The Trump administration is pursuing a three-pronged campaign to preempt state AI regulation through Executive Order 14365, signed December 11, 2025, which created a DOJ AI Litigation Task Force, directed Commerce to evaluate state laws, and conditioned federal broadband funding on states avoiding AI regulations. This effort faces significant resistance as states dramatically accelerated AI legislation from fewer than 200 bills in 2023 to 1,208 bills across all 50 states in 2025 with 145 enacted, while a bipartisan coalition of 36 state attorneys general opposes federal preemption and the Senate voted 99-1 to strip AI preemption from the One Big Beautiful Bill Act. The conflict has sparked massive political spending, with the tech industry reportedly spending over $1 billion to prevent state regulation while competing super PACs—Leading the Future with $70 million and Public First Action with $50 million pledged—back opposing candidates. Colorado, California, and Texas have already implemented AI laws, with Colorado's attorney general committed to challenging the executive order in court as the DOJ prepares federal legal challenges by summer 2026.
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