BEAD

Uncertain Reactions to the Executive Order on AI and BEAD Non-Deployment Funds

Experts said tying the funding to favorable state AI laws could raise legal issues, but states weren’t certain to litigate.

Jake Neenan

Dec 12, 2025 — 5 min read

Photo of Senior White House Policy Advisor on AI Sriram Krishnan (left) receiving a Sharpie from President Donald Trump, Sen. Ted Cruz R-Texas, second left, Secretary of Commerce Howard Lutnick, second right, and White House AI and Crypto Czar David Sacks, in the Oval Office on Thursday, Dec. 11, 2025, by Alex Brandon/AP

WASHINGTON, Dec. 12, 2025 – President Donald Trump’s executive order seeking to withhold broadband funding from states with “onerous” laws on artificial intelligence companies could face legal issues, according to experts.

The order directs National Telecommunications and Information Administration Administrator Arielle Roth to produce within 90 days a policy notice saying states with “onerous” laws on AI companies are ineligible for billions in funding under the $42.45 billion Broadband Equity, Access, and Deployment program.

States’ tentative broadband deployment grants wouldn’t be affected, but many states are spending far less than they were allocated for the program in 2023, partly due to a Trump administration focus on cost cutting. The order aimed to make states unable to use their excess cash, expected to total about $21 billion, if their AI regulations were unfavorable to the industry.