Feds Threaten to Yank Funding Over AI Rules: Is State Freedom Dead?

Sunday, November 23, 2025

In a few words:

Federal government aims to crush state AI laws with funding threats. Are you okay with this federal overreach?

More details:

So, Colorado, brave enough to try and hold AI companies accountable for discrimination in their algorithms, is getting smacked down by the feds – or at least, the Trump administration wants to. NBC News reports a draft executive order aiming to strong-arm states like Colorado into ditching their regulations, threatening to withhold federal broadband funding from those that dare to have their own AI laws. The idea? A single, consistent federal standard. Translation: The big tech boys get their way, and any state trying to protect its citizens from biased AI gets punished.

This isn't about a "consistent federal standard"; it's about power and profit. While some in Colorado's own government have pushed back the start date for their rules, fearing companies will flee, this federal move is a direct assault on states' rights to govern themselves and protect their people. We're talking about potentially withholding essential infrastructure funding simply because a state wants to ensure AI doesn't perpetuate discrimination. Is this the America we want, where innovation is prioritized over accountability, and states are penalized for trying to do the right thing?

Are you okay with the federal government using its financial leverage to quash state-level efforts to regulate powerful technologies and protect citizens from potential harm? Are you okay with the feds dictating policy for every state, regardless of local needs or values, under the guise of uniformity?

Video Transcript

0:00

Colorado's first in the nation attempt at regulating AI

0:03

could soon face some challenges from the feds.

0:05

NBC News reports President Trump's drafting an executive order

0:08

to pressure states into dropping their regulations on the AI industry.

0:13

The Democrats who run the Colorado state legislature passed a bill last

0:16

year making companies liable for discrimination in the AI software they use.

0:20

Some centrist Democrats and Governor Polis have

0:23

pushed the start date for those rules back

0:25

to mid 2026.

0:27

They want to tweak them.

0:27

They're worried that the restrictions will drive AI companies out of the state.

0:31

The Trump administration has been trying to

0:33

block states from passing their own restrictions.

0:35

The feds say there needs to be one

0:38

consistent federal standard.

0:40

NBC got a hold of a draft executive order that directed

0:44

the Justice Department to challenge the state AI laws in court

0:47

and would also have federal agencies withhold federal broadband

0:51

funding from states that have their own AI laws.

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