White House lobbies Republican-led states against AI regulation bills, threatens federal funding
Updated
Updated · The Wall Street Journal · Apr 25
White House lobbies Republican-led states against AI regulation bills, threatens federal funding
11 articles · Updated · The Wall Street Journal · Apr 25
The Trump administration has contacted lawmakers in Florida, Utah, Nebraska, Missouri, Tennessee, and Louisiana, warning that AI bills could jeopardize hundreds of millions in federal broadband funding.
This campaign has led some state lawmakers to abandon or reconsider AI regulation efforts, despite bipartisan concern over AI's risks. Key Republicans, including Sens. Hawley and Blackburn, oppose federal preemption of state rules.
The White House seeks a national AI framework, but faces resistance from both parties, leaving the industry largely unregulated as debates over safety, transparency, and state-federal authority continue.
How can states regulate AI without risking billions in federal broadband funding?
Does a single national AI law help or hinder American tech leadership?
What happens to AI safety if federal and state governments remain deadlocked?
With massive lobbying efforts, who is truly writing the rules for AI?
As the U.S. debates internally, are other nations winning the global AI race?
How Executive Order 14365 Seeks to Preempt 70+ State AI Laws Amidst Big Tech Lobbying
Overview
President Trump's Executive Order 14365, issued in December 2025, seeks to create a unified federal AI regulatory framework that overrides conflicting state laws. This move, driven by intense lobbying from Big Tech to avoid a patchwork of state rules, established an AI Litigation Task Force and empowered federal agencies to enforce compliance, including tying federal funding to adherence. States like California and Colorado strongly opposed the order, defending their stricter AI laws and preparing legal challenges based on constitutional grounds. The resulting clash has created regulatory uncertainty and compliance complexity for businesses, with ongoing legal battles shaping the future balance between innovation, consumer protection, and federal-state authority in AI governance.