What Trump could do next on state AI laws
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Illustration: Maura Losch/Axios
President Trump's push to ban state AI laws failed on Capitol Hill this week, raising the stakes for what the White House and AI czar David Sacks could try next.
Why it matters: Despite the administration's pressure campaign, lawmakers rejected including preemption language in the annual defense policy bill — but the White House isn't looking to take no for an answer.
- Three sources familiar with the matter say that an executive order to preempt state AI laws that the White House floated in November is now back in play.
- It's not clear yet whether the content of the possible executive order would be the same as the previously leaked draft.
- The White House did not respond to a request for comment.
Catch up quick: This week marked the second major defeat this year in the White House's bid to reshape the AI policy landscape through Congress.
- Another attempt collapsed earlier this year on the Hill, with senators stripping a similar provision from the budget bill this summer in a 99-1 vote.
- The preemption proposal to override most state-level AI laws without any additional federal regulatory framework isn't in the final version of the annual defense policy bill, per House Republican leadership.
- House Majority Leader Steve Scalise (R-La.) told reporters this week that the National Defense Authorization Act wasn't the "best place" for it, but Republicans would be looking for other, unspecified ways to advance the measure.
The big picture: It's a significant loss for Trump and Sacks, and could set the stage for aggressive executive action aimed at gutting state AI laws.
Between the lines: This is dividing Republicans. It's widely opposed by key MAGA figures, state lawmakers, attorneys general and members of Congress, even though Trump publicly backed a ban.
- Steve Bannon ally Joe Allen commented on the potential plans to revive a preemption EO, posting that "Handing the reins of AI to tech corps and an ineffective Congress would be a disaster for the President."
What we're watching: The White House in November floated a possible executive order to override state AI laws by launching legal challenges and conditioning federal grants.
- The draft executive order seen by Axios calls for aggressive action, tasking the attorney general with establishing an "AI Litigation Task Force" within 30 days to challenge state AI laws.
- This approach would have far less teeth than legislation, and would face legal scrutiny.
- If Trump turns to this EO after this failed bid with Congress, it would mark a sharp escalation in the administration's effort to centralize and accelerate U.S. AI policy.
