The White House has put on hold a draft executive order that would direct federal agencies to challenge state AI regulations and condition some funding on compliance, according to a draft reviewed by Reuters.
Reuters previously reported the draft would task Attorney General Pam Bondi with creating an “AI Litigation Task Force” to sue states on preemption and commerce-clause grounds, and direct the Commerce Department to issue guidance tying certain broadband funds to state policies.
Bipartisan pushback followed. Sen. Amy Klobuchar called the draft “unlawful” and said it would “attack states for enacting AI guardrails.”
On July 1, 2025, the U.S. Senate voted 99–1 to strip a 10-year federal ban on state AI rules from a GOP package, underscoring resistance to preemption across parties, the Commerce Committee said.