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Texas GOP could stall Trump’s bold AI vision with red tape as China races ahead: 'Investors are nervous'

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Texas GOP could stall Trump’s bold AI vision with red tape as China races ahead: 'Investors are nervous'

President Donald Trump’s high-tech moonshot may hit a Texas-sized speed bump — and it’s coming from his own party.

Trump’s AI initiative, dubbed “Stargate,” aims to build 20 ultra-powerful data centers across the country. Backed by heavyweights like OpenAI, Oracle, SoftBank, and the UAE-funded MGX, the project represents a $500 billion bet on the future with Texas chosen as ground zero for the first 10 centers.

But a new Texas bill, Senate Bill 6, could delay or derail that momentum. 

The legislation adds a six-month regulatory review on top of an existing 6–18-month timeline, while also requiring new fees and mandatory backup generators, doubling approval time and inflating costs.

EXCLUSIVE: WHITE HOUSE ROLLS OUT IMPLEMENTATION OF AI FOR FEDERAL EMPLOYEE RECORDS

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President Donald Trump speaks in the Roosevelt Room of the White House while SoftBank CEO Masayoshi Son, Oracle co-founder, CTO and Executive Chairman Larry Ellison, and OpenAI CEO Sam Altman look on on January 21, 2025 in Washington, DC.  (Andrew Harnik/Getty Images)

And while the legislation is pitched as a safeguard against another Winter Storm Uri-style blackout, Trump allies warn it could torpedo a generational opportunity.

“This bill would be a serious roadblock to the president’s vision,” said Vance Ginn, president of Ginn Economic Consulting and former chief economist at the White House Office of Management and Budget during Trump’s first term, in an exclusive interview with Fox News Digital. 

“It’s a misguided effort that’s rooted in fear: fear of energy scarcity, fear of AI, fear of the future.”

According to Ginn, the bill’s hefty requirements, including a $100,000 grid connection fee and a so-called “kill switch” that would let the Electric Reliability Council of Texas cut power to data centers, could end up pushing these billion-dollar projects out of Texas entirely.

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“These companies aren’t just using energy,” Ginn said. “Many of them actually put excess electricity back onto the grid. So instead of hurting Texas, they help stabilize it.”

Stargate has already broken ground in Abilene, but the next 10 data centers are still up in the air. If Texas becomes too costly or complicated, experts warn the back half of the project might never happen — even as rival states like Wyoming and Tennessee court businesses without Texas’s infrastructure.

WHITE HOUSE SCIENCE AND TECHNOLOGY CHIEF WARNS CHINA IS ‘CATCHING UP’ IN AI RACE

“The Texas legislature should be working in lockstep with President Trump to build out AI infrastructure, not throwing up barriers,” Ginn added. “The AI revolution is here. If Texas fumbles this, it will fall behind.”

The bill’s sponsor, Texas Lieutenant Governor Dan Patrick, insists the legislation won’t hurt Trump’s agenda. “Senate Bill 6 actually ensures President Trump’s Stargate Plan is a success,” Patrick said in a statement. “We are in lockstep with the president on his goal to make America number one, and dominate China on AI, data centers, and cryptocurrency.”

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OpenAI CEO Sam Altman (R), accompanied by U.S. President Donald Trump, speaks during a news conference in the Roosevelt Room of the White House on January 21, 2025. (Andrew Harnik/Getty Images)

Even with a Trump endorsement for Patrick’s re-election, Trump-aligned economists say the state is playing a dangerous game.

“We’re already seeing signs of this,” Ginn warned. “Microsoft has pulled back on projects. Investors are nervous. And meanwhile, China’s forging ahead.”

A Chinese startup called DeepSeek has made headlines for rolling out cutting-edge AI models in record time, triggering fresh anxiety about America’s standing in the global AI arms race.

Trump announced an investment in artificial intelligence (AI) infrastructure and took questions on a range of topics. (Andrew Harnik/Getty Images)

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“This isn’t just about innovation,” Ginn said. “This is national security. If we’re six months behind China, we may never catch up.”

Trump has backed up his AI push with hard policy, including a 10% blanket tariff on all imports and a steep 125% tariff on Chinese goods, announced just last week. But those tariffs could also raise the price of key data center components, from steel to electrical transformers.

Despite the tradeoffs, the Trump administration sees Stargate as a cornerstone of 21st-century American leadership in everything from education to healthcare.

“Texas should be leading,” Ginn said. “We can’t let fear of the unknown hold us back.”

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Los Angeles, Ca

LADWP begins long-term repairs after West Hollywood water main rupture

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LADWP begins long-term repairs after West Hollywood water main rupture

Crews worked overnight on what is expected to be a long-term effort to clean up and repair a broken water main that caused extensive damage in West Hollywood on Thursday.

Yellow tape remained in place Friday morning, blocking streets around Sunset Boulevard and Holloway Drive as crews continued pumping water out of the century-old trunk line.

Asphalt and soil were also being removed so crews could get a better look at the damaged 36-inch trunk line, a major feeder pipe serving the area.

  • Aerial view of flooded streets in West Hollywood.
  • A sinkhole opened up on a sidewalk in West Hollywood following a water main break
  • Aerial view of flooded Metro buses.
  • Aerial view of flooded streets in West Hollywood.
  • Water floods out of an apartment in West Hollywood
  • A broken water main floods a parking garage in West Hollywood
  • Rushing floodwaters pushes parked cars together on a flooded West Hollywood street after a water main break.
  • Rushing floodwaters pushes parked cars together on a flooded West Hollywood street after a water main break.
  • Residents stand with luggage and a dog at the entrance to an apartment parking garage as floodwaters from a water main break rush through a West Hollywood street.
  • Rushing floodwaters pushes parked cars together on a flooded West Hollywood street after a water main break.
  • Rushing floodwaters pushes parked cars together on a flooded West Hollywood street after a water main break.
  • Rushing floodwaters pushes parked cars together on a flooded West Hollywood street after a water main break.
  • A broken water main floods the streets of West Hollywood

“First and foremost is our crews’ safety,” a Los Angeles Department of Water and Power spokesperson said Thursday. “When we excavate, we are going to have to make sure the area is safe before we send crews in to proceed and start the actual repairs on the pipe.”

The water main ruptured around 3 a.m. Thursday, sending thousands of gallons of water rushing through West Hollywood streets, flooding dozens of garages and pushing parked cars into one another.

A Metro bus yard was also flooded, leaving several buses partially submerged.

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The force of the water washed away dirt and gravel supporting the roadway, creating a massive sinkhole on Sunset Boulevard and a smaller one near Palm Avenue, where two people fell in.

“I’m astounded by the massive sinkhole that has just opened up before our eyes,” KTLA’s Annie Rose Ramos reported Thursday from Palm Avenue.

The two men appeared to be uninjured.

As for the larger trunk line that burst beneath Sunset Boulevard, KTLA’s Carlos Herrera reported it was scheduled for replacement in 2031.

LADWP officials now hope to establish a repair timeline after getting a closer look at the damage Friday. For now, the intersection is expected to remain closed for anywhere from several days to several weeks.

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The cause of the rupture remains under investigation.

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Los Angeles, Ca

Arrest made in deadly shooting at 4th of July gathering in Compton; search for 2nd suspect continues

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Arrest made in deadly shooting at 4th of July gathering in Compton; search for 2nd suspect continues

Los Angeles County Sheriff Robert Luna gave an update Thursday on several shootings over the Fourth of July weekend that left three people dead and several others injured.

Police arrested Antoine Jones, a 50-year-old man from the Los Angeles area, who they believe is responsible for the murder of a 19-year-old woman and the attempted murder of two additional surviving female victims who were attending a large community block party in Compton.

On July 4 at approximately 11:40 p.m., deputies from the Compton station responded to an apartment complex on the 700 block of West Laurel Street following reports of multiple people being shot.

Meah Bordenave-Jenkins, a 19-year-old nursing student at the University of Nevada, Las Vegas, was killed when gunfire broke out at the party.

Meah Bordenave-Jenkins and Eric Washington are pictured in a Los Angeles Sheriff’s Department bulletin. (LASD)

Deputies located Bordenave-Jenkins and the two other women suffering from gunshot wounds outside of the apartment complex.

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“While today’s announcement represents an important step towards justice for Meah and her family, our work is very far from being over,” said LASD Sheriff Robert Luna.

The LASD is also seeking the public’s help in identifying those responsible for the murder of Eric Washington, 37, a beloved community activist and former government staffer, and the attempted murder of another surviving man injured that same night at the same party.

Washington was reportedly killed while trying to deescalate a conflict at the party, his family said. Deputies found victim Washington suffering from a gunshot wound inside the complex.

Investigators later learned that another man had also been shot at some point during the incident.

Bordenave-Jenkins and Washington both died from their injuries. The remaining victims, two women and a man, sustained non-life-threatening injuries and have been released from the hospital. They have not been identified by police.

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Detectives determined the two shootings happened moments apart at the party but appear to be separate and unrelated.

  • 2 dead, 3 injured at Compton July 4 celebration
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • Compton fatal shooting
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration
  • 2 dead, 3 injured at Compton July 4 celebration

Detectives identified Jones as the suspect responsible for Bordenave-Jenkins’ death and the attempted murder of the two surviving women. Authorities located Jones on July 14 in Los Angeles and took him into custody.

The LASD is still searching for the suspect or suspects responsible for the murder of Washington and the attempted murder of the surviving male victim.

“Although today’s arrest is significant, this investigation remains extremely active,” Luna said.

“There were hundreds of people at this gathering,” Luna said. “Somebody knows, somebody saw or somebody heard what happened.”

The LASD also announced they’re searching for a suspect in a separate shooting at a different Fourth of July gathering that occurred in the early morning of July 5.

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At approximately 12:10 a.m., Compton deputies responded to the 2100 block of North Grandee Avenue, where they located a 30-year-old victim, Thaddeus Clark, and a second victim suffering from gunshot wounds at the gathering.

Clark, a father of three, did not survive his injuries, Luna said.

The LASD is urging anyone with information about Clark’s murder and the attempted murder of the surviving victim to contact the LASD Homicide Bureau.

Although these shooting incidents occurred at gatherings less than an hour apart, investigators found no evidence that the two were connected, Luna said.

Luna also announced three suspects have been arrested in connection with a shooting in East L.A. on July 5. It happened as crowds crossed the intersection near Whittier Boulevard and Leonard Avenue during a World Cup match.

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Four people were hit by gunfire, including two men, one woman and a boy. None of the injuries were life-threatening.

The sheriff said the alleged shooter, a 15-year-old known gang member, was arrested. Two female suspects, ages 21 and 38, have been arrested in the Lancaster and Palmdale areas for their alleged roles in luring the primary victim to the location and assisting the shooting suspect in evading arrest.

They’re all facing four counts of attempted murder.

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Los Angeles, Ca

Water main break floods West Hollywood streets, traps cars

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Water main break floods West Hollywood streets, traps cars

A broken water main sent water gushing from an apartment building and turned nearby streets into rivers in West Hollywood early Thursday morning. The break was reported around 3 a.m. near Holloway Drive and Sunset Boulevard. “It’s a rupture of one of the significant mains that goes through here. West Hollywood, as it turns out, […]

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