Forbes November 20, 2025
A leaked draft executive order reveals the Trump administration is preparing to challenge state AI laws as unconstitutional, condition federal funding on state compliance and deploy the DOJ to litigate against non-conforming states.
The industry agrees on the need for federal policy that would preempt a patchwork of state laws. But not all speak with the same voice.
The draft is a bold move towards halting state action without a national framework in its place. Supporters argue that a unified federal approach is necessary to protect U.S. competitiveness, prevent compliance costs from ballooning across fifty jurisdictions and keep pace with global rivals accelerating their own AI strategies.
Earlier this summer, the proposal for an AI legislative moratorium was not included...
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