The White House introduced its AI Action Plan that includes a revival of a controversial AI law moratorium. The original congressional moratorium, which failed, prevented states from regulating AI for 10 years by threatening to cut federal AI development and rural broadband funding. Trump’s new plan contains a similar provision stating the government will limit AI-related federal funding to states imposing burdensome AI regulations, while still allowing states to pass reasonably prudent laws. The Office of Management and Budget will ensure federal agencies consider states’ AI regulatory climates when allocating funds. The FCC will also assess whether state AI rules interfere with federal communications obligations. This new moratorium-like approach has no set expiration date and may penalize states enforcing strict AI regulations. Further details will be released in upcoming executive orders, focusing on AI adoption, infrastructure, and oversight.
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