President Trump Issues Executive Order on Artificial Intelligence
On December 11, 2025, President Trump issued an Executive Order entitled “Ensuring a National Policy Framework for Artificial Intelligence.” The accompanying Fact Sheet states the EO is meant to “protect American AI innovation from an inconsistent and costly compliance regime resulting from varying State laws.”
The EO signals an aggressive federal move to centralize AI regulation, reduce compliance
burdens, and challenge varying state AI requirements and restrictions viewed by the Administration as obstructing innovation.
Key Features of the Executive Order:
AI Litigation Task Force (Department of Justice): Launches within 30 days with the goal to first identify and later bring legal challenges by the federal government against state AI laws that conflict with federal policy.
Nationwide Review of State AI Laws (Department of Commerce): A 90-day report will flag state rules deemed “onerous” or inconsistent with federal priorities.
Funding Leverage: States enforcing conflicting AI rules may lose eligibility for certain federal
funding.
Federal Preemption Moves (Multiple Agencies): Within 90 days, federal agencies are directed to issue guidance on whether to adopt a federal reporting and disclosure requirement, whether state-level AI requirements are preempted by federal requirements, and/or whether state-level AI lawsrun afoul of existing federal law (such as the FTC’s unfair and deceptive trade rules).
Legislative Push: The Administration will seek to propose a uniform federal AI statute designed to override inconsistent state laws.
Expected Litigation Challenging the EO: We anticipate legal challenges by states and third-
parties asserting that the Administration does not have authority to seek to preempt state laws, as that historically only has been permitted by an act of Congress, not by Presidential Executive Order.
What This Means for Employers
- Employers operating across multiple states may ultimately benefit from reduced regulatory fragmentation if a national standard is enacted and upheld.
- Prepare for a period of legal uncertainty as federal–state tensions escalate.
- During that period, continue to comply with state AI laws in the states in which your company operates.
- Work with legal counsel to closely track legal developments and agency guidance as standards and requirements may shift quickly.
- Ensure continued compliance with federal and state anti-discrimination laws.
If you have any questions or need help with AI legal compliance, selecting and implementing new AI tools in the workplace, or preparing AI bias audits, simply reply to this email or reach out to the Silberman Law attorney with whom you work.
