U.S. President Donald Trump has taken decisive action to centralise control over artificial intelligence (AI) in the United States, signing an executive order on Thursday that prevents states from enforcing their own regulations on the technology.
The measure establishes a unified national framework to safeguard America’s dominance in AI—a field Bloomberg forecasts will contribute $15.7 trillion to the global economy by 2030.
This step addresses mounting concerns over fragmented state laws that could hamper innovation amid fierce competition with China, where vast investments are accelerating AI advancements, according to Reuters. Tech leaders like OpenAI’s Sam Altman have repeatedly warned that such a patchwork risks undermining U.S. competitiveness in critical areas, from medical diagnostics to self-driving vehicles.
In the Oval Office during the signing, White House aide Will Scharf explained, “This is an executive order that orders aspects of your administration to take decisive action to ensure that AI can operate within a single national framework in this country, as opposed to being subject to state level regulation that could potentially cripple the industry.”
David Sacks, the White House’s cryptocurrency and AI lead, highlighted its practical value at the ceremony, noting it would enable collaboration with Congress on a broader “federal framework.”
“In the meantime, this EO gives your administration tools to push back on the most onerous and excessive state regulations,” Sacks said. He clarified exceptions for child safety provisions and added on social media: “does not mean the Administration will challenge every State AI law.”
Reuters points out the order’s foundation in the Commerce Clause, which could nullify state initiatives like Colorado’s deepfake restrictions or California’s anti-bias hiring laws.
The move reignites a heated political battle. In July, Congress dismantled a Republican proposal for a 10-year moratorium on state AI rules from Trump’s major domestic policy bill, with the Senate voting almost unanimously to excise it before passage. Lawmakers similarly rejected Trump’s plea to include one in the National Defence Authorisation Act.
Divisions run deep across tech circles and the Republican sphere, as reported by The Verge amid intense lobbying from giants like Google and Meta. Administration allies such as Sacks and Vice President JD Vance champion minimal federal intervention to fuel progress, while opponents including Florida Governor Ron DeSantis and former strategist Steve Bannon demand state-level protections for AI’s expanding role in policing, healthcare, personal communications, and more—realms lacking robust federal oversight.
With AI infiltrating everyday life, this order pits swift innovation against public safeguards, setting the stage for courtroom clashes and legislative debates to determine its enduring impact.