Week 8: Trump’s AI Action Plan: Deregulation and Dominance in the Digital Age

President Donald Trump’s comprehensive AI action plan, released on July 23rd, outlines a strategy to assert America’s AI dominance by significantly reducing state and federal regulations and actively discouraging what he terms “woke AI.” This proposal is a sweeping endorsement of the technology, aiming to rapidly expand AI development and adoption across various sectors. While some provisions, such as promoting open-source AI, have garnered praise, tech and business groups are the loudest in their acclaim, anticipating that fewer restrictions will benefit their members.


The plan outlines specific executive actions aimed at enhancing regulatory environments. It suggests federal agencies doling out “AI-related discretionary funding” should limit funds if a state’s AI regulatory regimes hinder effectiveness. Furthermore, it directs the Federal Communications Commission (FCC) to evaluate state AI regulations that might interfere with its obligations under the Communications Act of 1934. The Federal Trade Commission (FTC) is also urged to reevaluate Biden administration investigations, including the ban on Rite Aid’s use of AI facial recognition, to ensure they do not unduly burden AI innovation. Politically, a new executive order bans federal agencies from procuring what Trump deems “woke AI” or large language models that “sacrifice truthfulness and accuracy to ideological agendas,” including those related to racial equity, and seeks to remove references to Diversity, Equity, and Inclusion from the NIST AI Risk Management Framework.

Beyond regulation, the plan advocates for a “‘try-first’ culture for AI across American industry,” aiming to overcome distrust and a complex regulatory landscape. It calls for the adoption of aggressive AI within the Armed Forces, including the introduction of AI curricula at military colleges and the automation of specific tasks. Acknowledging that AI adoption will profoundly change human labor, the plan discusses retraining workers for new roles, such as “electricians, advanced HVAC technicians.” It offers tax benefits for AI training courses. It also seeks to expedite environmental permitting for data center projects, with an executive order signed on July 23rd directing the EPA to modify rules under the Clean Air Act, Clean Water Act, and Toxic Substances Control Act, and identifying Superfund and Brownfield sites for reuse. The plan also addresses increasing pressure on the power grid, noting electricity demand is rising for the first time in over a decade in the US, and prioritizes fundamental advancements in AI interpretability through programs like DARPA and an AI hackathon.

Feiner, L., Calma, J., Field, H., & Robertson, A. (2025, July 25). Breaking down Trump’s big gift to the AI industry. The Verge. https://www.theverge.com/policy/713788/trump-ai-action-plan-explainer

Trump, AI, Policy, Regulation, Future

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