On December 11, 2025, the White House issued an executive order titled "Ensuring a National Policy Framework for Artificial Intelligence," marking a significant federal effort to limit state-level AI regulations in favor of a unified national approach.
The executive order establishes several mechanisms to challenge existing state AI laws, including the creation of an AI Litigation Task Force led by the Department of Justice and restrictions on federal funding for states with what the administration deems "onerous AI laws" [Holland & Knight]. The order specifically targets the Colorado AI Act, scheduled to take effect June 30, 2026, claiming it would "force AI models to produce false results" through its anti-discrimination requirements [Holland & Knight].
The Trump administration positions this move as essential for maintaining U.S. competitiveness in the global AI market. According to the order, the current "patchwork of state regulations creates excessive compliance burdens that stifle innovation" [BIPC]. The administration argues that state-by-state regulations hinder business operations and weaken America's position in the international AI race [America's Credit Unions].
However, the federal preemption strategy faces significant pushback. This executive order follows earlier failed attempts at legislative preemption, including the proposed One Big Beautiful Bill Act, which included a 10-year moratorium on new state AI regulations. While it passed the House, the Senate rejected the moratorium "largely due to bipartisan concerns regarding the erosion of traditional state authority over consumer protection" [Paul Hastings].
Some states have already begun adjusting their AI legislation in response to federal pressure. Colorado delayed its AI Act implementation from February 1, 2026, to June 30, 2026, while Utah amended its Artificial Intelligence Policy Act in 2025 to "narrow its scope and disclosure obligations, establish safe harbor protections and extend the law's duration" [Paul Hastings].
Policy experts warn that the federal approach may be premature. "Instead of attacking state regulation, federal policymakers should be learning from states' best proposals," according to analysis from Tech Policy Press. Experts note that "real world harms are accumulating rapidly, putting pressure on lawmakers to answer the concerns of their constituents" [Tech Policy Press].
The executive order directs multiple federal agencies to eliminate regulatory obstacles the administration believes threaten U.S. AI competitiveness. The Federal Trade Commission is specifically tasked with issuing policy statements clarifying that state laws requiring AI models to alter outputs may be preempted by federal deceptive practices prohibitions [Holland & Knight].
Legal experts anticipate significant challenges ahead. "The Executive Order represents a bold assertion of federal authority over AI regulation that will reshape the legal landscape for AI development and deployment," but will "face significant legal and political challenges in the months ahead" [BIPC].
The order calls for legislative recommendations to establish a uniform AI policy framework, with limited exceptions for child safety, AI infrastructure, and state government procurement [Holland & Knight]. As the federal framework develops, the ongoing tension between state and federal AI regulation authority is expected to intensify throughout 2026.