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Trump administration may use federal agencies to fight state-level AI regulation

Tech Wavo by Tech Wavo
November 20, 2025
in Computers
0


The Trump administration has drafted an executive order that would effectively block states from enacting their own AI regulations. According to a draft document obtained by , the effort would entail a multifaceted approach including an “AI Litigation Task Force” run by the DOJ.

This indicates the president has not wavered in his desire to eschew federalism in favor of a more centralized power structure around artificial intelligence. This past summer, the administration released its , which, , recommends that the “Federal government should not allow AI-related Federal funding to be directed toward states with burdensome AI regulations.”

While it also adds that the government should “not interfere with states’ rights to pass prudent laws that are not unduly restrictive to innovation,” this runs counter to some actions coming from the White House. Senator Ted Cruz, at the behest of the president, tried to add a 10-year moratorium on states’ AI regulation to the President’s One Big Beautiful Bill Act passed this summer. This amendment was ultimately voted down by the Senate 99-1.

The issue is heating up again as the president to say that “overregulation by the States” would undermine the US economy and lead to “Woke AI.” Congresswoman Marjorie Taylor Greene that no such moratorium should be put in place, and said states rights and federalism must be preserved.

Politico reports that the administration is likely to try and insert a regulation moratorium again in the year-end annual defense bill. The administration seems convinced that a patchwork of varying regulations around the country would prove too onerous in the race for global AI dominance, and seeks to use every lever of federal power to prevent one.

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