Trump signs executive order targeting state AI laws

• The EO aims to gut state AI laws by launching legal challenges and conditioning federal grants on compliance.
• MAGA populists made a failed last-minute bid to try to shape the executive order, pitching two draft proposals to the White House this week.

What they're saying: "There's only going to be one winner here, and that's probably going to be the U.S. or China. And right now, we're winning by a lot," Trump said.

• Trump said "people want to be in the United States and they want to do it here ... but if they had to get 50 different approvals from 50 different states, you can forget it because that's not possible to do."
• Trump added he thinks this effort has "great Republican support" and "probably" Democratic support, too.
• White House staff secretary Will Scharf said the order sets up "decisive action to ensure that AI can operate within a single national framework in this country as opposed to state-level regulation that could cripple the industry."

What's inside: The executive order calls on government agencies to "check the most onerous and excessive" state laws in favor of a "minimally burdensome, uniform national policy framework."

• The executive order tasks the attorney general with establishing an "AI Litigation Task Force" within 30 days to challenge state AI laws "including on grounds that such laws unconstitutionally regulate interstate commerce."
• The commerce secretary will have to identify and evaluate existing state laws that conflict with the order.
• Those would include laws that "require AI models to alter their truthful outputs" or lead to the disclosure or reporting of information "in a manner that would violate the First Amendment or any other provision of the Constitution."
• The commerce secretary will also have to issue a policy notice within 90 days outlining the eligibility conditions for states to receive remaining Broadband Equity, Access and Deployment funding to expand internet access.

The executive order calls for the White House to prepare a legislative recommendation for Congress to establish a federal framework for AI that preempts state laws.

• The order tees up congressional action, saying the administration and Congress must work on a framework that forbids state laws that conflict with the executive order, ensures "children are protected, censorship is prevented, copyright is respected, and communities are safeguarded."

• "Until such a national standard exists, however, it is imperative that my Administration takes action to check the most onerous and excessive laws emerging from the States that threaten to stymie innovation," the text states.

Ex-Trump adviser Steve Bannon, a major MAGA voice, told Axios in a text message that "David Sacks having face-planted twice on jamming AI Amnesty into must-pass legislation now completely misleads the President on preemption."

Catch up quick: The White House suffered a significant loss when Congress rejected including preemption language in the annual defense policy bill despite intense pressure from Trump, the White House and the tech industry.

• It was the second major defeat this year in the administration's bid to reshape the AI policy landscape through Congress: Senators stripped a similar provision from the budget bill in a 99-1 vote.
• The White House first floated a version of this executive order targeting state AI laws in November after Trump publicly backed a ban.
• Some MAGA conservatives and Republican governors view the White House's approach as too broad and a giveaway to AI companies at the expense of states' rights.

What's next: Expect legal challenges from states — and Republican infighting.

Editor's note: This story has been updated with details on the executive order and a comment from Steve Bannon.