Trump Seizes Control Over AI Regulation: States Lose Power as Washington Expands Its Authority

President Donald Trump on Thursday signed a sweeping executive order at the White House that dramatically reshapes how artificial intelligence will be regulated across the United States. The new directive effectively strips individual states of the ability to enact their own AI laws and instead centralizes regulatory authority under the federal government. Washington will now be able to use lawsuits, financial pressure, and the leverage of federal grants to enforce a unified national approach. During the signing ceremony in the Oval Office, Trump said that businesses cannot operate in an environment where they must seek approval from dozens of state governments:

“When companies need approval, there must be one central authority,” he said. “They can’t go to California, New York, and all sorts of different places.”

Federal Government to Challenge State-Level AI Legislation The order instructs U.S. Attorney General Pamela Bondi to establish a special litigation task force focused on AI-related disputes. This group will: challenge state AI laws that diverge from federal strategyfile lawsuits against states whose rules conflict with the administration’s prioritiesuse federal courts to block enforcement of those laws Within 90 days, the Secretary of Commerce must produce a comprehensive review of existing state AI laws, identifying which are too restrictive or in conflict with federal policy. The secretary must also publish guidelines outlining the conditions states must meet to remain eligible for funding from the Broadband Equity, Access, and Deployment Program. In practice, this means that broadband infrastructure money will flow only to states that align with federal AI priorities. Federal agencies will also gain new leverage through the grant system. Grants may now be conditioned on states avoiding restrictive or conflicting AI legislation. This gives federal agencies a way to pressure states without requiring Congress to pass new laws.

David Sacks and Tech Giants Helped Drive the Strategy The directive was largely shaped by David Sacks, Trump’s White House AI and crypto adviser. According to sources, Sacks spent months pushing the initiative, backed by heavy lobbying from major AI players including OpenAI, Google, and Andreessen Horowitz. Industry leaders have repeatedly warned that the rapid expansion of state-level AI laws: burdens companies with excessive compliance,slows innovation,and threatens U.S. competitiveness against China. Nvidia CEO Jensen Huang was among the most vocal critics of fragmented regulation. Trump said he discussed the directive with several technology executives, including Apple CEO Tim Cook during Cook’s visit to Washington earlier this week.

“Companies won’t be able to move forward,” Trump said, “unless approval comes from a single decision-making body.”

Congress Deadlocked as the White House Moves Ahead With Its Own Framework The executive order follows failed attempts by Trump officials and Republican lawmakers to insert similar language into the annual defense bill. In July, the Senate overwhelmingly rejected a standalone proposal to halt state AI laws — the vote was 99 to 1 — leaving no federal statute governing artificial intelligence and allowing states to act on their own. Trump’s directive states that the administration must work with Congress to create “a minimally burdensome national standard — not 50 conflicting state standards.” White House AI adviser David Sacks and the president’s chief science and technology adviser have been tasked with drafting legislation for a unified federal AI framework. Treasury Secretary Scott Bessent, who attended the signing, summarized the stakes:

“It comes down to this — either we succeed, or China does,” he said. “We have a lead, and we have to keep it.”

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