On 2 April 2026, the Trump administration intensified its legal efforts to assert federal authority over emerging technology sectors, notably online prediction markets and artificial intelligence (AI). According to NPR, the administration filed lawsuits against three states, including New Hampshire, challenging their attempts to regulate platforms like Kalshi and Polymarket. These states have expressed concern that such prediction markets, which allow wagers on a variety of events, may circumvent traditional gambling laws and threaten state revenue streams, especially amid rising sports betting activity as reported by NPR. The legal outcomes could establish whether federal or state regulators will set the rules for this fast-growing industry.
In parallel, the administration appealed a court ruling that blocked the Pentagon from restricting Anthropic, an AI company, from government contracts over concerns related to its AI system Claude. The Associated Press detailed on 2 April that this case highlights ongoing tensions about national security, procurement authority, and government oversight of private AI firms. The appeal underscores the broader policy debate on how to balance innovation with control of powerful AI technologies.
Meanwhile, at the state level, California Governor Gavin Newsom issued an executive order directing state agencies to incorporate AI risk assessments into procurement and contracting processes. As reported by the Associated Press on 2 April, this measure aims to mitigate potential harms from AI systems affecting public safety and privacy, signaling increased state scrutiny of AI use in government operations.
These developments follow earlier calls from former President Trump urging Congress to act on AI regulation amid legislative gridlock, while some states have already moved forward with their own frameworks, as noted by NPR on 28 March.
What to watch next: The outcomes of the federal lawsuits against states over prediction market regulation will be pivotal in defining jurisdictional boundaries. Similarly, the Pentagon-Anthropic appeal could set precedents for government control over AI contractors. State-level initiatives like California’s executive order may inspire other jurisdictions to adopt similar AI oversight measures, shaping the evolving regulatory landscape for technology.
