A message reading "AI artificial intelligence", a keyboard, and robot hands are seen in this illustration taken January 27, 2025. REUTERS/Dado Ruvic/Illustration
U.S. President Donald Trump speaks to the media as he boards Air Force One en route to Washington, at Palm Beach International Airport, in West Palm Beach, Florida, U.S., November 16, 2025. REUTERS/Annabelle Gordon

By Jody Godoy and Karen Freifeld

(Reuters) -U.S. President Donald Trump is considering an executive order that would seek to preempt state laws on artificial intelligence through lawsuits and by withholding federal funding, according to a draft of the order seen by Reuters on Wednesday.

The move, which is likely to face pushback from states, shows how far Trump is willing to go to help AI companies overcome a patchwork of laws they say stifle innovation.

A White House official told Reuters that until officially announced, discussion of potential executive orders was speculation.

The order would task Attorney General Pam Bondi with establishing an "AI Litigation Task Force whose sole responsibility shall be to challenge state AI laws, including on grounds that such laws unconstitutionally regulate interstate commerce, are preempted by existing federal regulations, or are otherwise unlawful," according to the document.

It would also direct the Department of Commerce to review state laws and issue guidelines that would withhold broadband funding in some cases.

An effort to block state AI laws was defeated in the Senate 99-1 earlier this year. The issue took on new life after Trump on Tuesday threw his weight behind a proposal by Republicans in Congress to add a similar provision to the National Defense Authorization Act.

(Reporting by Jody Godoy in New York; Editing by Chris Reese and Jamie Freed)