Trump Moves to Override State AI Regs With One Federal Order

President Trump has announced he'll sign an executive order this week to establish a single federal policy on artificial intelligence, effectively overriding state-level regulations. "You can't expect a company to get 50 approvals every time they want to do something," Trump wrote on social media, referencing the challenges posed by a patchwork of state laws. "There must be only One Rulebook." A draft of the order reviewed by Bloomberg Government would empower the Department of Justice to file complaints against states over AI rules thought to be unconstitutional and threaten to withhold funding from states with regulations deemed overly restrictive.

The move is seen as a win for AI industry leaders, who've criticized state-by-state regulation as a barrier to innovation and operational efficiency. The rapid expansion of AI has led many states to introduce their own safeguards in the absence of a unified federal framework, aiming to protect residents from potential risks associated with the technology. Speaking on CNBC, National Economic Council Director Kevin Hassett said the order would clarify that there is "one set of rules for American companies in the US."

Trump's approach has spurred criticism from some GOP governors, including Ron DeSantis of Florida and Sarah Huckabee Sanders of Arkansas. Legal challenges are expected if the order is implemented. "The president cannot preempt state laws through an executive order, full stop," the Center for Democracy and Technology's Travis Hall tells the New York Times. "Preemption is a question for Congress, which they have considered and rejected, and should continue to reject."

The executive order is part of a larger strategy by the Trump administration to maintain US leadership in AI, particularly in competition with China, per Bloomberg. Trump has previously signed orders to support AI infrastructure and facilitate data center construction, and he's tried to ease the export process for US firms. Recent initiatives also include the "Genesis Mission," aimed at improving coordination of government research and integrating AI tools to drive scientific progress.