Trump Administration Pauses Executive Order Targeting State-Level AI Regulation

The Trump administration has halted plans for an executive order that would have created an AI Litigation Task Force to challenge state artificial intelligence laws, according to new reporting from Reuters. Senior officials had been preparing a directive that would pressure states with contested AI regulations, including the potential loss of federal broadband funding, as part of a push for a single national standard.

The pause follows a major setback for the administration’s earlier attempt to impose a 10-year ban on state AI rules through the president’s “Big Beautiful Bill,” a measure the Senate overwhelmingly rejected in a 99–1 vote. President Trump had argued on social media that AI should be governed by one federal framework rather than disparate state regimes.

The move comes amid intensifying debate within the technology sector. Key figures in Silicon Valley — including critics inside the administration — have clashed over state-driven AI safety efforts such as California’s SB 53, which has drawn support from companies like Anthropic. The stalled order signals growing political resistance, including from Republicans uneasy with sweeping federal intervention in state AI policymaking.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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