Gavin Newsom Fires Back on President Trump's AI Executive Order Aimed at Blocking Local Regulations.

The signature was still fresh on the President's artificial intelligence executive order when Gavin Newsom came out swinging. Just hours after the decree was released on Thursday night, the governor released comments contending that the White House order, which seeks to block local governments from crafting their own AI rules, promotes “corruption and self-dealing” rather than genuine innovation.

“The administration and its adviser aren’t making policy – they are executing a scheme,” the governor declared, mentioning the President's technology czar. “Day after day, they push the limits to see how far they can take it.”

A Major Victory for Tech Industry Creates a Federal-State Clash

Trump’s executive order is viewed as a major victory for technology companies that have lobbied vigorously to remove regulatory hurdles to creating and launching their AI products. It also establishes a potential conflict between local authorities and the federal administration over the direction of artificial intelligence governance. The immediate backlash from organizations such as children's welfare groups, unions, and elected leaders has underscored the highly controversial nature of the order.

A number of leaders and organizations have raised doubts about the constitutionality of the directive, arguing that the President lacks the power to override state legislation on AI and denouncing the decree as the result of intense tech industry lobbying. The state of California, the base for many leading tech firms and one of the most active states on AI policy, has become a central locus for resistance against the order.

“This directive is deeply misguided, wildly corrupt, and will actually hinder progress and weaken public trust in the long run,” said California Democratic representative, one official. “We are examining all avenues – from the courts to Congress – to overturn this policy.”

Legislative Loggerheads and Imminent Court Battle

Earlier this year, Newsom enacted a pioneering artificial intelligence act that would compel developers of large, powerful AI models to disclose safety data and immediately notify authorities of critical failures or face fines up to $1 million. Newsom touted this Transparency in Frontier Artificial Intelligence act as a model for governing the tech sector nationwide.

“California's position as a global leader in tech allows us a distinct chance to establish a framework for sensible regulations for the entire nation,” Newsom said in an address. “This is particularly vital given the lack of a national regulatory framework.”

This September bill and additional pending regulations could now be targeted by the administration. Thursday’s executive order calls for an AI litigation taskforce that would review state laws deemed not to “bolster the United States’ competitive edge” and then pursue legal action or threaten to cut government grants. Critics contend that the White House has never provided any cohesive national plan to replace the state laws it seeks to preempt.

“This unconstitutional directive is simply a brazen effort to dismantle safeguards and grant powerful executives unchecked power over working people’s jobs, rights and livelihoods,” stated a major labor leader, one critic.

Nationwide Backlash Intensifies From Multiple Quarters

Within hours the directive was enacted, criticism grew among elected officials, labor leaders, children’s advocacy groups and civil liberties organizations that decried the policy. Other California Democratic leaders argued the action was an assault on state rights.

“No place in America understands the potential of artificial intelligence technologies better than California,” said a U.S. Senator. “However, this new policy, the White House is undermining state leadership and fundamental protections in one fell swoop.”

Similarly, another senator stressed: “The President is attempting to override state laws that are creating vital protections around AI and substituting them with … nothing.”

Lawmakers from Colorado to Virginia to New York also took issue with the order. A Virginia representative labeled it a “terrible idea” that would “foster a unregulated landscape for AI companies”. Another state legislator called the order a “huge giveaway” for AI firms, adding that “a few powerful executives bribed the President into selling out America’s future”.

Remarkably, even a former Trump adviser found fault with the policy, reportedly stating that the President's adviser had “completely misled the President on preemption”. The head of an investment firm echoed that “the answer does not lie in preempting state and local laws”.

Protecting Children Become a Focal Point

Resistance against the order has also included child protection organizations that have long expressed concerns over the effects of AI on children. This discussion has grown more urgent following legal actions against AI companies concerning harm to children.

“The AI industry’s relentless race for user attention already has a body count, and, in issuing this order, the administration has signaled it is content to let it grow,” said James Steyer. “The public deserves more than tech industry handouts at the expense of their wellbeing.”

A group of bereaved parents and safety groups have publicly opposed the order. They have been working to pass legislation to better protect children from harmful social media and AI chatbots and issued a PSA opposing the AI preemption policy.

“Parents will not stand idly by and allow our kids to remain lab rats in big tech’s deadly AI experiment that puts profits over the safety of our kids,” said one coalition CEO. “It is essential to have strong protections at the federal and state level, not amnesty for big tech billionaires.”
Steven Fisher
Steven Fisher

A seasoned business consultant with over 15 years of experience in strategic planning and digital transformation.