White House Drafts Executive Order To Preempt State Ai Laws

Reporting by Karen Freifeld in New York; Additional reporting by Jody Godoy; Editing by Chris Sanders, Chris Reese and Daniel Wallis Our Standards: The Thomson Reuters Trust Principles., opens new tab 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... A draft executive order reveals the Trump administration is preparing to challenge state artificial intelligence laws as unconstitutional, condition federal funding on state compliance and deploy the Department of Justice to litigate against non-conforming...

Many in the tech industry agree on the need for federal policy that would preempt a patchwork of state laws. But not all speak with the same voice. The draft is a bold move toward halting state action without a national framework in its place. Supporters argue that a unified federal approach is necessary to protect U.S. competitiveness, prevent compliance costs from escalating across 50 jurisdictions and keep pace with global rivals as they accelerate their own AI strategies. Critics counter that, in the absence of federal protections, preempting state laws would strip away the only meaningful guardrails currently in place and weaken safeguards for consumers, workers and civil rights.

These are the areas where states have been first movers. Earlier this summer, the proposal for a moratorium blocking state AI legislation was removed the One Big Beautiful Bill Act, the Republican budget reconciliation package. The Senate was unable to unify support with prominent MAGA Republicans like Sen. Josh Hawley of Missouri, who recently stated that “as a Republican who believes in federalism, I think it’s a strange argument for some Republicans to make in this building that all of a sudden... In July, the White House’s AI Action Plan set the direction for an accelerationist vision — the belief that AI development should proceed as fast as possible with minimal regulatory friction. It framed AI progress as a geopolitical race for economic and national security dominance, echoing preferences in the Silicon Valley venture community while diverging from civil society voices calling for a more balanced approach.

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... Washington D.C. – November 24, 2025 – The federal government's ambitious push to centralize artificial intelligence (AI) governance and preempt a growing patchwork of state-level regulations has hit a significant roadblock.

Reports emerging this week indicate that the White House has paused a highly anticipated draft Executive Order (EO), tentatively titled "Eliminating State Law Obstruction of National AI Policy." This development injects a fresh wave... The now-paused draft EO represented a stark departure in federal AI policy, aiming to establish a uniform national framework by actively challenging and potentially invalidating state AI laws. Its immediate significance lies in the temporary deferral of a direct federal-state legal showdown over AI oversight, a conflict that many observers believed was imminent. While the pause offers states a brief reprieve from federal legal challenges and funding threats, it does not diminish the underlying federal intent to shape a unified, less burdensome regulatory environment for AI development... The recently drafted and now paused Executive Order, "Eliminating State Law Obstruction of National AI Policy," was designed to be a sweeping directive, fundamentally reshaping the regulatory authority over AI in the U.S. Its core premise was that the proliferation of diverse state AI laws created a "complex and burdensome patchwork" that threatened American competitiveness and innovation in the global AI race.

This approach marked a significant shift from previous federal strategies, including the rescinded Executive Order 14110, "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence," signed by former President Biden in October 2023,... The draft EO's provisions were notably aggressive. It reportedly directed the Attorney General to establish an "AI Litigation Task Force" within 30 days, specifically charged with challenging state AI laws in federal courts. These challenges would likely have leveraged arguments such as unconstitutional regulation of interstate commerce or preemption by existing federal statutes. Furthermore, the Commerce Secretary, in consultation with White House officials, was to evaluate and publish a list of "onerous" state AI laws, particularly targeting those requiring AI models to alter "truthful outputs" or mandate... The draft explicitly cited California's Transparency in Frontier Artificial Intelligence Act (S.B.

53) and Colorado's Artificial Intelligence Act (S.B. 24-205) as examples of state legislation that presented challenges to a unified national framework. Perhaps the most contentious aspect of the draft was its proposal to withhold certain federal funding, such as Broadband Equity Access and Deployment (BEAD) program funds, from states that maintained "onerous" AI laws. States would have been compelled to repeal such laws or enter into binding agreements not to enforce them to secure these crucial funds. This mirrors previously rejected legislative proposals and underscores the administration's determination to exert influence. Agencies like the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) were also slated to play a role, with the FCC directed to consider a federal reporting and disclosure standard for AI...

This comprehensive federal preemption effort stands in contrast to President Trump's earlier Executive Order 14179, "Removing Barriers to American Leadership in Artificial Intelligence," signed in January 2025, which primarily focused on promoting AI development... Polsinelli is an Am Law 100 firm with more than 1,200 attorneys in over 25 offices nationwide. Recognized by legal research firm BTI Consulting as one of the top firms for excellent client service and client relationships, Polsinelli attorneys provide value through practical legal counsel infused with business insight and focus... 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." US President Donald Trump is considering signing an executive order that would seek to challenge state efforts to regulate artificial intelligence through lawsuits and the withholding of federal funding, WIRED has learned.

A draft of the order viewed by WIRED directs US attorney general Pam Bondi to create an “AI Litigation Task Force,” whose purpose is to sue states in court for passing AI regulations that... Trump could sign the order, which is currently titled “Eliminating State Law Obstruction of National AI Policy,” as early as this week, according to four sources familiar with the matter. A White House spokesperson told WIRED that “discussion about potential executive orders is speculation.” The order says that the AI Litigation Task Force will work with several White House technology advisors, including the special adviser for AI and crypto, David Sacks, to determine which states are violating federal... It points to state regulations that “require AI models to alter their truthful outputs” or compel AI developers to “report information in a manner that would violate the First Amendment or any other provision... The order specifically cites recently enacted AI safety laws in California and Colorado that require AI developers to publish transparency reports about how they train models, among other provisions.

Big Tech trade groups, including Chamber of Progress—which is backed by Andreessen Horowitz, Google, and OpenAI—have vigorously lobbied against these efforts, which they describe as a “patchwork” approach to AI regulation that hampers innovation. These groups are lobbying instead for a light-touch set of federal laws to guide AI progress.

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