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White House Pauses Draft Order Aimed at Challenging State AI Regulations

By  |  November 23, 2025
AI regulation

The White House has temporarily shelved a draft executive order that would have attempted to override state-level artificial intelligence laws through federal litigation and by leveraging federal funding, according to Reuters. Two sources told the news agency on Friday that the measure, if enacted, would have marked an aggressive move by the administration to limit state authority over emerging AI rules.

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    The draft order, first reported by Reuters earlier in the week, was expected to face strong resistance from state governments. But its existence underscores how far President Donald Trump is willing to go to support technology companies that argue state regulations hinder innovation. The White House did not comment on the status of the proposal on Friday, and a White House official said Wednesday that any discussion regarding potential executive actions remained speculative until formally announced, per Reuters.

    According to a document reviewed by Reuters, the plan would have instructed Attorney General Pam Bondi to create an “AI Litigation Task Force” dedicated solely to contesting state-level AI laws. The task force would challenge such laws on grounds including interference with interstate commerce or conflicts with federal regulations. The proposal also called for the Department of Commerce to analyze state AI policies and issue guidance that could restrict broadband funding in certain circumstances.

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    Earlier this year, the Senate voted 99–1 against an effort to stop states from enforcing AI regulations. A previous version of that measure sought to deny states that regulate AI access to the $42 billion Broadband Equity, Access and Deployment program, known as BEAD. Lawmakers and attorneys general from both parties objected to the idea, arguing that limiting state oversight would weaken protections against fraud, deepfakes and child exploitation imagery.

    Related: Trump, GOP Lawmakers Consider Reviving Federal Ban on State AI Regulations

    The issue resurfaced this week after Trump endorsed a congressional Republican proposal to attach a similar preemption measure to the National Defense Authorization Act. Major technology firms—including Google, OpenAI and venture capital firm Andreessen Horowitz—have urged the federal government to supersede state AI regulations, saying inconsistent rules stifle the industry’s progress, according to Reuters.

    News of the draft order triggered swift political reaction. Representative Marjorie Taylor Greene of Georgia condemned the proposal, saying, “States must retain the right to regulate and make laws on AI and anything else for the benefit of their state. Federalism must be preserved.”

    Democratic Senator Amy Klobuchar of Minnesota called the draft “unlawful” and argued that it would “attack states for enacting AI guardrails that protect consumers, children, and creators — including by threatening high-speed internet for rural communities.”

    Robert Weissman of Public Citizen criticized the administration’s apparent direction as well, saying that AI is already producing significant harms and calling it “almost unfathomable” that the federal government would seek to obstruct state-level protections. “For all his posturing against Big Tech, Donald Trump is nothing but the industry’s well-paid waterboy,” Weissman said.

    Related: Reuters