President Donald J. Trump signed an Executive Order this week aimed at creating a unified national policy framework for artificial intelligence (AI), addressing what the administration calls a patchwork of state regulations that threaten American innovation and competitiveness.
The Order directs multiple federal agencies to take steps ensuring AI companies are not subject to inconsistent or costly state mandates. Among the measures:
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The Attorney General will establish an AI Litigation Task Force to challenge state AI laws that are unconstitutional, preempted, or otherwise unlawful.
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The Secretary of Commerce will evaluate state AI laws conflicting with national policy priorities and may withhold Broadband Equity Access and Deployment (BEAD) funding from states with restrictive AI rules. Other agencies are encouraged to consider enforcement discretion or grant conditions tied to alignment with federal AI standards.
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The Federal Trade Commission and Federal Communications Commission will examine state requirements that could force companies to deceive consumers, including laws mandating ideological content such as DEI (diversity, equity, and inclusion) in AI models, and may adopt federal reporting and disclosure standards.
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The Order calls for the development of a national legislative framework to preempt restrictive state AI laws and promote innovation.
Trump and administration officials framed the Order as a decisive step to maintain American leadership in AI, arguing that over 1,000 different AI bills introduced by state legislatures have created a costly patchwork of rules and reporting requirements. States including California and Colorado, the administration says, have proposed regulations that would require AI companies to censor outputs or embed ideological content.
“Investment in AI is helping to make the U.S. economy the ‘HOTTEST’ in the world, but overregulation by the states is threatening to undermine this major growth engine,” President Trump said. “Some states are even trying to embed DEI ideology into AI models, producing ‘Woke AI.’ We MUST have one federal standard instead of a patchwork of 50 state regulatory regimes. If we don’t, then China will easily catch us in the AI race.”
The Executive Order builds on prior Trump administration AI initiatives, including a July 2025 executive order preventing federal use of AI models that contain ideological biases, and the Take It Down Act, signed in May 2025 to protect children from online deepfake exploitation.
The administration emphasized that the Order seeks to reduce compliance costs, eliminate unnecessary red tape, and clarify AI regulations, while protecting privacy, safety, and accuracy. Officials said it aims to ensure American AI companies can compete globally, protect national security, and maintain economic dominance in the rapidly evolving technology sector.
This action fulfills the Trump administration’s AI Action Plan, released in July 2025, which outlined steps to remove regulatory obstacles and strengthen U.S. leadership in AI.