(Bloomberg) -- The Trump administration and tech lobbyists are aggressively pushing lawmakers to use must-pass defense legislation to block emerging state-level regulatory efforts that would hold companies accountable for harms caused by artificial intelligence products.

White House AI czar David Sacks and House Majority Leader Steve Scalise are leading the drive to include a provision in the annual defense bill that would preempt some state laws on AI, seeking to stave off nascent regulation efforts in New York and California, said people familiar with the discussions.

Most Read from Bloomberg

On the French Riviera, Street Reforms Come From the Right

Baltimore’s Rebooted Transit Project Can’t Come Soon Enough

Where Train Dreams Meet Reality in Texas

Chicago’s ‘Job Killer’ Corporate Tax Plan Rejected by Committee

Emergency Alerts Company Sued Over 18 Deaths in LA Fire

The behind-the-scenes campaign burst into public view on Tuesday night when President Donald Trump urged Congress to block state-level AI regulation and suggested incorporating a provision in the defense bill, which congressional leaders aim to pass before the end of the year.

The tech industry has vigorously fought state regulation of artificial intelligence, arguing such limitations slow progress and risk ceding ground to Chinese competitors. There has been no serious effort to pass federal regulatory legislation.

Trump echoed arguments tech industry leaders have made, saying in a social media post that “overregulation by the States is threatening to undermine this Major Growth ‘Engine.’”

White House officials did not respond to requests for comment on Sacks’ role and the administration’s discussions with lawmakers. Scalise’s office also did not respond to requests for comment.

The Trump administration has been an enthusiastic supporter of artificial intelligence, a crucial engine of growth in the US economy and a key contributor to this year’s stock market gains. Chief executives of leading AI companies have forged close relationships with the president, and the White House has sought to clear away impediments to the technology’s rapid advancement.

Trump is also preparing to sign an executive order that would allow the Department of Justice to sue states over artificial intelligence regulations it deems unconstitutional, according to a draft making the rounds among lobbyists and lawmakers and seen by Bloomberg Government.

White House officials are urging members of Congress to reject a measure that would limit Nvidia Corp.’s ability to sell AI chips to China and other adversary nations, according to people familiar with the matter. Lawmakers are also considering adding that ban to the defense legislation.

Billionaire GOP donors Marc Andreessen and Ben Horowitz have been calling Republican leaders to urge them to include the AI regulation preemption language in the defense bill, the people said. Alphabet Inc.’s Google, Meta Platforms Inc. and OpenAI LLC also have been lobbying the federal government to block state AI regulations.

The maneuvering already has inflamed intra-Republican party tensions, pitting Silicon Valley-friendly lawmakers against Make America Great Again populists.

Georgia Republican Representative Marjorie Taylor Greene on Thursday excoriated the campaign to override state laws.

“States must retain the right to regulate and make laws on AI and anything else for the benefit of their state,” Greene said in a social media post. “Federalism must be preserved.”

“There will be a tremendous conservative grassroots backlash against Republicans who sell out their constituents to help big tech,” said Mike Davis, a close Trump ally and outspoken critic of the big tech companies. “If big tech wants federal preemption, they need to protect the four C’s: conservatives, children, communities and creators. Otherwise, this is simply AI amnesty.”

Senate Majority Leader John Thune confirmed Wednesday that Republican leaders are trying to include the preemption in the defense bill. He said negotiators are trying to work out a limitation on state AI regulation that still “is consistent with ensuring that states have some role in terms of how those companies operate in their states.”

House and Senate leaders so far haven’t coalesced around a specific AI provision for the defense legislation and multiple proposals are circulating, said people familiar with the matter. People who have been speaking with lawmakers and White House officials described the situation as fluid.

Sacks has been holding in-person meetings with Republican lawmakers to hash out language that could make it through the House and Senate, according to the people.

The Senate overwhelmingly rejected a similar measure in a 99-1 vote just months ago.

That effort foundered as Republican Senator Marsha Blackburn of Tennessee, a tech skeptic, raised concerns it would undermine state laws protecting artists’ copyrights and children’s online safety. Populist Republican influencers including Steve Bannon also fought the AI regulation moratorium, saying it amounted to a giveaway to tech giants.

Tech-friendly Republicans are trying to appease critics this time by including provisions addressing children’s online safety and disclosure requirements on AI products’ potential safety risks.

Top House Republicans have stalled federal legislation that would protect children from online exploitation and bullying, called the Kids Online Safety Act.

“I don’t know that the 99-1 is indicative of where people are,” said Nathan Leamer, leader of Build American AI, a tech-backed group fighting state regulation. “There are contours of a deal to protect consumers while also enabling America to be a dynamic place for AI innovation.”

Most Read from Bloomberg Businessweek

Cutting Ties With China Is Harder Than Companies Expected

The New Requirement for MBAs Seeking Consulting Jobs: AI Proficiency

Weed Drinks That Get You Very, Very High Could Be Gone Soon

How an $11 Billion Beauty Company Built a Suburban Empire

The Fight to Save the $2.7 Billion Botox Empire

©2025 Bloomberg L.P.