Trump’s AI Order Provokes Pushback from California Officials and Consumer Advocates

In the last decade, California has passed 42 laws to regulate artificial intelligence, more than any other state, according to Stanford’s Institute for Human-Centered AI. So it comes as no surprise that state leaders reacted with ire to President Donald Trump’s executive order slapping down state efforts to regulate AI.

The clash highlights the growing friction between California’s push for consumer protections and the tech industry’s efforts to neutralize regulation. The executive order follows previous failures led by Silicon Valley venture capitalist David Sacks, now the president’s AI and crypto advisor, to pass a moratorium on state AI regulation through Congress.

“President Trump and Davis Sacks aren’t making policy — they’re running a con. And every day, they push the limits to see how far they can take it,” Gov. Gavin Newsom wrote in a statement on Thursday.

As an earlier draft of the order circulated in Washington, critics warned it would neuter state laws designed to protect children and adults from the more predatory forms of commercial AI.

Trump’s executive order echoes talking points articulated by Silicon Valley leaders, including calls for a uniform federal regulatory framework, and concerns that state regulations could slow the pace of AI innovation.

“POTUS stepping in creates space for builders to focus on innovation while Congress finishes the job,” wrote Collin McCune, who leads government affairs for the Menlo Park-based venture capital firm Andreessen Horowitz, which is among the companies that have spent tens of millions of dollars to block or weaken Congressional action. “Now lawmakers have to act. Our standing in the global AI race—and the direct benefits Americans will see from it—depend on it,” he added.

The industry push to get the White House to supersede state legislation is “ shortsighted,” said State Sen. Josh Becker, D-Menlo Park, who has worked to pass several of California’s state bills governing AI. “I think they’re going to pay the price in the long run.”

But just how big of an effect the order will have on California’s AI regulations is unclear. It includes exemptions for laws that cover child safety, data center infrastructure, state government use of AI and “other topics as shall be determined.

“This is going to sow massive confusion in the industry,” Becker said.

Becker is wondering about the future of several AI bills he co-authored, including one regulating AI companion chatbots, due to go into effect in January, which Newsom signed into law as part of a broader package of online safety and emerging-tech protections.

“Is that affected by this? Because there’s a big part of it that deals with kids and chatbots, but there were parts of the bill that dealt with other things,” Becker said.

The executive order is widely expected to prompt legal challenges because only Congress has the authority to override state laws. Speaking in Sacramento on Friday, California Attorney General Rob Bonta said it was too early to determine any legal action.

“Where it’s headed, and what it intends to do, raises great concerns and flags. But we don’t sue until there’s action that we can take. Sometimes that’s upon the issuance of the executive order. Sometimes it’s later,” said Bonta, whose office has sued the Trump administration 49 times this year.

Bonta’s measured stance contrasts with state lawmakers who see imminent danger in this latest move from the White House.

“President Trump’s executive order is a dangerous attack on states’ constitutional authority to protect our residents from urgent AI harms,” wrote Assemblymember Rebecca Bauer-Kahan, D-Orinda, who has authored multiple AI bills regulating everything from algorithmic discrimination and transparency to protections for children and Hollywood creatives.

“While the tech industry lobbies for deregulation, women are being victimized by AI-powered nudification apps, artists and creators are having their livelihoods cannibalized without notice, deepfakes are being weaponized for harassment and fraud, and AI systems are perpetuating discrimination in housing, employment, and lending. These aren’t theoretical risks— they’re happening now and demand action,” Bauer-Kahan wrote.

California is not alone in its efforts to regulate AI at the state level. This year, all 50 states and territories introduced AI legislation and 38 states adopted about 100 laws, according to the National Conference of State Legislatures.

“This executive order is an outrageous betrayal of the states that, as Congress has stalled, have worked tirelessly to protect their residents from the very real risks of AI,” wrote James Steyer, head of Common Sense Media. The advocacy group has sponsored state bills in California and elsewhere. “Stripping states of their constitutional rights to protect their residents from unsafe AI — while holding critical broadband funding hostage, no less — erases the progress they are making and puts lives in danger,” Steyer wrote.