WASHINGTON — President Donald Trump has signed an executive order designed to push back against state-level artificial intelligence regulations by threatening to withhold federal broadband infrastructure money from states whose AI laws the administration deems “onerous” or inconsistent with federal priorities. The move intensifies a fast-growing fight over who should regulate AI in the United States: states or Washington.
At the center of the threat is the $42 billion Broadband Equity, Access, and Deployment (BEAD) program, a cornerstone of U.S. efforts to expand high-speed internet—especially in rural and underserved communities. Under the order, the Commerce Department is directed to review state AI laws and can block BEAD access for states whose rules are found to conflict with the administration’s national AI policy approach.
What Trump’s executive order does
The executive order lays out a federal strategy to reduce what the White House describes as a “patchwork” of state AI rules. It directs the administration to:
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Evaluate state AI laws for conflicts with federal AI priorities (via the Secretary of Commerce).
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Use federal leverage including broadband grant eligibility to discourage states from passing or enforcing laws viewed as restrictive to innovation.
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Increase federal legal pressure: reporting indicates the order also authorizes federal legal action (including DOJ involvement) against certain state measures the administration believes obstruct national policy.
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Work with Congress on a single national AI framework, rather than 50 different state approaches.
The White House position is that U.S. leadership in AI and competition with China requires one national rulebook rather than state-by-state compliance burdens.
Why broadband funding is part of the strategy
The most controversial element is the linkage to BEAD, because broadband funds are not “AI money” they are infrastructure grants meant to connect Americans to the internet.
The administration’s rationale: AI competitiveness depends on nationwide connectivity, and the federal government shouldn’t fund broadband expansion in states that, in its view, block AI innovation. Critics argue this turns broadband access into a political and regulatory bargaining chip.
Support from major tech and strong pushback from states’ rights voices
Tech industry reaction
Major AI and tech companies have favored federal standardization to avoid dozens of compliance regimes, and coverage of the order notes that large firms and Silicon Valley backers have pushed for a unified framework.
Political and civil-liberties pushback
The order has drawn criticism from groups and officials who say it undermines:
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States’ rights and the ability of states to protect residents
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Efforts to address risks such as deepfakes, algorithmic discrimination, privacy, and consumer harm
Some coverage highlights that even within the Republican Party, there is friction—because threatening funding to force policy alignment can conflict with traditional conservative arguments for state authority.
What kinds of state AI laws could be targeted
Across the U.S., states have been moving quickly on AI with laws and proposals covering areas like:
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Algorithmic transparency and disclosure
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Deepfake rules (especially around elections and impersonation)
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Consumer privacy and data use
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Bias / discrimination protections in automated decisions
The administration has suggested it won’t oppose certain categories like child safety-focused rules, but the scope will depend on how Commerce and DOJ interpret “conflicts” with national priorities.
Legal questions: can an executive order override state AI laws?
A key point: an executive order cannot automatically erase state laws—only Congress can broadly preempt them through federal legislation. What the order can do is raise pressure through:
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Funding conditions
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Federal enforcement choices
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Litigation threats
Legal analysts and policy watchdogs have already raised concerns about constitutional limits and potential court challenges, warning of legal uncertainty for states and companies caught in the middle.
What happens next
In the near term, watch for:
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Commerce Department guidance on how it will review and classify state AI laws for “conflict” with federal priorities.
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State reactions—some may pause, amend, or defend AI bills to avoid risking broadband money, while others may challenge the order publicly or in court.
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Congressional action—the order explicitly pushes for a national AI standard, but recent attempts at broad preemption have faced resistance across party lines.
