President Trump is set to revive a long-forsaken plan from Sen. Ted Cruz (R-Texas) that aimed to restrict states with AI laws from receiving federal funding for broadband initiatives, potentially harming millions of Americans who rely on these networks.
As part of the draft executive order, titled "Eliminating State Law Obstruction of National AI Policy," the Trump administration would require the Department of Commerce to block states like California and Colorado, which have enacted their own AI laws, from accessing a significant portion of the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. This move could leave half of the funding allocated by Congress in 2021 unspent.
The plan, which was previously proposed by Cruz but ultimately failed to gain traction due to bipartisan opposition, would also require federal agencies to assess their discretionary grant programs and determine whether they may condition grants on states not enacting AI laws that conflict with the policy outlined in the order.
In a statement released yesterday, the Information revealed details about Trump's draft executive order. According to the document, the Secretary of Commerce is required to evaluate other state AI laws and identify those that require AI models to alter their truthful outputs or disclose information that would violate the First Amendment or other constitutional provisions.
Critics say this proposal represents a gross overreach by the federal government into states' affairs and could lead to unintended consequences for consumers. Sen. Marsha Blackburn (R-Tenn.) had previously opposed Cruz's plan, stating that it was premature and did not provide sufficient protections for state regulations on issues like robocalls and deepfakes.
Other lawmakers have also expressed concerns about the proposal, with Sen. Maria Cantwell (D-Wash.) arguing that it would preempt good consumer protection laws related to emerging technologies. The FTC chairman is required to issue a policy statement detailing circumstances under which state laws requiring alterations to AI model outputs are preempted by federal law.
The Trump administration's plan has sparked intense debate among lawmakers, with some expressing concerns about the need for a unified national framework on AI regulation and others warning that such measures could stifle innovation and hinder America's competitive edge in the tech industry.
As part of the draft executive order, titled "Eliminating State Law Obstruction of National AI Policy," the Trump administration would require the Department of Commerce to block states like California and Colorado, which have enacted their own AI laws, from accessing a significant portion of the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. This move could leave half of the funding allocated by Congress in 2021 unspent.
The plan, which was previously proposed by Cruz but ultimately failed to gain traction due to bipartisan opposition, would also require federal agencies to assess their discretionary grant programs and determine whether they may condition grants on states not enacting AI laws that conflict with the policy outlined in the order.
In a statement released yesterday, the Information revealed details about Trump's draft executive order. According to the document, the Secretary of Commerce is required to evaluate other state AI laws and identify those that require AI models to alter their truthful outputs or disclose information that would violate the First Amendment or other constitutional provisions.
Critics say this proposal represents a gross overreach by the federal government into states' affairs and could lead to unintended consequences for consumers. Sen. Marsha Blackburn (R-Tenn.) had previously opposed Cruz's plan, stating that it was premature and did not provide sufficient protections for state regulations on issues like robocalls and deepfakes.
Other lawmakers have also expressed concerns about the proposal, with Sen. Maria Cantwell (D-Wash.) arguing that it would preempt good consumer protection laws related to emerging technologies. The FTC chairman is required to issue a policy statement detailing circumstances under which state laws requiring alterations to AI model outputs are preempted by federal law.
The Trump administration's plan has sparked intense debate among lawmakers, with some expressing concerns about the need for a unified national framework on AI regulation and others warning that such measures could stifle innovation and hinder America's competitive edge in the tech industry.