Trump AI Plan Targets China, Boosts US Infrastructure

The Trump administration has released its long-awaited AI Action Plan. Unlike former President Biden’s cautious regulatory approach, this plan prioritises rapid infrastructure growth, aggressive deregulation, and a strong focus on beating China in the global AI race. The document is light on regulatory frameworks and heavy on messaging. Its main focus is to spend billions on building AI data centres, even if it means relaxing environmental or state-level restrictions.

Cutting Red Tape to Build Data Centres Fast

A big part of the plan is cutting red tape around AI infrastructure. Rules under the Clean Water Act, Clean Air Act, and NEPA are getting loose so tech giants can build data centres faster. Even protected federal lands and military bases might be used.

The goal is to stabilize America’s electricity grid and keep high energy consuming AI systems operational even during peak hours. This move could benefit companies like Meta and xAI, both of which have been called out for polluting the low income neighborhoods. 

States Could Lose Power Over AI Laws

The plan takes aim at state-level regulations. If states try to impose AI restrictions, they could see federal funding cut. Earlier this month, the Senate removed a 10-year AI moratorium clause from a budget bill. But this plan reintroduces the idea in another form. The FCC is now directed to evaluate whether state regulations interfere with national goals. This means that if a state law touches on AI and affects broadcast or internet services, the federal government might override it.

Trump’s strategy also aims to eliminate what it calls “ideological bias” in AI. References to climate change, DEI, and misinformation are scrubbed from federal risk assessments. Instead, the plan says the government will only work with companies building “neutral” large language models. But neutrality is not well defined. Legal experts warn this could become a First Amendment issue, especially if it pressures companies to adjust their models in politically motivated ways.

Security and Openness Go Hand-in-Hand

The AI Action Plan supports open-source development and aims to ensure that American startups have access to high-performance computing. Trump’s team wants AI models that reflect “American values” and provide researchers with greater openness. Companies like Hugging Face and Meta could benefit. On the security side, the Department of Defense and Department of Energy are instructed to host hackathons and stress-test AI systems for risks like cyberattacks or potential weaponization.

AI for National Security and Military Modernisation

National security is a recurring theme throughout the strategy, appearing more frequently than any other phrase. The Department of Defense will use AI to improve workflows, train employees, and make sure exclusive access to computing power during emergencies. The Commerce Department will analyze Chinese AI models and compare US AI adoption to rivals such as China.

What It Means for the Future of AI Policy

Compared to Biden’s executive order on AI safety, Trump’s version puts less pressure on companies to report vulnerabilities. It removes many of the reporting burdens that industry leaders previously called “onerous”. Instead, the emphasis is on speeding up development and removing barriers to growth. But that choice raises serious questions about transparency, accountability, and long-term societal impacts.