After AI Executive Order, Taxpayer Watchdog Calls for Congressionally Enacted National AI Framework 

WASHINGTON, D.C. — Yesterday, the Trump administration unveiled its executive order (EO) on artificial intelligence (AI) regulation. Titled “Ensuring A National Policy Framework For Artificial Intelligence” this EO emphazises the need for a single federal AI regulatory framework that gives both AI developers and users clarity over their rights and their responsibilities.

The EO aims to lay the groundwork for the creation of a national framework. However, as the order recognizes, the responsibility ultimately falls on Congress to draft and pass a federal framework that preempts the patchwork of state-level regulations.

In response to yesterday’s release, Juan Londoño, Chief Regulatory Analyst of the Taxpayers Protection Alliance (TPA) offered the following comment:

“The White House correctly identifies the state-level patchwork of AI laws as an existential threat to the development of the AI industry. We have seen this happen with other digital technologies. The patchwork approach has ultimately failed to protect consumers while placing an onerous burden on businesses who must devote significant resources to compliance.

“President Trump seems to understand the danger of a patchwork and intends to prevent it from holding back the AI industry. His idea of establishing a task force to target a narrowly defined set of unconstitutional, already-preempted, and otherwise unlawful state rules is a laudable goal that will ensure that any laws governing AI pass the minimal threshold of being legally sound. The devil will be in the details, though, and TPA urges the adminstration to refrain from improperly extending the Dormant Commerce Clause to challenge state laws that, absent congressional statute, do not run afoul of the Constitution. Additionally, its clear mandate to Congress to start discussions of a federal AI framework will hopefully spark the momentum for much-needed negotiations that lead to a congressionally sanctioned and comprehensive law.

“However, the administration’s approach of conditioning funding on the existence or enforcement of state AI laws is a worrisome weaponization of federal grants. While its ultimate objective of trying to combat hostile regulations is laudable, the weaponization of federal funding can have long-standing consequences for the American economy and the American system of federalism. As past administrations have shown, this approach can lead to federal overreach on issues such as energy supply. Additionally, the EO grants significant new responsibilities to both the Federal Communications Commission and the Federal Trade Commission (FTC). Particularly, granting the FTC power to rule over what can be considered ‘truthful outputs’ as part of its analysis of unfair and deceptive practices can pose a threat to Americans’ First Amendment rights.

“This executive order should serve as a valuable reminder to Congress that it must move toward a federal AI framework.”