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Trump wants even looser AI guardrails. How California could impose more

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Trump wants even looser AI guardrails. How California could impose more

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President-elect Trump has vowed to rescind an executive order that imposed AI safeguards, and could use tech to enable mass deportations. How far will California the other direction?

California Gov. Gavin Newsom is preparing to wage a legal war against President-elect Donald Trump, convening a special legislative session next month to try to “Trump-proof” the state. But it appears Newsom and California legislators won’t initially include artificial intelligence safeguards in that fight, even though AI regulations were a major preoccupation of the Legislature this year.

Trump has promised to immediately rescind President Joe Biden’s executive order that had imposed voluntary AI guardrails on tech companies and federal agencies. The president-elect’s administration could also, immigrant advocates say, use AI tools to assist the mass deportation he has pledged to implement. 

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While California adopted a number of AI regulations earlier this year, other issues are likely to take priority in Newsom’s special session, legislators told CalMatters.

There are signs, though, that AI could — in the not-so-distant future  — go from abstract concern to prominent political cudgel between the Trump administration and California’s Democratic leaders. It could be another high-profile way to challenge Trump and his newfound tech allies, some of whom have gleefully proclaimed a new, deregulated era for artificial intelligence products.

“I think Newsom and the California Legislature have an opportunity to step into the gap that the federal government is leaving — to create a model environment for safe and rights-respecting technology and deployment,” said Janet Haven, executive director of the Data & Society Research Institute, a nonprofit that studies the social implications of AI and other technologies. “On the other hand, there’s no way to get around the fact that Big Tech is right there, and will be a huge factor in whatever the California Legislature and Newsom want to advance in terms of AI legislation.”

Why California lawmakers and others worry about AI

AI safety advocates told CalMatters they’re not necessarily sweating the apocalyptic AI nightmares imagined by some doomsayers. Instead, they are focused on how AI tools are increasingly used in healthcare, housing, the labor force, law enforcement, immigration, the military, as well as other industries and fields prone to discrimination, surveillance, and civil rights violations — because there’s evidence that such tools can be unwieldy, inaccurate, and invasive. “We have documentation that shows how these AI systems are likely to do all sorts of things—they’re pattern-making systems, they’re not really decision-makers, but the private sector and the public sector are using them as a substitute for decision-makers,” said Samantha Gordon, chief program officer at TechEquity. “That’s not wise.”

Santa Ana Democratic Sen. Tom Umberg told CalMatters that 2024 “was a bit of a testing year” for AI bills. California lawmakers outlawed sexually explicit deepfakes and certain election-related deepfake content, required tech companies to provide free AI detection tools, and stipulated that tech companies must publicly release data about their AI training tools.

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Gov. Newsom ultimately signed roughly 20 AI bills into law. But he also controversially vetoed a major bill by San Francisco Democratic Sen. Scott Wiener and would’ve instituted significant testing requirements on AI tools to make sure they avoid catastrophic outcomes. In his veto message, Newsom wrote that the bill risked curtailing innovation, but he added that he wanted to “find the appropriate path forward, including legislation and regulation.” 

“Newsom’s incentive for strengthening his relationship with Silicon Valley is probably stronger than his need for yet one more issue to fight over with Donald Trump.”political analyst Dan Schnur

Wiener told CalMatters he’s working on updated legislation that could garner “broader support.” Such a bill would presumably include additional buy-in from the tech sector, which the state is relying on for tax revenues, and which has a notable lobbying presence in Sacramento — Google just racked up the largest quarterly lobbying tab in a decade.

Asked whether to expect more Big Tech lobbying against regulatory efforts in California, Palo Alto Democratic Assemblymember Marc Berman said: “It’s going to be a good time to be a lobbyist. They’re going to do very well.”

Though Wiener’s AI testing bill was batted down, as were a few other noteworthy AI bills that didn’t make it out of the Legislature, California is “far and away the center of AI regulation in the U.S,” said Ashok Ayyar, a Stanford research fellow who co-wrote a comparative analysis of Wiener’s bill against the European Union’s more comprehensive AI efforts.

A lack of federal AI regulation and legislation

California is leading on AI in large part because the competition is basically non-existent.

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Congress hasn’t passed meaningful AI legislation. Asked about Trump and the incoming Republican majority, San Ramon Democratic Assemblymember Rebecca Bauer-Kahan said, “There isn’t much regulation to deregulate, to be honest.”

Sans federal legislation, President Biden issued an executive order in October 2023 intended to place guardrails around the use of AI. The order built on five policy principles on the “design, use, and deployment of automated systems to protect the American public.” Biden directed federal agencies “to develop plans for how they would advance innovation in the government use of AI, but also protect against known harms and rights violations,” said Haven. Soon after Biden’s executive order, his administration created the U.S. AI Safety Institute, which is housed within the Commerce Department. 

Biden’s executive order relies on tech companies, many of which are based in California, to voluntarily embrace the administration’s suggestions; it also relies on agencies like the Department of Homeland Security, which includes Immigration and Customs Enforcement and Customs and Border Protection, to be transparent and honest about how they’re using AI technology and not violate people’s civil rights. 

Like most executive orders, Biden’s AI edict is loosely enforceable and fairly easy to reverse.

“Stick a fork in it, it’s over. The US will be the preeminent AI superpower in the world after all.”venture capitalist marc andreessen

Trump has already promised to repeal Biden’s executive order on day one of his term; the 2024 Republican platform argues that the executive order “hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology.” Homeland Security and other executive branch agencies may be granted far more flexibility when Trump takes office, though advocates say the bar was already low; a June 2024 report from the nonprofit Mijente titled “Automating Deportation” argues the department hasn’t followed through on the Biden administration’s already relatively meager requests.

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After Trump clinched the 2024 presidential election, segments of the tech industry were jubilant about what they foresee for the AI industry—including an imminent uptick in government contracts. “Stick a fork in it, it’s over,” Marc Andreessen, the billionaire general partner of venture capital firm Andreessen Horowitz, wrote on X. “The US will be the preeminent AI superpower in the world after all.”

Fully unleashed federal agencies

If mass deportation of undocumented immigrants come to pass, as Trump has promised, that would require a wide variety of technologies, including AI tools. Homeland Security already employs an AI system called the Repository for Analytics in a Virtualized Environment, or RAVEn, a nine-figure government contract. The department also has access to an extensive biometric database, and monitors certain undocumented immigrants outside of detention centers via a surveillance tool that utilizes AI algorithms to try to determine whether an immigrant is likely to abscond. 

“We know from Trump’s first administration that there are going to be fewer guardrails with the use of this tech, and agents will feel even more emboldened,” said Sejal Zota, co-founder and legal director of Just Futures Law, a legal advocacy group focused on immigration, criminal justice and surveillance issues. “That’s one area where we’re going to see increased AI use to support this mass deportation agenda.”

To the best of Zota’s knowledge, there’s little California lawmakers or courts could do to prevent federal agencies from using AI tech against vulnerable populations, including undocumented immigrants. “Is it an issue? Absolutely, it’s an issue,” said Sen. Umberg. “What can we do about it? What can we do about federal agencies using artificial intelligence? We can’t do much.”

Estimates show there are at least 1.8 million undocumented immigrants in California.

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A conference hall with attendees and colorful signage related to artificial intelligence.
The Dreamforce conference hosted by Salesforce in San Francisco on Sept. 18, 2024. Dreamforce is an annual tech conference attracting thousands of participants and is the largest AI event in the world, according to Salesforce. Photo by Florence Middleton for CalMatters

Another potential threat to California’s AI regulations is if the majority Republican Congress passes looser AI rules of its own, preempting state law. California lawmakers, including Assemblymember Bauer-Kahan and Sen. Umberg, said they don’t think significant AI legislation will make it to President Trump for his signature. 

Congressional gridlock is one reason Sen. Wiener said he’s pursuing AI regulation in the California Legislature in the first place: “I was very clear that if (the issue) were being handled statutorily at the federal level, I’d be happy to close up shop and go home,” he said. “But it wasn’t happening, and it’s certainly not going to happen under Trump.”

Not everyone believes Congress will remain stagnant on this issue, however, particularly with one party now dominant in Washington. “I wouldn’t underestimate the creativity of this incoming administration,” said Paromita Shah, executive director of Just Futures Law.

Added Haven: “I think it’s possible that with a Republican trifecta, we’ll see an attempt to pass a very weak data privacy law at the federal level that preempts state law. Then it’s a game of whack-a-mole between the state legislature and the federal legislature.”

California’s next AI steps

Newsom has to date signed many AI bills but turned back others he says go too far and risk inhibiting  an industry he has sought to cultivate as a government partner. A spokesperson for Newsom did not directly respond to CalMatters’ questions for this story, instead providing a statement highlighting the state’s role in shaping the future of so-called “generative AI,” a recent and innovative form of the technology behind tools like ChatGPT, DALL-E, and Midjourney: “California has led the nation in protecting against the harms of GenAI while leveraging its potential benefits,” said spokesperson Alex Stack. 

President-elect Trump’s team did not respond to written questions from CalMatters.

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Dan Schnur, a political analyst and professor at UC Berkeley and other campuses, predicted the governor will save his political capital for other clashes. “Newsom’s incentive for strengthening his relationship with Silicon Valley is probably stronger than his need for yet one more issue to fight over with Donald Trump,” Schnur said.

Florence G’Sell, a visiting professor at Stanford’s cyber policy center, cautioned Newsom against clinging to the deregulatory side of Silicon Valley. “There is really a very strong movement that wants to highlight the risks of AI, the safety questions,” G’Sell said. “If I were the governor, I wouldn’t be insensitive to this movement and the warnings.” 

Lawmakers are eyeing other avenues to shore up Californians’ redresses against AI technology. Assemblymember Bauer-Kahan previously told CalMatters she plans to reintroduce a stronger version of a bill, which failed to advance past the Legislature last session, to crack down on discriminatory AI practices. Another top AI priority, according to Menlo Park Democratic Sen. Josh Becker, is less sexy, but perhaps just as important: “closely monitor the implementation of this year’s regulatory framework (that we just passed),” he wrote. 

California’s next AI regulatory steps were always going to be intensely analyzed. That’s even more so the case now, with Trump returning to office—a challenge state lawmakers are embracing.

“One of the things that is somewhat amusing to me is when folks come to me and say, ‘Whatever you do in California is going to set the standard for the country,’ Sen. Umberg said. “As a policymaker, that’s catnip. That’s why I ran for office.”

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Up to 20 billionaires may leave California over tax threat | Fox Business Video

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California’s exodus isn’t just billionaires — it’s regular people renting U-Hauls, too

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California’s exodus isn’t just billionaires — it’s regular people renting U-Hauls, too


It isn’t just billionaires leaving California.

Anecdotal data suggest there is also an exodus of regular people who load their belongings into rental trucks and lug them to another state.

U-Haul’s survey of the more than 2.5 million one-way trips using its vehicles in the U.S. last year showed that the gap between the number of people leaving and the number arriving was higher in California than in any other state.

While the Golden State also attracts a large number of newcomers, it has had the biggest net outflow for six years in a row.

Generally, the defectors don’t go far. The top five destinations for the diaspora using U-Haul’s trucks, trailers and boxes last year were Arizona, Nevada, Oregon, Washington and Texas.

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California experienced a net outflow of U-Haul users with an in-migration of 49.4%, and those leaving of 50.6%. Massachusetts, New York, New Jersey and Illinois also rank among the bottom five on the index.

U-Haul didn’t speculate on the reasons California continues to top the ranking.

“We continue to find that life circumstances — marriage, children, a death in the family, college, jobs and other events — dictate the need for most moves,” John Taylor, U-Haul International president, said in a press statement.

While California’s exodus was greater than any other state, the silver lining was that the state lost fewer residents to out-of-state migration in 2025 than in 2024.

U-Haul said that broadly the hotly debated issue of blue-to-red state migration, which became more pronounced after the pandemic of 2020, continues to be a discernible trend.

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Though U-Haul did not specify the reasons for the exodus, California demographers tracking the trend point to the cost of living and housing affordability as the top reasons for leaving.

“Over the last dozen years or so, on a net basis, the flow out of the state because of housing [affordability] far exceeds other reasons people cite [including] jobs or family,” said Hans Johnson, senior fellow at the Public Policy Institute of California.

“This net out migration from California is a more than two-decade-long trend. And again, we’re a big state, so the net out numbers are big,” he said.

U-Haul data showed that there was a pretty even split between arrivals and departures. While the company declined to share absolute numbers, it said that 50.6% of its one-way customers in California were leaving, while 49.4% were arriving.

U-Haul’s network of 24,000 rental locations across the U.S. provides a near-real-time view of domestic migration dynamics, while official data on population movements often lags.

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California’s population grew by a marginal 0.05% in the year ending July 2025, reaching 39.5 million people, according to the California Department of Finance.

After two consecutive years of population decline following the 2020 pandemic, California recorded its third year of population growth in 2025. While international migration has rebounded, the number of California residents moving out increased to 216,000, consistent with levels in 2018 and 2019.

Eric McGhee, senior fellow at the Public Policy Institute of California, who researches the challenges facing California, said there’s growing evidence of political leanings shaping the state’s migration patterns, with those moving out of state more likely to be Republican and those moving in likely to be Democratic.

“Partisanship probably is not the most significant of these considerations, but it may be just the last straw that broke the camel’s back, on top of the other things that are more traditional drivers of migration … cost of living and family and friends and jobs,” McGhee said.

Living in California costs 12.6% more than the national average, according to the U.S. Bureau of Economic Analysis. One of the biggest pain points in the state is housing, which is 57.8% more expensive than what the average American pays.

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The U-Haul study across all 50 states found that 7 of the top 10 growth states where people moved to have Republican governors. Nine of the states with the biggest net outflows had Democrat governors.

Texas, Florida and North Carolina were the top three growth states for U-Haul customers, with Dallas, Houston and Austin bagging the top spots for growth in metro regions.

A notable exception in California was San Diego and San Francisco, which were the only California cities in the top 25 metros with a net inflow of one-way U-Haul customers.



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California loses $160M for delaying revocation of 17,000 commercial driver’s licenses for immigrants

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California loses 0M for delaying revocation of 17,000 commercial driver’s licenses for immigrants


California will lose $160 million for delaying the revocations of 17,000 commercial driver’s licenses for immigrants, federal transportation officials announced Wednesday.

Transportation Secretary Sean Duffy already withheld $40 million in federal funding because he said California isn’t enforcing English proficiency requirements for truckers.

The state notified these drivers in the fall that they would lose their licenses after a federal audit found problems that included licenses for truckers and bus drivers that remained valid long after an immigrant’s visa expired. Some licenses were also given to citizens of Mexico and Canada who don’t qualify. More than one-quarter of the small sample of California licenses that investigators reviewed were unlawful.

But then last week California said it would delay those revocations until March after immigrant groups sued the state because of concerns that some groups were being unfairly targeted. Duffy said the state was supposed to revoke those licenses by Monday.

Duffy is pressuring California and other states to make sure immigrants who are in the country illegally aren’t granted the licenses.

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“Our demands were simple: follow the rules, revoke the unlawfully-issued licenses to dangerous foreign drivers, and fix the system so this never happens again,” Duffy said in a written statement. “(Gov.) Gavin Newsom has failed to do so — putting the needs of illegal immigrants over the safety of the American people.”

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Newsom’s office did not immediately respond after the action was announced Wednesday afternoon.

After Duffy objected to the delay in revocations, Newsom posted on X that the state believed federal officials were open to a delay after a meeting on Dec. 18. But in the official letter the Federal Motor Carrier Safety Administration sent Wednesday, federal officials said they never agreed to the delay and still expected the 17,000 licenses to be revoked by this week.

Enforcement ramped up after fatal crashes

The federal government began cracking down during the summer. The issue became prominent after a truck driver who was not authorized to be in the U.S. made an illegal U-turn and caused a crash in Florida that killed three people in August.

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Duffy previously threatened to withhold millions of dollars in federal funding from California, Pennsylvania, Minnesota, New York, Texas, South Dakota, Colorado, and Washington after audits found significant problems under the existing rules, including commercial licenses being valid long after an immigrant truck driver’s work permit expired. He had dropped the threat to withhold nearly $160 million from California after the state said it would revoke the licenses.

Federal Motor Carrier Safety Administration Administrator Derek Barrs said California failed to live up to the promise it made in November to revoke all the flawed licenses by Jan. 5. The agency said the state also unilaterally decide to delay until March the cancellations of roughly 4,700 additional unlawful licenses that were discovered after the initial ones were found.

“We will not accept a corrective plan that knowingly leaves thousands of drivers holding noncompliant licenses behind the wheel of 80,000-pound trucks in open defiance of federal safety regulations,” Barrs said.

Industry praises the enforcement

Trucking trade groups have praised the effort to get unqualified drivers who shouldn’t have licenses or can’t speak English off the road. They also applauded the Transportation Department’s moves to go after questionable commercial driver’s license schools.

“For too long, loopholes in this program have allowed unqualified drivers onto our highways, putting professional truckers and the motoring public at risk,” said Todd Spencer, president of the Owner Operator Independent Drivers Association.

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The spotlight has been on Sikh truckers because the driver in the Florida crash and the driver in another fatal crash in California in October are both Sikhs. So the Sikh Coalition, a national group defending the civil rights of Sikhs, and the San Francisco-based Asian Law Caucus filed a class-action lawsuit on behalf of the California drivers. They said immigrant truck drivers were being unfairly targeted.

Immigrants account for about 20% of all truck drivers, but these non-domiciled licenses immigrants can receive only represent about 5% of all commercial driver’s licenses or about 200,000 drivers. The Transportation Department also proposed new restrictions that would severely limit which noncitizens could get a license, but a court put the new rules on hold.





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