White House signs Executive Order on state AI lawmaking

Key Takeaways

On December 11, President Trump signed an Executive Order (EO) aimed at mobilizing federal agencies to challenge existing state laws on artificial intelligence (AI), clarify legal scope for AI model regulation at the state level, and condition federal funding on the non-enforcement of select state AI laws. The Order additionally calls on Presidential Advisors to prepare a legislative recommendation to Congress on a uniform federal policy framework for AI that preempts state AI laws that are seen to conflict with this Order. 

View the executive order here

Key provisions within the Order

• Creation of an AI Litigation Task Force: The U.S. Department of Justice is called to establish, within 30 days, a litigation task force that will challenge existing state laws on AI on the legal grounds that they "unconstitutionally regulate interstate commerce, are preempted by existing federal regulations, or are otherwise unlawful".
• Evaluation of State AI Laws: The U.S. Department of Commerce is directed to publish an evaluation of state AI laws that identifies laws in conflict with the policy goals of the Order, and to refer such laws to the litigation task force, as well as identify laws that may promote the goals of this Order.
• Establishment of Funding Contingencies for Compliance: The National Telecommunications and Information Administration (NTIA) is directed to publish a Policy Notice within 90 days that outlines how the eligibility of non-deployment funds under the Broadband Equity Access and Deployment (BEAD) program is contingent on compliance with the policy goals of the Order. Other federal agencies are directed to review their discretionary grant programs and determine if similar contingencies may be applied to further the goals of the EO.
• Inquiry into a Federal Report and Disclosure Standard for AI: The Federal Communications Commission (FCC) is ordered to open a notice of inquiry within 90 days to evaluate whether to adopt a federal reporting and disclosure standard for AI models. If the FCC chose to adopt such a standard, it would preempt conflicting state standards.
• Issuance of Policy Statement on AI Model Regulations: The Federal Trade Commission (FTC) is ordered to issue a policy statement within 90 days on the applicability of the Federal Trade Commission Act's prohibition on unfair and deceptive acts or practices towards AI models, wherein the FTC will clarify how and when state laws that regulate AI models are violating this provision.
• Drafting of a Legislative Recommendation to Congress on a Unified Federal Policy Framework for AI: Presidential advisors are directed to prepare a legislative recommendation establishing a uniform federal policy framework for AI that preempts state laws that conflict with the policy set in the Executive Order. The proposed framework would not seek to preempt state law in the following areas:
  • Child safety protection
  • AI compute and data center infrastructure, other than generally applicable permitting reforms
  • State government procurement and use of AI
  • Other topics as shall be determined

Impact on Counties

Counties are intergovernmental partners in ensuring the safe and responsible deployment of AI, including in the protection of resident data in county-owned and operated systems, and in the preservation of local land use and zoning authorities to guide locally informed siting of AI data center infrastructure. Counties urge against federal overreach of state and local AI lawmaking, while welcoming opportunities for counties to actively contribute to intergovernmental conversations on establishing a national policy framework on AI.
NACo will continue to monitor the provisions in this EO and update members on a continuous basis.