* CNBC…

President Donald Trump signed an executive order Thursday issuing a single regulation framework for artificial intelligence, undermining the power of individual states.

“To win, United States AI companies must be free to innovate without cumbersome regulation,” the order says. “But excessive State regulation thwarts this imperative.”

The Trump administration, with the aid of AI and crypto czar David Sacks, has been pursuing a path that would allow federal rules to preempt state regulations on AI, a move meant to keep big Democratic-led states like California and New York from exerting their control over the growing industry.

Sacks and fellow tech investor and podcaster Chamath Palihapitiya stood beside Trump during the signing in the Oval Office. He was also joined by Sen. Ted Cruz (R-TX) and Commerce Secretary Howard Lutnick.

* From the AI EO…

Sec. 2. Policy. It is the policy of the United States to sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI.

Sec. 3. AI Litigation Task Force. Within 30 days of the date of this order, the Attorney General shall establish an AI Litigation Task Force (Task Force) whose sole responsibility shall be to challenge State AI laws inconsistent with the policy set forth in section 2 of this order, including on grounds that such laws unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful in the Attorney General’s judgment, including, if appropriate, those laws identified pursuant to section 4 of this order. The Task Force shall consult from time to time with the Special Advisor for AI and Crypto, the Assistant to the President for Science and Technology, the Assistant to the President for Economic Policy, and the Assistant to the President and Counsel to the President regarding the emergence of specific State AI laws that warrant challenge. […]

Sec. 5. Restrictions on State Funding. (a) Within 90 days of the date of this order, the Secretary of Commerce, through the Assistant Secretary of Commerce for Communications and Information, shall issue a Policy Notice specifying the conditions under which States may be eligible for remaining funding under the Broadband Equity Access and Deployment (BEAD) Program that was saved through my Administration’s “Benefit of the Bargain” reforms, consistent with 47 U.S.C. 1702(e)-(f). That Policy Notice must provide that States with onerous AI laws identified pursuant to section 4 of this order are ineligible for non-deployment funds, to the maximum extent allowed by Federal law.

* But…

“An executive order doesn’t/can’t preempt state legislative action,” posted Florida Gov. Ron DeSantis on X Monday in response to Trump’s Truth Social post announcing the upcoming order, “Congress could, theoretically, preempt states through legislation.” DeSantis has recently proposed a series of AI-related measures.

John Bergmayer, the legal director of the nonprofit advocacy group Public Knowledge, agreed. “They’re trying to find a way to bypass Congress with these various theories in the executive order. Legally, I don’t think they work very well.”

In a post on X on Tuesday, Sacks suggested that the federal government can override state AI laws because it has the power to regulate interstate commerce.

Bergmayer disagreed, “States are, in fact, allowed to regulate interstate commerce. They do it all the time. And the Supreme Court just recently said it was fine.”

Bergmayer cited a 2023 Supreme Court decision where the court supported California’s power to regulate its pork industry even though the regulations affected farmers in other states.

* NBC 5 Chicago…

A series of new Illinois laws set to take effect in 2026 will impact workers’ rights, including limiting the use of artificial intelligence.

An amendment to the Illinois Human Rights Act, which will take effect on January 1, will prohibit employment discrimination that utilizes artificial intelligence to consider factors like race or ZIP codes when making hiring decisions.

The bill also covers other protected classes including gender, religion and sexual orientation, according to the legislation.

According to the text of the legislation, the bill also prohibits AI using race, ZIP codes or other factors when determining acceptance or rejection of credit applications in the state of Illinois.

* Other Illinois AI news…

* 2024: Mayer Brown | Illinois Passes Artificial Intelligence (AI) Law Regulating Employment Use Cases: Based on the latest legislative developments, Illinois’s AI law underscores that use of AI in the employment context carries higher risks. Employers that are considering using AI for recruiting or other human resources-related decisions should consider conducting a bias audit on their AI systems and/or conducting sufficient diligence on the AI vendor providing such a tool. Those assessments should look at whether AI tools disproportionately impact certain groups—such as those of a certain race, gender, or age. Employers should document their analysis in an AI-impact assessment, keep records of any formal audits conducted on the AI system, and continuously monitor the AI system once it is used in the real world in order to make adjustments if the AI system deviates. Finally, employers should be transparent about their use of AI through appropriate AI pre-use notices.

* 2025: Press Release | Gov Pritzker Signs Legislation Prohibiting AI Therapy in Illinois: The Wellness and Oversight for Psychological Resources Act prohibits anyone from using AI to provide mental health and therapeutic decision-making, while allowing the use of AI for administrative and supplementary support services for licensed behavioral health professionals. This will protect patients from unregulated and unqualified AI products, while also protecting the jobs of Illinois’ thousands of qualified behavioral health providers. This will also protect vulnerable children amid the rising concerns over AI chatbot use in youth mental health services.

* Today: JDSupra | Sneak Peek: Illinois AI Workplace Notice Rulemaking is Coming – What to Expect + Your 5-Step Action Plan: As Illinois employers that use AI in employment decisions ready themselves for the new anti-discrimination, notice, and record-keeping requirements starting January 1, the Illinois Department of Human Rights is in the process of drafting the long-anticipated rules for compliance. Indeed, the Illinois Department of Human Rights (IDHR) recently met with stakeholders to propose rules to implement the new law. How will this big change impact your workplace? Here’s what you need to know about the state’s new employment-related AI law, the proposed rule, and the five steps you can take now to prepare.

* And a response from Rep. Dan Didech, who has sponsored some AI-related bills…

Many aspects of AI regulation should be addressed at the federal level, but this week’s executive order takes the wrong approach. By threatening to withhold statutorily guaranteed federal funds, it unlawfully punishes states that have acted responsibly in the absence of federal leadership.

States like Illinois have enacted targeted, commonsense guardrails to protect children, prevent discrimination, and ensure transparency when AI is used to make consequential decisions affecting people’s lives. These measures respond to real and documented harms and do not impede innovation or competitiveness.

The executive order also reflects a troubling pattern of the federal administration attempting to strong-arm private companies into advancing the president’s political agenda. Its directive to target state laws based on vague notions of “truthful outputs” risks being used to chill dissent, pressure AI developers, and coerce American companies into echoing government propaganda.

Illinois will not be bullied into abandoning its responsibility to protect its residents. Some aspects of AI policy are appropriately addressed through a uniform federal framework, while others reasonably reflect state-level judgment based on local needs and circumstances. Any federal approach should respect that balance, support innovation, and prioritize public safety over partisan interests.