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On Dec. 11, 2025, President Trump signed an executive order titled "Ensuring a National Policy Framework for Artificial Intelligence" that seeks to establish federal supremacy over state AI regulation. The order states that the Administration is concerned that some state-level regulation of AI may be overly burdensome, ideologically biased, or counterproductive to U.S. AI leadership and innovation. The order directs multiple federal agencies to take coordinated action to challenge and preempt state AI laws.
Background
In recent years, various states have enacted laws addressing algorithmic discrimination, deepfakes, AI transparency, and other AI topics, and even more AI-related bills have been introduced for consideration by state legislatures. Notable examples include Colorado's comprehensive AI Act, California's multiplelaws, and Utah's AI consumer protection legislation. In mid-2025, Congress deliberated a 10-year moratorium on state AI law enforcement through the budget reconciliation process, but after it passed the House, the Senate voted 99-1 to remove the provision.
Multiple AI-related bills are currently pending in Congress. This executive order marks another approach to attempted federal preemption of state-level AI regulation. States with existing AI laws, or with ambitions to regulate AI at the state level, may challenge in the courts any federal preemptive effect on state AI initiatives arising from the order.
Key Provisions
- Department of Justice (DOJ) AI Litigation Task Force: DOJ is instructed to establish, within 30 days, a task force dedicated solely to challenging state AI laws deemed inconsistent with federal policy, including on constitutional grounds (interstate commerce) and federal preemption.
- Commerce Department Evaluation: The Secretary of Commerce is instructed to, within 90 days, publish an evaluation identifying "onerous" state AI laws, particularly those that may compel AI models to alter truthful outputs or require disclosures that could violate constitutional protections.
- Funding Restrictions: States with AI laws the Administration identifies as onerous will be ineligible for remaining Broadband Equity, Access, and Deployment (BEAD) Program funds. Federal agencies are also directed to assess whether other discretionary grants can be conditioned on states not enacting or enforcing conflicting AI laws.
- Federal Communications Commission (FCC) Federal Standard: The FCC is instructed to initiate rulemaking, within 90 days of the Commerce evaluation, to potentially adopt a federal AI reporting and disclosure standard that would preempt conflicting state requirements.
- Federal Trade Commission (FTC) Deception Policy: The FTC is instructed to issue, within 90 days, a policy statement explaining when federal prohibitions on deceptive practices preempt state laws requiring alterations to AI model outputs.
- Legislative Framework: The Administration will prepare legislative recommendations for a uniform federal AI framework that preempts conflicting state laws while preserving state authority over child safety, AI infrastructure (excluding general permitting), and state government AI procurement.
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