Trump administration might not fight state AI regulations after all

The Trump administration has focused on AI regulation at the state level, with the president indicating a message on social media this week that the industry needs “one federal standard rather than a patchwork of 50 state regulatory regimes.”

This comes after a 10-year ban on state AI regulation was initially included in Trump’s ‘Big Beautiful Bill’, before ultimately being removed by the Senate by a vote of 99-1.

The idea then apparently took on a new form, with the administration reportedly drafting an executive order that would establish an AI Litigation Task Force with the mission of challenging state AI laws through lawsuits. States with controversial AI laws are also reportedly threatened with the loss of federal broadband funding.

Reuters now reports this the executive order is suspended. If signed, the order is likely to face significant opposition, including from Republicans who previously criticized the proposed moratorium on state regulation.

AI regulation is also a controversial topic in Silicon Valley, with some industry figures – especially those from the Trump administration – attacking companies like Anthropic for supporting AI safety laws, including California’s SB 53.