Federal Executive Order Seeks to Stop State and Local AI Regulation
A new federal executive order aims to halt state and local regulation of artificial intelligence (AI), arguing that fragmented laws could undermine U.S. competitiveness. This move raises significant questions regarding federal preemption, state authority, and the future of locally driven AI safeguards.
A recent article discusses last month’s federal executive order aimed at curbing state and local government regulation of AI. The order asserts that a patchwork of state laws could hinder U.S. competitiveness and innovation. This decision follows Congress’s move to drop a proposed federal moratorium on state AI regulation, setting the stage for renewed federal-state tension over AI governance.
Key Provisions of the Executive Order
The executive order, titled “Ensuring a National Policy Framework for Artificial Intelligence,” advances a federal strategy to establish a uniform, minimally burdensome national approach to AI. It directs multiple federal agencies to limit or deter state and local AI laws that the administration views as conflicting with federal priorities or constitutional principles.
Key provisions of the executive order include:
- AI Litigation Task Force: The order directs the U.S. Attorney General to establish a Department of Justice task force dedicated to challenging state AI laws in court, including on grounds of federal preemption, interstate commerce, or constitutional violations.
- Federal Evaluation of State Laws: The Secretary of Commerce must evaluate existing state AI laws within 90 days and identify those deemed “onerous,” particularly laws requiring altered AI outputs or extensive disclosures that may raise First Amendment concerns.
- Funding Conditions and Restrictions: Access to certain federal funds, such as non-deployment funding under the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program, may be conditioned on a state’s AI regulatory posture, to the maximum extent allowed by law.
- Preemption and National Standards: The order calls for legislative recommendations to establish a federal AI framework that expressly preempts conflicting state laws and directs agencies to explore national reporting, disclosure, and enforcement standards for AI.
This executive order is expected to face legal pushback from states and localities that have already enacted AI laws addressing transparency, bias, privacy, discrimination, and public safety. According to the National Conference of State Legislatures, all 50 states and several territories considered AI legislation in 2025, underscoring the breadth of state involvement in this policy area.
As the landscape of AI governance continues to evolve, the implications of this executive order will be closely monitored by both federal and state authorities.
