The clash with state legislatures has long been brewing, as statehouses have forged ahead with efforts to rein in risks from the rapidly developing technology while the Trump White House decries excessive regulation that they argue could stifle AI innovation.
However, even as the president largely focuses on laws from liberal states, the move is likely to anger both Democrats and Republicans, who previously found common ground in opposing a preemption push by Congress.
"I think it's the Hail Mary phase," former Rep. Brad Carson (D-Okla.), president of Americans for Responsible Innovation, told The Hill.
"The executive order could have been put forward by them six months ago when they were on the case. They chose not to, which suggests to me they know it's on legally dubious grounds."
"They've tried many legislative approaches that have either failed or are having a hard time," he added. "And so, they might as well just throw another thing at the wall."
Trump is considering an executive order that would direct his administration to sue states and withhold federal funding over AI laws, according to a draft obtained by The Hill.
A White House official noted in a statement Wednesday that "discussion about potential executive orders is speculation" until confirmed.
Under the order, Attorney General Pam Bondi would create an "AI Litigation Task Force" focused on challenging state AI measures on the grounds of violating the Commerce Clause of the Constitution.
It also would task Commerce Secretary Howard Lutnick with determining state AI laws that conflict with the administration's policy and referring them to the task force, as well as issuing policy guidance making states ineligible for certain broadband funding if they are found to have such AI laws.
The order separately directs other federal agencies to determine whether their discretionary grant programs could be conditioned on not enacting these laws.
The Federal Communications Commission is also meant to consider a federal reporting and disclosure standard for AI models that would preempt state laws.
And the Federal Trade Commission would be tasked with issuing a policy statement on how a law prohibiting unfair and deceptive practices applies to AI models and preempts state laws.
A section at the end of the order also directs White House AI and crypto czar David Sacks to prepare legislative recommendations for a federal regulatory framework. However, unlike the other sections, it provides no timeline for such efforts.
Check out the full report at TheHill.com tomorrow morning.
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