Draft Executive Order Would Tie Non-Deployment Funding to State AI Regulation
The draft would direct NTIA to withhold funds if states regulate AI companies too heavily.
The draft would direct NTIA to withhold funds if states regulate AI companies too heavily.
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.
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Lawmakers included language directing NTIA to brief Congress within 30 days on its plans for spending all remaining BEAD funds.
The plan is to gather input from stakeholders to inform NTIA's future planning and policy development regarding the use of 'nondeployment’ funds.
The current review may be more consequential than past cycles.
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