New Senate Bill Would Halt Federal Funding for Trump’s AI Executive Order
On January 7, 2025, Senate Democrats intensified their efforts to block President Donald Trump’s executive order, which limits states’ ability to regulate artificial intelligence. This initiative is encapsulated in the States’ Right to Regulate AI Act, introduced by ten senators alongside Sen. Ed Markey, D-Mass., on December 17.
Legislative Context
The States’ Right to Regulate AI Act is not only a standalone piece of legislation but also an amendment to appropriations legislation that the Senate is expected to consider shortly. Markey has voiced strong opposition to Trump’s executive order, describing it as “lawless” and a “direct threat” to various societal aspects, including children, workers, and marginalized communities.
Implications of Trump’s Executive Order
Issued on December 11, Trump’s order represents an unprecedented effort to centralize control over state AI regulations. It mobilizes multiple federal agencies to enforce compliance with federal standards. The order mandates:
- The Commerce Secretary to evaluate existing state AI laws within 90 days, identifying those that are considered “onerous” or conflicting with federal guidelines.
- The creation of a Justice Department AI Litigation Task Force to litigate against state laws deemed problematic.
- Conditioning states’ access to Broadband Equity, Access, and Deployment (BEAD) funds based on their AI regulatory frameworks.
This executive order also involves explicit instructions for the Federal Communications Commission and the Federal Trade Commission, aiming to review discretionary grant programs and impose conditions that may prevent states from enacting their own AI regulations.
Congressional Response
The premise of Trump’s AI order has faced widespread unpopularity in Congress. For instance, in a previous attempt, Sen. Ted Cruz, R-Texas, sought to include similar language in budget legislation, but the proposal was overwhelmingly rejected, with a vote of 99-1 to remove it. This indicates significant bipartisan concern regarding the federal overreach into state regulatory authority.
Last year alone, over 1,000 AI bills were introduced across state legislatures, with at least 38 states adopting roughly 100 measures aimed at regulating AI in 2025. This trend highlights the growing importance and complexity of AI regulation at the state level.
Looking Forward
Sen. Markey intends to push for a vote on the States’ Right to Regulate AI Act as part of any appropriations legislation. He is actively urging his colleagues to join him in defending the rights of states to regulate AI, emphasizing the need for legislative authority to counteract the executive order.
The bill is co-sponsored by a diverse group of senators, including:
- Peter Welch, D-Vt.
- Chris Van Hollen, D-Md.
- Adam Schiff, D-Calif.
- Cory Booker, D-N.J.
- Ron Wyden, D-Ore.
- Bernie Sanders, I-Vt.
- Ben Ray Luján, D-N.M.
- Amy Klobuchar, D-Minn.
- Alex Padilla, D-Calif.
- Dick Durbin, D-Ill.
As this legislative battle unfolds, the implications for AI regulation and the balance of power between federal and state authorities remain pivotal topics of discussion.
