Trump revives unpopular Ted Cruz plan to punish states that impose AI laws

December 3, 2025

TL;DR

Draft executive order outlines plan to challenge state AI laws through federal lawsuits.
States with AI laws could be ineligible for federal broadband funding (BEAD program).
The order aims to create a single, national AI regulatory standard.
It directs the Attorney General to form an AI Litigation Task Force.
The evaluation of state AI laws will identify those altering truthful outputs or violating constitutional rights.
Funding restrictions may extend to other federal discretionary grant programs.
The FCC and FTC are also directed to take action against conflicting state AI laws.
Trump seeks legislative action to preempt state AI laws, potentially including the NDAA.
Trump claims states are embedding DEI ideology into AI and that a federal standard is crucial for competing with China.

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