Trump Eyes Sweeping AI Order To Override State Laws After Warning China Could 'Catch Us' In Global Tech Race: Report

Author: Ananya Gairola | November 19, 2025 10:29pm

President Donald Trump is reportedly considering an executive order that would give Washington broad authority over artificial intelligence regulations, escalating his push to strip states of control just one day after warning that China could overtake the U.S. in the AI race.

Draft Order Would Let Federal Government Override State AI Laws

According to a draft obtained by The Verge, the order would create an AI Litigation Task Force inside the Justice Department with one mission: challenge state AI laws that federal officials believe hinder industry growth.

The document cites the latest measures in California focused on AI safety and catastrophic risk, as well as Colorado's law targeting algorithmic discrimination.

White House did not immediately respond to Benzinga’s request for comments.

See Also: Jensen Huang Says Being A CEO Is About ‘Sacrifice': Nvidia Chief Credits His Mother For Preparing Him For The Road Ahead: She Told Me I Was ‘Special'

Federal Agencies Would Be Directed To Pressure States

The draft outlines a 90-day timeline for agencies to carry out Trump's AI Action Plan.

The Commerce Department would be tasked with identifying states out of compliance and determining which could lose access to rural broadband funds.

Trump Says China Could ‘Catch Us' If We Don't Do This

On Tuesday, Trump took to Truth Social and cautioned that China could "easily catch us" in the global AI race if the U.S. fails to adopt a single, nationwide framework for regulating artificial intelligence.

His statement came after investor Kevin O'Leary warned that China is "crushing" the U.S. on power capacity, saying America's electrical grid is already maxed out while China can bring new coal plants online with little resistance.

Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang has echoed those concerns, pointing to China's lower energy costs and rapid permitting as long-term competitive advantages.

Nvidia ranks in the 98th percentile for Growth and 92nd percentile for Quality in Benzinga's Edge Stock Rankings, underscoring its exceptional performance compared with industry competitors.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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