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Trump WH Unveils National AI Policy Framework to Limit State Power

Mar 28, 2026

Report from CNBC

In Brief – The Trump Administration has unveiled a legislative framework to establish a national AI policy to set consistent national safety and security standards and preempt state-level AI regulation. The six-part proposal outlines measures spanning child safety, oversight of AI infrastructure such as data center permitting and energy use, and intellectual property rights. It also emphasizes safeguards against the use of AI to censor lawful political speech. The White House says it plans to work with Congress in the coming months to turn the framework into federal law, an approach it hopes will draw bipartisan backing, though political divisions and competing legislative priorities pose challenges. The proposal comes as states like New York and California pursue their own AI rules, prompting opposition from tech industry leaders who warn that a fragmented regulatory landscape could hinder innovation and weaken US competitiveness against rivals such as China.

Context – The second Trump Administration, with a far bigger cohort of tech backers than the first, has pitched AI development as a national imperative to compete with China. Its leaders often criticize often criticize fear-based “AI safety” regulation, especially in Europe. Ironically, while the EU is discussing slowing AI regulation to promote local AI development, a growing number of US states are moving in the other direction. Last year, the Trump Administration tried to push a five-year moratorium on state AI regulation through Congress, but several stridently anti-Big Tech Republicans joined with united Democrats to block the effort. The President issued an executive order to “check the most onerous and excessive” state measures but his authority is limited. Many digital policy issues appear to enjoy bipartisan agreement, but hurdles including razor thin margins between Republicans and Democrats in Congress, and substantial policy disagreements between and within the parties, have stymied legislation. There’s no evidence that AI regulation is going to be meaningfully different from social media, privacy, digital competition or encryption.

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