U.S. Slashes Federal AI Funding to States with ’Burdensome’ Regulations—Tech Innovation at Risk?
The Biden administration just dropped a hammer on states dragging their feet on AI adoption—cutting federal funding for those with overly restrictive rules. Is this a wake-up call for innovation, or just another political power play?
Red tape meets budget axe
States clinging to archaic AI regulations are about to feel the squeeze. The feds aren't just withholding cash—they're actively redirecting funds to jurisdictions rolling out the welcome mat for machine learning. Talk about putting your money where your policy is.
The Silicon Valley effect
Tech hubs stand to gain big while bureaucratic strongholds watch their AI dreams evaporate. Funny how these 'burdensome' rules always seem to protect legacy systems rather than citizens—almost like someone's got vested interests to protect (looking at you, traditional finance dinosaurs).
Innovation or intimidation?
The move sparks fresh debates: Is this about accelerating progress, or strong-arming states into compliance? Either way, the message is clear—adapt or get left behind. Just don't expect those blockchain bros to stop gloating about decentralization anytime soon.
Over 10,000 public comments shape Trump’s AI Plan
Critics say the plan favors big tech companies over the public
“The WHITE House AI Action plan was written by and for tech billionaires, and will not serve the interests of the broader public,” said Sarah Myers West, co‑executive director of the AI Now Institute. West added, “The administration’s stance prioritizes corporate interests over the needs of everyday people who are already being affected by AI.”
That approach is different from President Joe Biden’s 2023 executive order establishing federal AI safety and security standards. Trump revoked that order on his first day in office and subsequently issued a new order mandating faster AI advancement, eliminating ideological bias, and opening the framework to public feedback.
Officials say more than 10,000 public comments shaped the plan as mentioned in a BBC report. Furthermore, AI regulation became a major point of debate in talks over Trump’s budget bill, which Congress approved earlier this month.
The administration also worked to grow America’s AI systems at home and abroad.
Following his inauguration, Trump announced a joint venture, Stargate, partnering with SoftBank, Oracle, and OpenAI, to develop roughly $100 billion in data center resources. However, the project has been stalled for 6 months.
In May, he traveled with tech leaders to Gulf countries to secure AI infrastructure deals.
Trump also took AI measures abroad. He first blocked exports to Huawei and other Chinese firms to slow their AI progress, then relaxed some limits on selling Nvidia and AMD chips to China so U.S. companies could compete better.
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