University of Kwazulu-Natal

White House Draft Eo Targets State Ai Laws As New Eo Emphasizes

Bonisiwe Shabane
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white house draft eo targets state ai laws as new eo emphasizes

Last Tuesday, a draft executive order (EO) from the White House overriding states’ artificial intelligence (AI) laws was leaked. The draft EO was a surprise, considering that a moratorium on state AI laws was voted down 99-1 by the U.S. Senate on July 1, and the White House then said on July 10 that the federal government would not interfere with states’ rights if they pass “prudent AI laws.” While the White House stated last week that another AI-related EO was only speculation, the leaked draft EO raises several issues for AI governance — the combination of principles, laws and policies that relate... Yesterday, the White House pivoted from the draft EO to issue a fact sheet to “accelerate AI for scientific discovery” and an EO launching the Genesis Mission, an integrated platform designed to harness datasets... The new EO includes directives to combine efforts with the private sector and incorporate security standards.

The draft EO reiterates the AI Action Plan edict that “national security demands that we win this [AI] race” and asserts that state legislatures have introduced over 1,000 AI bills that threaten to undermine... The draft declares that the White House “will act to ensure that there is a minimally burdensome national standard — not 50 discordant state ones.” Of the more than “1,000 AI bills” the draft EO threatens to override, it calls out two consumer privacy AI laws — California’s Transparency in Frontier Artificial Intelligence Act (i.e., Senate Bill 53) and... Last Tuesday, a draft executive order (EO) from the White House overriding states’ artificial intelligence (AI) laws was leaked. The draft EO was a surprise, considering that a moratorium on state AI laws was voted down 99-1 by the U.S. Senate on July 1, and the White House then said on July 10 that the federal government would not interfere with states’ rights if they pass “prudent AI laws.”

While the White House stated last week that another AI-related EO was only speculation, the leaked draft EO raises several issues for AI governance — the combination of principles, laws and policies that relate... Yesterday, the White House pivoted from the draft EO to issue a fact sheet to “accelerate AI for scientific discovery” and an EO launching the Genesis Mission, an integrated platform designed to harness datasets... The new EO includes directives to combine efforts with the private sector and incorporate security standards. The draft EO reiterates the AI Action Plan edict that “national security demands that we win this [AI] race” and asserts that state legislatures have introduced over 1,000 AI bills that threaten to undermine... The draft declares that the White House “will act to ensure that there is a minimally burdensome national standard — not 50 discordant state ones.” Of the more than “1,000 AI bills” the draft EO threatens to override, it calls out two consumer privacy AI laws — California’s Transparency in Frontier Artificial Intelligence Act (i.e., Senate Bill 53) and...

According to reports published on November 19, the White House has prepared a draft Executive Order to preempt state AI regulations in lieu of a uniform national legislative framework, marking a significant escalation in... The draft Executive Order, titled “Eliminating State Law Obstruction of National AI Policy” (and marked “Deliberative/Predecisional/Draft”) (“draft EO”), outlines a sweeping, multi-pronged effort to “sustain and enhance America’s global AI dominance through a minimally... The draft EO directs White House officials and federal agencies to take various steps to preempt or challenge certain state AI regulations deemed unconstitutional or inconsistent with federal law, or to withhold federal funding... Although the operative provisions of the draft EO do not expressly target any particular state AI laws, the statement of purpose specifically references the Colorado AI Act, which establishes reporting, impact assessment, and transparency... While these laws are noted as motivating factors for the draft EO, agency actions taken pursuant to the draft EO would presumably apply to state laws deemed to conflict with the policies adopted in... The draft EO follows a series of recent efforts to curb state AI laws and, if ultimately finalized, could reshape the balance of federal and state authority over AI regulation.

On July 1, the Senate, by a 99–1 vote, rejected a proposed amendment to the budget reconciliation bill, the One Big Beautiful Bill Act, that would have imposed a moratorium on state and local... Later in July, the White House released its AI Action Plan, which called on federal agencies to limit funding to states with “burdensome” AI laws and urged the FCC to evaluate potential preemption under... And in recent weeks, and with support from the President, House Republicans have renewed efforts for federal legislation to preempt state AI laws, pushing to include an AI preemption provision in the Fiscal Year... While it remains uncertain whether President Trump will ultimately issue the draft EO as prepared or whether the latest legislative efforts to preempt state AI legislation will succeed, the debate over the proper scope... An executive order that could soon be signed by President Donald Trump would thwart states' artificial intelligence laws by launching legal challenges and withholding federal funding, according to a draft of the order obtained... The draft surfaced shortly after Trump publicly called for a single federal standard on AI "instead of a patchwork of 50 State Regulatory Regimes."

The draft order would give Attorney General Pam Bondi 30 days to establish an "AI Litigation Task Force" whose sole task is to challenge state AI laws. Those challenges would be issued "on grounds that such laws unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful in the Attorney General's judgment," the draft says. The order also directs Commerce Secretary Howard Lutnick to notify states with contested AI laws that they are ineligible for funds under the federal Broadband Equity Access and Deployment program. BEAD is a more than $42 billion program that has allocated funding to all U.S. states and territories. On November 19, multiple news outlets reported that President Trump is considering an Executive Order (EO) aimed at challenging state efforts in AI governance.

The reported draft EO follows a summer of mounting tension between state policy makers and the administration’s federal-first, deregulatory approach. If issued (potentially as soon as today, according to several sources), the EO would mark a significant federal intervention in the ongoing debate regarding the allocation of authority between federal and state governments in... The draft EO reportedly contends that the proliferation of state AI laws, with “over 1,000 AI bills introduced by state legislatures,” poses risks to US competitiveness. It asserts that “American AI companies must be free to innovate without cumbersome regulation” and grounds federal preemption in the policy goal of advancing “America’s global AI dominance through a minimally burdensome, uniform national... Under this policy directive, the reported draft EO includes the following operative elements: The draft EO specifically references recently enacted state AI statutes, including California’s Transparency in Frontier Artificial Intelligence Act (S.B.

53) and Colorado’s Artificial Intelligence Act (S.B. 24-205), which it characterizes as contributing to a “patchwork” regulatory landscape, as we’ve previously covered. These state laws impose requirements on large frontier developers and high-risk AI system deployers, including requirements for transparency reporting, model-risk disclosures, and guardrails for high-risk decision systems used in employment, housing, health care, and... The draft EO appears designed to curb regulatory divergence by limiting states’ ability to enforce such obligations, in line with the administration’s broader deregulatory approach to AI. Both California’s and Colorado’s statutes diverge from the deregulatory stance favored by the Trump administration, which emphasizes minimal oversight of AI technologies to facilitate national AI competitiveness and infrastructure. This draft EO aligns with the White House’s AI Action Plan released this summer, which prioritizes advancing US leadership in AI through deregulation, as we’ve previously reported.

On November 18, President Trump posted on Truth Social that China “could easily catch us” in the global AI race absent a uniform, nationwide AI framework, signaling the potential issuance of the EO. By seeking to reduce state-level regulatory barriers, the draft EO reinforces the administration’s objectives of accelerating AI innovation to promote US competitiveness. U.S. President Donald Trump arrives to welcome Crown Prince and Prime Minister Mohammed bin Salman of Saudi Arabia to the White House on November 18, 2025 in Washington, DC. Andrew Harnik/Getty Images President Donald Trump is weighing an executive order that would disincentivize states from passing any new artificial intelligence regulations by withholding federal funding from noncompliant states.

In a circulated draft of the order — titled “Eliminating State Law Obstruction of National AI Policy” — Trump stresses his administration’s light-touch regulatory preference, saying U.S.-made AI products need an industry-friendly environment to... “American AI companies must be free to innovate without cumbersome regulation,” the draft order reads. “But State legislatures have introduced over 1,000 AI bills that threaten to undermine that innovative culture.” Notably, the order would restrict various federal funding programs for states if their domestic AI laws are found to hinder the administration’s AI policy. The Department of Commerce would be tasked with evaluating potentially “onerous” state AI laws, along with AI and Crypto Czar David Sacks. Knott handles complex insurance recovery and other commercial litigation matters in state and federal courts around the U.S.

Firm and client Brookfield Property Development honored for an innovative solution streamlining BPD’s due diligence screening process The White House circulated a draft executive order titled “Eliminating State Law Obstruction of National AI Policy” signaling a push toward a single federal framework for AI and a rollback of state-by-state mandates. The draft directs the Attorney General, the Commerce Department, the FCC, and the FTC to challenge or displace certain state AI laws, especially those imposing disclosure, reporting, or output-altering requirements. Colorado’s AI Act and California transparency measures are noted as examples of the state patchwork the order targets. How the draft EO would workThe order would not itself set comprehensive federal AI rules. Instead, it would mobilize agencies to create a pathway for federal primacy:

The Attorney General would form an AI Litigation Task Force to challenge state AI laws viewed as conflicting with federal policy.

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