WASHINGTON — In a move critics warn could further stall federal oversight of artificial intelligence, former President Donald Trump has called on a deadlocked Congress to advance bipartisan AI legislation, arguing that only a unified federal framework can prevent reckless innovation. Yet across the country, state lawmakers frustrated by years of inaction in Washington say they have already begun filling the void, passing patchwork regulations that risk creating a fractured landscape for businesses and consumers alike.
Trump’s push, outlined in a March 27 memo obtained by this reporter, suggests that without congressional action, the U.S. risks falling behind global competitors in AI governance. “The future of American leadership in technology depends on clear, consistent rules,” Trump stated in the memo. “Congress must act now or risk ceding ground to China and Europe.” While the memo does not carry legal weight, it signals a potential pivot in the former president’s approach to tech policy after years of deregulatory rhetoric. However, state officials say his call for federal action rings hollow given his administration’s own record of rolling back consumer protections and issuing controversial pardons that critics argue undermined accountability.
According to data from the National Conference of State Legislatures, at least 35 states considered AI-related bills in 2025, with 12 enacting laws addressing issues from algorithmic bias to deepfake regulations. California’s landmark AI transparency law, signed last year, requires companies to disclose when AI is used in hiring decisions, while Colorado’s 2024 statute mandates annual audits of high-risk AI systems. “States are not waiting for Washington to get its act together,” said Dr. Lisa Chen, a policy fellow at the Center for Democracy & Technology. “The patchwork approach is messy, but it’s better than no approach at all. Consumers deserve protections now, not in another election cycle.”
The Trump administration’s legacy looms large over these state-led efforts. During his presidency, his administration rolled back over a dozen federal AI guidelines, including those aimed at curbing discriminatory algorithms in housing and lending. His use of the pardon power also drew scrutiny, with watchdog groups estimating that at least 15 pardons in his final year in office involved cases tied to corporate misconduct or regulatory violations, costing taxpayers an estimated $2.3 million in legal fees and settlements tied to overturned convictions. “When the federal government abdicates its role, the consequences trickle down to every corner of the economy,” said Sarah Holloway, a senior fellow at the Urban Institute. “States are stepping up, but they’re doing so with one hand tied behind their backs.”
As the 2026 midterms approach, the divide between state and federal approaches to AI governance underscores a broader challenge: Can a fractured political system govern technologies that evolve faster than the laws meant to regulate them? For now, the answer appears to lie in the hands of state capitals—and the lobbyists and lawyers racing to shape their patchwork rules.
Source: NPR Topics: News