KEY TAKEAWAYS: Louisiana could forfeit $800M in federal BEAD broadband funds. Risk arises if state AI laws are considered overly restrictive. BEAD funds support rural broadband deployment and digital programs. At least 23 AI-related bills are pending in the 2026 session.   Louisiana cou ld risk roughly $800 million in federal broadband funding if lawmakers pass artificial intelligence regulations the Trump administration deems overly burdensome, state officials and policy advocates say. The warning centers on the state’s Broadband Equity, Access, and Deployment allocation, or BEAD, a pot of federal money overseen in Louisiana that funds fiber internet access to rural areas in the state. According to Louisiana Economic Development, a December executive order from the Trump administration signaled that states could lose access to certain broadband funds if they enact restrictive AI laws. “To win, United States AI companies must be free to innovate without cumbersome regulation. But excessive State regulation thwarts this imperative,” the executive order said. Josh Fleig, chief innovation officer for Louisiana Economic Development, said the administration’s message was clear. “The feds in December put out an executive order that told states not to pass a bunch of restrictive AI laws,” Fleig told The Center Square. “If you do that, we have the right to withhold your BEAD non-deployment funding.” BEAD money can generally be used in two ways. The first is for deployment – physical broadband buildout such as digging trenches, laying fiber and extending service to unserved and underserved areas. The second is for non-deployment uses. If a state can show it is able to serve all eligible locations with affordable, high-speed broadband service, leftover funds can be redirected toward related programs such as cybersecurity and privacy training, remote learning and telehealth services, digital skills training and computer science or coding education. That second category is what could be at risk. Louisiana’s total federal broadband allocation is about $800 million, and officials are watching closely as lawmakers advance a growing number of AI-related proposals during the 2026 legislative session. “There are definitely bills that may be deemed overly burdensome,” Erin Bendily, senior vice president of the conservative Pelican Institute for Public Policy, told The Center Square. “Certainly some of them contain a lot of broad definitions, sweeping mandates, costly compliance, vague definitions. Lots of questions whether it’s even the purview to regulate here.” Bendily said Gov. Jeff Landry‘s administration is paying attention to the possible consequences of passing aggressive state-level AI rules. “The Trump administration is clear to ensure that we follow the role of federal vs. state oversight of these issues,” she said. “We can’t continue creating a patchwork of contradictory state laws across the country. It’s impossible for companies to comply. It will increase costs, lots of litigation, position our country to be unable to compete with China.” Louisiana lawmakers have moved quickly to regulate AI across a wide range of sectors. At least 23 bills related to artificial intelligence have been filed or are pending this session, building on an earlier wave of proposals focused on criminal conduct, health care, political campaigns, consumer protection, employment practices and the use of chatbots with minors. Some of the bills target AI-generated sexual imagery, child exploitation and deceptive political materials. Others would require disclosures for AI-generated content, create civil causes of action for misuse of AI, regulate AI in health care settings or impose guardrails on chatbots used by children. Rep. Mike Echols, R-Monroe, has said it makes more sense for the federal government to establish a national regulatory framework rather than leaving states to adopt conflicting rules. Some lawmakers have indicated they plan to amend their bills, suggesting the final shape of Louisiana’s AI package remains unsettled. ...read more read less