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President Trump’s latest executive order, signed on December 11, 2025, establishes a single federal regulatory framework for artificial intelligence, overriding existing state-level laws. While the administration claims the move will streamline innovation, it has sparked immediate controversy and exposed a deepening rift within the MAGA coalition. Key figures like Steve Bannon have publicly condemned the order as “corporatism,” arguing it favors Big Tech interests over populist values, setting the stage for political battles ahead of the 2026 midterms.
Story Highlights
- Trump signs an executive order imposing a unified federal AI framework.
- Order aims to override state-level AI regulations deemed obstructive.
- MAGA figures like Steve Bannon criticize the move as “corporatism.”
- Federal funding cuts punish non-compliant states, escalating tensions.
- Big Tech allies support Trump’s push for deregulation and innovation.
Trump’s Executive Order and Its Immediate Impact
On December 11, 2025, President Trump signed an executive order to establish a single federal regulatory framework for artificial intelligence, effectively nullifying state-level AI laws. Labeling these state laws as “cumbersome” obstacles, Trump aims to streamline AI innovation across the nation. This order includes measures such as legal actions against states and funding restrictions on non-compliant entities, sparking immediate backlash from key MAGA figures.
Steve Bannon, a prominent MAGA strategist, has been vocal about his opposition, branding the order “corporatism” on his podcast. This action highlights a growing divide within Trump’s base, as some supporters feel the move favors Big Tech interests over grassroots populist values. Trump’s alignment with tech leaders like Sundar Pichai and Sam Altman further fuels this perception.
President Trump has signed an executive order creating a national federal standard for AI regulation, limiting states’ ability to impose their own laws and allows Washington to override them pic.twitter.com/aZEAajBlJp
— HOT SPOT (@HotSpotHotSpot) December 12, 2025
Federal Overreach or Necessary Innovation?
The executive order reflects Trump’s response to a complex web of state laws that have mushroomed due to federal inaction. These laws, according to Trump, impede U.S. leadership in global AI innovation. By centralizing AI regulations, Trump seeks to eliminate the need for companies to navigate 50 different approval processes across states, which he argues is a barrier to technological advancement.
However, this centralization approach is not without its critics. Many argue that it represents federal overreach, overriding state autonomy and potentially stifling diverse regulatory approaches. The order’s funding cuts under programs like Broadband Equity Access and Deployment particularly strain state-federal relations, with significant implications for the upcoming 2026 midterm elections.
The Political Ramifications and Future Outlook
In the short term, Trump’s executive order creates immediate pressure on states to align with federal mandates or face financial penalties. This move streamlines AI approvals, potentially boosting innovation but also inviting legal challenges. Long-term, it sets a precedent for federal dominance in tech regulation, possibly deepening divisions within Trump’s support base.
As MAGA workers express concerns over the shift towards pro-tech policies, the political landscape ahead of the 2026 midterms becomes increasingly contentious. The executive order not only affects economic and technological sectors but also poses critical questions about the balance between innovation and state rights, a core conservative concern.
Watch the report: FULL: President Trump signs executive orders on AI
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