States with AI laws will fall under White House sanctions

The White House unveiled an artificial intelligence plan that brings back the idea of banning regional regulation of AI. States with tough laws could lose federal funding.

Funding would be tied to “AI-friendly” attitudes

The new “AI Action Plan” released by Donald Trump’s administration includes a provision for federal agencies to consider state legislative policies when allocating funds for AI development. As the document states, “AI should not be allowed to be stifled by bureaucracy at an early stage,” and “federal funds should not be directed to states whose over-regulation of AI makes such investments ineffective.”

A new “AI Action Plan” has been released by the Donald Trump administration.

The U.S. Office of Management and Budget is expected to work with federal agencies to limit funding to regions with laws that the White House believes “hinder innovation.” However, it notes that the initiative should not “infringe on the right of states to enact reasonable but not excessive laws.”

The document does not formally prohibit state-level regulation of AI. But it essentially introduces a pressure mechanism by denying access to support programs ranging from AI grants to funding for the rural Internet.

Re-launch of repealed ban on AI regulation

The proposal is reminiscent of a failed congressional attempt to impose a federal moratorium on AI regulation laws. That initiative called for a 10-year ban on any state action under threat of losing access to a $500 million fund and other support. The bill was dropped from the final budget almost unanimously, with 99 of 100 senators voting against it.

Now a similar idea is coming back in a different form – through an open-ended restriction tied to funding.

FCC will evaluate whether state laws comply with federal mandates

The plan also tasks the Federal Communications Commission (FCC) with reviewing whether individual state laws interfere with the exercise of federal authority under the Communications Act of 1934. What the consequences of such an audit might entail is not yet specified.

The official White House press release, however, skirted any mention of possible restrictions on states.

Priorities of the plan: developing AI, abandoning diversity and environmentalism

The details of the initiative’s implementation will become known in the coming days – a series of presidential decrees are expected. It’s already known that the plan calls for accelerating AI adoption, expanding infrastructure, and reforming design principles – including abandoning the climate agenda and inclusion policies in AI systems used by the government.

The plan’s goal is to accelerate AI adoption, expand infrastructure, and reform design principles – including abandoning the climate agenda and inclusion policies in AI systems used by the government.

Material State AI laws will fall under White House sanctions was first published on ITZine.ru.