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Trump's Order on AI: What's at Stake for Kentucky

The order directs the commerce secretary to withhold broadband funds from states with onerous AI laws and calls for a federal task force to sue states, aiming to unify AI regulation.

  • President Donald Trump signed an executive order directing the federal government to sue states that regulate AI, aiming to support U.S. industry dominance.
  • The administration framed the move as creating a national framework described as minimally burdensome to sustain U.S. AI competitiveness, while proponents of state AI laws argue they balance public safety and economic benefit.
  • The order tasks the U.S. attorney general with creating an AI litigation task force and directs the secretary of commerce to flag onerous state laws and withhold Broadband Equity Access and Deployment Program funding, while federal departments and agencies act under existing legal authorities.
  • Child-Safety state laws are explicitly exempted, but legal observers say the executive order may be illegal since only Congress can override state laws, and National Nurses United warned it threatens patient health.
  • Some 38 states passed AI rules in 2025, including California's Transparency in Frontier Artificial Intelligence Act, Colorado Consumer Protections for Artificial Intelligence, Texas Responsible AI Governance Act, and Utah Artificial Intelligence Policy Act.
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National Fair Housing Alliance broke the news in on Monday, December 15, 2025.
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