
"In a circulated draft of the order - titled "Eliminating State Law Obstruction of National AI Policy" - Trump stresses his administration's light-touch regulatory preference, saying U.S.-made AI products need an industry-friendly environment to lead globally, and having "50 discordant" state laws governing these technologies will hinder this mission. "American AI companies must be free to innovate without cumbersome regulation," the draft order reads. "But State legislatures have introduced over 1,000 AI bills that threaten to undermine that innovative culture.""
"Notably, the order would restrict various federal funding programs for states if their domestic AI laws are found to hinder the administration's AI policy. The Department of Commerce would be tasked with evaluating potentially "onerous" state AI laws, along with AI and Crypto Czar David Sacks. These evaluations will specifically look at laws that require AI models to potentially alter their outputs in ways that could violate the First Amendment. States's eligibility for select federal funds will be dependent upon the results of these evaluations."
An executive order would condition certain federal funding on state AI regulatory alignment with the federal approach, aiming to deter divergent state laws. The plan emphasizes a light-touch regime to preserve U.S. AI industry competitiveness and prevent 50 varying state frameworks from fragmenting the market. The Department of Commerce and AI policy officials would evaluate state laws for being potentially onerous or requiring AI outputs that could raise First Amendment concerns. Federal grant programs, including broadband funding, would become contingent on those evaluations. The FCC may be asked to develop federal reporting and disclosure standards to preempt conflicting state rules.
Read at Nextgov.com
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