Trump signs executive order to centralize AI regulation in the US

Donald Trump signed a far-reaching executive order on artificial intelligence (AI) on December 11, 2025, aiming to establish a uniform national regulatory framework and override state-level AI laws. The order, titled “Ensuring a National Policy Framework for Artificial Intelligence,” is intended to prevent individual US states from introducing their own AI regulations, which the federal government argues could hinder the development and competitiveness of the US AI industry.

The executive order instructs federal agencies such as the Department of Justice and the Department of Commerce to identify state AI legislative initiatives and, where necessary, challenge them in court if they are deemed incompatible with the national framework. To this end, an “AI Litigation Task Force” is to be established to pursue targeted legal action against specific state regulations. In addition, the federal government may make federal funding—such as broadband grants—conditional on states refraining from implementing strict AI rules.

Trump argues that a patchwork of differing AI regulations would significantly undermine innovation and competitiveness, particularly in global competition with more centrally governed markets such as China. At the same time, the order is intended to pave the way for a single nationwide AI framework that could later be codified legislatively by the US Congress. For many companies, such a national approach would be preferable to the previously anticipated “thousand-law mix” at the state level.

Reactions have been mixed. Silicon Valley companies and industry representatives have welcomed the move as a step toward greater regulatory certainty, while states and civil-rights groups warn of an expansion of federal power and seek to defend states’ rights. Governors in California and other states have voiced strong criticism and announced they would defend their laws in court if necessary.

Critics from both major political parties see the order as highlighting a fundamental tension between promoting innovation and preserving democratic decentralization, particularly with regard to consumer protection, children’s rights and fundamental civil liberties. Legal experts consider court challenges to the constitutionality of the executive order to be likely.

SK