On July 23, President Trump released his long-awaited AI Action Plan based on three pillars: accelerating innovation, building AI infrastructure and leading in international diplomacy and security.  

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The plan, which includes more than 90 federal policy actions, calls for federal agencies to review and repeal policies that stand in the way of AI development, and encourages AI in both government and the private sector. 

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Big picture, it looks to roll back regulations and “removes red tape” in the interest of giving America the edge amid fierce competition from China. The vision calls for exporting America’s “full AI technology stack—hardware, models, software, applications, and standards” to prevent allies from becoming dependent on “foreign adversary technology.” The action plan would establish a program within the Department of Commerce to accomplish this, leaning heavily on coordination with the U.S. Export-Import Bank and International Development Finance Corporation.

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The Good

• Encourage Open Source and Open Weight AI - The plan’s assertion that the “Federal government should create a supportive environment for open models” would democratize access to open source and open weight AI models for startups and academics, serving to encourage research breakthroughs powered by AI. 

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The Controversial 

• Energy and Climate Concerns - Trump’s action plan encourages government agencies to cut references to climate change. While the plan’s calls for increased production of domestic semiconductor chips and construction of data centers with potential for job creation, there is concern that data centers also come with significant environmental costs, particularly the vast electricity and water required to power them.
• Targeting “Woke” AI and Other Tripwire Words - The Trump administration continues to rein in perceived "ideological bias" and this plan is no different, as it encourages agencies to remove mentions of DEI and misinformation from documents and frameworks. The plan will update federal procurement guidelines to ensure the government only contracts with AI developers whose systems "allow free speech expression to flourish." 

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The Ambiguous 

• Vague Language Around Government Contracts - Requires AI companies that want to sell their products to the federal government to have AI systems that are “objective and free from top-down ideological bias.” But what does that mean, and who is responsible for determining what’s objective? 
• Reviving the Failed AI Moratorium - Maybe? The plan states that the government “should not allow AI-related Federal funding to be directed toward states with burdensome AI regulations that waste these funds,” but it also stipulates that it should “not interfere with states’ rights to pass prudent laws that are not unduly restrictive to innovation.” This vague and contradictory language could be interpreted as a return of the AI moratorium that was recently defeated 99-1 in the Senate and would have banned the passage or enforcement of state AI regulations for a decade. 
• What about copyright? - Copyright enforcement in AI was conspicuously absent from Trump’s action plan, despite being a major topic of debate in state legislatures and in Congress. Trump declared after the plan’s release, “You can’t expect to have a successful AI program when every book, article, etc. [you implement into the system] you are expected to pay for. China isn’t abiding by these rules, and we can’t be beaten by China.” Administration officials later told reporters that this issue should be left up to the courts.

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In remarks delivered on the evening of July 23rd, President Trump described his AI Action Plan as a “historic action to reaffirm the future that belongs to America.” His sweeping vision for restoring America’s dominance in innovation and infrastructure began with a call to undo burdensome red tape. He called for a federal standard on AI, “not 50 different rules from 50 different states.” 

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Conceding that the idea is unpopular, Trump argued that federal regulations are needed to supplant the states. “We could have a state run by a crazy governor that decides he doesn’t like the industry and runs these businesses out of business,” he said. “We also have to watch Asia and Europe to ensure that AI companies aren’t subject to bad rules.”  

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After his speech, President Trump signed multiple executive orders on stage, including:

• Establishing a fast-tracked process for federal permitting for data center infrastructure. This executive order will establish Fast Track permitting and ensure that the federal government is working to get data centers approved and through the permitting pipeline as quickly as possible.
• Promoting, through various instrumentalities of the federal government, the export abroad of American AI models. This executive order aims to ensure American AI dominance in the future. 
• Ensuring that when the federal government procures or promotes different AI models, those AI models are ideologically neutral. This executive order specified that AI models should not embrace wokeism and critical race theory. President Trump coined this as “Woke AI,” which has become a major target for conservatives. 

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So what’s next? Reactions are pouring in from trade associations, tech industry and advocacy groups ― including CCIA, Public Knowledge, Americans for Responsible Innovation, the Atlantic Council, Consumer Choice Center, the National Association of Manufacturers and the US Chamber of Commerce ― but it remains to be seen how the action plan is received and implemented by state and federal lawmakers.  

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We’ll continue tracking these developments as they unfold, so stay tuned to Glen Echo Group to stay on top of fast-moving AI policy discussions. If you have questions about how your organization should navigate this tumultuous time, we’re here to help. 

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