Trump's AI Directive Sparks Federal-State Clash over Tech Regulation

President Donald Trump announced a policy to withhold federal broadband funding from states with AI regulations deemed restrictive. The directive aims to consolidate AI governance under federal oversight to boost innovation and challenges state-led anti-discrimination efforts. Critics argue it risks safety and infringes on states' rights.


Devdiscourse News Desk | Updated: 12-12-2025 07:37 IST | Created: 12-12-2025 07:37 IST
Trump's AI Directive Sparks Federal-State Clash over Tech Regulation
Donald Trump

In a move likely to ignite debate over federal versus state control, U.S. President Donald Trump declared his administration would withhold broadband funding from states imposing stringent artificial intelligence regulations. The President stressed the need for a single source of approval to maintain American leadership in AI innovation.

Trump's executive order targets states like Colorado, which have enacted policies against discriminatory AI programming. Critics, including Democratic Representative Don Beyer, argue the order negates essential safety reforms and could potentially lead to a 'lawless Wild West' in the tech sector.

The directive empowers the Secretary of Commerce to evaluate conflicting state laws, blocking states from a significant federal fund if found in conflict. Meanwhile, AI industry giants advocate for federal oversight, contending it provides clearer guidelines than a complex patchwork of state laws.

(With inputs from agencies.)

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