What just happened? President Trump signed an executive order Thursday granting the US attorney general broad authority to challenge state laws regulating artificial intelligence, setting the stage for a confrontation between Washington and state governments over control of the technology. The order directs the Justice Department to overturn any state law deemed inconsistent with what the White House calls the United States' global AI dominance. It also instructs federal regulators to withhold infrastructure funding – including for broadband projects – from states that refuse to rescind such laws.

The administration argues that a unified national policy will eliminate what Trump described as a confusing patchwork of state rules that stifle innovation and jeopardize America's lead over China in AI development.

Trump said during the signing that federal policy should come from one source. The administration has positioned this order as the next step in a broader effort to expand the artificial intelligence industry by easing regulatory barriers and facilitating infrastructure for computing power. That campaign has included earlier orders to expand access to federal data, accelerate chip production for AI workloads, and smooth export restrictions on advanced processors.

The new mandate immediately drew backlash from state governments and advocacy groups. They argue that the president lacks constitutional authority to nullify state measures without congressional action.

Legal experts predicted swift court challenges because the order oversteps executive power and circumvents federalism principles. The controversy comes as nearly every US state has advanced some form of AI regulation this year, ranging from consumer protection and transparency mandates to restrictions on deepfake political ads.

The order is likely to face court challenges on the grounds that only Congress can override state laws

According to the National Conference of State Legislatures, lawmakers in all 50 states and territories introduced AI-related bills in 2025, and 38 adopted about 100 measures collectively. California enacted rules requiring major generative AI developers, such as OpenAI and Google, to conduct safety tests on their largest models and publicly release the results. South Dakota restricted the use of synthetic videos in election advertising, while Utah, Illinois, and Nevada adopted laws requiring chatbot disclosure and protecting mental health data.

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The White House threatens to invalidate or preempt many of those laws. The order stops short of preempting child-safety statutes specifically, but offers little clarity on how such exemptions would be interpreted, leaving questions about enforcement and jurisdiction.

The executive order represents a significant victory for Silicon Valley firms that have fought against what they view as inconsistent and burdensome state restrictions. Venture capitalists and AI startup leaders have argued that compliance costs across 50 separate jurisdictions could cripple innovation. "A 50-state patchwork is a startup killer," Marc Andreessen of Andreessen Horowitz wrote on social media.