TL;DR: On December 11, 2025, President Trump signed an executive order titled "Ensuring a National Policy Framework for Artificial Intelligence." Translation: the federal government is coming for state AI regulations. The order creates a DOJ "AI Litigation Task Force" to sue states, threatens to cut federal broadband funding from non-compliant states, and directs the FTC to preempt state laws requiring AI transparency. The targets: Colorado's AI Act, California's algorithmic accountability laws, and any state that dares to require bias audits or disclosure of training data. Twenty-three state attorneys general have already pushed back.
What Trump Signed
On December 11, 2025, Trump signed Executive Order 14XXX, "Ensuring a National Policy Framework for Artificial Intelligence" [1].
The stated goal: "Promote United States leadership in Artificial Intelligence" by eliminating "onerous" state regulations.
The actual goal: Stop states from requiring AI companies to be transparent about how their systems work, test for bias, or explain their algorithms.
This came after several failed attempts to get Congress to preempt state AI laws through the "Big Beautiful Bill" and the National Defense Authorization Act [2]. When legislation failed, Trump used executive action.
Three Weapons Against State Laws
The executive order deploys three mechanisms to attack state AI regulations:
1. The AI Litigation Task Force
The order directs the Department of Justice to create an "AI Litigation Task Force" [3]. Its job: sue states over their AI-related laws.
The DOJ, FTC, and FCC are all directed to work together to "circumvent 'onerous' state and local regulations."
That's the federal government using taxpayer money to sue states for protecting their residents from algorithmic discrimination.
2. Federal Funding Threats
Within 90 days, the Secretary of Commerce must create new eligibility requirements for the Broadband Equity, Access, and Deployment (BEAD) Program [4].
States "identified as having AI laws that conflict with federal policy" could lose federal broadband funding.
Translation: Pass AI transparency laws, lose your internet infrastructure money.
3. FTC Preemption
Within 90 days, the FTC Chairman must issue a policy statement explaining when state laws that "require alterations to the truthful outputs of AI models" are preempted by federal law [5].
This targets state laws requiring AI systems to be corrected for bias. The argument: if an AI produces a biased output, that's "truthful" — and states can't require companies to fix it.
Which State Laws Are Targeted?
The executive order focuses on state laws requiring AI accountability:
| State | Law | What It Requires |
|---|---|---|
| Colorado | Colorado AI Act | Bias audits for high-risk AI systems |
| California | Multiple transparency laws | Algorithmic transparency, disclosure requirements |
| Texas | Responsible AI Governance Act | Accountability requirements for AI |
| Utah | AI Policy Act | Disclosure and accountability provisions |
Common targets:
- Bias audit requirements
- Pre-deployment safety testing
- Training data disclosure
- Algorithmic transparency mandates
- Consumer opt-out rights for automated profiling
These are laws designed to prevent AI from discriminating against you. The executive order treats them as obstacles.
Are Privacy Laws Safe?
The executive order explicitly targets "AI-centric" legislation. But there's a question: what about state privacy laws that also affect AI? [6]
Potentially affected:
- State privacy laws with automated decision-making opt-outs
- Biometric privacy laws (like Illinois BIPA)
- Laws requiring disclosure of how AI makes decisions
Likely exempt (for now):
- Child safety protections
- AI compute and data center infrastructure laws
- State government procurement rules for AI
Legal experts say the direct preemptive effect may be limited. But the chilling effect is real: states may hesitate to pass new AI protections knowing the DOJ will sue.
States Are Fighting Back
The executive order isn't going unchallenged.
Governor statements: Governors in California, Colorado, and New York issued statements saying the order "will not stop them from passing, or enforcing, their local AI statutes and regulations" [7].
Attorney General pushback: On December 19, 2025, nearly two dozen state attorneys general filed a letter to the FCC urging it not to issue preemptive AI regulations [8].
Legal questions: Multiple legal analysts have questioned whether the executive order is even constitutional. Executive orders can't override state law on their own — that requires either legislation or successful litigation.
The DOJ can sue. Whether they'll win is another question.
Why This Matters For Privacy
AI systems make decisions about your life every day:
- Hiring: AI screens resumes and rejects candidates
- Housing: AI evaluates rental applications
- Credit: AI determines loan approvals
- Healthcare: AI influences treatment recommendations
- Insurance: AI sets premiums and denies claims
- Law enforcement: AI generates suspect lists and risk scores
State laws requiring bias audits and transparency help ensure these systems don't discriminate based on race, gender, or other protected characteristics.
The executive order treats these protections as "onerous regulations" that harm AI development.
Translation: your right to know why an AI rejected you is less important than corporate convenience.
What Happens Next
90-day deadlines:
- Commerce Department must issue BEAD eligibility requirements
- FTC must issue preemption policy statement
- DOJ must establish AI Litigation Task Force
Likely outcomes:
- DOJ files lawsuits against Colorado and/or California
- States counter-sue challenging executive overreach
- Years of litigation while AI continues operating without oversight
- Chilling effect prevents new state protections from passing
The irony: The order claims to promote "US leadership in AI." But countries like the EU are passing comprehensive AI regulations. The US isn't leading — it's creating a regulatory vacuum.
What You Can Do
If you live in a state with AI protections:
- Contact your governor's office supporting enforcement
- Support organizations challenging the executive order
- Watch for legislative attempts to strengthen state laws
If you live in a state without AI protections:
- Advocate for your state to pass algorithmic accountability laws
- The more states have laws, the harder federal preemption becomes
Everyone:
- Request algorithmic explanations when denied services
- Document cases of apparent AI discrimination
- Support organizations like ACLU, EFF, and Brennan Center fighting for algorithmic rights
The Bottom Line
President Trump signed an executive order creating a federal task force to sue states that require AI systems to be transparent, tested for bias, or accountable for their decisions.
The targets are laws in Colorado, California, Texas, and Utah that give you the right to know how AI makes decisions affecting your life.
Twenty-three state attorneys general are pushing back. Governors say they'll keep enforcing their laws. Legal experts question whether the order is even constitutional.
But the message is clear: the federal government views your right to algorithmic transparency as an obstacle to AI development.
States are your last line of defense. Whether they can hold it remains to be seen.
References
- White House — Ensuring a National Policy Framework for Artificial Intelligence (December 2025)
- NPR — Trump is trying to preempt state AI laws via an executive order. It may not be legal (December 2025)
- Mayer Brown — President Trump Issues Executive Order on AI Framework (December 2025)
- Ropes & Gray — Trump Attempts to Preempt State AI Regulation (December 2025)
- Alston & Bird — Trump Signs Executive Order Aiming to Curb State AI Regulation (December 2025)
- Sidley Austin — Unpacking the December 11, 2025 Executive Order (December 2025)
- Goodwin — Trump's AI Preemption Executive Order Unlikely to Put a Lid on State AI Laws (December 2025)
- Economic Policy Institute — Executive Order to challenge state AI laws (December 2025)