Trump demands end to domestic AI regulation, warns of economic threat
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President Donald Trump has demanded an end to excessive regulation of artificial intelligence (AI) at the state level and warned that state rules will ultimately threaten the U.S. economy.
In an article shared on Truth Social on Tuesday, Trump also criticized “Woke AI” and referred to a “patchwork” of state regulations in the field of AI.
“Investments in AI help make the U.S. economy the most dynamic in the world,” Trump wrote.
“But over-regulation by states threatens to undermine this major growth engine. Some states are even trying to integrate DEI ideology into AI models, thereby producing ‘Woke AI’ (remember Black George Washington?). We MUST have one federal standard instead of a patchwork of 50 state regulatory regimes.”
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President Donald Trump delivers remarks during the Winning the AI Race AI Summit, July 23, 2025, in Washington, DC. (Andrew Caballero-Reynolds/AFP via Getty Images)
Trump made the comments as House Republican leaders signaled they may try to include AI preemption language in the annual National Defense Authorization Act.
This would prevent states from introducing their own AI rules and protections.
House Majority Leader Steve Scalise, R-La., said Monday that GOP leaders were considering the measure to avoid what he called “regulatory chaos” as states advance their own rules.
Trump’s push for a unified national framework is part of his broader plan “Winning the Race to AI: America’s AI Action Plan.”
Under executive orders issued in July, federal agencies must avoid acquiring AI systems that “sacrifice truthfulness and accuracy to ideological agendas,” adhere to “unbiased principles of AI,” and support the fight against AI-generated deepfakes through the “Take It Down Act.”
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President Trump warns that excessive state regulation of AI harms economic growth and calls for a single federal standard to replace state rules. (iStock)
Vice President JD Vance echoed Trump’s position at February’s Artificial Intelligence Action Summit.
“We believe that over-regulation of the AI sector could kill a transforming industry just as it is taking off,” Vance said.
Not all Republicans agree. Florida Gov. Ron DeSantis shared a message with
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Trump’s message on Truth Social also came after Saudi Crown Prince Mohammed bin Salman pledged during his Tuesday visit to the White House to increase his planned investments in the U.S. economy to nearly $1 trillion over the next year.
Sen. Elizabeth Warren, Democrat of Mass., expressed concerns Tuesday about the government’s potential use of taxpayer funds to support OpenAI and other AI companies.
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“OpenAI’s actions suggest that it may be pursuing a deliberate strategy to involve itself in the federal government and the broader economy, such that the government has no choice but to intervene with public funds,” she said in a letter.
“We’ve seen this before: taking on enough debt, making enough risky bets, and then demanding a taxpayer bailout when those bets go bad, so the economy doesn’t collapse.”
