President Donald Trump signed an Executive Order (EO) on December 11, 2025, establishing a national policy framework for artificial intelligence (AI), citing concerns that a patchwork of state laws could stifle innovation.
National AI Policy Framework Established
The Executive Order directs federal agencies to address state laws deemed burdensome or conflicting with the administration’s goal of maintaining U.S. global leadership in AI. The order specifically focuses on state requirements considered “onerous and excessive,” including concerns about ideological bias embedded within AI models.
An early draft of the EO was leaked on November 20, 2025, and briefly paused as Congress failed to pass a moratorium on state AI laws. President Trump and his Special Advisor for AI and Crypto, David Sacks, subsequently announced the impending signing of the EO on December 8, 2025, via social media.
The EO declares U.S. policy to be focused on “sustaining and enhancing America’s global AI dominance through a minimally burdensome, uniform national policy framework for AI.” The administration asserts it has already advanced this policy by removing barriers to AI innovation and integrating the technology across the federal government.
The order specifically references the Colorado AI Act, stating it “may even force AI models to produce false results in order to avoid a ‘differential treatment or impact’ on protected groups.” While a leaked draft also critiqued California’s Transparency in Frontier Artificial Intelligence Act (TFAIA), Colorado is the only state explicitly named in the final EO.
AI Litigation Task Force and Evaluation of State Laws
The EO directs the Attorney General to form a Task Force to challenge state AI laws, potentially on grounds of unconstitutional regulation of interstate commerce or pre-emption by existing federal regulations. The Task Force will consult with several White House advisors, including the Special Advisor for AI and Crypto.
The Secretary of Commerce is tasked with evaluating state AI laws that conflict with U.S. policy or may be unlawful, specifically identifying laws that require alterations to truthful AI outputs or violate First Amendment rights.
Funding Restrictions and Federal Standards
The Secretary of Commerce will also issue a Policy Notice regarding eligibility for funds from the Broadband Equity Access and Deployment Program, potentially withholding funds from states with burdensome AI laws identified in the evaluation. Federal agencies are also directed to assess discretionary grant programs for potential conditioning on state compliance with the EO.
The Federal Communications Commission Chairman, in consultation with the Special Advisor for AI and Crypto, will consider establishing federal reporting and disclosure standards for AI models, potentially preempting conflicting state laws. The FTC Chairman is also directed to issue a policy statement regarding the application of the FTC Act to AI models, particularly concerning laws requiring alterations to truthful outputs.
Legislative Recommendation
The Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology will provide the President with a legislative recommendation for a uniform federal regulatory framework for AI, preempting conflicting state laws. The framework is expected to address child safety, censorship prevention, copyright protection, and community safeguarding, while allowing states to maintain control over areas like child safety protections, data center infrastructure, and state government procurement.
On December 11, New York Governor Kathy Hochul returned the Responsible AI Safety and Education Act to the legislature with proposed changes, aligning it more closely with California’s TFAIA. This development may signal a narrowing path for acceptable state-level AI regulation.
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