California Officials Oppose Federal AI Regulation Preemption
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California Politicians Defy Trump’s Pro-Innovation AI Order to Cling to Bureaucratic Control

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Summary

California leaders, led by Governor Gavin Newsom, attack President Trump’s executive order aimed at streamlining AI regulations, prioritizing state power and red tape over national innovation and economic growth.

California officials are pushing back against President Donald Trump’s decisive executive order designed to streamline artificial intelligence (AI) regulation and prevent a patchwork of burdensome state laws. Governor Gavin Newsom lashed out at the order, making unfounded claims of 'grift and corruption,' as he and other state leaders seek to preserve their own bureaucratic control at the expense of American innovation.

The executive order instructs federal agencies to challenge restrictive state AI laws and considers withholding federal funding from states that put up regulatory roadblocks to progress. This bold move has been applauded by tech companies and innovators who have long been frustrated by California’s heavy-handed regulations and the threat they pose to America’s global leadership in AI. Still, entrenched political interests in California are gearing up for a fight, determined to maintain their grip on power.

California, home to many AI firms, has imposed strict new laws, including a September measure signed by Governor Newsom that forces developers of advanced AI models to submit to onerous transparency requirements and report safety incidents, with draconian fines of up to $1 million for non-compliance. Such measures threaten to stifle innovation and drive businesses out of the state.

State Attorney General Rob Bonta has signaled plans to challenge the executive order, setting up a legal showdown as California tries to block federal efforts to foster a unified, pro-growth regulatory environment.

The order has also drawn predictable criticism from labor unions and special interest groups. AFL-CIO President Liz Shuler accused it of undermining AI safety and empowering tech billionaires, ignoring the fact that excessive regulation only hampers job creation and economic opportunity.

This debate exposes the ongoing struggle between federal efforts to promote innovation and state politicians’ desire for control, with California officials prioritizing their own authority over the nation’s technological future.

Fact-checking

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President Donald Trump signed an executive order directing federal agencies to challenge state AI laws and consider withholding federal funding from states with regulations deemed obstructive to innovation.

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In September 2025, Governor Gavin Newsom signed the Transparency in Frontier Artificial Intelligence Act, requiring developers of advanced AI models to provide transparency reports and promptly report safety incidents, with fines up to $1 million for non-compliance.

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President Trump's executive order to preempt state AI regulations has been welcomed by tech companies concerned about inconsistent state regulations but faces significant political and legal challenges.

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State Attorney General Rob Bonta indicated plans to examine the legality of the executive order, setting the stage for a legal confrontation between California and the federal government.

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