U.S. President Donald Trump on Thursday announced an executive order that would allow his administration to withhold federal broadband funding from states whose artificial intelligence regulations are deemed to obstruct national AI ambitions. Arguing that “50 different regulatory regimes hamper growth,” Trump said the U.S. needs “one central source of approval” to maintain technological dominance. The order criticizes state-level anti-discrimination requirements—such as those in Colorado—claiming they could introduce “ideological bias” into AI systems, while emphasizing freedom for companies to innovate.
The directive empowers the Secretary of Commerce to review state AI laws for conflicts with federal priorities and to block those states from accessing the $42 billion Broadband Equity Access and Deployment fund. White House AI adviser David Sacks said the move targets only the most “onerous” regulations and will not oppose laws focused on child safety. Critics, however, including Democratic Representative Don Beyer, argued that the order undermines state authority, jeopardizes public safety reforms, and may violate the Constitution’s 10th Amendment.
The order adds new tension to an already fractured policy landscape, as several states push forward with AI safeguards in the absence of congressional action. New York recently mandated transparency for “surveillance pricing,” while California and Washington are weighing similar measures. Meanwhile, governors from both parties—from Ron DeSantis in Florida to Gavin Newsom in California—have advanced AI oversight bills addressing privacy, consumer protection, and catastrophic risk mitigation. Many states have also enacted laws banning AI-driven deepfake abuse, underscoring a growing divide between federal ambitions and state-led accountability efforts.
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