The White House is weighing a sweeping executive order that would challenge state-level artificial intelligence laws and pressure states to align with a federal AI framework, Axios reported, citing a draft order and internal summary documents.
According to Axios, the draft order — titled “Eliminating State Law Obstruction of National AI Policy” — would direct federal agencies to aggressively push back against what the administration views as a growing patchwork of conflicting state regulations. The move comes after President Trump publicly endorsed a national AI standard and urged federal preemption of state rules.
The proposal marks “a sharp escalation” in the administration’s attempt to centralize AI policy, Axios wrote. While an executive order cannot override state law, it can initiate legal challenges, direct agencies to reinterpret federal authority and condition state access to billions in federal grants.
The draft would instruct the attorney general to establish an AI Litigation Task Force within 30 days to challenge state statutes “on grounds that such laws unconstitutionally regulate interstate commerce.” Agencies would also be required to publicly identify state laws that conflict with federal positions — including rules that “compel AI developers or deployers to disclose or report information” in ways the administration believes may infringe on First Amendment protections, Axios reported.
FCC Chair Brendan Carr would have 90 days to consider a federal AI reporting standard that could preempt state disclosure rules, while FTC Chair Andrew Ferguson would issue new guidance on how the FTC Act applies to AI developers.
The order would also allow the administration to evaluate state eligibility for federal grants, including Broadband Equity Access and Deployment funds, based on whether their AI laws conflict with federal priorities.
A White House official declined to confirm the plan, telling Axios that any discussion of potential executive orders remains “speculation.”
The effort is already dividing Republicans. Some congressional Republicans want states to retain authority over AI rules, while others fear losing internet infrastructure grants. GOP figures including Florida Gov. Ron DeSantis and Arkansas Gov. Sarah Huckabee Sanders have blasted federal preemption as a “Big Tech bailout,” Axios reported.
Despite the administration’s push, only Congress can formally preempt state AI laws — leaving the proposed order a political and legal pressure campaign rather than a definitive regulatory shift.
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