"President Donald Trump's on Thursday signed an executive order that aims to discourage state governments from regulating artificial intelligence and urges Congress to pass a law preempting such regulations. The order is likely to hit hardest in California, which since 2016 has passed more laws to regulate artificial intelligence than any other state, according to a Stanford report from earlier this year. California is also home to the world's leading AI companies, including Anthropic, Google, Nvidia, and OpenAI."
"The order would require the heads of the Federal Communications Commission, Federal Trade Commission, and Department of Justice to challenge state AI laws. It also calls for the development of model AI legislation to preempt or supersede state law unless those laws address children's safety, data center infrastructure, state government use or AI, or other yet-to-be-determined areas. For states that continue to regulate AI, the order instructs federal agencies to explore whether they can restrict grants to them,"
"California has a potential $ 1.8 billion in broadband funding at stake, much of which was committed to specific projects earlier this month and is set to deliver internet access to more than 300,000 people. In a social media post earlier this week and remarks from the Oval Office today, Trump said the executive order was written to prevent businesses from needing to comply with laws from multiple states and that having to do so threatens America's competitive advantage over other nations."
The executive order directs federal agencies to discourage and preempt state AI regulation and urges Congress to pass a law overriding state rules. The order tasks the FCC, FTC, and DOJ with challenging state AI laws and calls for model AI legislation to preempt state statutes except for areas like children's safety, data center infrastructure, and state government AI use. The order authorizes federal agencies to consider restricting grants to states that regulate AI, including potential revocation of broadband funding. California faces particular exposure given extensive AI laws and up to $ 1.8 billion in broadband funds tied to projects expanding internet access.
Read at San Jose Inside
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