Thursday, July 16, 2026

States Forge Ahead on AI Rules Despite Trump Pushback

Valyrian News Network 4 min read

States Forge Ahead on AI Rules Despite Trump Pushback

Six months after President Donald Trump signed an executive order aimed at blocking states from creating their own artificial intelligence regulations, state lawmakers across the country are increasingly forging ahead with their own rules — defying federal threats and filling a regulatory vacuum left by congressional inaction.

According to AP News, more AI-related bills were introduced in state legislatures in 2026 than in 2025, including by Republican lawmakers. The pushback highlights a growing divide between the Trump administration’s hands-off approach to AI governance and state-level concerns about safety, bias, consumer protection, and child safety online.

The Federal Crackdown

Trump’s executive order, signed on Dec. 11, 2025, directed the Attorney General to create a task force to challenge state AI laws deemed more than “minimally burdensome” and ordered the Commerce Department to draw up a list of problematic regulations. It also threatened to restrict broadband funding to states with AI laws.

“There’s only going to be one winner” as nations race to dominate AI, Trump said at the signing, as AP News reported. “We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it’s impossible to do.”

In March 2026, the White House released a National Policy Framework urging Congress to preempt state AI laws and adopt a “light-touch” regulatory approach focused on child safety, intellectual property, and free speech. However, as of June 2026, the administration has not followed through on threats to sue states or withhold funding.

Illinois Leads on AI Safety

Among the most significant state actions, Illinois passed SB 315, the AI Safety Measures Act, which cleared the state House 110-0 on May 27, 2026. The bill requires frontier AI developers — including OpenAI, Anthropic, and Google DeepMind — to undergo mandatory annual independent third-party safety audits. Governor JB Pritzker has signaled he will sign it, with the law taking effect Jan. 1, 2027.

“I don’t know if you’ve met Illinois, but we’re pretty independent,” state Sen. Mary Edly-Allen, the bill’s sponsor, told the AP, brushing aside Trump’s threats.

A Wave of Chatbot and Consumer Protection Laws

A growing number of states are imposing restrictions on how AI chatbots interact with people, especially children. Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon all passed laws in 2026 requiring companies to disclose AI interactions, restrict chatbot access for minors, and protect data privacy.

Connecticut’s SB 5, signed by Gov. Ned Lamont, specifically regulates AI companion chatbots, prohibiting them from interacting with users under 18 unless programmed against encouraging self-destructive behavior. Colorado’s SB 26-189, signed by Gov. Jared Polis, requires companies deploying AI in employment, education, housing, or banking to disclose when AI is used to influence consequential decisions.

Meanwhile, Connecticut, Washington, and Utah have required AI developers to embed metadata in digital content so users can determine whether photos or video have been created or altered by AI.

The Florida and Utah Roadblocks

Not all state efforts have succeeded. In Florida, Gov. Ron DeSantis’s proposed AI “Bill of Rights” failed twice in the state House. House Speaker Daniel Perez cited Trump’s position that the federal government should lead on AI regulation. DeSantis criticized federal inaction, noting that Washington wasn’t acting.

In Utah, the White House sent a one-sentence memo to lawmakers stating it was “categorically opposed” to HB 286, which aimed to impose transparency requirements and fines on major AI developers. The bill died when the Utah legislative session ended March 6, 2026.

California and the Future of State AI Regulation

California continues to advance its own measures. The “No Robo Bosses Act” (SB 1040) would prohibit employers from relying solely on AI to fire or discipline workers. The state is also expanding chatbot regulation, including banning the use of children’s chatbot outputs for advertising.

Justine Gluck, policy director of the Future of Privacy Forum, noted that Trump’s executive order “didn’t seem to discourage states” from trying to regulate AI. With Congress deadlocked and the 2026 midterm elections approaching, the battle over who gets to set the rules for one of the most consequential technologies of the century is far from over.

What to Watch

The key question remains whether the Trump administration will follow through on its enforcement threats. With no federal AI law in sight and states across the political spectrum continuing to legislate, the U.S. may be headed for a landmark legal confrontation over the boundaries of federal and state authority in the age of artificial intelligence.