New President Trump Executive Order Blocks states from enforcing AI regulations

On December 11, 2025, President Donald Trump signed an executive order aimed at preventing U.S. states from enforcing artificial intelligence (AI) regulations that conflict with a national federal policy. The order seeks to centralize AI governance at the federal level, arguing that a fragmented landscape of state laws threatens innovation, economic competitiveness, and U.S. leadership in AI. While the order does not immediately invalidate state laws, it establishes legal, financial, and administrative mechanisms to limit their enforcement and accelerate federal preemption.

Executive Order Summary: Key Points

Purpose and Policy Direction

  • The executive order establishes a federal policy favoring a single, uniform national framework for AI regulation.
  • The administration argues that state-level AI laws create regulatory fragmentation, raise compliance costs, and slow innovation.
  • A central justification is maintaining U.S. global leadership in AI, particularly in competition with foreign adversaries.
  • The order emphasizes a “minimally burdensome” regulatory approach at the national level rather than state-by-state rules.

Core Actions Ordered

Federal Priority Over State AI Laws

  • The executive order declares that state AI laws that conflict with federal policy may obstruct interstate commerce or constitutional principles.
  • Federal agencies are instructed to prioritize national AI policy over inconsistent state requirements.

AI Litigation Task Force

  • The Attorney General must establish an AI Litigation Task Force within 30 days.
  • The task force is responsible for identifying and challenging state AI laws that may conflict with federal authority, including through constitutional or preemption arguments.

Review of Existing State AI Regulations

  • The Department of Commerce has 90 days to review existing state AI laws.
  • The review will identify laws considered “onerous,” restrictive, or inconsistent with national AI objectives.

Federal Funding Conditions

  • States identified as enforcing conflicting AI laws may be deemed ineligible for certain federal funding programs, where legally permissible.
  • This includes potential impacts on broadband and infrastructure-related grants.
  • Federal agencies are instructed to consider conditioning discretionary grants on states refraining from enforcing conflicting AI regulations.

Development of Federal Standards

  • The Federal Communications Commission is directed to consider creating federal AI reporting and disclosure standards that could preempt state rules.
  • The Federal Trade Commission is tasked with clarifying when state laws that alter or constrain truthful AI outputs are preempted by federal consumer protection law.

Legislative Recommendations

  • Administration officials must develop recommendations for federal legislation establishing a uniform AI policy.
  • The proposed legislation is intended to preempt conflicting state AI laws while preserving limited state authority in areas such as child safety, state procurement, and infrastructure.

What the Executive Order Does Not Do

  • The order does not automatically repeal or invalidate existing state AI laws.
  • It does not create new statutory authority; enforcement ultimately depends on agency action, litigation, or congressional legislation.
  • Courts will likely play a key role in determining the limits of federal preemption.

Why This Matters

  • The executive order sets the stage for a significant federal-state conflict over AI regulation.
  • It signals a strong federal push toward centralized AI governance in the absence of comprehensive federal AI legislation.
  • The outcome could reshape how AI is regulated across industries such as healthcare, employment, telecommunications, and consumer services.

Please click here to read the full executive order.

Image credit: Image by Freepik
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