Key point: Although the Executive Order seeks to bring regulatory certainty in the development and deployment of AI in the US – at least in the short term – it is unlikely to alleviate compliance burdens for businesses and only create more uncertainty.
On December 11, 2025, President Donald Trump signed an Executive Order entitled “Ensuring a National Policy Framework for Artificial Intelligence.” The purpose of the Executive Order is two-fold.
First, the order seeks to create a legal structure to stop states from enacting new state AI laws and from enforcing existing ones. According to the order, the goal of the United States must be “[t]o win” a “race with adversaries for supremacy” in AI. However, to do so, “United States AI companies must be free to innovate without cumbersome regulation.” Therefore, the order seeks to prevent “a patchwork of 50 different state regulatory regimes that makes compliance more challenging, particularly for start-ups.” Importantly, the order itself does not attempt to preempt state AI laws. Rather, as discussed below, it just creates a structure for the federal government to try to preempt some of them.
Second, the order states that the Trump administration will work with Congress to enact a “minimally burdensome national standard” that preempts state law and “ensure[s] that the United States wins the AI race, as we must.”
The order follows two prior attempts in Congress to pass a moratorium on states enacting AI laws. Most recently, an attempt to include a moratorium in the National Defense Authorization Act of 2026 failed, creating the impetus for the President to sign the order.
Although the Executive Order seeks to streamline and reduce AI regulation, there are many questions that it leaves open, including the scope of laws that will be challenged and the likelihood – if not certainty – that states will challenge the order’s legality. It also remains to be seen whether the order slows the passage of new state AI laws and enforcement of existing ones. Indeed, it could ultimately have the unintended consequence of resulting in even more state AI laws. In the below article, we discuss the scope of the order, the state AI laws that could be targeted by the administration, how states have reacted to the order, and takeaways for businesses that are trying to comply with existing and forthcoming state AI laws.







