White House Drafts Order to Override State AI Laws

3 hours ago7 min read

The White House is circulating a draft executive order that would dramatically escalate the federal government's intervention in artificial intelligence governance, seeking to override a burgeoning patchwork of state laws through a multi-pronged strategy of legal challenges and financial coercion. This move, detailed in a copy of the draft obtained by Axios, follows President Trump's public endorsement of a singular federal standard for AI regulation and represents a bold attempt to centralize U.S. AI policy from the top down.The proposed order, titled 'Eliminating State Law Obstruction of National AI Policy,' directs the Attorney General to establish an 'AI Litigation Task Force' within 30 days, a legal vanguard explicitly tasked with challenging state-level AI regulations on constitutional grounds, particularly the argument that they unduly burden interstate commerce. This legal offensive is complemented by a powerful fiscal lever; the order instructs the Commerce Secretary and other agency heads to assess federal grant programs, potentially placing billions in broadband and other funding in jeopardy for states that enact AI laws deemed contradictory to the administration's vision of a 'minimally burdensome national standard.' Central to this agency-level work is AI and crypto czar David Sacks, who, alongside the director of the White House Office of Legislative Affairs, is directed to craft a legislative recommendation for a federal AI framework designed to preempt state law entirely. The order further sets tight 90-day deadlines for key regulators: FCC Chair Brendan Carr must initiate a proceeding to adopt a federal reporting standard for AI models, while FTC Chair Andrew Ferguson is to issue a policy statement applying the agency's prohibitions on unfair and deceptive practices directly to AI.This aggressive approach, however, is not without its significant perils and inherent limitations. An executive order lacks the permanent, robust authority of congressional legislation and is almost certain to face immediate legal scrutiny, testing the boundaries of federal preemption power.The administration's gambit also exposes and deepens profound fissures within the Republican party itself. While Hill Republicans, led by Senate Majority Leader John Thune, are simultaneously attempting to slip similar state-preemption language into the must-pass defense bill—a maneuver that failed soundly in a previous attempt—powerful voices outside Washington are vocally opposing what they label a 'Big Tech bailout.' Florida Governor Ron DeSantis, Arkansas Governor Sarah Huckabee Sanders, and conservative firebrand Mike Davis have all spoken out against the federal power grab, highlighting the tension between a desire for national regulatory clarity and the conservative principle of states' rights. The bottom line, as with many executive actions, is one of force multiplication rather than direct command.The White House cannot unilaterally preempt state regulation—that constitutional power resides with Congress. But it can direct the vast machinery of the federal executive branch to apply immense pressure, from launching lawsuits that could tie up state laws in court for years to strategically withholding coveted grant money, thereby creating a powerful incentive for states to fall in line while encouraging a legislative solution.This high-stakes maneuver echoes historical tensions in other regulated domains like telecommunications and environmental law, where the balance between federal authority and state innovation has been constantly contested. The outcome of this push will not only shape the competitive landscape for American AI development but could also set a lasting precedent for how technological sovereignty is negotiated in the 21st century, forcing a national conversation about whether innovation is best served by a uniform federal code or a more experimental, decentralized approach championed by the laboratories of democracy.

#White House

#executive order

#AI regulation

#state laws

#federal preemption

#David Sacks

#featured

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