The White House has paused consideration of a sweeping executive order that would challenge state-level artificial intelligence laws and pressure states to align with a federal AI framework, Axios and Reuters reported, citing draft documents and sources familiar with the discussions.
Axios first reported that 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 an increasingly conflicting patchwork of state regulations. The proposal followed President Trump’s public endorsement of a national AI standard and his call for federal preemption of state rules.
But the plan is now on hold, Reuters reported Friday, citing two sources. The pause comes amid what would likely have been significant resistance from states — and across both political parties — to an order aimed at weakening state authority over fraud protections, deepfake regulation, and child safety laws.
According to Axios, the initial draft called for the attorney general to establish a new AI Litigation Task Force within 30 days to challenge state statutes “on grounds that such laws unconstitutionally regulate interstate commerce.” Reuters reviewed similar language in documents directing Attorney General Pam Bondi to launch a task force “whose sole responsibility” would be challenging state AI laws.
The draft would also have required agencies to publicly identify conflicting state AI regulations, ordered the FCC to consider a federal AI reporting standard that could preempt state disclosure rules, and directed the FTC to issue fresh guidance on how the FTC Act applies to AI developers. The Commerce Department would have been tasked with reviewing state laws and, in some cases, limiting access to broadband funding programs.
The proposal further contemplated conditioning state eligibility for major federal grant programs — including Broadband Equity, Access and Deployment funds — on whether their AI laws align with federal priorities. That approach mirrors a failed measure earlier this year, when the Senate voted 99–1 against a proposal that would have blocked states regulating AI from receiving BEAD funding. Lawmakers and state attorneys general from both parties denounced the idea.
The draft order has already sparked extensive political backlash. Republican figures including Florida Gov. Ron DeSantis and Arkansas Gov. Sarah Huckabee Sanders have criticized federal preemption efforts as a “Big Tech bailout,” according to Axios. Rep. Marjorie Taylor Greene said states “must retain the right” to set their own AI rules. Democratic Sen. Amy Klobuchar called the draft “unlawful” and said it would punish states for implementing consumer and child-protection safeguards.
Consumer advocates also reacted sharply. Robert Weissman of Public Citizen said it was “almost unfathomable” that the administration would move to block state AI guardrails, arguing that AI is already causing widespread harm.
Industry leaders including Google, OpenAI, and Andreessen Horowitz have pushed for Washington to rein in state-level AI laws, arguing that a fragmented regulatory landscape stifles innovation.
A White House spokesperson has repeatedly declined to confirm the draft plan, telling both Axios and Reuters that any discussion of potential executive orders remains “speculation.” With the order temporarily paused, the administration’s next steps remain unclear — and any preemption effort would still fall short of true federal override authority, which only Congress can grant.
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