Federal Executive Order on State Artificial Intelligence Lawmaking 

On December 11, 2025, President Trump signed an Executive Order (EO), titled “Ensuring a National Policy Framework for Artificial Intelligence”,  that seeks to preempt state lawmaking pertaining to artificial intelligence (AI) to develop a national policy framework. The EO directs federal agencies to challenge existing state AI laws inconsistent with the policy set forth in the EO, conditions certain federal funding on states refraining from enforcing such conflicting AI laws, and mandates that Presidential Advisors prepare and propose to Congress a unified federal AI policy framework. 

Key Provisions within the Executive Order 

Establish an AI Policy 
The EO establishes that it is the policy of the United States to sustain and enhance the nation’s global AI dominance through a minimally burdensome national policy framework.  

Creation of an AI Litigation Task Force 
The U.S. Department of Justice is directed to establish an AI Litigation Task Force within 30 days to challenge state AI laws that are inconsistent with the policy set forth in the EO, including that they “unconstitutionally regulate interstate commerce, are preempted by existing federal regulations, or are otherwise unlawful”.   

Evaluation of State AI Laws 
The U.S. Secretary of Commerce is directed to publish an evaluation of existing state AI laws within 90 days identifying “onerous laws” that conflict with the policy goals of the order, and to refer such laws to the litigation task force. The evaluation must also identify state laws that promote AI innovation consistent with the policy goals of the EO.  

Establish Funding Contingencies for Compliance  
The U.S. Secretary of Commerce is directed to issue a Policy Notice within 90 days that outlines how the eligibility of non-deployment funds under the Broadband Equity Access and Deployment (BEAD) Program is contingent on compliance with the policy goals of the EO. Other federal agencies are directed to review their discretionary grant programs and determine if similar contingencies may be applied to further the goals of the EO. States with conflicting, enacted AI laws may be required to sign a binding agreement promising not to enforce such laws during the performance period of the grant to receive funding.  

Inquiry into a Federal Reporting and Disclosure Standard for AI 
The Federal Communications Commission is directed to initiate a proceeding to determine whether to adopt a federal reporting and disclosure standard for AI models that would preempt conflicting state laws. This proceeding must begin within 90 days of publication of the evaluation of state laws.  

Preemption of State Laws Mandating Deceptive Conduct in AI Models   
The Federal Trade Commission (FTC) is directed to issue a policy statement within 90 days on how the Federal Trade Commission Act’s prohibition on unfair and deceptive acts or practices applies towards AI models.  The FTC must explain the circumstances under which states are engaging in practices that violate this provision.  

Drafting of a Legislative Recommendation to Congress  
Federal advisors are directed to jointly prepare legislative recommendations establishing a uniform federal policy framework for AI that preempts conflicting state AI laws. The proposed legislative recommendations would not preempt otherwise lawful state AI laws relating to child safety protections, AI compute and data center infrastructure, state government procurement and use of AI, and other topics as determined. 

What’s the Purpose of the EO?  

The EO indicates that state-by-state regulation can result in varying regulations across all 50 states, making compliance more challenging, particularly for start-ups. It also notes that some state laws are influencing how developers are designing and training their models, contributing to inconsistencies across the industry. In addition, the EO raises concerns that certain state actions may extend regulations beyond their borders and impact interstate commerce. This EO directs the federal Administration to challenge state AI laws inconsistent with the EO and to establish a uniform federal policy framework for AI that preempts conflicting state AI laws.  

What does this mean for California?  

California has recently enacted laws requiring AI developers to implement robust privacy and data protection measures and increase transparency for consumers. Most notably SB 53 (Wiener), the Transparency in Frontier Artificial Intelligence Act, establishes stronger transparency requirements for developers, innovation frameworks, safety reporting requirements, accountability mechanisms for noncompliance, and expanded oversight by the Department of Technology. Under the new federal executive order, California’s AI laws may be challenged by the federal government, potentially jeopardizing certain federal funding for non-compliance. Governor Gavin Newsom issued a public response opposing the December executive order, affirming California’s authority to enact safeguards that protect consumers while advancing AI innovation.  

What Happens Next?  

Currently, the executive order does not alter any enacted legislation; however, additional information is expected when the AI Litigation Task Force is established and the federal evaluation of state laws has been completed. CSAC will continue to monitor the provisions in this executive order and share updates as they become available.