U.S. President Donald Trump looks on as he signs an executive order on AI in the Oval Office of the White House in Washington, DC, on December 11, 2025.
Al Drago | Reuters
President Donald Trump signed an executive order Thursday issuing a single regulatory framework for artificial intelligence, weakening the power of states.
“To win, U.S. AI companies must be free to innovate without burdensome regulation,” the order says. “However, excessive state regulation impedes this obligation.”
The Trump administration, backed by AI and crypto mogul David Sachs, has pursued a path that would allow federal rules to preempt state regulations on AI, aimed at preventing large Democratic-led states like California and New York from exerting control over the growing industry.
Sachs and fellow technology investor and podcaster Chamath Palihapitiya stood next to Trump during the signing in the Oval Office. Also present were Sen. Ted Cruz (R-Texas) and Secretary of Commerce Howard Lutnick.
This movement is based on OpenAI and google The venture firm Andreessen Horowitz is lobbying to limit regulations it deems overly burdensome. The AI company has opened an office near the Capitol and is launching a campaign through a super PAC that will spend at least $100 million on the 2026 midterm elections.
Supporters of the federal rules argue that disparate regulations across the country would hinder U.S. efforts to compete in the global AI race. A draft executive order surfaced last month calling for a single federal standard for AI “rather than a patchwork of 50 state regulatory systems.”
A proposed 10-year ban on states regulating AI was originally included in the Republican spending bill, but was removed before Trump signed it in July.
President Trump’s executive order also calls on the attorney general to establish an AI Litigation Task Force “whose sole responsibility will be to challenge state AI laws.”
States that do not comply with the rules could face funding restrictions. The order states that within 90 days of signing, the Secretary of Commerce must specify the conditions under which states will be eligible to receive remaining funding under the Broadband Equity Access and Deployment (BEAD) program, a $42.5 billion initiative to expand high-speed access in rural areas.
Note: Nvidia’s H200 clearance should be given to allies, not China
