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April 2025 AI Developments Under the Trump Administration

By Nooree Lee, Robert Huffman, Ryan Burnette & August Gweon on May 14, 2025
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This is part of an ongoing series of Covington blogs on the AI policies, executive orders, and other actions of the Trump Administration.  This blog describes AI actions taken by the Trump Administration in April 2025, and prior articles in this series are available here.

White House OMB Issues AI Use & Procurement Requirements for Federal Agencies

On April 3, the White House Office of Management & Budget (“OMB”) issued two memoranda on the use and procurement of AI by federal agencies: Memorandum M-25-21 on Accelerating Federal Use of AI through Innovation, Governance, and Public Trust (“OMB AI Use Memo“) and Memorandum M-25-22 on Driving Efficient Acquisition of Artificial Intelligence in Government (“OMB AI Procurement Memo”).  The two memos partially implement President Trump’s January 23 Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence,” which, among other things, directs OMB to revise the Biden OMB AI Memos to align with the AI EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance.”  The OMB AI Use Memo outlines agency governance and risk management requirements for the use of AI, including AI use case inventories and generative AI policies, and establishes “minimum risk management practices” for “high-impact AI use cases.”  The OMB AI Procurement Memo establishes requirements for agency AI procurement, including preferences for AI “developed and produced in the United States” and contract terms to protect government data and prevent vendor lock-in.  According to the White House’s fact sheet, the OMB Memos, which rescind and replace AI use and procurement memos issued under President Biden’s Executive Order 14110, shift U.S. AI policy to a “forward-leaning, pro-innovation, and pro-competition mindset” that will make agencies “more agile, cost-effective, and efficient.”

Department of Energy Announces Federal Sites for AI Data Center Construction

On April 3, the Department of Energy (“DOE”) issued a Request for Information (“RFI”) on AI Infrastructure on federal lands owned or managed by DOE.  The RFI seeks comment from “entities with experience in the development, operation, and management of AI infrastructure,” along with other stakeholders, on a range of topics, including potential data center designs, technologies, and operational models, potential power needs and timelines for data centers, and related financial or contractual considerations.  As part of the RFI, DOE announced 16 potential DOE sites for “rapid [AI] data center construction,” with the goal of initiating data center construction by the end of 2025 and commencing data center operation by the end of 2027 through public-private partnerships.  The comment period for the RFI closed on May 7, 2025.

President Trump Issues Executive Order on Coal-Powered AI Infrastructure

On April 8, President Trump issued Executive Order 14261, titled “Reinvigorating America’s Beautiful Clean Coal Industry,” directing the Departments of Agriculture, Energy, and the Interior to identify coal resources and reserves on Federal lands for mining by public or private actors, prioritize and expedite leases for coal mining on Federal lands, and rescind regulations that discourage investments in coal production, among other things.  The Executive Order also directs the Departments of Commerce, Energy, and the Interior to identify regions with suitable coal-powered infrastructure for AI data centers, assess the potential for expanding coal-powered infrastructure to meet AI data center electricity needs, and submit a report of findings and proposals to the White House National Energy Dominance Council, Assistant to the President for Science & Technology, and Special Advisor for AI and Crypto by June 7, 2025.

House CCP Committee Releases Report on DeepSeek Concerns

On April 16, the House Select Committee on the Chinese Communist Party released its report on DeepSeek and its AI platform, titled DeepSeek Unmasked: Exposing the CCP’s Latest Tool for Spying, Stealing, and Subverting U.S. Export Control Restrictions.  Stating that DeepSeek “represents a profound threat to our nation’s security,” the report found that DeepSeek sends U.S. data to the Chinese government and manipulates chatbot outputs to “align with the CCP’s ideological and political objectives.”  The report also found that it was “highly likely” that DeepSeek used model distillation techniques to extract reasoning outputs and copy leading U.S. AI model capabilities in order to expedite development.  The report further found that DeepSeek violated U.S. semiconductor export controls.  The report called on the U.S. to expand export controls and improve enforcement, in addition to preparing for “strategic surprise” arising from rapid advancements in Chinese AI.  Ultimately, the report may help to accelerate possible U.S. Government bans on DeepSeek along the lines of the Kansas ban discussed below.

GAO Issues Report on Generative AI Impacts

On April 22, the Government Accountability Office (“GAO”) issued a report on “Generative AI’s Environmental and Human Effects.”  Noting “uncertain but substantial” energy consumption, carbon emissions, and water usage resulting from generative AI training and use, the report stated that lack of available information and unpredictable technological advancements posed challenges in measuring generative AI’s environmental effects.  The report also identified five risks and challenges of generative AI that may result in “negative human effects on society, culture, and people”: lack of accountability, unsafe systems, lack of data privacy, unintentional bias, and cybersecurity concerns.  The report highlighted policy options for policymakers to consider to address these risks, including maintaining the status quo, encouraging the use of AI frameworks like NIST’s AI Risk Management Framework, sharing best practices, and establishing AI standards.

White House Issues Request for Comment on 2025 National AI R&D Strategic Plan

On April 24, the National Science Foundation and OSTP issued an RFI on the “development of a 2025 National AI R&D Strategic Plan” (the “Plan”) that would rewrite the previous administration’s 2023 version of the Plan, with the goal of “maintain[ing] the United States’ dominance in AI while focusing on the Federal government’s unique role in AI R&D over the next 3 to 5 years.”  According to the RFI, the Plan will focus on areas that “need prioritization by government because they serve national interests but may not provide immediate commercial returns” along with “novel mechanisms for research partnerships with industry and/or academia.”  The RFI lists 12 examples of potential federal AI R&D priorities for the Plan, including “fundamental advances in AI algorithms,” “next-generation AI hardware and architectures beyond deep learning,” “AI standards, security, and reliability,” and “AI systems and education supporting American workers and improving workforce productivity.”  Public input in response to the RFI is due on May 29, 2025.

Kansas Enacts Ban on Government Use of DeepSeek AI Models

On April 8, Kansas Governor Laura Kelly (D) signed HB 2313 into law.  The law prohibits the use of state agency-issued devices by state employees to access AI “platforms of concern,” and requires state agencies that use AI platforms of concern to deactivate and delete their accounts.  The law defines AI “platforms of concern” to include AI models owned or controlled by DeepSeek or any AI model directly or indirectly controlled by China, Cuba, Iran, North Korea, Russia, or Venezuela.  With the enactment of HB 2313, Kansas joins at least 15 other states that have issued DeepSeek government use bans through legislation or executive actions, including bans in Alabama and Oklahoma issued in late-March. 

Tags: AI
Photo of Nooree Lee Nooree Lee

Nooree Lee represents government contractors in all aspects of the procurement process and focuses his practice on the regulatory aspects of M&A activity, procurements involving emerging technologies, and international contracting matters.

Nooree advises government contractors and financial investors regarding the regulatory aspects of…

Nooree Lee represents government contractors in all aspects of the procurement process and focuses his practice on the regulatory aspects of M&A activity, procurements involving emerging technologies, and international contracting matters.

Nooree advises government contractors and financial investors regarding the regulatory aspects of corporate transactions and restructurings. His experience includes preparing businesses for sale, negotiating deal documents, coordinating large-scale diligence processes, and navigating pre- and post-closing regulatory approvals and integration. He has advised on 35+ M&A deals involving government contractors totaling over $30 billion in combined value. This includes Veritas Capital’s acquisition of Cubic Corp. for $2.8 billion; the acquisition of Perspecta Inc. by Veritas Capital portfolio company Peraton for $7.1 billion; and Cameco Corporation’s strategic partnership with Brookfield Renewable Partners to acquire Westinghouse Electric Company for $7.8+ billion.

Nooree also counsels clients focused on delivering emerging technologies to public sector customers. Over the past several years, his practice has expanded to include advising on the intersection of government procurement and artificial intelligence. Nooree counsels clients on the negotiation of AI-focused procurement and non-procurement agreements with the U.S. government and the rollout of federal and state-level regulations impacting the procurement and deployment of AI solutions on behalf of government agencies.

Nooree also counsels clients navigating the Foreign Military Sales (FMS) program and Foreign Military Financing (FMF) arrangements. Nooree has advised both U.S. and ex-U.S. companies in connection with defense sales to numerous foreign defense ministries, including those of Australia, Israel, Singapore, South Korea, and Taiwan.

Nooree maintains an active pro bono practice focusing on appeals of denied industrial security clearance applications and public housing and housing discrimination matters. In addition to his work within the firm, Nooree is an active member of the American Bar Association’s Section of Public Contract Law and has served on the Section Council and the Section’s Diversity Committee. He also served as the firm’s Fellow for the Leadership Council on Legal Diversity program in 2023.

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Photo of Robert Huffman Robert Huffman

Bob Huffman counsels government contractors on emerging technology issues, including artificial intelligence (AI), cybersecurity, and software supply chain security, that are currently affecting federal and state procurement. His areas of expertise include the Department of Defense (DOD) and other agency acquisition regulations governing…

Bob Huffman counsels government contractors on emerging technology issues, including artificial intelligence (AI), cybersecurity, and software supply chain security, that are currently affecting federal and state procurement. His areas of expertise include the Department of Defense (DOD) and other agency acquisition regulations governing information security and the reporting of cyber incidents, the Cybersecurity Maturity Model Certification (CMMC) program, the requirements for secure software development self-attestations and bills of materials (SBOMs) emanating from the May 2021 Executive Order on Cybersecurity, and the various requirements for responsible AI procurement, safety, and testing currently being implemented under the October 2023 AI Executive Order. 

Bob also represents contractors in False Claims Act (FCA) litigation and investigations involving cybersecurity and other technology compliance issues, as well more traditional government contracting costs, quality, and regulatory compliance issues. These investigations include significant parallel civil/criminal proceedings growing out of the Department of Justice’s Cyber Fraud Initiative. They also include investigations resulting from False Claims Act qui tam lawsuits and other enforcement proceedings. Bob has represented clients in over a dozen FCA qui tam suits.

Bob also regularly counsels clients on government contracting supply chain compliance issues, including those arising under the Buy American Act/Trade Agreements Act and Section 889 of the FY2019 National Defense Authorization Act. In addition, Bob advises government contractors on rules relating to IP, including government patent rights, technical data rights, rights in computer software, and the rules applicable to IP in the acquisition of commercial products, services, and software. He focuses this aspect of his practice on the overlap of these traditional government contracts IP rules with the IP issues associated with the acquisition of AI services and the data needed to train the large learning models on which those services are based. 

Bob is ranked by Chambers USA for his work in government contracts and he writes extensively in the areas of procurement-related AI, cybersecurity, software security, and supply chain regulation. He also teaches a course at Georgetown Law School that focuses on the technology, supply chain, and national security issues associated with energy and climate change.

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Photo of Ryan Burnette Ryan Burnette

Ryan Burnette is a government contracts and technology-focused lawyer that advises on federal contracting compliance requirements and on government and internal investigations that stem from these obligations. Ryan has particular experience with defense and intelligence contracting, as well as with cybersecurity, supply chain…

Ryan Burnette is a government contracts and technology-focused lawyer that advises on federal contracting compliance requirements and on government and internal investigations that stem from these obligations. Ryan has particular experience with defense and intelligence contracting, as well as with cybersecurity, supply chain, artificial intelligence, and software development requirements.

Ryan also advises on Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) compliance, public policy matters, agency disputes, and government cost accounting, drawing on his prior experience in providing overall direction for the federal contracting system to offer insight on the practical implications of regulations. He has assisted industry clients with the resolution of complex civil and criminal investigations by the Department of Justice, and he regularly speaks and writes on government contracts, cybersecurity, national security, and emerging technology topics.

Ryan is especially experienced with:

Government cybersecurity standards, including the Federal Risk and Authorization Management Program (FedRAMP); DFARS 252.204-7012, DFARS 252.204-7020, and other agency cybersecurity requirements; National Institute of Standards and Technology (NIST) publications, such as NIST SP 800-171; and the Cybersecurity Maturity Model Certification (CMMC) program.
Software and artificial intelligence (AI) requirements, including federal secure software development frameworks and software security attestations; software bill of materials requirements; and current and forthcoming AI data disclosure, validation, and configuration requirements, including unique requirements that are applicable to the use of large language models (LLMs) and dual use foundation models.
Supply chain requirements, including Section 889 of the FY19 National Defense Authorization Act; restrictions on covered semiconductors and printed circuit boards; Information and Communications Technology and Services (ICTS) restrictions; and federal exclusionary authorities, such as matters relating to the Federal Acquisition Security Council (FASC).
Information handling, marking, and dissemination requirements, including those relating to Covered Defense Information (CDI) and Controlled Unclassified Information (CUI).
Federal Cost Accounting Standards and FAR Part 31 allocation and reimbursement requirements.

Prior to joining Covington, Ryan served in the Office of Federal Procurement Policy in the Executive Office of the President, where he focused on the development and implementation of government-wide contracting regulations and administrative actions affecting more than $400 billion dollars’ worth of goods and services each year.  While in government, Ryan helped develop several contracting-related Executive Orders, and worked with White House and agency officials on regulatory and policy matters affecting contractor disclosure and agency responsibility determinations, labor and employment issues, IT contracting, commercial item acquisitions, performance contracting, schedule contracting and interagency acquisitions, competition requirements, and suspension and debarment, among others.  Additionally, Ryan was selected to serve on a core team that led reform of security processes affecting federal background investigations for cleared federal employees and contractors in the wake of significant issues affecting the program.  These efforts resulted in the establishment of a semi-autonomous U.S. Government agency to conduct and manage background investigations.

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Photo of August Gweon August Gweon

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks…

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks, and policy trends.

August regularly provides advice to clients on privacy and competition frameworks and AI regulations, with an increasing focus on U.S. state AI legislative developments and trends related to synthetic content, automated decision-making, and generative AI. He also assists clients in assessing federal and state privacy regulations like the California Privacy Rights Act, responding to government inquiries and investigations, and engaging in public policy discussions and rulemaking processes.

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  • Posted in:
    Administrative, Government
  • Blog:
    Inside Government Contracts
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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