On Wednesday, the White House introduced its long-anticipated “AI Action Plan,” which revealed elements reminiscent of a previously abandoned AI law moratorium that had faced significant backlash.
This earlier congressional proposal sought to prevent any state from implementing regulations on artificial intelligence systems for a decade, threatening penalties such as exclusion from a $500 million AI development fund and the potential loss of rural broadband support. The new initiative echoes this premise, indicating that “AI is far too important to smother in bureaucracy at this early stage,” and suggesting that the government would not permit funding directed toward states with restrictive AI regulations that could waste resources. It simultaneously acknowledges states’ rights to enact responsible laws that encourage innovation.
The Office of Management and Budget will collaborate with federal agencies housing “AI-related discretionary funding programs” to assess the regulatory climate in states when making funding decisions, potentially limiting support if a state’s regulations might undermine the effectiveness of the allocated funds.
In essence, states that impose their own AI regulations could face federal repercussions, effectively establishing a new kind of AI law moratorium with no defined end date.
Furthermore, the plan designates the Federal Communications Commission to investigate if state AI regulations hinder its operational responsibilities under the Communications Act of 1934. Specific consequences of such hindrance have yet to be clarified.
The White House’s official press release did not reference the matter of state guidelines. Additional insights into Trump’s proposals, which seek to accelerate AI technology adoption and infrastructure expansion, alongside efforts to eliminate diversity and climate science from government-related AI systems, are anticipated in subsequent executive orders this week.
The earlier moratorium had cleared the House of Representatives but faced widespread criticism from Democrats and mixed opinions among Republicans. Some advocates believed it would not only impede new AI regulations but also restrict data privacy, facial recognition, and other technology-related regulations in states like Washington and Colorado.
In a rapid 24-hour lobbying session, which included 45 voting rounds, the Senate ultimately excluded the moratorium from Trump’s funding bill, garnering support from 99 out of 100 senators.
Unexpectedly, this provision might now be experiencing a resurgence.
