Trump Revives Cruz Plan to Preempt State AI Regulations
Key Points
- President Trump revives Senator Ted Cruz's plan to preempt state AI laws.
- FTC chair required to issue a policy statement on when state AI regulations are overridden.
- Senators Blackburn and Cantwell oppose the plan, citing protection of state consumer laws.
- Draft executive order calls for a uniform federal AI regulatory framework.
- House Majority Leader Scalise supports adding the ban to the NDAA; Democrats resist.
- Trump alleges states are embedding DEI ideology into AI and warns of foreign competition.
President Trump has revived Senator Ted Cruz's proposal to preempt state AI laws, calling for a uniform federal standard. The plan would require the FTC chair to issue a policy statement on when state regulations that alter AI outputs are preempted. Critics, including Senators Marsha Blackburn, Maria Cantwell, and Jack Reed, argue the move would block state consumer protections and limit legislative action. House Majority Leader Steve Scalise supports adding the ban to the National Defense Authorization Act, while Democrats aim to keep it out. Trump’s Truth Social post frames the effort as a defense against DEI‑driven state rules and foreign competition.
Federal Preemption Proposal
President Donald Trump announced a renewed effort to adopt Senator Ted Cruz’s plan that would preempt state laws governing artificial intelligence. The proposal calls for the Federal Trade Commission (FTC) chair to issue a policy statement outlining the circumstances under which state regulations that require changes to the truthful outputs of AI models are overridden by the FTC Act’s prohibition on deceptive practices.
Political Backdrop
The original Cruz plan, introduced as a moratorium restricting state AI regulation in mid-2025, drew opposition from several lawmakers. Senator Marsha Blackburn (R‑TN) helped lead the fight against it, emphasizing the need for Congress to pass federal preemptive legislation, such as the Kids Online Safety Act and an online privacy framework, before states can be blocked from enacting consumer‑protective measures.
Senator Maria Cantwell (D‑WA) also voiced criticism, warning that the plan would preempt "good state consumer protection laws" related to robocalls, deepfakes, and autonomous vehicles.
Trump’s Executive Direction
In a draft executive order, Trump directs administration officials to prepare a legislative recommendation for a uniform federal regulatory framework for AI that would preempt conflicting state laws. The order seeks to embed this framework into broader legislation, urging Congress to establish a single federal standard instead of a patchwork of 50 state regulatory regimes.
Legislative Maneuvering
House Majority Leader Steve Scalise (R‑LA) has indicated that a ban on state AI laws could be incorporated into the National Defense Authorization Act (NDAA). Democrats, however, are working to keep the ban out of the bill. Senator Jack Reed (D‑RI), the ranking member on the Armed Services Committee, stressed the importance of allowing states to lead on AI regulation, noting that Washington has yet to produce appropriate legislation.
Trump’s Public Messaging
Trump used his Truth Social platform to claim that states are trying to embed DEI ideology into AI models. He argued that a unified federal standard is essential to keep the United States competitive against China in the AI race, urging lawmakers to place the preemption provision in the NDAA or pass a separate bill.