On December 11, 2025, President Trump signed Executive Order 14365, “Ensuring a National Policy Framework for Artificial Intelligence” (the “EO”). The order identifies “excessive state regulation” as an obstacle to the Administration’s policy of “sustain[ing] and enhanc[ing] the United States’ global AI dominance through a minimally burdensome national policy framework for AI” (the “AI Policy”). To address that concern, the EO sets forth steps the Administration will take “to check the most onerous and excessive laws emerging from the States that threaten to stymie innovation.”

Key Takeaway

While the EO does not immediately impact existing AI laws, it sets forth a process by which those laws will be discouraged, challenged, and potentially preempted. However, as of the publishing of this post, many agencies appear to have not yet taken the various actions ordered by the EO despite the passage of their respective deadlines. For now, employers should continue to monitor and comply with existing state and local laws in this space, but be prepared for uncertainty and change in 2026.

The Executive Order

The EO primarily directs various executive agencies to take actions targeting state AI regulations. It requires:

• The Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology to “prepare a legislative recommendation establishing a uniform Federal policy framework for AI that preempts State AI laws that conflict with the policy set forth in”...

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