CIVIL WAR Erupts Inside Trump’s Coalition

President Trump’s aggressive push to accelerate artificial intelligence development without regulation is triggering an unprecedented rebellion from his own MAGA base, as prominent allies warn of a coming “jobs apocalypse” that threatens to splinter the conservative coalition ahead of the 2026 midterms.

Story Highlights

Steve Bannon leads grassroots revolt against Trump’s AI deregulation agenda, warning of massive working-class job losses
Trump administration dismantled Biden-era AI restrictions and appointed tech-friendly czar David Sacks to oversee policy framework
Internal coalition fracture pits tech billionaire interests against MAGA base concerns about worker protection and corporate power
Bannon’s insurgent team successfully blocked 10-year state-level AI regulation moratorium from Trump’s legislative package
Conflict could reshape 2026 midterms and 2028 presidential race as working-class voters feel abandoned by pro-tech policies

Trump’s AI Acceleration Divides Conservative Coalition

President Trump dismantled Biden-era AI restrictions immediately upon taking office, proclaiming his intention to build “the largest, most powerful, most innovative AI ecosystem in the world.” The administration appointed David Sacks as AI czar to implement a minimally burdensome regulatory framework favoring rapid technological development. Trump’s December 2025 executive action established federal AI policies designed to preempt state-level regulations, signaling full commitment to industry-friendly approaches. This represents a sharp departure from campaign promises emphasizing protection of American workers and skepticism toward concentrated corporate power.

Bannon Mobilizes Grassroots Opposition to Protect Workers

Steve Bannon, Trump’s former chief strategist, is spearheading organized resistance within MAGA ranks against unchecked AI acceleration. Bannon warns of an impending “jobs apocalypse” that will devastate working-class Americans who form the backbone of Trump’s electoral coalition. He’s building opposition “from the bottom up” through churches and grassroots MAGA meetings across the heartland. Bannon achieved a significant tactical victory last summer when his insurgent team blocked a proposed 10-year moratorium on state AI regulations from Trump’s major legislative package. This represents one of the few successful challenges to the administration’s agenda from within its own political family.

Tech Billionaires Gain Unprecedented White House Influence

The administration’s AI policy reflects substantial influence from tech industry titans including Elon Musk, who served as DOGE lead and contributed significantly to Trump’s campaign. Silicon Valley executives have secured direct access to policymakers, shaping frameworks that prioritize innovation over worker protections. Tech companies have begun private outreach to influential MAGA voices attempting to neutralize grassroots opposition, recognizing the political threat to their regulatory preferences. This corporate access stands in stark contrast to working-class concerns being channeled through outside figures like Bannon rather than administration insiders. The arrangement raises fundamental questions about who actually governs Trump’s agenda and whose interests receive priority consideration.

Constitutional Concerns Over Federal Regulatory Overreach

Mike Davis, Trump’s legal adviser, has raised constitutional objections to federal AI frameworks that would preempt state-level regulations. Colorado’s AI law, scheduled to take effect June 30, 2026, represents a critical test case for state authority versus federal control. Davis and other constitutionalists argue that blocking states from implementing their own safeguards violates principles of federalism and limited government that conservatives traditionally champion. The November 2025 meeting in Vice President JD Vance’s office between Sacks and Davis revealed deep internal tensions over regulatory philosophy. This federal power grab contradicts conservative principles about states’ rights and decentralized governance, creating ideological dissonance within the administration’s own legal team.

Electoral Consequences Threaten Republican Midterm Prospects

Bannon explicitly warns that Trump’s AI stance “could cost Republicans in 2026 and 2028” if working-class voters feel abandoned by pro-tech policies. Traditional Republican voters in rural and post-industrial communities face the greatest automation risks, potentially alienating constituencies essential to electoral success. GOP strategists acknowledge the “double-edged sword” of promoting innovation while traditional industries and employment face disruption. Bannon has positioned AI regulation as a defining political issue comparable to Trump’s 2024 comeback, pledging that “history will know us for this.” Prominent MAGA voices including Rep. Marjorie Taylor Greene and Senator Josh Hawley have expressed skepticism about unchecked AI development, signaling broader concern within the conservative movement.

Wealth Transfer to Tech Elite Threatens Populist Coalition

The administration’s deregulation approach enables accelerated wealth concentration among tech billionaires while working-class Americans face job displacement without promised protections. This dynamic directly contradicts Trump’s populist messaging about fighting elites and protecting forgotten Americans. Bannon frames the conflict as existential, arguing that grassroots ownership of the anti-AI movement is essential because “if they take ownership here, we literally can’t be beaten.” The growing class divide between tech industry beneficiaries and displaced workers represents precisely the corporate power imbalance that fueled Trump’s initial political rise. Minimal regulation allows Silicon Valley to consolidate economic and political influence while heartland communities bear automation costs, creating unsustainable tensions within the conservative coalition that demand resolution before electoral consequences become irreversible.