Trump Executive Order Seeks to Limit State AI Regulations, Establish National Framework

President Trump Issues Executive Order on AI Governance

On December 11, 2025, President Donald Trump signed an executive order titled 'Ensuring a National Policy Framework for Artificial Intelligence,' aimed at limiting states from enacting or enforcing their own artificial intelligence regulations. The order seeks to establish a uniform national standard for AI governance across the United States, a move that has drawn both praise and criticism.

Key Provisions and Rationale for Federal Oversight

The executive order outlines several mechanisms to achieve its goal of a 'minimally burdensome national standard' for AI. A central component is the establishment of an 'AI Litigation Task Force' within the Department of Justice. This task force is mandated to challenge state AI laws deemed 'unconstitutional, preempted by existing Federal regulations, or otherwise unlawful.'

Furthermore, the order directs the Secretary of Commerce to identify 'onerous' state AI laws and consider withholding federal funding, including allocations from the Broadband Equity Access and Deployment Program, from states that maintain such regulations. The Federal Communications Commission (FCC) is instructed to explore adopting a federal reporting and disclosure standard for AI that would preempt conflicting state laws, while the Federal Trade Commission (FTC) is directed to clarify how its authority against deceptive practices preempts state laws requiring alterations to 'truthful outputs' of AI models.

The administration's stated rationale for this executive action is to prevent a 'patchwork' of disparate state regulations that could 'thwart' innovation, create unnecessary bureaucracy for the industry, and impede the U.S.'s leadership in the global 'AI race.' President Trump emphasized the need for a 'central source of approval' rather than navigating '50 different approvals from 50 different states.'

Targeted States and Exemptions

The executive order specifically references states like Colorado, whose AI Act concerning algorithmic discrimination is cited as an example of laws that could compel AI models to 'embed ideological bias.' California has also been highlighted as a state potentially impacted, with its $1.8 billion broadband program at risk of federal funding cuts.

However, the order does include specific exemptions from preemption. State laws related to

• child safety protections
• AI compute and data center infrastructure
• state government procurement and use of AI

Reactions and Anticipated Challenges

The executive order has elicited varied responses. Silicon Valley and AI companies, which have largely lobbied against extensive state-level regulation, have reportedly applauded the move, viewing it as crucial for fostering innovation and maintaining U.S. competitiveness. Industry groups, such as health insurers, have also welcomed the push for a consistent national framework to reduce regulatory burdens.

Conversely, state officials have voiced strong opposition. California Governor Gavin Newsom publicly criticized the order, calling it 'a con' that 'advances corruption, not innovation,' and vowed that California would legally challenge the federal action. State lawmakers and organizations like the National Council of Insurance Legislators have raised concerns about federalism, arguing that the order threatens states' ability to regulate emerging risks and respond to local constituent needs. Legal experts anticipate potential court challenges from states regarding the legality of pursuing federal preemption through executive actions, especially in the absence of comprehensive federal statutory enactment.

This executive order follows previous unsuccessful attempts to secure federal preemption of state AI regulations through congressional legislation, including proposals within the National Defense Authorization Act.