The Trump Administration's recently unveiled AI Action Plan has sparked controversy, with critics like Travis Hall from the Center for Democracy and Technology arguing it creates significant regulatory uncertainty for both states and tech companies. While seemingly granting major AI players like OpenAI and Google much of what they requested during consultations, the plan's attempt to preempt state-level AI regulation, initially proposed through a 10-year moratorium in a tax bill amendment, raises concerns about the balance of power and potential stifling of innovation at the state level.