Federal vs. State Authority

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.

The White House urged G7 allies to avoid what it called innovation‑killing AI regulations while signaling a U.S. approach, as President Trump signed an executive order to preempt state AI laws and impose a single national framework. White House staff secretary Will Scharf said the EO directs the administration to ensure AI operates under one nationwide framework rather than state-by-state regulation, and the White House consulted Republican governors while MAGA populists pitched last‑minute draft proposals to shape the order.