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Trump’s AI Action Plan Is Here: 5 Key Takeaways

The president wants to cut regulations on AI companies and data centers. Critics say the proposal carries big risks.

The Trump administration on Wednesday laid out the steps it plans to take to ensure “global AI dominance” for the US, with an AI Action Plan that calls for cutting regulations to speed up the development of artificial intelligence tools and the infrastructure to power them.

Critics said the plan is a handout to tech and fossil fuel companies, slashing rules that could protect consumers, prevent pollution and fight climate change.

Though the plan itself isn’t binding (it includes dozens of policy recommendations), Trump did sign three executive orders to put some of these steps into action. The changes and proposals follow how the Trump administration has approached AI and technology over the past six months — giving tech companies a largely free hand; focusing on beating China; and prioritizing the construction of data centers, factories and fossil fuel power plants over environmental regulations.

It’s seizing on the moment created by the arrival of ChatGPT less than three years ago and the ensuing wave of generative AI efforts by Google, Meta and others.

“My administration will use every tool at our disposal to ensure that the United States can build and maintain the largest and most powerful and advanced AI infrastructure anywhere on the planet,” Trump said during remarks Wednesday evening at a summit presented by the Hill and Valley Forum and the All-In Podcast. He signed the three executive orders at the event.

The administration and tech industry groups touted the plan as a framework for US success in a race against China. “President Trump’s AI Action Plan presents a blueprint to usher in a new era of US AI dominance,” Jason Oxman, president and CEO of the tech industry trade group ITI, said in a statement.

Consumer groups said the plan focuses on deregulation and would hurt consumers by reducing the rules that could protect them. 

“Whether it’s promoting the use of federal land for dirty data centers, giving the FTC orders to question past cases, or attempting to revive some version of the soundly defeated AI moratorium by tying federal funds to not having ‘onerous regulation’ according to the FCC, this is an unwelcome distraction at a critical time for government to get consumer protection right with increasing AI use and abuse,” Ben Winters, director of AI and privacy at the Consumer Federation of America, said in a statement.

Here’s a look at the proposals in the plan. 

Slashing regulations for AI infrastructure

The plan says AI growth will require infrastructure, including chip factories, data centers and more energy generation. And it blames environmental regulations for getting in the way. In response, it proposes exemptions for AI-related construction from certain environmental regulations, including those aimed at protecting clean water and air. It also suggests making federal lands available for data center construction and related power plants.

To provide energy for all those data centers, the plan calls for steps to prevent the “premature decommissioning of critical power generation resources.” This likely refers to keeping coal-fired power plants and other mostly fossil-fuel-driven infrastructure online for longer. In his remarks, Trump specifically touted his support for coal and nuclear power plants. 

The administration also called to prioritize the connection of new “reliable, dispatchable power sources” to the grid and specifically named nuclear fission and fusion and advanced geothermal generation. Earlier this month, the president signed a bill that would end many tax credits and incentives for renewable energy — wind and solar — years earlier than planned. Wind and solar make up the bulk of the new energy generation being added to the US grid right now. 

“This US AI Action Plan doesn’t just open the door for Big Tech and Big Oil to team up, it unhinges and removes any and all doors — it opens the floodgates, continuing to kneecap our communities’ rights to protect ourselves,” KD Chavez, executive director of the Climate Justice Alliance, said in a statement. “With tech and oil’s track records on human rights and their role in the climate crisis, and what they are already doing now to force AI dominance, we need more corporate and environmental oversight, not less.”

Fewer rules around AI technology

Congress ended up not including a moratorium on state AI rules in the recently passed tax and spending bill but efforts to cut regulations around AI continue from the executive branch in the action plan. “AI is far too important to smother in bureaucracy at this early stage, whether at the state or Federal level,” the plan says.

The plan recommends that several federal agencies review whether existing or proposed rules would interfere with the development and deployment of AI. The feds would consider whether states’ regulatory climate is favorable for AI when deciding to award funding. Federal Trade Commission investigations and orders would be reviewed to determine that they don’t “advance theories of liability that unduly burden AI innovation.”

Those rule changes could undermine efforts to protect consumers from problems caused by AI, critics said. “Companies — including AI companies — have a legal obligation to protect their products from being used for harm,” Justin Brookman, director of tech policy at Consumer Reports, said in a statement. “When a company makes design choices that increase the risk their product will be used for harm, or when the risks are particularly serious, companies should bear legal responsibility.”

Ideology and large language models

The plan proposes some steps around ensuring AI “protects free speech and American values,” further steps in the Trump administration’s efforts to roll back federal policies around what it refers to as “diversity, equity and inclusion,” along with references to the problems of misinformation and climate change. It calls for eliminating references to those items in the National Institute of Standards and Technology’s AI Risk Management Framework. Federal agencies would only be allowed to contract with AI developers who “ensure that their systems are objective and free from top-down ideological bias.”

The Trump administration has recently announced contracts of up to $200 million each to developers Anthropic, Google, OpenAI and xAI. Grok, the model from Elon Musk’s xAI, has recently come under fire for spouting antisemitism and hate speech. 

Dealing with workforce challenges

The plan acknowledges that AI will “transform how work gets done across all industries and occupations, demanding a serious workforce response to help workers navigate that transition” and recommends actions by federal agencies including the Department of Labor intended to mitigate the harms of AI-driven job displacement. The plan calls for the Bureau of Labor Statistics, Census Bureau and Bureau of Economic Analysis to monitor how AI affects the labor market using data already collected. An AI Workforce Research Hub under the Department of Labor would lead monitoring and issue policy recommendations.

Most of the actual plans to help workers displaced by AI involve retraining those workers for other jobs or to help states do the same. 

Other jobs-related recommendations are aimed at boosting the kinds of jobs needed for all those data centers and chip manufacturing plants — like electricians and HVAC technicians. 

These plans and others to encourage AI literacy and AI use in education drew praise from the Software & Information Industry Association, a tech industry trade group. “These are key components for building trust and ensuring all communities can participate in and benefit from AI’s potential,” Paul Lekas, SIIA’s senior vice president of global public policy, said in a statement.

More AI in government

The plan envisions more use of AI by the federal government. A talent exchange program would allow employees with experience or talent in AI to be detailed to other agencies in need. The General Services Administration would create a toolbox of AI models that would help agencies see models to choose from and use cases in other parts of the government. 

Every government agency would also be required to ensure employees who could use AI in their jobs have access to and training for AI tools.

Many recommendations focus specifically on the Department of Defense, including creating a virtual proving ground for AI and autonomous systems. AI companies have already been signing contracts with the DOD to develop AI tools for the military.

Technologies

Trump Maintains US‑Iran Negotiations Continue Amid Tehran’s Denials of Duplicity

President Trump insists that US‑Iran talks are ongoing despite Tehran’s denial of any negotiation plans, while warning that only a deal or total surrender will allow passage through the Strait of Hormuz. Conflicting statements from both sides have heightened uncertainty as the conflict enters its sixth month.

On Monday, President Donald Trump asserted that negotiations between the United States and Iran are still taking place, even after Tehran stated it has no intention of engaging in direct talks with Washington.

In a fiery Truth Social post, Trump labeled Iran’s leaders “unbelievably duplicitous,” claiming they are lying about ongoing peace talks “whether Iran wants to admit it or not.” He repeated his assertion that the United States completely controls the Strait of Hormuz, despite maritime traffic through the crucial route lingering at only a small fraction of pre‑conflict levels.

He wrote, “Nothing reaches Iran unless we allow it, and nothing will pass unless a deal—or total surrender—is achieved.”

Earlier that day, Iranian Foreign Ministry spokesperson Esmail Baghaei told reporters there is no imminent plan for U.S.–Iran negotiations, contradicting Trump’s earlier comment that talks would resume Monday afternoon. Baghaei added that Iran’s only current discussions are with Oman concerning the Strait of Hormuz.

The conflicting statements have heightened uncertainty over the peace‑talk process and the broader conflict, now in its sixth month.

Trump’s assertion about new negotiations came a day after he said on Truth Social that he had agreed to cancel a massive strike against Iran “subject to being able to rapidly make a DEAL.” He said in the same post that Iran and other Middle Eastern countries had asked him to hold off on that attack because “the perimeters of a deal has been agreed to.”

Trump has claimed dozens of times throughout the more‑than‑five‑month‑long war that a deal is at hand. No permanent deal has been signed, and a temporary ceasefire reached in June has fallen apart.

Trump has also repeatedly threatened to launch devastating strikes against Iran before backing off. After the latest example, oil prices on Monday fell and stocks surged.

BMI, a research unit of Fitch Solutions, said in a note Monday that a broader diplomatic understanding on reopening the Strait of Hormuz is still achievable this quarter, while raising the probability of its escalation scenario to 35% from 25%, citing mounting military, diplomatic and economic signs of rising U.S.-Iran tensions.

“Diplomatic progress is likely to be punctuated by periodic military flare-ups, while miscalculation by either side could trigger a renewed escalation,” BMI analysts wrote in a note. The firm said the key issue to watch is the future governance of the strait, as the Iran-Oman talks — potentially backed by Gulf states, China and the U.S. — point to efforts to build a post-conflict shipping framework.

Shipping risks persist even as diplomacy appears to be advancing. The United Kingdom Maritime Trade Operations Centre said it received a report of an incident 20 nautical miles (23 miles) northeast of Khasab, Oman — at the mouth of the strait — with a tanker’s master reporting an explosion in close proximity to the vessel at about 20:37 UTC Sunday (4:37 pm ET). The vessel and crew were safe and authorities are investigating, UKMTO said, advising ships to transit with caution.

The proposal Trump announced over the weekend calls for the U.S. and Iran to return to negotiations and continue ironing out some of the thorny issues that had derailed diplomatic efforts, according to The Associated Press, citing a regional official involved in the mediation efforts.

The official said the proposal also includes a reopening of the Hormuz Strait and halting attacks across the region, including by Iranian-backed militias in Iraq on the Arab Gulf countries and Jordan.

The U.S., for its part, will end its naval blockade on Iran and allow Tehran to export its oil, the official said, adding that no deal has been reached, although the mediation efforts remained underway.

Trump’s weekend reversal has lowered the temperature after days of escalating attacks across the Gulf. Kuwait said Saturday that Iranian forces launched a wave of drones within its airspace, with its military destroying multiple aircraft after Iran targeted critical infrastructure in the country’s north.

A parallel track with Muscat is also advancing. Iranian diplomats said Tehran was close to reaching a new arrangement with Oman to manage shipping through the Strait of Hormuz, a deal critical to preventing the war from escalating further, according to the Financial Times.

Iranian officials said negotiations over future management of the Hormuz Strait with Oman, which sits on the opposite shore of the waterway, are in their final stages. The agreed shipping route would be different from those used before, according to Iran’s Foreign Ministry spokesperson, Baghaei, adding that the new route was separate from the issue of the strait’s reopening or continued closure.

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Technologies

Oil Prices Slide as Trump Halts Planned Iran Strike

Oil prices dropped after Trump cancelled a planned strike on Iran, with WTI down about 5% and Brent near 5% lower. He said the move followed requests from Tehran and regional allies for a pause while a deal shaping the Strait of Hormuz and Iran’s nuclear program is negotiated.

Oil prices fell on Monday after President Donald Trump announced he had cancelled a planned strike on Iran. WTI futures dropped roughly 5% to $80.34 a barrel, while Brent slipped about 4.7% to $83.77 a barrel.

Trump said early Sunday he called off the strike after Iran and several Middle Eastern nations asked him to hold off, noting that the outlines of a deal had been agreed upon. He added that the prospective accord would entail the immediate, full opening of the Strait of Hormuz and an end to Iran’s nuclear ambitions, according to his Truth Social post.

The president had been considering another round of strikes as diplomatic hopes waned since the conflict began on February 28. He said the U.S. and Iran would meet for talks on Monday, but Iran denied any scheduled negotiations with Washington, citing PressTV. Iran’s foreign‑ministry spokesperson Esmaeil Baghaei clarified that Tehran was only discussing shipping routes through the Strait of Hormuz with Oman. In a follow‑up Truth Social message, Trump insisted that, regardless of Iran’s acknowledgment, the United States is indeed discussing a solution to a long‑standing problem created by Iran.

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Technologies

Oil Prices Drop as Trump Cancels Planned Attack on Iran

Oil prices fell sharply after President Trump announced the cancellation of a planned strike on Iran, citing a new deal that would open the Hormuz Strait and end Iran’s nuclear threat.

Oil prices fell sharply on Monday after President Donald Trump announced that he had called off a planned strike on Iran.

West Texas Intermediate futures, the U.S. benchmark, slipped roughly 5% to close at $80.34 per barrel, while Brent crude, the international benchmark, declined 4.7% to settle at $83.77 a barrel.

Trump made the announcement early Sunday, saying he had canceled the strike following requests from Tehran and other Middle Eastern countries.

In a Truth Social post, he wrote: “We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to.”

The president indicated that the proposed agreement would include the immediate, complete, and total opening of the Hormuz Strait, as well as an end to Iran’s nuclear threat.

Trump had been weighing additional strikes amid diminishing prospects for a diplomatic resolution to the conflict that began on Feb. 28. He stated that the U.S. and Iran would hold negotiations on Monday.

Tehran denied that talks were planned with Washington, according to state news outlet PressTV.

Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Tehran was only holding talks with Oman regarding the routes ships can use through the Strait of Hormuz.

In a subsequent Truth Social post, Trump added that whether “Iran wants to admit it or not, we are, in fact, talking of a solution to a problem that they have caused for decades.”

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