Draft Executive Order Would Tie Non-Deployment Funding to State AI Regulation

WASHINGTON, Nov. 19, 2025 – A draft executive order that leaked Wednesday would direct the Commerce Department to restrict Broadband Equity, Access, and Deployment funding if states’ laws on artificial intelligence are too “onerous.”

The draft order, first posted online by AI news site Transformer, would direct National Telecommunications and Information Administration Administrator Arielle Roth to issue a policy notice within 90 days “specifying the conditions under which states may be eligible” for non-deployment funding under the $42.45 billion BEAD program.

“That Policy Notice must provide that states with AI laws identified [as onerous] are ineligible for non-deployment funds, to the maximum extent allowed by Federal law,” the draft read.

“The Policy Notice must also describe how a fragmented State regulatory landscape for AI threatens to undermine BEAD-funded deployments, the growth of AI applications reliant on high-speed networks, and BEAD's mission of delivering universal, high-speed connectivity.”

Based on states and territories’ preliminary results, more than $21 billion of the program’s money will likely be non-deployment funding, meaning won’t actually be used for broadband deployment projects. The NTIA officially approved 18 of those tentative spending plans Tuesday and said they were $6 billion under budget.

The money’s future is already up in the air, although states would prefer to hang on to it and advocates have argued the law standing up BEAD requires them to.

States had been planning to use the money for broadband adoption efforts, among other things. The Trump administration rescinded approval for any non-deployment activities, including some already underway, in June, saying more guidance would be forthcoming.

Roth floated non-deployment funds for streamlining permitting

The agency’s posture led to fears it would claw back the money itself, but Roth last month floated potentially using at least some non-deployment cash for streamlining permitting processes. 

Sen. Ted Cruz, R-Texas, tried unsuccessfully to include a similar provision in the budget bill passed this summer. He pushed a provision that would have tied all BEAD funds to a lack of state laws restricting AI companies.

Democratic lawmakers and Some GOP legislators would also prefer their states retain non-deployment dollars. Sens. Shelley Moore Capito, R-W. Va., and Roger Wicker, R-Miss., have publicly said as much, as has Louisiana Gov. Jeff Landry (R).  

Sen. Joni Ernst, R-Iowa, has for her part circulated a draft bill that would claw back all non-deployment funds.

Politico reported the White House was planning to officially issue the executive order as soon as Friday.

A White House official said in an email: “Until officially announced by the WH, discussion about potential executive orders is speculation.”

NTIA has already been successful in using BEAD funding to curb at least one state law the administration disagreed with. California legislators dropped an effort to cap broadband prices for low-income households after being told BEAD participants would have to be exempt from the law.

That’s since been extended to net neutrality laws, which are on the books in several states.

The draft executive order would also direct Federal Communications Commission Chairman Brendan Carr to "initiate a proceeding to determine whether to adopt a Federal reporting and disclosure for AI models that preempts conflicting state laws."