Trump’s AI Regulation Order Faces Legal Challenge from Consumer Advocates

Consumer advocacy groups have argued that President Donald Trump’s executive order seeking to block states from creating their own artificial intelligence regulations may be illegal, stating the move undermines states’ constitutional authority to protect citizens.

Robert Weissman, co-president of Public Citizen, called the order “mostly bluster,” asserting that “the President cannot unilaterally preempt state law.” He emphasized that “states should refuse to be cowed in regulating Big Tech.”

Public Citizen, a nonprofit consumer advocacy organization that describes itself as one championing the public interest, noted the executive order is likely to be challenged in court and dismissed.

The National Consumer Law Center added that the order “flies in the face of the critical and constitutional role states have in protecting the public.”

Lauren Saunders, associate director and director of federal advocacy at the center, warned that AI poses significant risks: it can lead to improper rejections for credit, jobs, and housing; account freezes or thefts; misuse of private data; and increased living costs through surveillance pricing.

John Bergmayer, legal director of Public Knowledge, stated an executive order cannot legally preempt state legislative action. He also noted Trump’s attempt to bypass Congress with the order is “not very well” in legal terms.

Signed Thursday, the executive order directs the attorney general to establish a task force to challenge state AI laws and instructs the Department of Commerce to compile lists of problematic regulations. It also threatens to withhold funding from broadband programs and grants for states that enact AI rules.

Four states—California, Colorado, Texas, and Utah—have already passed legislation setting private-sector AI guidelines, including limits on personal information collection and requirements for corporate transparency.