On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law, notably without a controversial provision that would have blocked states from regulating artificial intelligence (AI). However, the Trump administration appears to be pursuing the same deregulatory goal through a different avenue. The newly released AI Action Plan, “Winning the Race: America’s AI Action Plan,” proposes a set of policies that, while not explicitly preempting state laws, effectively undermine state autonomy by conditioning federal AI funding on a state’s regulatory environment. Specifically, the plan states that the “Federal government should not allow AI-related Federal funding to be directed toward states with burdensome AI regulations that waste these funds, but should also not interfere with states’ rights to pass prudent laws that are not unduly restrictive to innovation.”
While the Action Plan claims to support a balance between innovation and state rights, its language and funding proposals may suppress regulatory safeguards at the state level. The plan also calls for a review of federal regulations and oversight mechanisms, including those led by the FTC and FCC.
Learn more here.
Last Updated on July 28, 2025 by Aimed Alliance
