The States’ Right to Regulate AI Act would bar the use of federal funds to implement an executive order aimed at limiting states’ authority to regulate artificial intelligence.

The recently introduced States’ Right to Regulate AI Act was filed as an amendment to the upcoming appropriations legislation that the Senate is expected to consider soon. The legislation would prohibit the use of federal funds to implement the executive order issued by President Trump that seeks to restrict state authority over artificial intelligence (AI) regulation. 

The proposed legislation was first introduced in the Senate on December 17, 2025, by Senator Edward J. Markey (D-Mass.) and ten Democratic colleagues.

The executive order directs federal agencies to challenge or limit state AI laws and to condition certain federal funding on states not enacting “onerous” AI restrictions. While the order’s text grants agencies discretion in enforcement, critics have argued it could undermine numerous state AI laws.

Senator Peter Welch (D-Vt.), a co-sponsor of the bill, said, “At a moment when we should be putting every effort into finding ways to make AI safer, this executive order threatens consumer rights and safety by tying states’ hands.”

Senator Markey said, “Trump’s lawless AI Executive Order is a direct threat to our children, to workers, to our planet, and to marginalized communities,” adding that Congress should “assert its legislative authority and block this Executive Order.”

The States’ Right to Regulate AI Act is co-sponsored by Senators Chris Van Hollen (D-Md.), Adam Schiff (D-Calif.), Cory Booker (D-N.J.), Ron Wyden (D-Ore.), Bernie Sanders (I-Vt.), Ben Ray Luján (D-N.M.), Amy Klobuchar (D-Minn.), Alex Padilla (D-Calif.), and Dick Durbin (D-Ill.).