A fresh clash over who controls the future of artificial intelligence erupted Thursday as Donald Trump signed an executive order blocking states from enforcing their own AI guardrails, shifting full regulatory power to the federal government.
According to NBC News, the order, signed in the Oval Office, replaces a growing patchwork of state-level rules with a single national framework. White House aide Will Scharf said the move is designed to prevent conflicting policies that could “cripple the industry” by forcing AI companies to navigate different requirements in every state. The administration argues that centralized oversight will help the U.S. stay competitive as global AI development accelerates.
Joining Trump at the signing was tech investor David Sacks, the administration’s crypto and AI czar. Sacks said the order strengthens Washington’s ability to push back against what he called excessive state regulations, especially in innovation-heavy regions like California. He framed the decision as a necessary step to keep American firms “ahead of the curve” in an increasingly high-stakes AI race.
California Gov. Gavin Newsom, who enacted several AI transparency and safety laws last fall, blasted the order within hours. In a sharply worded statement, Newsom accused Trump and Sacks of dismantling protections designed to shield consumers and workers.
“President Trump and David Sacks aren’t making policy — they’re running a con,” he said. “And every day, they push the limits to see how far they can take it.”
Critics say the move could backfire by weakening on-the-ground safeguards, limiting states’ ability to address local risks, and concentrating too much authority at the federal level just as AI’s real-world impacts are expanding.
Does the Federal government have the legality to do such an Executive order?