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"Big Tech companies have spent the past year cozying up to Trump," said one critic, "and this is their reward. It’s a fabulous return on a very modest investment—at the expense of all Americans.”
The White House is rapidly expanding on its efforts to stop state legislatures from protecting their constituents by passing regulations on artificial intelligence technology, with the Trump administration reportedly preparing a draft executive order that would direct the US Department of Justice to target state-level laws in what one consumer advocate called a "blatant and disgusting circumvention of our democracy"—one entirely meant to do the bidding of tech giants.
The executive order would direct Attorney General Pam Bondi to create an AI Litigation Task Force to target laws that have already been passed in both red and blue states and to stop state legislators from passing dozens of bills that have been introduced, including ones to protect people from companion chatbots, require studies on the impact of AI on employment, and bar landlords from using AI algorithms to set rent prices.
The draft order takes aim at California's new AI safety laws, calling them "complex and burdensome" and claiming they are based on "purely speculative suspicion" that AI could harm users.
“States like Alabama, California, New York and many more have passed laws to protect kids from harms of Big Tech AI like chatbots and AI generated [child sexual abuse material]. Trump’s proposal to strip away these critical protections, which have no federal equivalent, threatens to create a taxpayer-funded death panel that will determine whether kids live or die when they decide what state laws will actually apply. This level of moral bankruptcy proves that Trump is just taking orders from Big Tech CEOs,” said Sacha Haworth, executive director of the Tech Oversight Project.
The task force would operate on the administration's argument that the federal government alone is authorized to regulate commerce between states.
Shakeel Hashim, editor of the newsletter Transformer, pointed out that that claim has been pushed aggressively in recent months by venture capital firm Andreessen Horowitz.
President Donald Trump "and his team seem to have taken that idea and run with it," said Hashim. "It looks a lot like the tech industry dictating government policy—ironic, given that Trump rails against 'regulatory capture' in the draft order."
The DOJ panel would consult with Trump and White House AI Special Adviser David Sacks—an investor and cofounder of an AI company—on which state laws should be challenged.
The executive order would also authorize Commerce Secretary Howard Lutnick to publish a review of "onerous" state AI laws and restrict federal broadband funds to states found to have laws the White House disagrees with. It would further direct the Federal Communications Commission to adopt a new federal AI law that would preempt state laws.
The draft executive order was reported days after Trump called on House Republicans to include a ban on state-level AI regulations in the must-pass National Defense Authorization Act, which House Majority Leader Steve Scalise (R-La.) indicated the party would try to do.
The multipronged effort to stop states from regulating the technology, including AI chatbots that have already been linked to the suicides of children, comes months after an amendment to the One Big Beautiful Bill Act was resoundingly rejected in the Senate, 99-1.
Travis Hall, director for state engagement at the Center for Democracy and Technology, suggested that legal challenges would be filed swiftly if Trump moves forward with the executive order.
"The president cannot preempt state laws through an executive order, full stop," Hall told NBC News. "Preemption is a question for Congress, which they have considered and rejected, and should continue to reject."
David Dayen, executive editor of The American Prospect, said harm the draft order could pose becomes clear "once you ask one simple question: What is an AI law?"
The draft doesn't specify, but Dayen posited that a range of statutes could apply: "Is that just something that has to do with [large language models]? Is it anything involving a business that uses an algorithm? Machine learning?"
"You can bet that every company will try to get it to apply to their industry, and do whatever corrupt transactions with Trump to ensure it," he continued. "So this is a roadmap to preempt the vast majority of state laws on business and commerce more generally, everything from consumer protection to worker rights, in the name of preventing 'obstruction' of AI. This should be challenged immediately upon signing."
The draft order was reported amid speculation among tech industry analysts that the AI "bubble" is likely about to burst, with investors dumping their shares in AI chip manufacturer Nvidia and an MIT report finding that 95% of generative AI pilot programs are not presenting a return on investment for companies. Executives at tech giant OpenAI recently suggested the government should provide companies with a "guarantee" for developing AI infrastrusture—which was widely interpreted as a plea for a bailout.
At Public Citizen, copresident Robert Weissman took aim at the White House for its claim that AI does not pose risks to consumers, noting AI technologies are already "undermining the emotional well-being of young people and adults and, in some cases, contributing to suicide; exacerbating racial disparities at workplaces; wrongfully denying patients healthcare; driving up electric bills and increasing greenhouse gas emissions; displacing jobs; and undermining society’s basic concept of truth."
Furthermore, he said, the president's draft order proves that "for all his posturing against Big Tech, Donald Trump is nothing but the industry’s well-paid waterboy."
"Big Tech companies have spent the past year cozying up to Trump—doing everything from paying for his garish White House ballroom to adopting content moderation policies of his liking—and this is their reward," said Weissman. "It’s a fabulous return on a very modest investment—at the expense of all Americans.”
JB Branch, the group's Big Tech accountability advocate, added that instead of respecting the Senate's bipartisan rejection of the earlier attempt to stop states from regulating AI, "industry lobbyists are now running to the White House."
"AI scams are exploding, children have died by suicide linked to harmful online systems, and psychologists are warning about AI-induced breakdowns, but President Trump is choosing to protect his tech oligarch friends over the safety of middle-class Americans," said Branch. "The administration should stop trying to shield Silicon Valley from responsibility and start listening to the overwhelming bipartisan consensus that stronger, not weaker, safeguards are needed.”
“While Donald Trump keeps selling away influence over our government, we’re fighting to ensure the rules are being written to help working Americans, not corporate interests," said Sen. Elizabeth Warren.
Two progressive Democrats are teaming up to push legislation to curb corporate America's capture of the federal government's regulatory process.
Rep. Pramila Jayapal (D-Wash.) and Sen. Elizabeth Warren (D-Mass.) on Wednesday announced a new bill called the Experts Protect Effective Rules, Transparency, and Stability (EXPERTS) Act that aims to restore the role of subject matter experts in federal rulemaking.
Specifically, the bill would codify the Chevron doctrine, a 40-year legal precedent overturned last year by the US Supreme Court, which held that courts should be broadly deferential to decisions made by independent regulatory agencies about interpretations of congressional statutes.
The legislation would also push for more transparency by requiring the disclosure of funding sources for all "scientific, economic, and technical studies" that are submitted to agencies to influence the rulemaking process.
Additionally, the bill proposes speeding up the regulatory process by both "excluding private parties from using the negotiated rulemaking process" and reinstating a six-year limit for outside parties to file legal challenges to agencies' decisions.
In touting the legislation, the Democrats pitched it as a necessary tool to rein in corporate power.
“Many Americans are taught in civics classes that Congress passes a law and that’s it, but the reality is that any major legislation enacted must also be implemented and enforced by the executive branch to become a reality,” said Jayapal. “We are seeing the Trump administration dismantle systems created to ensure that federal regulation prioritizes public safety. At a time when corporations and CEOs have outsized power, it is critical that we ensure that public interest is protected. This bill will level the playing field to ensure that laws passed actually work for the American people."
Warren, meanwhile, argued that "giant corporations and their armies of lobbyists shouldn’t get to manipulate how our laws are implemented," and said that "while Donald Trump keeps selling away influence over our government, we’re fighting to ensure the rules are being written to help working Americans, not corporate interests."
The proposal earned an enthusiastic endorsement from Public Citizen co-president Lisa Gilbert, who described it as "the marquee legislation to improve our regulatory system."
"The bill aims directly at the corporate capture of our rulemaking process, brings transparency to the regulatory review process and imposes a $250,000 fine on corporations that submit false information, among other things," she said. "The bill is essential law for the future of our health, safety, environment, and workers. Public Citizen urges swift passage in both chambers."
"If lawmakers are serious about AI governance, they must create strong, enforceable national protections as a regulatory floor—not wipe out state laws so Big Tech can operate without consequence," said one consumer advocate.
A Republican push to stop state legislatures from regulating artificial intelligence, including chatbots that have been found to pose harm to children, resoundingly failed over the summer, with 99 out of 100 senators voting against the provision in the One Big Beautiful Bill Act—but the previous rejection of the idea isn't stopping President Donald Trump and GOP lawmakers from trying again to impose a moratorium.
On Tuesday, Trump posted on his Truth Social platform that House Republicans should take action against "overregulation by the States" in the AI field.
Claiming that "DEI ideology" in AI models in some states will "undermine this Major Growth 'Engine'" and that "Investment in AI is helping to make the U.S. Economy the 'HOTTEST' in the World"—despite tech industry leaders' warnings that the value of AI investments may have been wildly overestimated and the bubble may be on the cusp of bursting—Trump called on Republicans to include the state regulations ban in the National Defense Authorization Act (NDAA), "or pass a separate Bill."
Also on Tuesday, House Majority Leader Steve Scalise (R-La.) told Punchbowl News that the GOP is considering adding language to the NDAA that would effectively ban state AI regulations, which have been passed in both Democratic- and Republican-led states. Those laws would be nullified if Republicans follow through with the plan.
Since the annual defense spending bill is considered a must-pass package by many lawmakers, inserting amendments related to other legislative goals is a common strategy used in Congress.
Trump previously tried to circumvent Congress' rejection of the moratorium in July, when he announced his AI Action Plan.
Emphasizing that the anti-regulatory effort has been rejected by "an alliance of Democrats, Republicans, social conservatives, parents rights groups, medical professionals, and child online protection groups," the consumer advocacy group Public Citizen on Tuesday called Trump's renewal of the push "highly inappropriate" and said it "would risk stripping away vital civil rights, consumer protection, and safety authority from states without putting any federal guardrails in place."
JB Branch, Big Tech accountability advocate at Public Citizen, said that "AI preemption strips away the safeguards states have enacted to address the very real harms of AI."
"Big Tech and its allies have spent months trying to ban states from protecting their own residents, all while refusing to support any meaningful federal AI safeguards," said Branch. "Congress should reject this maneuver outright. If lawmakers are serious about AI governance, they must create strong, enforceable national protections as a regulatory floor—not wipe out state laws so Big Tech can operate without consequence.”
On Tuesday, the Republican-controlled House Committee on Energy and Commerce held a hearing on "AI Chatbot Advantages and Disadvantages," where one witness, psychologist Marlynn Wei, warned that "AI chatbots endorse users 50% more than humans would on ill-advised behaviors."
In September, several grieving parents testified before the Senate Judiciary Committee that their children had died by suicide after being encouraged to take their own lives by AI chatbots.
At Tuesday's hearing, Ranking Member Frank Pallone (D-NJ) said that "Congress must be sure to allow states to put in place safeguards that protect their residents."
"There is no reason for Congress to stop states from regulating the harms of AI when Congress has not yet passed a similar law," he said.
Rep. Lori Trahan (D-Mass.) also addressed the issue, suggesting it was surprising that the Republican members would bother holding a hearing on the harms of AI when they are planning to strip state lawmakers of their ability to protect their constituents from those harms.
"I'm having real difficulty in reconciling this hearing and all that we've heard about the risks of AI chatbots, especially to our children, with the attempt by the House Republican leadership to ban state-level AI regulations," said Trahan. "Republicans' push for this regressive, unconstitutional, and widely condemned AI policy is real and it's unrelenting."
👀MUST WATCH: @RepLoriTrahan takes down House GOP’s efforts to slip the disastrous AI preemption into the NDAA — wiping out state laws that protect kids, seniors, and veterans. It’s a big handout for Big Tech. pic.twitter.com/8NxdkcDgul
— The Tech Oversight Project (@Tech_Oversight) November 18, 2025
"Let's just say in public what you are pushing in private," she added. "Don't be holding these hearings about the risks of AI chatbots while behind closed doors you kneecap state legislatures from protecting their constituents. I mean, if the AI moratorium is the topic in the speaker's office let's make it so in this hearing room, because the American people deserve to know where you truly stand on AI regulation."