Author: IBL News

IBL News | New York

President Donald Trump on Thursday threatened to withhold funding for states that regulate AI, arguing that 50 different regulatory regimes hamper the industry’s growth. President Trump signed an executive order in this regard.

That funding refers to the $42 billion included in Broadband Equity Access and Deployment.

It directs the Secretary of Commerce to evaluate state laws for conflicts with Trump’s AI priorities and to block those states in conflict from accessing.

“We want to have one central source of approval,” Trump told reporters, flanked by top advisers, including Treasury Secretary Scott.

“To win, United States AI companies must be free to innovate without cumbersome regulation.”

The order targets states such as Colorado, whose efforts, according to the White House, can result in “ideological bias and produce false results.”

Trump’s order called for his administration to work with Congress to craft a national standard that forbids state laws that conflict with federal policy, protects children, prevents censorship, respects copyrights, and protects communities.

California Governor Gavin Newsom, whose state is home to several major AI companies, signed a bill this year requiring major AI developers to explain their plans to mitigate potential catastrophic risks.

New York state last month became the first to enact a law requiring online retailers that employ “surveillance pricing” to disclose their use of algorithms and customers’ personal data.

Florida Governor Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls, and consumer protections.

Other states have passed laws banning AI-generated non-consensual sexual imagery and unauthorized political deepfakes.

The Trump Administration has embraced AI as a critical technology, working closely with U.S. companies to boost investment in a sector where China has also made great strides.