President Donald Trump says he will sign a new executive order this week aimed at sharply limiting the ability of U.S. states to regulate artificial intelligence, escalating a months-long battle over who sets the nation’s AI rulebook.
The move comes after Congress refused to include federal preemption of state AI laws in recent legislation, a setback that left the administration searching for alternative pathways to enforce a single national standard.
In a post on Truth Social, Trump warned that America’s AI leadership would be “destroyed in its infancy” if companies were forced to navigate 50 different regulatory regimes. He argued that requiring firms to secure approvals from every state would cripple innovation and slow down development.
While the exact text of the order remains undisclosed, a draft reviewed by Business Insider last month suggested the Department of Justice could be directed to sue states with what the administration considers “onerous” AI regulations. The White House has already signaled this direction through its July “AI Action Plan,” which threatened to cut federal funding from states that adopt restrictive rules.
The president’s push is expected to trigger resistance within his own party. Many Republicans have advocated for strong state autonomy in setting AI policies, a division that became clear during the battle over the “Big Beautiful Bill.” That proposal initially sought a decade-long moratorium on state-level AI laws but was ultimately stripped out in a 99–1 Senate vote.
Trump had urged lawmakers to reinsert a version of the moratorium into this year’s must-pass defense bill. When the final text was released on Sunday, it contained no such provision.
With Congress unwilling to deliver the federal dominance he wants, Trump is now turning to executive power, a move that could reshape the balance between state and federal authority in America’s AI future.
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