According to PYMNTS.com, on December 2, 2024, Republican congressional leadership confirmed that a proposed AI moratorium, which would ban states from enacting AI laws, was stripped from the must-pass National Defense Authorization Act (NDAA). This marked the second time the provision was removed from a larger bill, having also been cut from the “One Big Beautiful Bill” in August due to bipartisan opposition. In response, former President Donald Trump announced on Truth Social this week that he will sign a “ONE RULE” executive order to prevent states from regulating AI, arguing that needing “50 Approvals” would destroy the industry. The reported draft order would create an attorney general-led task force to challenge state AI laws and could withhold federal funding. This push is backed by Big Tech companies, while Florida Governor Ron DeSantis announced his own legislative package on December 4 to protect personal data from AI and restrict data center development.
The stakes for developers and businesses
Here’s the thing: the fight over who gets to make the rules is a huge deal for anyone building or using AI. Big Tech’s argument is simple. A single federal rulebook is easier and cheaper to navigate than 50 different state laws. Imagine trying to launch a new AI tool and having to lawyer up for compliance in every single state. It’s a compliance nightmare waiting to happen, and companies argue it would absolutely stifle innovation, especially for startups that can’t afford that kind of legal overhead.
The growing federal-state divide
But there’s a major philosophical split here, and it’s getting wider. The federal approach, as pushed by Trump and the tech industry, is about accelerating development and maintaining a competitive edge against other nations. The state approach, like we’re seeing in Florida, is fundamentally about local control and addressing specific consumer protection concerns that Washington might move too slowly on, or ignore entirely. DeSantis framing AI as a potential “age of darkness and deceit” shows you the level of distrust some state leaders have. They don’t want to wait for a federal solution that may never come or may be too weak. So, who gets to decide what’s best for citizens? That’s the core tension.
What happens next?
An executive order is a powerful tool, but it’s not a permanent law. It would likely face immediate legal challenges from states arguing it oversteps federal authority. Basically, it kicks the fight from Congress to the courts. And while the industrial tech sector, which relies on stable, standardized computing platforms for manufacturing and automation, would certainly benefit from regulatory clarity, this battle is far from over. For enterprises investing in AI, the uncertainty continues. Do you bet on a federal standard winning out, or do you start preparing for a complex patchwork? Right now, it seems like you have to plan for both.
