Trump Administration Pauses State AI Regulation Crackdown Amid Growing Opposition

The Trump administration appears to be stepping back from its aggressive stance against state-level AI regulation. President Trump had recently emphasized on social media that the U.S. needs “one Federal Standard instead of a patchwork of 50 State Regulatory Regimes,” signaling the administration’s intent to centralize AI oversight.

Previously, a 10-year ban on state AI regulation was proposed in Trump’s “Big Beautiful Bill,” but the provision was removed by the Senate in a decisive 99-1 vote. The administration then reportedly pivoted, drafting an executive order to create an AI Litigation Task Force tasked with challenging state AI laws through lawsuits. States enforcing contested AI rules could also risk losing federal broadband funding.

However, according to Reuters, the executive order has now been put on hold. Experts suggest that, if implemented, it would likely encounter strong resistance, including from Republicans who had criticized the proposed moratorium on state regulations. This pause underscores the growing political complexities surrounding AI policy in the U.S.

AI regulation remains a contentious issue within Silicon Valley. Some industry leaders, including figures aligned with the Trump administration, have criticized companies such as Anthropic for supporting AI safety legislation, including California’s SB 53. The debate reflects broader tensions between promoting innovation and ensuring public safety in the rapidly evolving AI sector.

With the executive order on hold, the future of U.S. AI governance remains uncertain. Observers are watching closely as states continue to craft their own AI rules, balancing technological advancement with public safety, while federal authorities reconsider how far to intervene.

source: Techcrunch