President’s Executive Order Seeks to Block State “AI” Laws”

Last week, President Trump signed an Executive Order that is designed to prevent states from regulating AI.  The goal is to eliminate a “patchwork” of different laws passed by 50 different states.  The Administration believes a uniformity is necessary for AI to grow in the United States.  Also, President Trump does not want to overregulate AI.

The executive order creates a policy to “sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI.”

Specifically, the executive order would:

• Create a Department of Justice Litigation task force to challenge state laws that conflict with the policy goal.

• Review all state laws to see if they conflict with the policy goal.

• Within 90 days, it adopts a policy limiting state eligibility for funding under the Broadband Equity Access and Deployment (BEAD) Program only to States with laws that comport with federal AI policy.  Also, Federal agencies may limit their discretionary grant programs to states that comply with federal policy.

• The FCC shall initiate a proceeding to determine whether to adopt a Federal reporting and disclosure standard for AI models that preempts conflicting State laws.

• The Federal Trade Commission shall outline its policies regarding false and deceptive practices as applied to AI and preempt state laws that are in conflict.

• Create legislative proposals.

Importantly, the Executive Order appears to recognize that some state laws may be consistent with the Administrations goals. The executive order states:

“That framework should also ensure that children are protected, censorship is prevented, copyrights are respected, and communities are safeguarded.  A carefully crafted national framework can ensure that the United States wins the AI race, as we must.”

For his part, FCC Chairman Brendan Carr supported the President’s Executive Order, stating:

“President Trump’s historic Executive Order on artificial intelligence promotes America’s leadership in AI and advances our nation’s economic and national security interests.  It does so by targeting excessive state regulations that would not only hold America back but insert ideological bias into AI models.  President Trump’s decisive action also ensures a policy framework that protects children, prevents online censorship, respects copyrights, and safeguards communities.

“The FCC welcomes President’s Trump’s direction that the agency initiate a proceeding to determine whether to adopt a Federal reporting and disclosure standard for AI models that preempts conflicting State laws.”

New York has been a leader in passing AI oriented legislation.  In 2024, it enacted a new law with AI and political communications.  This year, the Governor signed legislation requiring disclosures on advertisements that included AI generated images and voices.  New York also has enacted new laws dealing with the use of AI generated deep fakes in films.

When signing the executive order, President Trump specifically mentioned New York.  We expect the New York AI Laws will be reviewed by the Administration.  We also have little doubt that the impact of the executive order on New York AI laws will end up in court.  Of course, some New York AI laws may be consistent with the goals outlined in the executive order with respect to protecting children and copyright.  The controversy is just beginning.  NYSBA will be watching this closely.

You can see the Administration’s Executive Order here.