{"id":245597,"date":"2026-03-31T20:40:07","date_gmt":"2026-03-31T20:40:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/245597\/"},"modified":"2026-03-31T20:40:07","modified_gmt":"2026-03-31T20:40:07","slug":"california-tightens-ai-contract-rules-as-fight-with-trump-admin-grows","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/245597\/","title":{"rendered":"California Tightens AI Contract Rules as Fight With Trump Admin Grows"},"content":{"rendered":"<p class=\"mb-4 text-lg md:leading-8 break-words\">The conflict between Washington and the states over artificial intelligence policy escalated Monday after California Governor Gavin Newsom signed an executive order requiring stronger safeguards from AI companies seeking state contracts.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">According to the order, companies selling AI systems to California agencies will be required to demonstrate policies that prevent misuse and protect privacy, security, and civil rights.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">\u201cCalifornia\u2019s always been the birthplace of innovation. But we also understand the flip side: in the wrong hands, innovation can be misused in ways that put people at risk,\u201d Newsom said in a statement. \u201cCalifornia leads in AI, and we\u2019re going to use every tool we have to ensure companies protect people\u2019s rights, not exploit them or put them in harm\u2019s way. While others in Washington are designing policy and creating contracts in the shadow of misuse, we\u2019re focused on doing this the right way.\u201d<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Newsom\u2019s order directs the state\u2019s Government Operations Agency to develop procurement standards for AI vendors that address issues including illegal content generation, model bias, and risk to civil rights and freedom of speech. The order also directs the California Department of Technology to develop recommendations for watermarking AI-generated images and manipulated video.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The order places California in conflict with the Donald Trump administration\u2019s effort to establish national AI standards and limit state-level regulation. Earlier this month, the Trump administration <a href=\"https:\/\/decrypt.co\/361929\/white-house-ai-proposal-override-state-laws-avoid-new-regulator\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:released;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;released&quot;}\" class=\"link \">released<\/a> a national artificial intelligence policy framework urging Congress to establish federal standards and reduce what officials describe as a patchwork of state AI regulations.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Kevin Frazier, an adjunct research fellow at the Cato Institute, said the dispute reflects a longstanding constitutional balance between state and federal authority.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">\u201cEvery technological breakthrough\u2014from the steamboat to superintelligence\u2014raises key questions about how to allocate regulatory authority between the states and the federal government,\u201d Frazier told Decrypt. \u201cThe Constitution provides a clear answer: the federal government must lead on matters of economic and national security as well as those demanding a uniform response; states can exercise their traditional police powers within their borders.\u201d<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Frazier called Newsom&#8217;s executive order \u201ca prime example of federalism in action,\u201d and said that companies that reject California\u2019s requirements can choose not to sell to the state.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">\u201cMeanwhile, Congress is still in a position to set the terms of the pace and direction of the country&#8217;s AI ambitions,\u201d he said.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Quinn Anex-Reis, a senior policy analyst at the Center for Democracy and Technology, said California\u2019s size and purchasing power mean it could influence how companies design and test AI systems if they want to sell to the state.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">\u201cGovernment contracting is very valuable to companies,\u201d Anex-Reis told Decrypt. \u201cIt\u2019s a huge part of business for technology developers generally, and a growing avenue of business for AI developers specifically.\u201d<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\"><a href=\"https:\/\/decrypt.co\/331524\/trump-bans-woke-ai-federal-contracts-executive-order\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Trump Bans \u2018Woke AI\u2019 From Federal Contracts in New Executive Order;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Trump Bans \u2018Woke AI\u2019 From Federal Contracts in New Executive Order&quot;}\" class=\"link \">Trump Bans \u2018Woke AI\u2019 From Federal Contracts in New Executive Order<\/a><\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">He said procurement rules are one of the most effective ways governments can shape how AI systems are developed and evaluated.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">\u201cThe procurement process is a really important place to pay attention to,\u201d Anex-Reis said. \u201cBecause that\u2019s really the most important place the state can look to set protections and expectations about how vendors develop their tools.\u201d<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Newsom has emerged as a national Democratic figure and potential 2028 presidential candidate. A recent Politico\u2013UC Berkeley Citrin Center poll found him leading former Vice President Kamala Harris by 14 points among likely Democratic primary voters in California.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The policy clash over AI regulation places him in direct conflict with the Trump administration as debates intensify over who should set the rules governing the technology. Last summer, the Trump administration ordered federal agencies to avoid contracts with what it called \u201c<a href=\"https:\/\/decrypt.co\/331524\/trump-bans-woke-ai-federal-contracts-executive-order\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:woke AI;elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;woke AI&quot;}\" class=\"link \">woke AI<\/a>\u201d models and to procure systems that demonstrate ideological neutrality.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Despite that, Anex-Reis said the question around AI regulation is bigger than politics.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">\u201cThis really shouldn\u2019t be a political issue,\u201d Anex-Reis said. \u201cThis is really about making sure taxpayer dollars aren\u2019t wasted and that the tools that our government buys works.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The conflict between Washington and the states over artificial intelligence policy escalated Monday after California Governor Gavin Newsom&hellip;\n","protected":false},"author":2,"featured_media":239472,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[2080,7,2926,9,8,5628,536,4755,457,109877,105383,1695],"class_list":{"0":"post-245597","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-california","8":"tag-artificial-intelligence","9":"tag-california","10":"tag-california-governor","11":"tag-california-headlines","12":"tag-california-news","13":"tag-companies","14":"tag-donald-trump","15":"tag-executive-order","16":"tag-gavin-newsom","17":"tag-government-operations-agency","18":"tag-kevin-frazier","19":"tag-trump-administration"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/245597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=245597"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/245597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/239472"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=245597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=245597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=245597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}