In an executive order signed at the White House, President Donald Trump mandated that U.S. states cannot enforce individual artificial intelligence (AI) regulations, consolidating AI oversight under a centralized federal authority. The Trump administration argues that varied state regulations could impede AI innovation and harm American competitiveness in the global AI race, particularly against China. This order aligns with the wishes of major AI companies which advocate for nationwide regulatory consistency. However, states such as California, Colorado, and New York, which have passed their own AI laws focusing on risk mitigation and ethics, criticize the federal preemption as an infringement on state rights and a potential weakening of public protections. California Governor Gavin Newsom labeled the order as a corrupt attempt to benefit Trump and his associates. Advocacy groups support state-level regulations for safeguarding residents amid limited federal guardrails. The executive order promises exemptions for regulations aimed at protecting children from AI risks. The policy raises complex questions about the balance between facilitating AI innovation and ensuring ethical oversight, emphasizing the need for effective federal AI legislation.