Is AI regulation a good or bad thing? It really depends on which side of the fence you are on. Obviously AI companies hate the idea of regulation because it holds them back. But others might disagree, saying that we’re progressing too fast on something that we don’t fully understand yet. Thankfully, it looks like state-based AI regulations might be a thing as the Trump administration could be stepping back from its planned executive order.
Trump administration could allow state-based AI regulations
According to a recent Reuters report , it suggests that the executive order might have been put on hold. It seems that even though this is an executive order, it could still face immense opposition. This opposition could even come from Republicans who had previously criticized the administration’s proposed moratorium.
We’re not sure if the Trump administration has plans to find another way to implement federal-based AI regulations instead of a state-based one. But for now, at least unofficially, states can still go ahead and make their own regulations.
What’s happened so far
Earlier this year, the Trump administration tried to pass its “Big Beautiful Bill” which included a moratorium on state-based AI regulation. This effectively meant that states were banned from making their own regulations. Instead, they had to defer to federal regulations, which may or may not align with their goals. However, it was ultimately removed by the Senate in an overwhelming 99-1 vote.
Then, just last week, there was a report suggesting that Trump was drafting an executive order that would ban state-based regulation. In a post on his Truth Social account , Trump called for a “Federal Standard.” He was quoted as saying, “We MUST have one Federal Standard instead of a patchwork of 50 State Regulatory Regimes. We can do this in a way that protects children AND prevents censorship!”
According to a draft of the executive order, states that fail to comply could face a loss of federal broadband funding. The executive order also suggested the formation of an “AI Litigation Task Force.” The job of this task force would be to challenge state AI laws through lawsuits.
