bbieron@platformeconomyinsights.com

Trump Finally Issues Executive Order Countering State AI Laws

Dec 1, 2025

Report from Washington Post

In Brief – After failed attempts to attach a federal moratorium on state AI regulation to “must pass” legislation, President Trump has issued an executive order that calls on government agencies to “check the most onerous and excessive” state laws in favor of a “minimally burdensome, uniform national policy framework.” The White House sided with industry backers against a handful of Republican Governors who argue that states should be able to regulate the technology to protect their citizens and populist conservative activists, including some in Congress, who stymied legislative efforts by aligning with Democrats who appear united against a federal moratorium. The order directs the US Attorney General to create an AI Litigation Task Force to challenge state AI laws that may unconstitutionally burden interstate commerce. The Commerce Secretary is instructed to identify conflicting state measures and condition state receipt of federal broadband deployment funds on their compliance with the AI order’s goals. Opposition to so-called “woke AI” is reiterated by the order and the Office of Management and Budget issued guidance to federal agencies requiring that any AI services they use be certified as “unbiased”.

Context – The second Trump Administration, with a far bigger cohort of tech backers than the first, has pushed US AI policy firmly in the direction of deregulation and investment and pitched AI development as a national imperative to compete with China on economic, strategic and national security grounds. The UK and Japan have also moved in the direction of AI support and deregulation, while the EU, home of the AI Act regulatory regime, appears increasingly desperate to promote a local AI industry to join the competition, including slightly dialing back some regulation. But a number of US states are drifting in the other direction leading to industry pushback, especially focused on California. However, with razor thin margins between Republicans and Democrats in Congress, and some very committed Republican opponents, the AI industry will need a large handful of Democratic backers in the House and Senate or there is almost no hope that Congress can act.

View By Monthly
Latest Blog
European Publishers Suing Google for Adtech Monopoly Damages

Report from the Press Gazette In Brief – More than 20 European news publishers from eight countries have launched a lawsuit against Google seeking over €640 million in damages, alleging the company’s dominance in advertising technology harmed their businesses by...

Cyber Concerns Results in Ban on Foreign Use of Top Anthropic Models

Report from the Wall Street Journal In Brief – The Trump administration's decision to halt foreign access to Anthropic's most advanced Fable and Mythos AI models followed warnings from Amazon’s CEO that his company’s researchers had been able to prompt the Fable 5...

Meta Adds Funding to the Content Moderation Oversight Board

Report from MediaPost In Brief – Meta has agreed to provide the Oversight Board, an independent organization it created in 2020 to review content moderation decisions across Meta’s platforms, an additional $13 million in “top up” funding to support its operations...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required