Trump moves to limit state AI rules as critics warn of overreach: What to know

A sweeping new executive order from US President Donald Trump seeks to limit state-level AI rules, triggering threats of lawsuits from both red and blue states.

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President Donald Trump speaks during a signing ceremony in the Oval Office of the White House, Thursday, Dec. 11, 2025, in Washington. (AP Photo/Alex Brandon)

By: AP

5 min readDec 14, 2025 01:29 PM IST First published on: Dec 13, 2025 at 07:51 AM IST

President Donald Trump signed an executive order Thursday pressuring states not to regulate artificial intelligence.

Trump and some Republicans argue that the limited regulations already enacted by states, and others that might follow, will dampen innovation and growth for the technology.

Critics from both political parties — as well as civil liberties and consumer rights groups — worry that banning state regulation would amount to a favor for big AI companies, who enjoy little to no oversight and that Trump’s effort oversteps the limits of presidential power.

Here’s what to know about states’ AI regulations and what Trump signed.

What state-level regulations exist and why

Four states — Colorado, California, Utah and Texas — have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals.

Those laws include limiting the collection of certain personal information and requiring more transparency from companies.

The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritizing a particular gender or race.

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“With a human, I can say, ‘Hey, explain, how did you come to that conclusion, what factors did you consider?’” said Calli Schroeder, director of the AI & Human Rights Program at the public interest group EPIC. “With an AI, I can’t ask any of that, and I can’t find that out. And frankly, half the time the programmers of the AI couldn’t answer that question.”

States’ more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs.

Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government’s own use of AI.

What the executive order seeks to do

The executive order directs federal agencies to identify burdensome state AI regulations and pressure states not to enact them by withholding federal funding, such as for broadband, or challenging the state laws in court.

It would also begin a process to develop a lighter-touch regulatory framework for the whole country that would override state AI laws.

It does not seek to preempt some laws states have adopted, such as AI-related child safety protections and provisions on how state governments can procure and use AI.

Trump argues that the patchwork of regulations across 50 states impedes AI companies’ growth and allows China to catch up to the U.S. in the AI race. The president has also said state regulations are producing “Woke AI.”

What are the concerns around the order?

Groups that advocate for consumer rights and tech regulation are sounding the alarm on Trump’s executive order, arguing it allows Big Tech “to operate in a vacuum of accountability,” as the nonprofit Issue One put it.

“After spending millions of dollars on lobbying — including massive donations for the new White House ballroom — Big Tech has successfully leveraged those around the president to pass a federal moratorium that aims to wipe out bipartisan AI safeguards passed in both blue and red states,” said Liana Keesing, Issue One’s policy lead for technology reform. AI-driven scams and discriminatory price-fixing are just some of the harms the state laws are trying to prevent, she added.

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Children’s advocacy groups also expressed deep concerns for the generations that are growing up in an AI-saturated world.

“A generation of parents watched their kids become the collateral damage of our failure to regulate social media, and now this moratorium threatens to repeat that tragedy with AI,” said Shelby Knox, director of online safety campaigns at ParentsTogether Action.

What could be next for the executive order

There’s a good chance it ends up being part of a court battle.

Last month, when the order was in draft form, Colorado Attorney General Phil Weiser sent a letter to congressional leaders warning that the state would sue if the order was signed.

And Thursday, California state Sen. Scott Wiener, who wrote the AI safety bill signed in that state this year, said in a statement: “If the Trump Administration tries to enforce this ridiculous order, we will see them in court.”

In Connecticut, Democratic Senate President Pro Tempore Martin Looney said Friday the state plans to press ahead with broad regulation even after the order.

In May, attorneys general for 40 states and territories — Republicans and Democrats — signed a letter to congressional leaders calling on them not to pass a provision blocking state AI regulation for 10 years.

Shatorah Roberson, a senior policy counsel at the Lawyers’ Committee for Civil Rights Under Law, says that in this case, it’s clear that the president does not have the authority to preempt state laws.

“This is an issue of our democracy and the president through executive order can’t just preempt state laws without going through the democratic process,” she said.