On July 15, 2025, the Trump administration announced America's AI Action Plan, a comprehensive national strategy that allocates $175 billion in investment over the next five years for AI research, development, and implementation, thereby ensuring the United States' technological superiority and national security while reducing over-regulation. The plan establishes a new White House Office of AI to coordinate government-wide AI policy and an $85 billion National AI Fund to finance cutting-edge AI research initiatives, with particular focus on frontier research and high-performance computing infrastructure. The initiative aims to double the US AI research capacity by 2030 and create at least 45 new dedicated AI research centres nationwide, while also allocating $25 billion for workforce retraining programmes designed to prepare 7.5 million Americans for the AI-driven economy.
The action plan is built on four main pillars: strengthening the innovation ecosystem, strategic investments, developing appropriate governmental frameworks, and expanding international cooperation, while also providing implementation authority to Sector Councils that develop industry-specific AI standards and best practices. The plan revises the Biden-administration regulatory approach, including the 2023 AI Executive Order and more than 35 agency AI directives, replacing them with a new model encouraging industry self-regulation, with exceptions only for high-risk AI applications such as biometric identification systems or systems controlling critical infrastructure. According to Dr. Robert Atkinson, President of the Information Technology and Innovation Foundation, the new approach better balances innovation and risk management, which is expected to enhance the United States' competitiveness against China, which aims to become the leading AI power by 2030.
The Action Plan also emphasises the protection of AI areas critical to national security, including new export control rules overseen by the Department of Commerce and stricter screening of foreign investments, particularly regarding China. The plan includes a new $15 billion federal procurement fund for purchasing domestic AI technologies and a $25 billion budget increase for developing AI systems for defence and national security purposes. The Trump administration supports the implementation of the action plan with more than 45 specific executive orders and departmental directives, setting an ambitious 120-day deadline for launching most initiatives, including establishing the White House Office of AI and forming the first sector councils. The planned investments and regulatory changes are expected to significantly increase funding for American AI startups, potentially rising from the current $35 billion annually to $75 billion annually by 2030.
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The White House unveils a policy roadmap featuring over 90 federal actions across three pillars — accelerating AI innovation, building American AI infrastructure, and advancing AI diplomacy & security — aiming to cement U.S. as the global leader in artificial intelligence.:contentReference[oaicite:0]{index=0}
Kenneth R. Davis II, Harlan Mechling
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