U.S. President Donald Trump signs an executive order related to artificial intelligence during the "Winning the AI Race" Summit in Washington D.C., U.S., July 23, 2025. REUTERS/Kent Nishimura
(Reuters) -The White House has put on hold a draft executive order that would seek to preempt state laws on artificial intelligence through lawsuits and by withholding federal funds, two sources said on Friday.
The draft order, which Reuters reported on earlier this week, would have likely faced significant pushback from states. But its consideration shows how far Trump is willing to go to help AI companies overcome a patchwork of laws they say stifle innovation.
