American AI freedom still under threat from Biden’s leftover directives

The efforts are already at risk when Vice President JD Vance leaves Paris after urged Europe to cut regulations and promote AI innovation. A series of quiet operations by the Biden administration, key technology incumbents and the government-funded nonprofit called the Future of the Privacy Forum (FPF) has led President Donald Trump to revoke the restrictive framework of the previous administration. Even after that, they are threatening to impose AI regulations to clean up in American states.

On January 23, Trump signed Executive Order 14,179, “removing barriers to American leadership in artificial intelligence,” Biden's command and control approach to defend US AI leadership against rivals like China. Instead, it has been replaced with a mission to promote support. But the remnants of the old policy have survived in nonprofits like FPF, busy drafting state bills that reflect President Joe Biden's agenda.

Official records have been confirmed FPF was mandated to nearly $5 million From Biden's 2025 and 25 federal agencies. Last year, the FPF website touted these grants as supporting the “White House Executive Order on Artificial Intelligence.” The FPF scrubbed the references, but the federal grant database still links the money to the now-repeated directive.

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Several states with sponsors connected to FPFs, including Texas, Virginia, Connecticut and Colorado, have introduced nearly identical AI bills with fuzzy concepts such as “algorithm identification” and “high-risk” systems I'm doing it. These vague rules provide broad discretion from regulators and thwart not only startups but also growing tech companies that are unable to divert valuable resources into compliance with overhead.

A fresh start-up from a meeting with Biden, venture capitalist Mark Andreessen described the former president's vision of AI as “the most surprising” he has ever encountered. It is full of the concept that new regulatory regimes can micromanage cutting edge technology. Progressive activists have been preparing for this for a long time. The left has spent years building a “safety ast” NGO ready to embed itself in new institutions, believing it knows how to direct AI “responsibly” . In contrast, rights did not groom regulators to defend market freedom. That imbalance means that new regulators are likely to be placed on staff by people eager to expand government power.

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The pathology of this plan reflects the false idea that new and evolving systems require centralized surveillance. However, Hayek's “knowledge issues” reminds us that it is not possible to aggregate and process the distributed information needed to efficiently manage complex and changing systems. Therefore, a cleaning bill with ambiguous obligations opens the door to chronism and helps heeled incumbents navigate the red tape while smaller innovators are on the sidelines.

Even if the invoice exempts certain startups, compliance drugs effectively strengthen the status quo. The tech giant enjoys legally bulging cleverness. In the words of renowned University of Chicago economist George Stigler, “Regulations are acquired by the industry and are designed and operated primarily for its profits.”

Advocates have argued that these measures tackle “algorithm harm,” but that the real harm — honour, fraud, vengeance porn — is already illegal. State can easily update their crime codes to tackle issues such as synthetic sexual images without creating an entire bureaucrat. Lawmakers in places like Texas would be better off listening to their instincts for a small government and avoiding replicating heavy Biden-era rules.

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As these bills continue to multiply, America is putting its most profitable Vulcanized regulated minefields in danger. Instead, there is a need for targeted minimal intervention (if at all) rather than a broad framework created under unreliable federal policies. Our global competitiveness in AI and the vitality of our entrepreneurial ecosystems depend on balance.

The nation must resist the temptation to create new offices for leftist bureaucrats and activists, so that it does not harass the builders who can provide the golden age of American innovation.

Joe Lonsdale is an entrepreneur and investor. He co-founded the venture company 8vc with Palantir Technologies. He is the chairman of the University of Austin (UATX) and the Cicero Institute, a national policy group.

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