President Donald Trump has taken a decisive step to reshape how artificial intelligence is regulated in the United States by signing an executive order designed to block states from enforcing their own AI laws. The move reflects Trump’s belief that America is in a direct competition with China for dominance in artificial intelligence and that the United States cannot afford to slow itself down with fragmented and conflicting rules.
Trump framed the issue as a race with a clear outcome. “There’s only going to be one winner,” he told reporters in the Oval Office, arguing that China’s centralized system gives its companies a major advantage. He warned that forcing American companies to comply with dozens of different state regulations would cripple investment and innovation at the exact moment speed matters most.
The executive order gives the federal government broad authority to challenge state laws that regulate artificial intelligence. It directs the attorney general to establish a new AI Litigation Task Force whose primary mission is to challenge and overturn state AI laws that conflict with the administration’s national policy goals.
The order also instructs the Commerce Department to compile a list of state regulations that are considered especially burdensome. States that refuse to back away from those laws could face serious consequences, including restrictions on receiving federal funds from broadband deployment programs and other grants.
Trump emphasized that investment decisions hinge on regulatory clarity. “We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it’s impossible to do,” he said.
At the heart of the order is the creation of a single federal framework for AI regulation that would override state level rules. Trump made clear that this approach is meant to replace what he views as a confusing and counterproductive patchwork of state laws.
“It’s got to be one source,” Trump said. “You can’t go to 50 different sources.”
The Strategic Focus on China
Trump repeatedly tied the executive order to the broader challenge posed by China. He pointed out that China’s central government provides a single approval process for AI companies, allowing them to move faster and with fewer internal obstacles.
Supporters of the order argue that the United States risks losing technological leadership if it allows fear driven regulation to slow progress. From their perspective, China is not hesitating or debating whether to proceed, and any delay by the United States could have lasting consequences.
Senator Ted Cruz highlighted this concern directly at the signing ceremony. “It’s a race, and if China wins the race, whoever wins, the values of that country will affect all of AI,” Cruz said. He warned against allowing China’s approach to surveillance and centralized control to shape the future of the technology. “We want American values of free speech, of individual liberty, of respecting the individual,” he added. “So this executive order, I believe, is tremendously important.”
Other Actions Trump Has Taken to Accelerate AI Development
The executive order is part of a broader effort by Trump to remove barriers to artificial intelligence development. Over the course of his second term, he has increasingly embraced the AI industry, signing orders to limit regulation, expand access to federal data, and make it easier for companies to build the infrastructure needed to power advanced AI systems.
Trump has also moved to reduce obstacles to exporting advanced computer chips that are essential for AI, and he has publicly praised the leaders of major AI companies. He has given David Sacks, a venture capitalist with significant AI investments, a central role in shaping both AI and cryptocurrency policy.
Trump has argued that artificial intelligence should be treated as a form of national infrastructure, critical to economic growth, national security, and future innovation. In that context, he views heavy regulation as a strategic mistake rather than a safeguard.
The State Laws Trump Is Pushing Back Against
In the absence of comprehensive federal legislation, states have rushed to regulate artificial intelligence. According to the International Association of Privacy Professionals, states such as California, Colorado, Utah, and Texas have passed laws that impose rules on AI across the private sector.
These laws often require companies to limit the collection of certain personal data, increase transparency about how AI systems operate, and assess risks of discrimination. Other state measures target specific uses of AI, including bans on deepfakes in elections, restrictions on nonconsensual AI generated pornography, and rules governing how state agencies use AI.
California, for example, passed a law requiring the largest AI models to conduct safety testing and disclose results. Other states passed laws requiring chatbots to disclose when users are interacting with artificial intelligence, particularly in sensitive areas such as mental health.
Trump and his allies argue that while these laws are often motivated by legitimate concerns, their cumulative effect is to slow innovation and discourage investment. They contend that a fragmented system makes it harder for startups to scale and for larger companies to plan long term investments.
David Sacks said the administration does not intend to eliminate all safeguards, but rather to push back against the most extreme examples of state regulation. He noted that the administration would not oppose laws focused on child safety, though details about how those protections would be handled at the federal level remain limited.
Sacks warned that some state laws risk embedding ideological requirements into AI systems. At the signing ceremony, he said, “We have 50 states running in 50 different directions. It just doesn’t make sense.” He added, “We’re creating a confusing patchwork of regulation, and what we need is a single federal standard.”
Venture capitalists have echoed this concern. Marc Andreessen of Andreessen Horowitz wrote that a fifty state regulatory environment is “a startup killer,” arguing that young companies cannot survive the cost and complexity of complying with dozens of different legal regimes.
The executive order has drawn bipartisan criticism from lawmakers, consumer advocates, and child safety groups. Some argue that only Congress has the authority to override state laws and predict that the order will be challenged in court.
Wes Hodges of the Heritage Foundation warned that limiting state laws without immediately replacing them with strong national standards could favor large technology companies. “Doing so before establishing commensurate national protections is a carve out for Big Tech,” he said.
Others, like child safety advocate Sarah Gardner, argued that states have been the only effective line of defense against AI harms. “Blocking state laws regulating A.I. is an unacceptable nightmare for parents,” she said.
Trump supporters counter that federal standards can and should be developed, but not at the cost of falling behind China during a critical moment in technological competition.
A Deliberate Choice to Compete Rather Than Hesitate
At its core, Trump’s executive order reflects a clear philosophy. The administration is choosing speed, scale, and national coordination over caution driven by fear of future risks. Supporters argue that the greater danger is allowing China to set the pace and define the rules of artificial intelligence.
Trump summed up that view in a post on Truth Social, writing, “There must be only One Rulebook if we are going to continue to lead in AI.” From his perspective, allowing fifty states to impose their own rules would quickly end that leadership.
For those who support the order, the choice is straightforward. Artificial intelligence is already reshaping jobs, defense, and economic power. Encouraging innovation now, they argue, is the only way to ensure that the future of AI reflects American values rather than those of a rival that is moving forward without hesitation.
NP Editor: AI has a lot of potential downside, including the worst scenarios in dystopian science fiction, the Matrix, Skynet, Orwell’s 1984 on steroids and so much more. But Trump has decided to attack the real and present danger, that China will develop AI and use it against us. We believe Trump is right.
