President Donald Trump has called for a single federal standard to govern artificial intelligence, warning that state-by-state regulation risks undermining U.S. competitiveness. He posted on social media that “overregulation by the States is threatening to undermine this growth engine,” arguing the country must avoid a patchwork of fifty different regimes.
The president stressed that without unified oversight the U.S. could fall behind China in the global AI race, highlighting the need for legislation either in a standalone bill or through the National Defense Authorisation Act. His plea reflects his wider strategy of positioning America as a world leader in AI, a policy actively pursued since his second term began this year.
Business and regulatory observers note the significance of the shift: by seeking to pre-empt individual states, the federal government would gain greater control over the AI regulatory landscape, potentially easing compliance burdens for major tech firms. Meanwhile critics say that reducing state power may limit safeguards and oversight at a local level.
From a corporate-finance perspective, the move could accelerate investment in U.S. AI infrastructure, as a uniform regulatory environment reduces legal uncertainty. At the same time, it reshapes the policy environment in which investors, startups, and incumbents operate. How Congress responds will be closely watched.
