Research Note: Changes in AI Regulations
On Thursday, December 11, President Trump signed an executive order aimed at limiting state-level regulations on artificial intelligence (AI). The order is the latest in a series of efforts by the administration to centralize AI governance at the federal level. While it takes a distinctive approach, the order also introduces several practical and legal challenges.
The administration’s stated goal is to strengthen U.S. global leadership in AI. President Trump argues that inconsistent regulation across states makes it difficult for U.S. companies to compete globally. By reducing regulatory variation, the administration contends that technology companies will face fewer barriers when building infrastructure and innovating domestically. The order reads, “State-by-State regulation by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging, particularly for start-ups.”
To address this “patchwork” of regulations, the President’s order requires the Attorney General to create an “AI Litigation Task Force” within the Department of Justice. Its mandate is to challenge state laws deemed inconsistent with the administration’s policy of promoting U.S. global AI competitiveness through minimal regulatory burdens. If states decline to revise or repeal the targeted laws, the order directs federal agencies to consider withholding funding for broadband and certain other infrastructure projects. The order exempts specific categories of state laws from challenge, including those related to child safety protections, AI computing and data-center infrastructure, and state government procurement and use of AI. It also calls for collaboration between the administration and Congress to create a national regulatory framework with limited burdens on industry.
The reaction to the President’s executive order has been mixed. All 50 states have introduced AI-related legislation in the last two years, and 38 have enacted laws, leading to bipartisan concerns about federal overreach. However, major technology companies that have long opposed extensive AI regulations have expressed support for the order. In response to the sweeping order, a central question has become how the order will fare in court. Historically, federal courts have been skeptical of executive action that attempts to override state laws, emphasizing that preemption authority lies primarily with Congress. How the courts interpret this authority will ultimately determine the scope of federal power in shaping AI policy moving forward.
Sources:
- Ensuring a National Policy Framework for Artificial Intelligence. The White House, 11 Dec. 2025, www.whitehouse.gov/presidential-actions/2025/12/eliminating-state-law-obstruction-of-national-artificial-intelligence-policy/.
- Kang, Cecilia. “Trump’s Executive Order on AI and State Rules.” The New York Times, 11 Dec. 2025, www.nytimes.com/2025/12/11/technology/ai-trump-executive-order.html?smid=nytcore-ios-share.
- De Vynck, Gerrit. “Trump Defies GOP Critics by Signing Controversial Order Threatening States Over AI Laws.” The Washington Post, 11 Dec. 2025, www.washingtonpost.com/technology/2025/12/11/trump-executive-order-ai-states/.
- Miller, Gabby. “Trump Says AI Executive Order Limiting State Rules Coming This Week.” Politico, 8 Dec. 2025, www.politico.com/news/2025/12/08/trump-says-ai-executive-order-limiting-state-rules-coming-this-week-00680557.
- Summary of Artificial Intelligence 2025 Legislation. National Conference of State Legislatures. 2025, www.ncsl.org/technology-and-communication/artificial-intelligence-2025-legislation.