States across the US are moving to regulate AI — and the Trump administration is trying to stop them.
President Donald Trump’s executive order, issued on Dec. 11, seeks to limit state governments’ abilities to regulate AI while asserting US “national and economic security and dominance” in the technology.
Legal experts say the executive order’s authority is uncertain.
What that would look like in practice is unclear, and legal experts say the order’s authority is uncertain. Without Congress passing laws that regulate AI or address issues around regulating the tech, certain measures of the order may not hold up in court.
State lawmakers from both parties have voiced concerns over federal overreach around AI. So far, 27 states have enacted AI-related acts or laws, per a BCLP analysis, and nearly every state has introduced legislation about it, according to a National Conference of State Legislatures database.
Here’s how the executive order works and how state leaders are reacting to it.
➡️ Jump to a section:
• What does the executive order on state AI policy aim to do?
• Does it also impact municipal legislation, or just states?
• What is the AI Litigation Task Force and what will it do?
• How will the order affect existing state AI laws?
• Will the order stop future state AI laws?
• When does the executive order go into effect?
• What happens if a state doesn’t comply?
• Is the federal government doing anything else right now to regulate AI?
• Does the president actually have the power to do this?
What does the executive order on state AI policy aim to do?
The executive action establishes a national AI policy framework aimed at securing US “global AI dominance,” though it offers few details on how that goal will be reached.
The Trump administration says the order will be used to rein in state-level regulations it believes could slow down innovation. It points to concerns about “ideological bias within models” and holding back interstate commerce as reasons why it’s taking this next step.
To do so, the administration is taking a two-pronged approach: creating the AI Litigation Task Force to challenge state laws and restricting federal funding from states with what it calls “onerous” AI laws.
The order carves out exceptions. Laws related to child protection, data center infrastructure and state government AI usage are shielded from legal challenges. That means states like Pennsylvania can continue advancing AI legislation focused on child safety.
States have a 90-day window to comply before the task force begins targeting existing legislation. They could repeal current laws or specific provisions, using processes some have done with other statutes — for example, how Maryland eliminated a 1980s HIV criminalization law earlier this year.
Or, to preserve some aspects of regulation efforts, states could instead revise their laws to better align with the new guidance, like regulating children’s use of AI, said Ben Yelin, program director of public policy and external affairs at the University of Maryland Center for Health and Homeland Security.
Does it also impact municipal legislation, or just states?
The order focuses on state-level laws, not municipal or local legislation.
Some cities, like Philadelphia, are looking to regulate city officials’ use of AI, which falls within the new guidelines.
“Almost all local laws on this concern how the government itself is allowed to use AI, and that’s something that this executive order allows for,” said Yelin, the UMD public policy director.
Plus, it’s mostly states passing AI regulation laws anyway, according to Yelin, likely deprioritizing a crackdown on what’s happening at municipal levels.
What is the AI Litigation Task Force and what will it do?
The order directs the attorney general to establish the AI Litigation Task Force to challenge state AI laws in court. The task force will work alongside Trump’s special advisors in AI and crypto, economic policy and science and technology to help identify legislation.
Even if the arguments don’t hold up, the task force is likely to keep states tied up in ongoing legal battles.
“They can bog down a lot of these state laws in endless litigation, and it would force states and their attorneys general to defend laws in court, which can be cumbersome and time-consuming,” Yelin, who holds a doctorate in law, said.
How will the order affect existing state AI laws?
Within 90 days, the Secretary of Commerce must release a review of state AI laws that the administration says conflict with its national policy. Those laws could then be referred to the task force for potential legal challenges.
The order cites the Colorado AI Act as an example. The administration claims that the law forces companies to build “ideological bias” into AI systems. Supporters of the Colorado law say it is meant to do the opposite, seeking to prevent algorithmic discrimination in AI systems used for high-stakes decisions, such as healthcare, housing and employment.
So far, 27 states have enacted a form of AI law, and nearly every state has proposed at least one. Not all of them would be affected by the order, with laws focused on child safety and state government usage explicitly protected.
If the task force decides to challenge a law, it still must persuade a court that there is a valid case to overturn it. There’s a precedent for legal challenges against executive orders, like how a federal appeals court blocked Trump’s attempt to end birthright citizenship in July.
Will the order stop future state AI laws?
It will depend on state politics.
Maryland, for example, is unlikely to slow down in passing AI regulation, according to Yelin, a public policy expert at UMD. The state has already challenged the Trump administration in court over issues like cuts to federal food and education funding, and he expects lawmakers to take a similar approach with AI.
“In Maryland, it’s going to be full speed ahead, because I think Maryland legislators will have an oppositional tone to this,” Yelin said.
In Republican‑led states, Yelin said, the order might complicate lawmakers’ approach.
Several red states, including Utah and Texas, passed AI laws in recent years, which could put them at odds with the Trump administration’s push to limit state AI regulation. But, there has already been bipartisan pushback: Florida Gov. Ron DeSantis, a Republican, said the executive order will not prevent the state from pursuing its own AI regulations.
When does the executive order go into effect?
The order sets 90-day actions for key deadlines, like the evaluation of existing state AI laws and a policy notice on federal funding tied to the order. That would be around early March.
Enforcement, however, could take longer as the federal government will have to legally challenge — and win the case against — each law for it to be struck down.
What happens if a state doesn’t comply?
The order bars states with “onerous AI laws” from receiving their remaining allotments under the Broadband Equity, Access and Deployment (BEAD) program, which aims to expand internet infrastructure nationwide.
Under Biden-era rules, states could use leftover BEAD funds — not already set aside for infrastructure projects — toward programs like digital skills training and workforce development. For months, states lobbied for access to these funds. Now, some may never get the chance to use them.
States have already made concessions to meet new Trump guidelines around BEAD funding.
For example, Maryland’s BEAD proposal dropped to $78 million from its original $268 million allocation under the updated criteria. The state is still awaiting approval from the National Telecommunications and Information Administration (NTIA).
“The department does not currently anticipate any immediate impacts resulting from the executive order,” a spokesperson for the Office of Statewide Broadband wrote in an email to Technical.ly. “However, any future issuance of additional guidance by NTIA regarding the eligible use of non-deployment funding could affect how any remaining funds may be utilized.”
Is the federal government doing anything else right now to regulate AI?
There is no federal law regulating AI. Companies are mostly governed by existing rules, with agencies like the Federal Trade Commission applying consumer protection laws to AI practices.
Some lawmakers are pushing to regulate AI discrimination. Pittsburgh Rep. Summer Lee reintroduced the AI Civil Rights Act earlier this month, which would hold tech companies accountable for using discriminatory AI tools.
Federal lawmakers also considered a moratorium on state AI laws during summer budget discussions, but the amendment failed across party lines.
In July, Trump released an AI action plan aimed at strengthening US leadership in AI. Broken down into three pillars, the plan addresses ways to accelerate AI innovation through building out data center infrastructure, reducing regulations and exporting American AI systems.
Does the president actually have the power to do this?
No, the Trump administration can’t block state AI laws through an executive order alone, Yelin, who teaches classes on public policy at UMD, said.
The order does cite the Commerce Clause, which limits states from passing laws that could harm interstate commerce, though courts may not buy that argument. It also leans on federal preemption, where federal law overrides state law. Since Congress hasn’t passed any AI regulations, there’s no guarantee that argument would hold up in court, either.
That’s why the executive branch is trying to use BEAD funding as a way to get states to comply, though it’s questionable whether the administration can do that, too.
While there are past examples of Congress tying funding to compliance with federal law, such as requiring states to maintain a 21-year-old drinking age to receive highway funds, executive orders haven’t been used in this way.
“If this was a policy by Congress, I think it would be on firmer constitutional ground,” Yelin said.
