Trump administration eyes sweeping federal power over AI, draft order shows
The Trump administration is preparing a sweeping executive order that would direct the Justice Department to sue states that enact their own laws regulating artificial intelligence, according to a draft reviewed by Fox News Digital.
The six-page document, titled, “Eliminating State Law Obstruction of National AI Policy,” is marked “Deliberative / Predecisional / Draft,” a label the government uses for internal working documents that have not been approved or made official.
Such markings indicate the text is part of policy discussions still underway and is exempt from public release under the Freedom of Information Act until a final decision is made.
The draft order reviewed by Fox News Digital details a broad, multiagency plan to centralize AI regulation under federal authority and anchor Washington’s control over the fast-moving technology sector.
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The Washington Post first reported the administration’s intent to direct the DOJ to sue states over AI laws.
A White House official, speaking on background, said any discussion of potential executive orders is speculative until one is officially announced.
During his second term, President Donald Trump has placed energy and AI dominance at the core of his economic and national security agenda.
If enacted, it would mark one of the strongest federal efforts yet to override state authority on technology regulation, potentially testing the limits of presidential power.
The order directs the Justice Department to create an AI Litigation Task Force within 30 days to challenge states that pass their own AI rules. It also directs the Commerce Department to review state AI laws within 90 days and allows the agency to withhold federal broadband and infrastructure funds from states that don’t comply.
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It calls on the Federal Trade Commission and Federal Communications Commission to set nationwide rules for AI transparency, blocking states from enforcing their own, potentially stricter, versions.
The draft goes beyond what has been publicly reported, explicitly naming California and Colorado as examples of states whose “fear-based” AI regulations obstruct “America’s domination of this new frontier.”
It asserts that such state measures undermine U.S. dominance in AI. The Special Advisor for AI and Crypto is directed to develop legislative proposals to make the federal framework permanent.
The executive order follows a failed effort in Congress earlier this year to block all state AI regulation through a broader tax and immigration bill. That proposal collapsed after pushback from Senate Republicans who said oversight was needed to protect consumers and workers.
Concerns about AI’s impact on jobs, children and the energy grid have become central political issues across party lines. Meanwhile, Republicans have championed state sovereignty, making the proposal’s endorsement of federal authority a noteworthy departure.
The Trump administration has recently taken similar legal action against several states, including California, New York and Vermont, over climate and policing laws that the White House argues violate federal prerogatives.
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