Newsom Slams Trump's AI Order

California Governor Gavin Newsom has sharply criticized President Donald Trump's recent executive order on artificial intelligence, which seeks to prevent states from enacting their own AI regulations. Newsom, a vocal proponent of state-level AI governance, argued the federal directive promotes "grift and corruption" over genuine innovation, as reported by The Guardian on December 13, 2025.

The executive order, signed by President Trump on December 11, 2025, aims to establish a "minimally burdensome national policy framework for AI" and limit what it deems as excessive state regulation. This move has been widely seen as a significant victory for major tech companies, many of whom have lobbied for a unified federal approach to avoid a patchwork of state laws.

Newsom's strong rebuke came just hours after the order was made public, with The Guardian noting his statement that the presidential dictum advances "grift and corruption". He specifically referenced Trump's AI adviser and crypto "czar," David Sacks, suggesting they are "running a con" rather than crafting sound policy.

The order sets the stage for a direct confrontation between federal and state authorities over the future of AI regulation in the United States. States like California have been at the forefront of developing comprehensive AI laws, which now face potential challenges from the federal government.

Critics, including various groups focused on child safety and labor unions, have swiftly condemned the executive order. They question its legality and view it as a concession to the tech industry's lobbying efforts, according to The Guardian.

The White House, however, frames the executive order as a necessary step to streamline legislation and prevent "onerously patchwork regulation" that could stifle American technological leadership and economic competitiveness.

• Trump's Executive Order Details: President Trump's executive order, issued on December 11, 2025, explicitly aims to limit states' ability to regulate AI, advocating for a unified national framework. According to cooley LLP, the order cites concerns that a "patchwork of state laws threatens US technological leadership and economic competitiveness". It directs the Department of Justice to establish an "AI Litigation Task Force" within 30 days to challenge state AI laws deemed to unconstitutionally regulate interstate commerce or be preempted by federal regulations.

• California's Proactive AI Stance: California has been a leader in AI regulation, with Governor Newsom signing a landmark AI transparency bill in September 2025, as reported by The New Republic. This legislation, known as the Transparency in Frontier Artificial Intelligence Act, compels developers of large AI models to provide transparency reports and report safety incidents, with potential fines for non-compliance. Other California regulations include employment AI rules effective October 1, 2025, to curb discriminatory impacts in the workplace.

• The "Grift and Corruption" Allegation: Governor Newsom's accusation that the order promotes "grift and corruption" stems from his belief that it prioritizes the interests of tech companies over public safety and innovation, The Guardian noted. He suggested that President Trump and his AI adviser, David Sacks, are "running a con" by pushing policies that benefit the industry at the expense of robust oversight.

• Federal vs. State Authority Clash: The executive order ignites a significant constitutional debate regarding federal preemption versus states' rights in regulating emerging technologies. The Washington Post highlighted that while AI concerns interstate commerce, traditionally under federal jurisdiction, the Constitution grants this power to Congress, not the President. Legal experts from Ropes & Gray suggest that executive orders do not carry the full force of federal law, making the order's legal durability uncertain without a comprehensive federal regulatory scheme from Congress.

• Tech Industry's Influence: Major tech companies, including Google, OpenAI, and Meta, have actively lobbied for federal preemption of state AI laws, arguing that a fragmented regulatory landscape hinders innovation and creates compliance challenges. According to The Good Lobby, the rapid growth of the AI industry has led to immense lobbying efforts, with over 1,100 lobbyists deployed in 2023 to influence AI policy. These companies seek less government intervention and have asked the Trump administration to block state laws that restrict their operations.

• Broader Backlash and Concerns: Beyond Governor Newsom, the executive order has drawn criticism from various groups, including child safety organizations and state officials. TechPolicy.Press noted that a consensus view across the U.S. is that AI companies should be more accountable for their models' impacts, citing issues like algorithmic discrimination, deepfakes, and mental health concerns. Several states, including Colorado, New York, Texas, and Utah, have also been actively pursuing their own AI regulations, which could now be targeted by the federal task force.

• Potential Future Developments: The executive order signals an aggressive federal effort to preempt state regulation, but its implementation is likely to face legal challenges. States may contend that Congress has not established a comprehensive federal AI framework, thus limiting the executive order's preemptive power. The order also threatens to restrict federal funding, such as Broadband Equity Access and Deployment (BEAD) program funds, to states with conflicting AI laws, as reported by littler.