Six months after President Donald Trump cautioned states against regulating artificial intelligence, a growing number of state legislatures are moving forward with targeted AI oversight, despite opposition from the federal government. With Congress stalled on passing comprehensive federal AI regulations, states are increasingly enacting laws that address specific concerns related to AI’s interaction with children, employment practices, and developer accountability.
Trump, who has prioritized AI as a national and economic security issue, has argued that a fractured regulatory environment could hinder the industry’s growth and U.S. competitiveness, particularly in relation to China. In April, he signed an executive order directing the attorney general to challenge state AI laws deemed more than “minimally burdensome,” while the Commerce Department was tasked with identifying problematic regulations. The order also threatened to withhold federal funds from states enacting restrictive AI laws. However, the White House has stated that it would not target state regulations aimed at preventing fraud or protecting consumers and children.
Despite these federal warnings, states have introduced more AI-related bills in 2024 than in the previous year, including initiatives supported by Republican legislators. Illinois, for example, is considering legislation that builds on measures enacted in California and New York, requiring developers of large AI models to establish protocols to prevent catastrophic outcomes such as biological attacks or major cyber incidents. Unlike earlier efforts, Illinois’ proposal mandates independent audits to ensure compliance, signaling an emerging push for stronger developer accountability. The bill is supported by Democratic Gov. J.B. Pritzker and enjoys bipartisan backing in the legislature.
Other states have focused on regulating AI chatbots, particularly in their interactions with minors. Laws enacted in Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon require companies to disclose when consumers are communicating with AI, restrict chatbot engagement with children, empower parents to manage access, and protect users’ data privacy. Connecticut’s recent provisions target companion chatbots, mandating safeguards against self-destructive encouragement and parental control over usage.
Several states are addressing AI’s role in employment and housing decisions, areas where bias in algorithms has drawn concern from researchers. California is advancing the “No Robo Bosses Act of 2026,” which would ban employers from using AI as the sole basis for disciplinary actions and restrict AI-driven advertising targeting children. Colorado’s regulations require disclosure when AI systems influence decisions in critical areas, though the state scaled back anti-discrimination measures under pressure from Democratic Gov. Jared Polis. Connecticut has similarly mandated employer transparency regarding AI use in hiring and management.
Other legislative efforts have faced challenges. Florida’s state House declined to advance Gov. Ron DeSantis’ proposed AI “Bill of Rights,” which would have introduced parental controls for companion chatbots and mandated AI disclosure requirements. Meanwhile, Utah stalled legislation modeled on New York and California laws after receiving a terse White House warning opposing the bill.
To date, the Trump administration has not taken legal action or withheld funds against states as threatened under the executive order. Instead, officials have expressed a willingness to collaborate with state and federal partners to establish a cohesive AI regulatory framework. A recent bipartisan draft proposal in the House has, however, faced sharp criticism from members of both parties, reflecting ongoing disagreement over the scope and direction of federal AI oversight.