In 2026, states will go head to head with the White House's sweeping executive order. In the final weeks of 2025, the battle over regulating artificial intelligence in the US reached a boiling point. On December 11, after Congress failed twice to pass a law banning state AI laws, President Donald Trump signed a sweeping executive order seeking to handcuff states from regulating the booming industry. Instead, he vowed to work with Congress to establish a "minimally burdensome" national AI policy, one that would position the US to win the global AI race. The move marked a qualified victory for tech titans, who have been marshaling multimillion-dollar war chests to oppose AI regulations, arguing that a patchwork of state laws would stifle innovation. In 2026, the battleground will shift to the courts.

Donald Trump, center, signs a an executive order on artificial intelligence in the Oval Office on December 11. He is joined by, from left, AI advisor Sriram Krishnan, Senator Ted Cruz, Commerce Secretary Howard Lutnick, and AI and crypto czar David Sacks. Donald Trump, center, signs a an executive order on artificial intelligence in the Oval Office on December 11. He is joined by, from left, AI advisor Sriram Krishnan, Senator Ted Cruz, Commerce Secretary Howard Lutnick, and AI and crypto czar David Sacks. Last week, President Donald Trump signaled his allegiance to the AI industry yet again by signing an executive order that aims to block states from regulating AI.

The order creates a Justice Department task force to challenge state AI laws and directs the Commerce Department to pull future broadband funding from states that pass "onerous" legislation. President Donald Trump signed a highly anticipated executive order on Thursday that sets in motion a plan to establish a national regulatory framework for artificial intelligence while undercutting states' abilities to enact their own rules. The order, titled "Ensuring a National Policy Framework for Artificial Intelligence," creates an AI litigation task force within the Justice Department to directly challenge state AI laws the administration finds to conflict with federal policy. It also directs the Department of Commerce to craft guidelines that could make states ineligible for future broadband funding if they pass "onerous" AI laws. The push for sweeping federal preemption of state AI laws has largely been fueled by AI investors, conservative policy shops, and tech industry trade groups.

The draft order, obtained by WIRED, instructs the US Justice Department to sue states that pass laws regulating AI. US President Donald Trump is considering signing an executive order that would seek to challenge state efforts to regulate artificial intelligence through lawsuits and the withholding federal funding, WIRED has learned. A draft of the order viewed by WIRED directs US Attorney General Pam Bondi to create an "AI Litigation Task Force," whose purpose is to sue states in court for passing AI regulations that allegedly violate federal laws governing things like free speech and interstate commerce. Trump could sign the order, which is currently titled "Eliminating State Law Obstruction of National AI Policy," as early as this week, according to four sources familiar with the matter. A White House spokesperson told WIRED that "discussion about potential executive orders is speculation."