States Pass AI Laws Despite Trump Order to Halt Regulation

Six months after President Donald Trump issued an executive order warning states to avoid regulating artificial intelligence, state legislatures are moving forward with a growing slate of AI laws anyway.

The push comes as Congress remains gridlocked on federal AI regulation, leaving states to fill the vacuum with measures targeting how chatbots interact with children, how employers use AI systems, and what safeguards developers must implement to prevent catastrophic failures.

Why it matters

The tension between federal preemption and state action is shaping the regulatory landscape for one of the most consequential technologies of the decade. With no federal framework in place and the White House threatening enforcement against state laws it deems burdensome, states are testing how far they can go to protect consumers, workers, and children from AI risks—potentially setting precedents that could influence national policy or trigger legal battles over regulatory authority.

Trump's executive order and the federal standoff

Trump's executive order directed the attorney general to establish a task force to challenge state AI laws deemed more than "minimally burdensome." It also instructed the Commerce Department to compile a list of problematic state regulations and threatened to withhold federal broadband and grant funding from states with AI laws the administration opposes.

The White House said it would not target laws aimed at preventing fraud or protecting consumers and children. It has since released a national policy framework urging Congress to preempt state AI laws and pass federal legislation on child protection, intellectual property, and free speech. However, the administration has not yet taken legal action against any state or withheld funding, according to the Boston Globe, which first reported these details.

States forge ahead with targeted legislation

Despite the federal pressure, more AI bills have been introduced in state legislatures this year than last, according to Justine Gluck, policy director of the Future of Privacy Forum. The legislation reflects a shift from earlier, broader regulatory attempts that governors vetoed as too restrictive on industry development.

In Illinois, a bill awaiting Democratic Gov. JB Pritzker's signature builds on California and New York laws by requiring developers of advanced AI models to establish protocols preventing catastrophic outcomes like biological weapons attacks or large-scale infrastructure failures. Illinois goes further by mandating independent auditors review whether developers comply with their own safety policies. The bill passed with near-unanimous support, including from Republican lawmakers.

"I don't know if you've met Illinois, but we're pretty independent," state Sen. Mary Edly-Allen told the Associated Press.

Chatbot restrictions and child safety measures

Several states have enacted laws governing AI chatbots, particularly in interactions with minors. Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon have all passed such measures this year.

Connecticut's law requires companion chatbots—those designed to sustain ongoing relationships with users—to block interactions with anyone under 18 unless programmed to discourage self-destructive behavior and provide parental controls.

Many states also require companies to disclose when users are interacting with AI rather than humans, and mandate that data shared with chatbots remain private.

Employment and transparency requirements

Colorado enacted a law in May requiring companies using AI in employment, education, housing, or banking to inform people when AI influences decisions about them. The measure represents a scaled-back version of a 2024 law aimed at preventing AI discrimination, revised after pressure from Gov. Jared Polis.

Connecticut now requires employers to notify workers and job applicants when employment-related AI systems are in use. California lawmakers are advancing the "No Robo Bosses Act of 2026," which would prohibit employers from using AI alone to fire or discipline workers.

Republican-led states show mixed response

Some Republican-led states have pulled back. In Florida, the state House declined to advance Gov. Ron DeSantis's AI "Bill of Rights" legislation after House Speaker Daniel Perez cited Trump's position that the federal government should lead on AI regulation. DeSantis criticized the federal inaction.

In Utah, progress stalled on legislation modeled after New York and California laws after the White House sent a memo to lawmakers stating it was "categorically opposed" to the bill.

These details were first reported by the Boston Globe.