The order gives the federal government authority to evaluate state AI laws and potentially withhold federal broadband funding part of a $42 billion program from states whose regulations the administration views as overly restrictive or confusing for innovation.
Trump and his advisers argue that a patchwork of 50 different regulatory systems could slow growth and make compliance difficult for companies developing AI tools, particularly startups.
'We want to have one central source of approval,' the president said, emphasizing the need for a national standard rather than varied local rules.
The order directs the Secretary of Commerce to review state laws and use the funding threat selectively against the most 'onerous' regulations while saying it will not challenge rules designed to protect children or address safety concerns.
Major technology firms, including OpenAI, Google and Meta, which have called for federal leadership on AI policy, welcomed the move.
However, critics, including Democratic lawmakers and some state leaders, argue the measure could undermine consumer protections and states' rights, potentially violating the U.S. Constitution's 10th Amendment.
Several states, such as California and New York, have already passed or are considering their own AI laws related to algorithmic transparency, deepfakes and personalized pricing regulations that could be affected by the new federal order.
Trump's action comes amid wider political debate over how to govern AI, with lawmakers divided over how much power should sit with Washington versus individual states as technology continues to advance and impact sectors from business to civil liberties.
Rania Umutoni
Source : https://en.igihe.com/news/article/trump-signs-executive-order-to-limit-state-ai-regulations
