US To Withhold Broadband Funds From States With Conflicting AI Laws

Donald Trump signed an executive order on December 11, 2025, that bars states from imposing artificial intelligence regulations that differ from federal policy.

The order directs the federal government to withhold broadband funds from states whose AI laws conflict with federal goals. Trump said the country needs “one central source of approval,” arguing that state-level rules create a patchwork that raises compliance costs and affects start-ups. The order claims some state laws add “ideological bias” and extend beyond state borders. It also targets state anti-discrimination rules for AI systems. Critics say the order could reduce user protections. The order mandates the Attorney General to set up an AI Litigation Task Force within 30 days to challenge state laws that conflict with federal policy.