New Executive Order Limits State AI Laws

On December 11, 2025, President Trump signed an Executive Order to limit state-level AI laws. Trump claims the purpose of the order is to remove regulatory barriers, encourage AI innovation across all sectors, and establish the US as the global leader in AI. The Executive Order states that state regulations stifle innovation and hinder interstate commerce, specifically calling out the Colorado law that bans algorithmic discrimination. A stated goal in the order is for the Administration and Congress to develop a minimally burdensome national AI standard and avoid a patchwork of state laws. The national framework should protect children, prevent censorship, respect copyrights, and safeguard communities.

Key elements of the Executive Order include:

• Attorney General Pam Bondi is being directed to establish an AI Litigation Task Force to challenge State AI laws inconsistent with the EO.
• Secretary of Commerce Howard Lutnick will publish an evaluation of existing state AI laws that identifies onerous laws that conflict with the EO.
• Lutnick shall issue a policy notice specifying the conditions under which states may be eligible for remaining funding under the Broadband Equity Access and Deployment (BEAD) Program. The notice should communicate that states with onerous AI laws are ineligible for non-deployment funds.

The Executive Order calls for the Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology to prepare a federal AI framework that preempts state laws that conflict with the EO. According to the Order, that framework should not preempt state laws related to:

• Child safety protections
• AI computing and data center infrastructure
• State government procurement and use of AI

Reaction to the AI Executive Order

In response to Trump’s Executive Order, California Governor Gavin Newsom issued the following statement:

“President Trump and Davis Sacks aren’t making policy — they’re running a con. And every day, they push the limits to see how far they can take it. California is working on behalf of Americans by building the strongest innovation economy in the nation while implementing commonsense safeguards and leading the way forward.”

In September 2025, Newsom signed the Transparency in Frontier Artificial Intelligence Act (TFAIA). The law created requirements for transparency, safety, and whistleblower protections. The California law is now in jeopardy, along with other prominent state AI laws in Colorado and Texas. You can learn more about additional state AI laws here.

There were negative reactions to the Executive Order within the Republican Party, with Florida Governor Ron DeSantis and Utah Governor Spencer Cox releasing critical statements.

The Executive Order will almost certainly result in a court battle, with many prominent organizations, such as the ACLU and the Lawyers’ Committee for Civil Rights, promptly speaking out in opposition to the EO. AI developers and organizations that leverage AI tools must continue to comply with all applicable AI laws to minimize risks.

At CompliancePoint, we leverage our cybersecurity, data privacy, and regulatory compliance expertise to provide AI Risk Management Services that allow organizations to mitigate AI risks while still benefiting from its capabilities. We can help your business comply with laws and standards such as the EU AI Act, ISO 42001, and NIST AI RMF. To learn more about our services, reach out to us at connect@compliancepoint.com.