White House Pushes Federal Preemption Over State Rules in AI Action Plan
The White House is moving towards a centralized approach to artificial intelligence (AI) regulation, aiming to override a complex array of state-level mandates. This decision comes as part of an action plan articulated by OSTP Director Michael Kratsios during his testimony before the House Science, Space and Technology Subcommittee.
Key Objectives of the AI Action Plan
The administration’s primary focus is to establish a uniform federal standard for AI. This initiative seeks to preempt the disparate regulations implemented by various states, which the White House considers a barrier to innovation and a threat to the United States’ position as a global leader in AI technology.
In December 2025, an executive order titled “Ensuring a National Policy Framework for Artificial Intelligence” was signed, which includes the formation of an AI Litigation Task Force. This task force will challenge any state laws that conflict with federal policies, aiming to streamline AI legislation across the country.
Concerns and Legislative Collaboration
During his testimony, Kratsios expressed optimism about collaborating with Congress but provided few details about the anticipated legislative recommendations. Lawmakers, including Subcommittee Chair Jay Obernolte and Ranking Member Zoe Lofgren, voiced concerns regarding the transparency of the proposed federal framework. Obernolte supports a dual regulatory lane—federal and state—while Lofgren raised issues about the constitutionality of preempting state regulations.
Executive Order Priorities
According to a fact sheet on the National Policy Framework for Artificial Intelligence, several key priorities have been outlined:
- Legal Enforcement: Establishment of the AI Litigation Task Force to challenge state laws that inhibit innovation.
- Funding Penalties: Authorization to withhold federal broadband funding from states with conflicting AI regulations.
- Agency Oversight: Direction for the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to limit state mandates and explore a unified federal disclosure standard.
- Federal Preemption: Creation of a national AI framework to override state-level rules.
With over 1,000 different AI bills introduced by state legislatures, the administration argues that simplifying these laws will reduce compliance costs and enhance innovation.
Next Steps in AI Regulation
The review of state AI actions by the FTC and FCC is expected within 90 days following the executive order, anticipated by March 2026. The focus on AI regulation has been a prominent theme in the current administration, especially since the executive order issued in January 2025 aimed at defining AI policy priorities.
Organizations like ACA continue to advocate for a tailored approach to AI regulations, emphasizing the importance of recognizing AI’s role in enhancing consumer flexibility in managing account information and payments. ACA stresses that any regulatory framework should prioritize risk management and mitigate potential harms to consumers.
As the AI Litigation Task Force begins its work, it will be crucial to monitor which state laws concerning consumer-debt AI are prioritized for removal, ensuring that the balance between innovation and consumer protection is maintained.
