What to know about Trump’s draft proposal to curtail state AI regulations

President Donald Trump is considering pressuring states to stop regulating artificial intelligence (AI) in a draft executive order obtained by The Associated Press. Some in Congress are also weighing whether to temporarily block states from regulating AI.

Trump and several Republicans argue that state rules already enacted – and others that may follow – risk dampening innovation and growth. Critics across parties, along with civil liberties and consumer rights groups, warn that curtailing state regulation would favour large AI companies that currently face little oversight.

Four states – Colorado, California, Utah and Texas – have passed laws setting rules for AI in the private sector, according to the International Association of Privacy Professionals. These laws limit the collection of certain personal information and require greater transparency. They respond to AI’s growing role in decisions about jobs, housing, loans and medical care, where research shows bias and errors can occur.

Calli Schroeder, director of the AI & Human Rights Program at EPIC, said, “With a human, I can ask, ‘Explain how you came to that conclusion.’ With an AI, I can’t ask any of that, and half the time the programmers couldn’t answer either”.

Some states have gone further, regulating specific uses of AI such as banning deepfakes in elections or non-consensual pornography, and setting rules for government use of AI.

The draft order would direct federal agencies to identify burdensome state AI regulations and pressure states not to enact them, potentially by withholding federal funding or challenging laws in court. It would also begin developing a lighter-touch national framework that overrides state rules.

Trump argues that a patchwork of 50 state regulations impedes AI growth and risks allowing China to catch up. He has also claimed state rules are producing “Woke AI.”

A senior administration official, speaking anonymously, said the plan is tentative and could change, but Trump is expected to sign the order Friday.

Separately, House Republican leaders are discussing a proposal to temporarily block states from regulating AI. Majority Leader Steve Scalise told Punchbowl News this week that details are still unclear.

TechNet, which represents companies including Google and Amazon, has argued that pausing state regulations would help smaller AI firms and allow time to craft a national framework that “balances innovation with accountability”.

Previous Republican attempts to ban state regulation of AI have faltered, partly due to opposition within the party. Florida Governor Ron DeSantis said this week that such a move was “not acceptable”, calling it a subsidy to Big Tech that would prevent states from protecting against predatory applications targeting children and censorship of political speech.

Cody Venzke, senior policy counsel at the ACLU, said, “The American people do not want AI to be discriminatory, unsafe or hallucinatory. No one is interested in winning the AI race if it means AI that is not trustworthy”.

– AP