Trump Announces Plan to Centralize AI Regulation with New Executive Order

On December 8, 2025, President Donald Trump announced plans to sign an executive order aimed at establishing a unified federal framework for artificial intelligence (AI) regulation. This initiative seeks to override individual state laws, creating a single "rulebook" for AI development across the United States. The President emphasized that requiring companies to navigate multiple state approvals could hinder innovation and compromise the nation's leadership in AI.

The United States has historically lacked a cohesive federal policy on AI regulation, leading to a patchwork of state laws and guidelines. This decentralized approach has created challenges for companies operating across multiple jurisdictions, as they must comply with varying standards and requirements. The tech industry has long advocated for a unified federal framework to streamline compliance and foster innovation.

While the full text of the executive order has not been released, reports indicate that it may include provisions to preempt state AI laws through legal challenges or by tying federal funding to compliance with federal AI policies. These measures aim to create a consistent regulatory environment for AI development and deployment across the country.

Major technology companies have expressed support for the establishment of a unified federal AI regulatory framework. Executives from OpenAI, Google (Alphabet), Meta Platforms, and venture capital firm Andreessen Horowitz have argued that a fragmented regulatory landscape hampers innovation and places undue burdens on businesses. They contend that a single set of federal rules would provide clarity and facilitate the responsible development of AI technologies.

State legislators have raised concerns about the potential implications of overriding state-level AI regulations. They argue that local oversight is crucial to address the unique needs and values of their communities. Some lawmakers warn that a lack of state involvement could lead to insufficient safeguards, resulting in "disastrous consequences" if AI technologies are not adequately regulated.

This move aligns with the Trump administration's broader efforts to centralize AI policy and reduce regulatory fragmentation. In July 2025, President Trump signed an executive order titled "Preventing Woke AI in the Federal Government," which directed federal agencies to procure AI systems that prioritize truthfulness and ideological neutrality. The order aimed to prevent the incorporation of diversity, equity, and inclusion (DEI) principles into AI models used by the federal government.

Additionally, in November 2025, the administration launched the Genesis Mission, a national initiative to leverage AI for scientific discovery. This program seeks to integrate the nation's supercomputing resources and scientific data to accelerate research and innovation.

The establishment of a unified federal AI regulatory framework could have several significant implications:

• Innovation Acceleration: A consistent set of regulations may reduce compliance costs and complexities for AI developers, potentially accelerating innovation and deployment of AI technologies.

• Economic Competitiveness: By streamlining regulations, the U.S. could strengthen its position as a global leader in AI, attracting investment and talent in the sector.

• Ethical Considerations: Centralizing AI regulation raises questions about whose values and priorities will be reflected in the federal framework, especially if it overrides state-level initiatives designed to address local ethical concerns.

The proposed executive order may face legal challenges, particularly concerning the federal government's authority to preempt state laws. The balance of power between federal and state governments is a longstanding issue in U.S. law, and this move could prompt litigation from states seeking to maintain their regulatory autonomy.

As the administration moves forward with this initiative, stakeholders from various sectors will be closely monitoring the developments to understand the potential impacts on innovation, regulation, and the balance of power between federal and state authorities.