Fortune and the Associated Press report that just months after President Trump signed an executive order directing federal agencies to challenge state AI laws as an impediment to innovation, Republican and Democratic state lawmakers alike are continuing to pass AI legislation of their own. Trump's June 2 order established a DOJ AI Litigation Task Force specifically to sue states over regulations the administration deems burdensome, and threatened to withhold federal broadband funding from non-compliant states. Colorado's landmark AI Act — originally due to take effect June 30, 2026 — was delayed to January 1, 2027 after a federal court stay and state legislative revisions, but the underlying tensions between federal and state AI governance remain unresolved. California, Texas, Illinois, and more than a dozen other states have enacted or are advancing their own AI statutes, creating a patchwork compliance landscape that industry groups warn could fragment the U.S. AI market.