Dec 18, 2025

Trump Signs Executive Order to Centralize US AI Regulation, Overriding State Laws

17 December, 2025, 7:00 am

President Donald Trump signed a landmark executive order on Thursday establishing a unified national framework for artificial intelligence companies, effectively superseding state-level AI regulations. The White House described many existing state rules as “onerous” and argued that a single federal standard would streamline approval processes for the rapidly growing AI sector.

The move is aimed at eliminating the patchwork of state laws that have emerged in recent years. Speaking at the Oval Office ceremony, Trump emphasized the need for “one central source of approval,” highlighting the potential for inconsistent state regulations to hinder innovation and national competitiveness. Treasury Secretary Scott Bessent and other senior advisors were present at the signing.

Several Democratic-led states, including New York and California, have introduced their own AI legislation, setting safety protocols and industry standards. Trump’s executive order grants AI companies the ability to challenge restrictive state regulations, giving the industry a tool to counter what it perceives as burdensome rules.

Industry leaders welcomed the decision. Major technology firms, including Google and OpenAI, argued that disparate state regulations create confusion and slow innovation. The administration warned that overregulation at the state level could ultimately weaken economic growth and limit the United States’ global competitiveness in AI development.

New York’s pending RAISE Act, which mandates safety and operational protocols for AI firms, is expected to be a primary target under the new federal framework. A newly formed AI industry super PAC has already indicated plans to oppose the bill’s sponsors, reflecting the high stakes and tensions between federal and state authorities as the AI sector expands.