White House Pauses Plan to Override State AI Laws

In a move highlighting the growing tension between federal authority and state regulation, the White House has temporarily shelved a draft executive order aimed at preempting state laws on artificial intelligence (AI). The proposal, first reported by sources on Friday, would have allowed the federal government to challenge state AI laws through lawsuits and the potential withholding of federal funds.

The draft order reflected an ambitious push to create uniformity in AI regulation, a move proponents say is essential to support innovation. AI companies have long argued that a patchwork of state laws creates uncertainty and slows technological development across industries, from healthcare to autonomous vehicles.

According to a document reviewed by Reuters, the order would have tasked the Attorney General with forming an “AI Litigation Task Force.” This body would focus exclusively on challenging state-level AI regulations on grounds such as unconstitutional interference with interstate commerce or conflicts with existing federal rules.

While the federal approach could have streamlined AI oversight, it would likely have faced significant resistance from states keen on retaining their regulatory authority. Experts note that preempting state laws in areas traditionally reserved for local governance is a contentious legal frontier, often sparking protracted legal battles.

The White House has not commented publicly on the draft order, leaving questions about whether it might be revised or reintroduced in a different form. The decision to pause the initiative reflects the delicate balance policymakers are trying to maintain: fostering AI growth without alienating states that are increasingly active in technology regulation.