Trump demands end to state AI regulation, warns of economic threat

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President Donald Trump demanded an end to over-regulation of artificial intelligence (AI) at the state level and warned that state regulations would ultimately threaten the US economy.

In a post Tuesday on Truth Social, Trump also criticized the idea of ​​”Woke AI” and referred to a “patchwork quilt” of government regulation on AI.

“Investing in AI helps make US Economy “The HOTTEST in the world,” Trump wrote.

“But overregulation by states threatens to undermine this main engine of growth. Some states are even trying to infuse DEI ideology into AI models, creating “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 speaks at the Winning the AI ​​Race summit on July 23, 2025 in Washington, DC. (Andrew Caballero-Reynolds/AFP via Getty Images)

Trump made his comments like this House Republican leaders have signaled they may try to include AI preemptive language in the annual National Defense Authorization Act.

This would block the states from introducing its own rules and protections for AI.

House Majority Leader Steve ScaliseThe Louisiana Republican said Monday that GOP leaders are considering the measure to prevent what he called “regulatory chaos” as states push forward with their own rules.

Trump's push for a unified national structure is consistent with his broader “Win the World” agenda. Race AI: America's Artificial Intelligence Action Plan.”

Under decrees released in July, federal agencies should avoid procuring artificial intelligence systems that “sacrifice truth and accuracy for ideological agendas,” adhere to “unbiased AI principles,” and support the fight against AI-generated deepfakes through the “Get It Down Act.”

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Keyboard training for AI

President Trump warns that government overregulation of AI is undermining economic growth and is calling for a uniform federal standard to replace state rules. (iStock)

vice president JD Vance echoed Trump's position at the February AI Action Summit.

“We believe that over-regulation of the artificial intelligence sector could destroy a transformative industry just as it is just beginning to take off,” Vance said.

Not all Republicans support the idea. Governor of Florida Ron DeSantis shared the post on X Tuesday and warned that the dominance of government power would serve as a “subsidy to Big Tech” and would “prevent states from protecting themselves from online censorship of political speech, predatory apps targeting children, intellectual property rights violations, and data center incursions into energy and water resources.”

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Trump's “Truth in Social Network” post also came after Saudi Arabia's Crown Prince Mohammed bin Salman, during a visit to the White House on Tuesday, pledged to increase his planned investment in the U.S. economy to nearly $1 trillion next year.

Sen. Elizabeth Warren, D-Mass., on Tuesday raised concerns about the government's potential use of taxpayer funds to support OpenAI and other artificial intelligence companies.

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“OpenAI's actions suggest that it may be pursuing a deliberate strategy to tie itself to the federal government and the broader economy so that the government has no choice but to intervene using public funds,” she said in the letter.

“We've seen this before: take on enough debt, make enough risky bets, and then demand a bailout from taxpayers when those bets go down so that the economy doesn't collapse.”

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