Just four days after the first mention of One Rulebook, President Donald Trump signed an executive order Thursday directing a unified federal regulatory framework for artificial intelligence, a move that curtails the authority of individual states to impose independent AI regulations. The order, shaped with key involvement from AI and crypto adviser David Sacks, aims to eliminate a “patchwork” of state rules that the administration argues could stifle innovation among U.S. AI companies.
“To win, United States AI companies must be free to innovate without cumbersome regulation,” the order says, adding that “excessive State regulation thwarts this imperative.” By centralizing authority at the federal level, the administration is seeking to ensure that companies operating across state lines face consistent requirements rather than divergent legal regimes in states such as California and New York.
Standing alongside Trump for the signing in the Oval Office were Sacks, tech investor and podcaster Chamath Palihapitiya, Senator Ted Cruz (R-TX), and Commerce Secretary Howard Lutnick. The presence of these figures underscores the administration’s alignment with industry voices and conservative lawmakers on the policy shift.
Federal Preemption and Enforcement Measures
The executive order directs the attorney general to establish an AI Litigation Task Force, charged with challenging state AI laws that conflict with federal standards. According to the order, states that fail to adhere to the federal framework could face restrictions on certain federal funds. Specifically, within 90 days of the signing, the secretary of commerce must outline criteria for state eligibility to receive remaining Broadband Equity, Access and Deployment (BEAD) program funds, a $42.5 billion initiative aimed at expanding high-speed internet access in rural areas.
The administration’s approach reflects broader Republican efforts to limit state regulatory influence over emerging technologies, framing federal preemption as essential for maintaining national competitiveness. Supporters argue that divergent state regulations could undermine the United States’ ability to lead in the global AI landscape by creating compliance challenges for domestic companies.
Industry Support and Political Context
Major AI developers and technology firms have welcomed federal standardization. Companies including OpenAI and Google, as well as venture capital firms such as Andreessen Horowitz, have lobbied for clearer, centralized regulatory rules, saying state-by-state laws could become burdensome or inconsistent. Some AI companies have recently increased their presence near the U.S. Capitol and engaged in political advocacy, including through a super PAC prepared to spend at least $100 million on the 2026 midterm elections.
A draft version of a federal executive order circulated last month proposed a single national AI standard “instead of a patchwork of 50 State Regulatory Regimes,” reflecting concerns among industry and policymakers about regulatory fragmentation.
Earlier this year, a proposed 10-year ban on state AI regulation included in a Republican spending bill was removed before Trump signed it in July. The executive order takes a different route, using executive authority to assert federal primacy while also tying compliance to federal funding eligibility.
