On Thursday, President Donald Trump signed an executive order threatening to withhold federal funding from states whose AI regulations impede American innovation. Speaking to reporters, Trump argued that a patchwork of state-level rules slows down the industry.

The order directs the Secretary of Commerce to review state laws and, in cases of conflict, block access to the $42 billion broadband fund. Previous attempts to enforce such bans had failed.

The directive specifically targets anti-discrimination rules in states like Colorado, which the administration claims lead to "ideological bias." While tech giants like Google and OpenAI welcomed the move toward national standards, Representative Don Beyer warned that the order could create a "lawless Wild West" and potentially violates the Constitution by undermining state-level safety reforms.