The Trump administration is considering a draft executive order that would restrict states from enforcing their own artificial intelligence regulations, aiming instead to create a unified national framework for AI oversight, according to The Associated Press.
The proposal would direct federal agencies, including the Department of Justice, to review state AI laws and identify those that impose what the administration considers “excessive burdens” on companies, according to a Bloomberg Law commentary. Officials could pressure states to roll back those laws through legal challenges or through federal funding limitations.
Four states — California, Colorado, Texas and Utah — have recently enacted laws requiring companies to evaluate risks such as discrimination when using AI in areas like hiring, providing housing, lending money and health care. These laws also require greater transparency from AI developers about how their systems work, which could hurt these private companies. Supporters of state legislation argue these protections are necessary as AI systems increasingly influence high stakes decisions, according to The Associated Press.
Some supporters of the draft executive order argue that AI technology is national and global and therefore should not be governed by a patchwork of conflicting state rules. The Bloomberg Law commentary defending the draft order argues that “a state law ends at its borders,” and that states should not attempt to regulate technologies whose impacts cross state line.
According to the commentary, industry groups have also warned that uneven state requirements make compliance more costly for companies and could slow U.S. innovation.
According to The Associated Press, critics from both political parties warn that the proposal risks weakening critical consumer protections. Civil rights organizations and lawmakers emphasize that state laws are currently the strongest safeguards against bias and harmful outcomes from AI systems.
credit: Bloomberg – https://news.bloomberglaw.com/legal-exchange-insights-and-commentary/trumps-draft-ai-order-would-keep-states-in-their-proper-lanes
The Bloomberg Law commentary frames the issue as a constitutional one, arguing that the federal government has long been responsible for regulating technologies and activities that affect interstate commerce. According to this view, the federal government not only has the authority but the obligation to challenge state laws that attempt to regulate beyond their jurisdiction.
The draft order is still being reviewed and may not be finalized soon. According to The Associated Press, internal discussions have slowed due to legal concerns and the political sensitivity of overriding state authority.
Congress is considering a different attempt to replace state control over AI in the meantime. Republican lawmakers are trying to include a stop on the enforcement of the state AI laws through the 2026 National Defense Authorization Act, according to State Scoop reporting. This act would temporarily halt state level regulations and make it more difficult to determine who is ultimately in charge of AI oversight in the US.