WASHINGTON, December 14, 2025 – President Donald Trump’s executive order preempting state artificial intelligence regulations has laid bare tensions within the Republican Party, as MAGA loyalists clashed with tech-aligned advisers who successfully pushed for a policy favoring industry interests in the name of competing with China.
The order, signed on Thursday, grants the attorney general authority to challenge state AI laws and allows withholding of federal funds for infrastructure in non-compliant states.
Trump argued it eliminates a “confusing patchwork” hindering innovation. “It’s got to be one source… You can’t go to 50 different sources,” he said at the signing.
Internal opposition came from hard-line Trump supporters, including figures like Steve Bannon, who viewed the measure as too accommodating to Silicon Valley executives, often seen as culturally liberal.
Tech policy adviser David Sacks, a venture capitalist with investments in companies like SpaceX, led the counter-effort, framing unified federal rules as critical to U.S. AI leadership against Beijing.
The policy extends Trump’s pro-tech stance, building on July orders easing data center approvals and chip exports. Sacks stated: “We cannot allow fragmented state laws to undermine our national AI strategy.”
State officials and consumer groups condemned the move. California Attorney General Rob Bonta called it “an unconstitutional overreach” and pledged litigation. Legal experts note that only Congress can fully preempt state authority under the Supremacy Clause, setting up potential court battles.
The full order is posted on the White House site . For background on related actions, see July AI orders and chip export policy.
As challenges mount, the order highlights Trump’s reliance on Silicon Valley input, risking alienation of his base while pursuing a technological edge in a pivotal global contest.
