Trump Moves to Centralize AI Oversight With Sweeping National Order

President Donald Trump says he plans to sign an executive order this week that would create a single, nationwide framework for regulating AI, effectively curbing state-level rules that have proliferated in the absence of federal legislation.
The move signals the administration’s most aggressive attempt yet to shape the direction of AI governance in the US.
Trump announced the forthcoming order on social media, writing, “I will be doing a ONE RULE Executive Order this week. You can’t expect a company to get 50 Approvals every time they want to do something.”
The statement, reported by Bloomberg today (Dec. 8), echoes long-standing frustrations within the tech industry, which has warned that varying state requirements make compliance burdensome and could slow innovation at a critical moment in the global AI race.
What the Executive Order would do
A draft of the potential order, previously reviewed by Bloomberg Government, suggests it would give the Department of Justice authority to sue states whose AI-related rules it considers unconstitutional. It would also empower the federal government to threaten cuts in funding to states that impose what it sees as overly restrictive or burdensome regulations.
Such provisions would represent a significant expansion of federal preemption in a domain where states—ranging from California to Tennessee—have enacted or proposed laws touching everything from AI safety standards to deepfake restrictions. Because Congress has not yet agreed on a comprehensive federal framework, states have filled the vacuum, often producing markedly different approaches to consumer protection, transparency, and liability.
If implemented as drafted, the order would reset that dynamic by asserting that the federal government alone can dictate the baseline rules for AI development and deployment. The implications would extend beyond regulatory consistency: lawsuits against states could trigger lengthy court battles over the limits of executive authority, states’ rights, and the federal role in emerging technologies.
Support and pushback
The announcement marks an apparent victory for AI companies that have pushed aggressively for a unified regulatory approach. Many industry leaders fear that without a single standard, companies will face duplicative legal hurdles that slow product rollouts and raise costs.
Kevin Hassett, director of the White House National Economic Council, reinforced that view in an interview Monday on CNBC. “There are some states that want to regulate these companies within an inch of their lives,” he said. “This executive order that he’s promised to come out is going to make it clear that there’s one set of rules for American companies in the US.”
But the effort has already generated backlash from within Trump’s own party. Republican governors including Ron DeSantis of Florida and Sarah Huckabee Sanders of Arkansas have criticized federal attempts to override state authority, warning that Washington should not be allowed to dictate how local governments manage sensitive technologies or protect their residents.
Any attempt to challenge state laws through the courts would almost certainly provoke high-profile legal disputes that could reach the Supreme Court. At issue would be whether the executive branch can unilaterally constrain states’ policymaking powers in an area where Congress has not legislated comprehensively.
National security and global competition
The administration is framing the order as part of a broader strategy to maintain US leadership in AI, especially amid growing competition from China. Trump has repeatedly emphasized the geopolitical stakes, writing, “We are beating ALL COUNTRIES at this point in the race, but that won’t last long if we are going to have 50 States, many of them bad actors, involved in RULES and the APPROVAL PROCESS. THERE CAN BE NO DOUBT ABOUT THIS! AI WILL BE DESTROYED IN ITS INFANCY!”
The White House has already taken multiple steps to reinforce the nation’s AI capacity. Recent directives have focused on expanding domestic AI infrastructure, easing the construction of energy-intensive data centers, and streamlining export approvals for advanced AI technologies. During a recent visit from Saudi Crown Prince Mohammed bin Salman, the US approved the sale of cutting-edge AI chips to the kingdom—an example of Washington’s intent to manage international partnerships while maintaining strategic advantage.
Last month, Trump also signed an order launching the “Genesis Mission,” an initiative intended to improve coordination of AI research across federal agencies and accelerate the incorporation of AI tools into scientific work.
What comes next
The promised executive order would set the stage for a clearer federal stance on AI, but it is far from guaranteed to resolve the national debate. States that have already passed AI-related statutes may resist any attempts to nullify them, while Congress remains divided on issues such as AI safety, civil rights protections, and the technology’s economic impact.
Still, Trump’s move signals that the administration sees centralized oversight not only as beneficial to industry, but also as crucial to maintaining America’s competitive edge. Whether the order provides clarity—or sparks a new round of political and legal conflict—will depend on how aggressively the administration seeks to assert federal authority and how states choose to respond.
Global investment in AI intelligence infrastructure shows no signs of slowing, according to BlackRock’s Ben Powell.
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