President Trump issues EO to block state AI laws

After Congress refused to block state regulation of artificial intelligence (AI) for a second time, President Trump on December 11, 2025, issued Executive Order (EO) 14365, Ensuring a National Policy Framework for Artificial Intelligence. The purpose as stated is to create a uniform federal framework for AI and sharply limit the ability of states to enforce their own rules on how algorithms are built, deployed, and overseen. The EO is squarely aimed at state-level efforts by California and New York to place tougher standards on AI developers.

Order imposes deregulatory approach

The AI order directs the Attorney General to establish an “AI Litigation Task Force” in 30 days to challenge state AI laws that are seen as incompatible with the federal government’s approach. As a stick, the EO ties the receipt of federal funds from programs, including the Broadband Equity Access and Deployment (BEAD) Program, to whether states’ adopted AI policies align with the federal standards. The Trump administration from the beginning has taken a deregulatory approach to AI, describing the Biden administration’s attempt to regulate AI as “woke.”

The EO directs the Federal Trade Commission (FTC) to issue a policy statement explaining when state AI laws are preempted by the FTC Act’s prohibition on deception and instructs other agencies to consider federal reporting and disclosure standards to override inconsistent state standards.

Broad pushback