⚖️ Trump's AI Plans

Author

Liam Gill
July 31, 2025

The Trump Administration’s AI Pivot

On Wednesday, the Trump administration released its long-awaited AI Action Plan, signaling a major pivot from the Biden-era approach to AI regulation. Where the previous administration focused on mitigating risks and enforcing safety standards, Trump’s plan is aggressively pro-growth and centered on national security, economic competitiveness with China, and deregulation. It calls for a large-scale expansion of AI infrastructure, fast-tracks permitting for data centers on federal lands, and aims to relax environmental regulations to support these efforts. At its core, the plan champions an “innovation-first” ethos that prioritizes progress over caution, and positions AI as a central tool in rebuilding American dominance in tech and defense.

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Deregulation and Ideological Battles Over AI

The AI Action Plan reveals a new chapter in the battle over AI governance. It downplays risk mitigation and instead proposes streamlining federal rules that could hinder AI innovation, such as environmental safeguards and content moderation requirements. It also revives efforts to limit states’ regulatory powers, potentially tying federal funding to compliance with national AI priorities. Notably, the plan introduces ideological criteria into federal AI procurement, emphasizing “neutrality” and rejecting what the administration calls “radical climate dogma” or DEI-related content filters. These provisions raise constitutional and operational questions. Legal scholars warn that government efforts to filter AI contracts based on ideological outcomes could brush against First Amendment boundaries, and that defining "neutrality" is itself an unsolved technical and philosophical challenge.

Opportunity and Uncertainty

For startups, the AI Action Plan is a double-edged sword. On one hand, the administration’s push for open models, deregulatory policies, and massive infrastructure investment could offer greater access to compute resources, fewer legal bottlenecks, and new government contracts — especially in defense and national security. Startups building foundational AI models or working with public infrastructure may benefit from expedited permitting and favorable funding conditions. On the other hand, founders should be cautious about politicized procurement criteria, increased scrutiny of foreign-born founders or talent, and uncertainty around shifting state vs. federal regulatory authority. Stay nimble: monitor federal rulemaking, ensure compliance with any procurement language, and avoid over-indexing on short-term gains if your model, mission, or values could be at odds with the political winds.

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