White House Advances AI Action Plan Amid Congressional Regulation Debates
The White House is actively pushing forward its AI Action Plan as Congress grapples with how to regulate the rapidly expanding artificial intelligence industry. Lawmakers are seeking clarity from the administration regarding its vision, especially in light of rising safety concerns and backlash against the growing influence of tech companies in the sector.
Congressional Hearing and Executive Orders
Michael Kratsios, the director of the White House Office of Science and Technology Policy, addressed a House subcommittee to outline the administration’s strategy for implementing the AI Action Plan announced last year. In a bid to solidify the nation’s position as a leader in AI technology and to stay ahead of China, President Donald Trump has signed multiple executive orders aimed at advancing AI proliferation.
Among these executive actions is a controversial effort to consolidate the myriad state-level AI laws that emerged due to a lack of Congressional action. In 2025, all 50 states introduced AI-related legislation, with 38 states enacting at least one law. Critics argue that this patchwork of regulations could stifle innovation by forcing companies to allocate resources to compliance rather than development.
Call for a Federal Framework
The executive orders also tasked Kratsios and AI czar David Sacks with creating a “federal framework” in collaboration with Congress. Kratsios emphasized the need for a regulatory environment that provides clarity for innovators, stating, “Creating a one-size-fits-all regulation around AI is not the way that we can best deal with all these new AI technologies.”
Impact on Small Tech Companies
Supporters of a moratorium on new regulations argue that it would enable smaller tech firms to compete against larger corporations that have significant financial resources. Kratsios noted, “If you have this tremendous patchwork of laws all across the country, the folks who actually are able to work within that system most successfully are the deep-pocketed large, big tech companies.”
Despite numerous opportunities to introduce an AI moratorium, Congress has hesitated. A proposed 10-year pause was removed from the “Big, Beautiful Bill” earlier this year, and similar provisions were not included in the must-pass National Defense Authorization Act, despite Trump’s push for action.
State Concerns and Legislative Balance
Governors and attorneys general from various states have voiced their opposition to a federal moratorium, expressing the need for states to protect their citizens while Congress deliberates on legislation. Representative Zoe Lofgren of California remarked, “What we should not do is preempt the states from taking necessary actions to protect their citizens.”
The challenge of regulating AI effectively has persisted for years, with overlapping issues related to social media regulation, data privacy, and child protection complicating the legislative landscape.
Data Centers and Community Impact
Lawmakers have raised concerns regarding the collaboration between the administration, utility companies, and Big Tech to mitigate the adverse effects of data centers—crucial for AI operations—on local communities. These data centers, while essential for computing power, have significant electricity demands that threaten power grids and escalate utility costs.
In response to these challenges, the Trump administration aims to create a regulatory framework that facilitates tech expansion while safeguarding American ratepayers. Trump recently emphasized the importance of ensuring that data centers do not burden local residents with increased electricity bills.
Future of AI Regulation
The debate over how to regulate AI is set to intensify as it emerges as a key issue in the upcoming midterm elections. Some lawmakers are advocating for a moratorium on new data center constructions to address the growing concerns surrounding their societal impacts.
As the White House continues its efforts to shape the future of AI, the balance between innovation and regulation remains a critical focus for lawmakers and industry stakeholders alike.
