US Unveils Sweeping AI Strategy: Faster Permits, Fewer Rules, and Deepfake Crackdowns

White House Unveils Sweeping AI Plan: Deregulation and Deepfake Protections Take Center Stage

The Trump Administration has launched its long-anticipated “America’s AI Action Plan,” a 28-page blueprint with over 90 policy actions designed to cement U.S. dominance in artificial intelligence. Released July 23, the plan prioritizes accelerating innovation through deregulation, fast-tracking data center construction, and combating AI-generated deepfakes even as it sets the stage for clashes with the Federal Trade Commission (FTC) and state lawmakers.

Accelerating AI Through Deregulation

The plan’s first pillar aggressively targets regulatory barriers. It directs federal agencies to identify and repeal rules deemed obstacles to AI development, including environmental reviews for data centers. New executive orders will expedite permitting under the National Environmental Policy Act (NEPA) and Clean Water Act, while federal lands will be opened for data center construction.

Critically, the White House will leverage federal funding to discourage state-level AI regulations. Agencies must consider a state’s “regulatory climate” when awarding discretionary funds, a move aimed at states like Colorado and New York, which have passed AI consumer protection laws. “States with burdensome AI regulations may see federal support withheld,” the plan states.

The Deepfake Countermeasures

Amid growing concerns about AI-generated disinformation, the plan mandates the Justice Department to develop “deepfake standards” for courtroom evidence and federal investigations. This builds on May’s TAKE IT DOWN Act, which criminalized non-consensual intimate imagery.

The National Institute of Standards and Technology (NIST) will also revise its AI Risk Management Framework to eliminate references to “misinformation,” a term the administration argues reflects ideological bias. Federal contracts for large language models will require developers to certify systems are “objective and free from top-down ideological bias”.

Industry Praise and Skepticism

Tech executives largely applauded the plan. Jensen Huang, CEO of NVIDIA, declared, “America’s unique advantage is President Trump,” while industry groups highlighted streamlined permits and support for open-source AI.

However, watchdog groups warn the plan resembles a “Silicon Valley wishlist.” Sarah Myers West of the AI Now Institute noted, “It risks chilling state efforts to protect civil liberties,” citing facial-recognition bans and anti-discrimination safeguards.

FTC Tensions Flare

The plan escalates a simmering conflict with the FTC. It directs the commission to review all Biden-era investigations, consent decrees, and settlements involving AI companies, potentially undoing enforcement actions against algorithmic bias or anti-competitive practices.

FTC Chair Lina Khan has previously warned that unchecked AI could “turbocharge fraud and discrimination.” This directive signals a stark philosophical divide: The administration views regulation as innovation-stifling, while the FTC sees guardrails as essential for consumer trust.

Global Ambitions

Internationally, the plan promotes “full-stack AI export packages” for allies, bundling hardware, software, and standards while tightening semiconductor export controls against rivals like China. The Commerce Department will lead industry consortia to develop these export bundles within 90 days.

With its emphasis on speed and scale, the AI Action Plan marks a decisive pivot from the Biden administration’s risk-averse approach. But key questions remain: Can deregulation coexist with deepfake protections? Will states capitulate to funding threats? And can the U.S. out-innovate China without sacrificing safeguards? As the White House urges agencies to move with “urgency,” these tensions will define America’s AI race.

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