President Trump Directs DOJ To Challenge State AI Regulation

December 16, 2025

What's New

President Trump has signed an Executive Order (EO) directing the Attorney General to establish an “AI Litigation Task Force” to challenge state artificial intelligence (AI) laws that “unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful.”

The new EO, Ensuring A National Policy Framework for Artificial Intelligence, establishes a policy to “sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI,” and directs the Secretary of Commerce to: (1) publish an evaluation of existing State AI laws that conflict with this policy; and (2) explore whether the federal government can lawfully withhold certain federal funds from these states.

What It Means

Numerous states—including Texas, Colorado, California, and others— actively regulate the use of artificial intelligence. While some jurisdictions, such as Texas, merely acknowledge that using AI systems to discriminate is actionable under state fair employment laws, California and others require risk assessments and pre-use notices to consumers, among other more extensive requirements. President Trump’s new EO initially focuses on laws that: (1) require AI models to “alter their truthful outputs;” or (2) compel disclosures or reporting that could violate the First Amendment of the U.S. Constitution.

What You Should Do

Like most presidential EOs, there is no immediate impact on private sector employers. CWC members should continue to adhere to any state or local AI laws and regulations unless and until they are either repealed or deemed preempted by federal law.

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