President Donald Trump signed a new executive order that blocks states from creating their own artificial intelligence regulations and instead puts all oversight under one national framework. The move delivers a major win to tech leaders who have pushed for months to stop a patchwork of state rules they say would slow down AI development.
Trump said companies need one clear approval process rather than juggling different standards in California, New York and other states. White House staff secretary Will Scharf said the order ensures AI operates under a single national system and prevents states from imposing rules that could hinder the industry.
A draft version of the order reviewed last month showed that the Department of Justice could sue states over AI laws it considers unconstitutional and could also threaten to cut federal funding to states that pass rules viewed as too restrictive.
The plan was championed by White House AI czar David Sacks after heavy lobbying from companies like OpenAI, Google $GOOG ( ▲ 0.67% ) , Nvidia $NVDA ( ▲ 3.74% ) and investors at Andreessen Horowitz. Nvidia CEO Jensen Huang has warned that scattered state regulations could undermine the United States as it competes with China in AI.
Trump said he consulted several tech leaders while preparing the order, including Apple CEO Tim Cook $AAPL ( ▼ 0.3% ) . He emphasized that AI development will not succeed unless there is one source of approval for companies to follow.
The order adds to a series of steps Trump has taken to accelerate the AI sector since returning to office. The administration has worked to expand energy supply for data centers and make it easier to build AI infrastructure. Trump has also supported exporting advanced U.S. technology, including allowing Saudi Arabia to buy high end chips for its state backed AI initiative.
The White House turned to an executive order after similar federal proposals failed to pass. A plan to pause state AI laws was rejected in the Senate earlier this year with a 99 to 1 vote. With no federal standard in place, states have moved on their own, writing rules for areas like hiring systems, medical claim algorithms and AI generated media. Trump’s order complicates those efforts and puts states on a collision course with the administration.
Some state leaders have pushed back. New York Governor Kathy Hochul said the White House is trying to protect big corporations rather than requiring them to prevent AI related harm. Several Republican governors, including Florida’s Ron DeSantis and Arkansas’ Sarah Huckabee Sanders, have also opposed federal preemption.
A separate report from CNBC highlights the same directive: Trump’s order creates a single national AI regulatory structure and limits state power. The plan, crafted with support from AI and crypto czar David Sacks, aims to prevent large Democratic-led states from setting rules that could influence the entire industry.