an advantage. He wrote:

Some States are even trying to embed DEI ideology into AI models, producing 'Woke AI'.

The draft stated that American companies should be free to develop AI without "cumbersome regulation". It noted that state lawmakers have proposed more than a thousand AI-related bills, which could weaken innovation if they conflict with each other.

The Commerce Department would review within 90 days whether states’ AI rules affect their eligibility for broadband funding.

Sacks recently warned that the biggest threat posed by AI is a system that monitors citizens and shapes what they are allowed to see and hear. Why? Read the full story.