White House Pushes AI Action Plan Amid Congressional Debate
The ongoing discussions in Congress regarding the regulation of the burgeoning artificial intelligence (AI) industry have prompted lawmakers to seek clarity from the White House on its strategic vision. With safety concerns and the expanding influence of tech companies at the forefront, the administration is under pressure to advance its AI Action Plan.
Administration’s Vision
Michael Kratsios, the director of the White House Office of Science and Technology Policy, addressed a House subcommittee to outline the implementation of the AI Action Plan unveiled last year. The plan aims to establish a robust regulatory framework to guide AI innovation while maintaining safety and compliance across states.
Executive Orders and State Legislation
President Donald Trump has signed several executive orders designed to streamline the regulatory landscape for AI. One of the most controversial orders aims to unify the disparate state laws that emerged in the absence of federal 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 stifles innovation by imposing compliance burdens on companies.
Kratsios emphasized the need for a “federal framework” to harmonize these laws, asserting that a “one-size-fits-all” approach is inadequate for the diverse range of new AI technologies.
Challenges for Smaller Companies
Proponents of a moratorium on state regulations argue it levels the playing field for smaller tech companies competing against larger firms. Kratsios noted that the current varied regulations favor well-funded tech giants, making it difficult for startups and entrepreneurs to navigate compliance across multiple jurisdictions.
Legislative Hesitation on Moratorium
Despite repeated opportunities to institute a moratorium, Congress has hesitated. A proposed 10-year halt on AI legislation was removed from significant bills earlier this year, and lawmakers did not incorporate moratorium language into the National Defense Authorization Act, despite pressure from the Trump administration.
States have also voiced opposition to a federal moratorium, with many governors and attorneys general advocating for local autonomy in regulatory matters. Rep. Zoe Lofgren (D-Calif.) highlighted the importance of allowing states to enact necessary protections for their citizens while federal legislation remains stagnant.
Complexity of Regulation
Finding a balance between appropriate regulation and fostering innovation has proven challenging for Congress. Potential AI laws must consider overlapping issues with social media, including data privacy and protections for child users.
Data Centers and Community Impact
Lawmakers have expressed concerns about how to manage the relationship between the administration, states, and major tech companies in the operation of data centers. These facilities are crucial for powering AI technologies but have raised significant issues regarding their environmental impact and energy consumption.
Data centers demand substantial electricity, which has led to stressed power grids and rising utility costs for local communities. The Trump administration aims to minimize barriers for tech companies while ensuring that the expansion of these facilities does not adversely affect nearby residents. Kratsios stated that the goal is to create a regulatory environment conducive to AI infrastructure development without burdening American ratepayers.
Future of AI Legislation
Trump recently emphasized in a social media post that his administration would hold tech companies accountable for ensuring their data centers do not inflate local electricity bills. Microsoft has also pledged to adopt policies to prevent its data centers from becoming a financial burden on surrounding communities.
This issue is gaining traction on the campaign trail ahead of the midterm elections, with some lawmakers advocating for a moratorium on new data center constructions as a means to address community concerns.
