Trump threatens states over AI regulation rules
U.S. President Donald Trump on Dec. 11 warned he may withhold federal broadband funding from states whose AI regulations, in his administration’s view, hinder American technological leadership.
“To win, United States AI companies must be free to innovate without cumbersome regulation,” Trump said, emphasizing the need for a national standard to avoid a patchwork of 50 different state rules, News.Az reports, citing Reuters.
The order instructs the Commerce Secretary to evaluate state laws and block conflicting states from accessing the $42 billion Broadband Equity Access and Deployment fund. White House AI adviser David Sacks said the administration will focus only on “onerous” state regulations and will not oppose rules protecting children.
Critics, including Democratic Rep. Don Beyer, warn the order could create a “lawless Wild West” for AI, undermine state safety reforms, and potentially violate the 10th Amendment.
Several states, including New York, California, and Washington, have already enacted AI laws covering algorithm transparency, personalized pricing, parental controls, and bans on AI-generated non-consensual imagery. Major tech firms like OpenAI, Google, and Meta have pushed for federal regulation instead of state-level rules.
The Trump administration aims to work with Congress to craft a national AI framework that balances innovation, safety, copyright protection, and community safeguards.
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