President claims unified federal standard needed to maintain U.S. dominance in AI race, but critics warn move could harm consumers and children.
President Donald Trump announced Monday that he will sign an executive order this week establishing a single federal standard for artificial intelligence regulation, effectively blocking states from enforcing their own AI laws.
"There must be only One Rulebook if we are going to continue to lead in AI," Trump wrote in a Truth Social post. The president argued that having "50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS" would threaten America's competitive edge against other nations.
"You can't expect a company to get 50 Approvals every time they want to do something," Trump added, warning that "AI WILL BE DESTROYED IN ITS INFANCY!" without unified federal rules.
National Economic Council Director Kevin Hassett confirmed the administration's intentions in a CNBC interview. "There are some states that want to regulate these companies within an inch of their lives," Hassett said, adding that the executive order would "make it clear that there's one set of rules for American companies in the US."
How the Order Would Work
According to draft versions of the order reviewed by multiple news outlets, the administration plans a multi-pronged approach to override state regulations.
The draft executive order tasks the attorney general with establishing an "AI Litigation Task Force" within 30 days to challenge state AI laws on constitutional grounds. States that aren't in line with the executive order would have grant funds at risk, with federal agencies directed to assess whether states have enacted AI laws contrary to the administration's policy.
AI and crypto czar David Sacks would be given direct influence over AI policy under the order, working alongside the White House Office of Legislative Affairs to develop a legislative framework that preempts state law.
Bipartisan Pushback
The announcement has drawn opposition from an unusual coalition spanning both parties. Three prominent GOP governors (Arkansas's Sarah Huckabee Sanders, Utah's Spencer Cox, and Florida's Ron DeSantis) criticized the prospective order.
DeSantis has been particularly vocal, proposing his own "AI Bill of Rights" for Florida last week. "Is it an overreach to do a 10-year moratorium as a matter of policy and strip the states [of regulation ability]? Yes," DeSantis said at a press conference. "This is basically putting every state in handcuffs and not letting them do anything."
Representative Marjorie Taylor Greene (R-GA) also broke with the administration, posting on X: "States must retain the right to regulate and make laws on AI and anything else for the benefit of their state. Federalism must be preserved."
House Minority Leader Hakeem Jeffries (D-N.Y.) dismissed the effort, telling CNBC that the provision "doesn't appear to have a lot of support amongst Democrats and Republicans in the Congress."
Safety Concerns Mount
Consumer advocates and safety groups have raised alarms about removing state-level protections in an industry that has already been linked to serious harms.
"AI scams are exploding, children have died by suicide linked to harmful online systems, and psychologists are warning about AI-induced breakdowns," said J.B. Branch of the consumer protection nonprofit Public Citizen.
Sacha Haworth, Executive Director of The Tech Oversight Project, characterized the order as a giveaway to Silicon Valley. "We're in a fight to determine who will benefit from AI: Big Tech CEOs or the American people," Haworth said.
In the absence of broad federal legislation, some states have passed laws to address potentially risky and harmful uses of AI, such as the creation of misleading deepfakes and algorithmic discrimination in hiring.
Congressional Attempts Have Failed
The executive action comes after legislative efforts to block state AI regulation collapsed on Capitol Hill. Senator Ted Cruz (R-TX) introduced a proposal that would have placed a 10-year moratorium on AI legislation in the federal budget bill, but it was rejected 99-1 in a rare moment of bipartisan agreement.
Senator Mark Warner (D-VA) expressed concern that removing pressure from states would stall federal action. "If we take away the pressure from the states, Congress will never act," Warner said. "Let's look at the fact we never did anything on social media.”
The Stakes
The order represents the Trump administration's most aggressive move yet to shape AI policy, following a Silicon Valley-friendly AI action plan released in July. The forthcoming order marks the latest bid by Trump to put his imprint on policy for AI, a technology that is rapidly developing and seen increasing adoption by business, government and the public.
For tech industry leaders who have argued that navigating a patchwork of state regulations slows innovation, the order represents a significant victory. For consumer advocates and state lawmakers, it signals a troubling prioritization of corporate interests over public safety.
"Right now, state laws are our best defense against AI chatbots that have sexual conversations with kids and even encourage them to harm themselves, deepfake revenge porn and half-baked algorithms that make decisions about our employment and health care," said Evan Greer, Director of digital rights group Fight for the Future.
The order is expected to be signed later this week, though it will almost certainly face immediate legal challenges.
