Federal-State Preemption

President Trump signed an executive order directing the Justice Department to create an "AI Litigation Task Force" — coordinating with the FTC and FCC — to sue states over what the White House calls "onerous" AI laws, while the Commerce Department must compile a list of problematic state rules and study whether federal rural broadband and other grant funding can be withheld from states with unfavorable AI laws. The order carves out certain child‑safety and government‑procurement measures and cites states with cross‑sector AI statutes (Colorado, California, Utah, Texas), but experts and state officials warn it will prompt extensive litigation and that broad preemption likely requires congressional action.