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White House pauses executive order that would seek to preempt state laws on AI, sources say

Written By: TDG Syndication
Last Updated: November 22, 2025 12:33:04 IST

(Reuters) -The White House has put on hold a draft executive order that would seek to preempt state laws on artificial intelligence through lawsuits and by withholding federal funds, sources said on Friday. The draft order would have likely faced significant pushback from states. But its consideration shows how far Trump is willing to go to help AI companies overcome a patchwork of laws they say stifle innovation. The White House did not have an immediate comment. The draft order would have tasked Attorney General Pam Bondi with establishing an "AI Litigation Task Force whose sole responsibility shall be to challenge state AI laws, including on grounds that such laws unconstitutionally regulate interstate commerce, are preempted by existing federal regulations, or are otherwise unlawful," according to a document seen by Reuters earlier this week. (Reporting by Karen Freifeld in New York; Editing by Chris Reese)

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