How a Bold Plan to Ban State AI Laws Fell Apart—and Divided Trumpworld

The sudden rise and fall of a ban on state artificial-intelligence laws exposed the deep divisions between the pro-tech and Make America Great Again (MAGA) wings of the Republican Party, a rift that has complicated the GOP’s ability to enact sweeping tech policy. President Trump’s aides and advisers were split on the proposed ban, according to people familiar with the matter. Trump’s stance on the issue couldn’t be determined, but the division among his advisers helped give opponents of the ban—from former Trump adviser Steve Bannon to parents worried about the safety of their children online—room to kill the policy, tech observers said. “The moratorium provided a juicy target for all of the enemies of technology companies to join forces and take them down,” said Adam Thierer, a senior fellow at the R Street Institute think tank who focuses on innovation and supported the ban. The debate has high stakes for who regulates AI, with many companies worried about getting ensnared in a thicket of state rules. There have been over 1,000 AI bills proposed at the state level. Commerce Secretary Howard Lutnick and White House AI czar David Sacks pushed for the ban publicly, while some in Vice President JD Vance’s office expressed opposition privately, people familiar with the matter said. Other Trump aides were neutral or didn’t think the moratorium would pass.