President Donald Trump has issued an executive order that aims to limit state AI rules that his administration says hinder the development of a national AI policy framework. The order directs federal agencies to identify state AI laws that conflict with federal objectives and to take steps, where legally available, to deter or challenge them.
The order’s sharpest lever targets federal money. It tells the Commerce Department to evaluate whether states with “onerous” AI laws should be denied remaining non-deployment funds tied to broadband programs, and it instructs agencies to review whether discretionary grants can be conditioned on state AI policy.
That broadband-funding threat is now the focus of the pushback, as states and legal experts question whether BEAD dollars can be conditioned on AI policy without clearer authority.
That enforcement design is now the main point of resistance. Legal experts said they expect states to challenge the order on authority and relevance grounds, including whether broadband funding can be linked to AI regulation without clear congressional direction.
The order also calls for federal litigation against state laws the administration views as interfering with interstate commerce.