The Trump administration's plan to challenge state-level AI regulations is reportedly on hold. A leaked draft executive order indicated intentions to challenge state AI laws as unconstitutional, potentially conditioning federal funding on state compliance and deploying the Department of Justice to litigate against non-conforming states. The administration's stance aimed to establish a unified federal approach, preventing a patchwork of state laws that could hinder US competitiveness and increase compliance costs.
The draft order sought to block state AI laws, arguing they impose harmful burdens and undermine US competitiveness. It directed the creation of a DOJ AI litigation task force to challenge state AI laws regulating interstate commerce. The Commerce Department would review state AI laws conflicting with the administration's AI policy and refer them to the DOJ task force. This included laws requiring models to modify outputs based on what the administration terms 'woke' or compel disclosures violating First Amendment protections.
However, the proposal faced opposition, with concerns raised about potential harms caused by AI and the need to protect Americans. Some argued that a unified federal approach is necessary to protect U.S. competitiveness, prevent compliance costs from ballooning across fifty jurisdictions and keep pace with global rivals accelerating their own AI strategies.




