The White House has recently placed a draft executive order on hold that aimed to preempt state laws regarding artificial intelligence (AI) through litigation and by withholding federal funding. This decision follows reports indicating significant resistance from state governments, which would likely have challenged such a move. The proposed order highlights the lengths the administration is willing to go to support AI companies in overcoming what they describe as a burdensome patchwork of regulations hindering innovation.
The draft executive order, initially reported by Reuters, would have directed Attorney General Pam Bondi to establish an “AI Litigation Task Force.” This task force was intended to focus solely on contesting state AI regulations, arguing that such laws unconstitutionally regulate interstate commerce, conflict with federal regulations, or are otherwise illegal. Furthermore, it proposed that the Department of Commerce assess state laws and potentially issue guidelines to withhold broadband funding under certain circumstances.
This proposed federal intervention arrives amidst ongoing tensions between state and federal authorities over AI regulation. Earlier this year, the U.S. Senate voted overwhelmingly, 99-1, against a move to block state AI regulations that would have denied states access to the $42 billion Broadband Equity, Access and Deployment program (BEAD). State lawmakers and attorneys general from both major political parties voiced their concerns, asserting that federal overreach could undermine their ability to safeguard residents from issues like fraud, deepfakes, and child exploitation.
The matter gained renewed urgency after former President Donald Trump backed a proposal from congressional Republicans to include similar provisions within the National Defense Authorization Act (NDAA). Major tech players, including **Google**, **OpenAI**, and venture capital firm **Andreessen Horowitz**, have been vocal advocates for federal preemption of state laws. They argue that the existing regulatory landscape stifles innovation in a rapidly evolving field.
The release of the draft executive order elicited a variety of reactions. Republican Congresswoman Marjorie Taylor Greene expressed her opposition, emphasizing that states should retain the authority to regulate AI to protect their interests. She articulated her stance on social media, stating, “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.”
On the other hand, Democratic Senator Amy Klobuchar criticized the draft, labeling it “unlawful.” She argued that such an order would attack states for implementing necessary AI regulations designed to protect consumers, children, and creators, warning that it could jeopardize high-speed internet access for rural communities.
Consumer advocacy groups have also weighed in on the issue. Robert Weissman, president of **Public Citizen**, expressed disbelief that the administration would consider obstructing reasonable state regulation in light of the harms already attributed to AI. Weissman stated, “For all his posturing against Big Tech, Donald Trump is nothing but the industry’s well-paid waterboy.”
This ongoing debate about AI regulation underscores a pivotal moment for the industry, with implications that could reshape the relationship between state and federal governance in tech. As various stakeholders continue to voice their opinions, the future of AI regulation remains uncertain, reflecting broader tensions between innovation and oversight.
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