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Federal Executive Order on AI Regulation Spurs State-Level Legislative Activity

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Federal Push for AI Regulation Clashes with State-Level Action

Amid a lack of comprehensive federal legislation, U.S. states are advancing their own regulations on artificial intelligence (AI), while the Trump administration has issued an executive order aimed at limiting such state-level authority. The administration advocates for a unified national framework, citing competition with China and innovation concerns, while state lawmakers argue their actions are necessary to address public concerns in the absence of federal action.

Federal Executive Action

On Thursday, President Donald Trump signed an executive order designed to challenge state laws regulating the AI industry. The order outlines several directives intended to preempt state and local regulations deemed "onerous."

Key provisions of the order include:

  • Directing the Justice Department to establish an "AI Litigation Task Force" to initiate lawsuits against states concerning their AI-related legislation.
  • Instructing the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to collaborate with the Justice Department on the administration's AI action plan.
  • Directing the Commerce Secretary to investigate withholding federal rural broadband funding from states with AI laws considered unfavorable.

Administration officials stated the goal is to establish "one central source of approval" for AI governance.

White House AI adviser David Sacks clarified that the administration would not oppose state laws focused on children's safety, but would target the "most onerous examples." Officials have cited competitive pressure with China as a rationale for pursuing less fragmented regulation.

Legal experts, including John Bergmayer of Public Knowledge, have questioned the administration's authority to restrict state regulation without specific legislation from Congress, anticipating legal challenges.

State-Level Regulatory Activity

Concurrently, state legislatures have been active on AI issues. More than 1,000 state legislative proposals addressing AI have been introduced.

Examples of enacted or proposed state measures include:

  • New York passed legislation last year requiring major AI developers to report dangerous incidents to the state.
  • California and New York have passed regulations focusing on disclosure of catastrophic risks from AI.
  • California also enacted a bill this year requiring large AI developers to submit plans for mitigating risks associated with their models.
  • States including Colorado have also passed AI-related laws.
  • Proposed measures in various states include requiring chatbots to disclose they are not human and prohibiting AI-generated nonconsensual pornography.

Political Divisions and Reactions

The executive order and the broader issue of AI regulation have revealed divisions within and between political parties.

State officials from both parties have defended their regulatory role. California Governor Gavin Newsom (D) criticized the executive order, stating it attempts to preempt state laws designed to protect residents. Utah Governor Spencer Cox (R) stated a preference for an alternative approach that would not bar state laws, emphasizing that "States must help protect children and families." Florida Governor Ron DeSantis (R) posted that an executive order "doesn't/can't preempt state legislative action."

At the federal level, some Republican allies of the president, such as Senator Marsha Blackburn (R-TN), support the administration's framework. However, other Republicans have expressed opposition to preempting state authority; Senator Josh Hawley (R-MO) called a prior attempt to insert AI preemption into a defense bill a "terrible provision."

Public opinion polling indicates widespread public concern about AI. A Quinnipiac poll last month found approximately 80% of U.S. residents expressed concern about AI, with about 75% saying the government is not doing enough to regulate it.

Approximately 90% of Democrats and 60% of Republicans polled wanted more government involvement in AI regulation.

Legislative Efforts and Industry Stance

State lawmakers argue federal gridlock necessitates state action. Republican State Representative Doug Fiefia of Utah, who co-chairs a bipartisan AI task force, stated that Congress faces gridlock and states have an opportunity to act. His state proposal, which included child safety protocols and whistleblower protections, was blocked this year following White House opposition.

AI companies, including major developers like OpenAI, Google, Meta, and Anthropic, have expressed a preference for uniform federal legislation over a patchwork of state rules, arguing it provides more certainty for innovation.

Policy analysts have offered mixed reviews of the administration's proposed framework. Riki Parikh of the Alliance for Secure AI stated that while a federal standard is preferable, the proposed framework lacks specificity on key issues, making it insufficient to replace state efforts.