Trump blocks state AI laws with federal preemption order

President Trump signed an executive order on Dec. 11, 2025 titled 'Ensuring a National Policy Framework for Artificial Intelligence' that seeks to advance a minimally burdensome national policy framework for AI. The order instructs the Attorney General to establish an AI Litigation Task Force by Jan. 10, 2026. The task force will challenge state AI laws in federal court on grounds that they unconstitutionally burden interstate commerce or are preempted by federal law.

The order targets state AI laws already effective or scheduled to take effect in early 2026. California SB 53 requires large AI developers to publish safety plans to limit catastrophic risk and became effective Jan. 1, 2026. Illinois HB 3773 prohibits AI discrimination in employment decisions and also became effective Jan. 1, 2026. Colorado's SB 24-205 was delayed from Feb. 1 to Jun. 30, 2026.

The executive order instructs the Secretary of Commerce to publish an evaluation by Mar. 11, 2026 of existing state AI laws deemed onerous and in conflict with national policy. The evaluation will identify which state laws the administration views as constitutional or preempted. States will have to choose between keeping their AI laws or receiving federal broadband funding.

The order conditions $42 billion in previously allocated broadband infrastructure funding under the BEAD program on the repeal of state AI regulations deemed onerous. States that refuse to repeal their AI laws will lose access to federal broadband funding they were already promised. The BEAD program was appropriated by Congress to expand broadband access in rural and underserved areas.

Critics warn this preemption removes consumer protections and concentrates regulatory power in the executive branch. Legal experts question whether the president has authority to condition funding Congress already appropriated. The order doesn't create new federal AI safety or discrimination protections to replace state laws.

When the restrictions take effect, the Trump administration will limit states' ability to regulate AI safety and discrimination. The order favors AI companies by reducing compliance costs and regulatory uncertainty. Companies operating in multiple states won't have to comply with different state AI laws.

The Department of Commerce must form a task force to review state AI laws and recommend which should be challenged in court. The Attorney General can commence enforcement actions including grand jury investigations against companies that violate AI regulations the administration deems acceptable. The order doesn't specify what federal AI framework will replace state laws.