Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupport
Contact Us
Search
Close

White House Drafts Executive Order to Preempt State AI Laws

By Matthew Shapanka & August Gweon on November 20, 2025
Email this postTweet this postLike this postShare this post on LinkedIn
3D render of AI and GPU processors
Igor Omilaev, Unsplash

According to reports published on November 19, the White House has prepared a draft Executive Order to preempt state AI regulations in lieu of a uniform national legislative framework, marking a significant escalation in federal efforts to assert control over AI regulation.  The draft Executive Order, titled “Eliminating State Law Obstruction of National AI Policy” (and marked “Deliberative/Predecisional/Draft”) (“draft EO”), outlines a sweeping, multi-pronged effort to “sustain and enhance America’s global AI dominance through a minimally burdensome, uniform national policy framework for AI.”  

The draft EO directs White House officials and federal agencies to take various steps to preempt or challenge certain state AI regulations deemed unconstitutional or inconsistent with federal law, or to withhold federal funding from states with AI laws deemed inconsistent with the policies described in the draft EO, including:

  • Establishing an AI Litigation Task Force.  The draft EO directs the Attorney General to establish an “AI Litigation Task Force” with the “sole responsibility” of challenging state AI laws that, “in the Attorney General’s judgment,” unconstitutionally regulate interstate commerce, conflict with existing federal regulations, or otherwise violate federal law.
  • Evaluating “Onerous State AI Laws.” The draft EO directs the Commerce Secretary, in consultation with White House officials, to publish an evaluation of state AI laws that conflict with the draft EO or that should be referred to the AI Litigation Task Force.  Echoing President Trump’s July 23 Executive Order on “Preventing Woke AI in the Federal Government,” the draft EO requires this evaluation to identify state AI laws that “require AI models to alter truthful outputs” or require disclosures from AI developers or deployers that would violate First Amendment or other constitutional rights.
  • Funding Restrictions for States with AI Laws.  Mirroring provisions in the proposed state and local AI moratorium that was overwhelmingly rejected by the Senate in July, the draft EO directs the Commerce Secretary to withhold certain Broadband Equity Access and Deployment (“BEAD”) funds from states with “onerous” AI laws identified by the Secretary above. The draft EO also directs federal agencies to assess whether to require states to refrain from enacting or enforcing certain AI laws as a condition for receiving certain discretionary grants.
  • Agency Preemption of State AI Laws.  Consistent with recommendations in President Trump’s July 23 AI Action Plan, the draft EO directs the Federal Communications Commission (FCC) to consider adopting a “Federal reporting and disclosure standard for AI models that preempts conflicting State [AI] laws.”  The draft EO instructs the Federal Trade Commission (FTC), in consultation with the White House Special Advisor for AI and Crypto, to “issue a policy statement on the application of the FTC Act’s prohibition on unfair and deceptive acts or practices under 15 U.S.C. 45 [Section 5 of the FTC Act] to AI models.”  The draft also directs the FTC to specifically “explain the circumstances under which State laws that require alterations to the truthful outputs of AI models” are preempted by Section 5’s prohibition on deceptive acts or practices.
  • Legislative Recommendations for Federal AI Framework.  The draft EO directs the White House Special Advisor for AI and Crypto and the Office of Legislative Affairs to “jointly prepare . . . a legislative recommendation establishing a uniform Federal regulatory framework for AI that preempts state AI laws that conflict with the policy set forth” in the draft EO.

Although the operative provisions of the draft EO do not expressly target any particular state AI laws, the statement of purpose specifically references the Colorado AI Act, which establishes reporting, impact assessment, and transparency requirements for developers and deployers of certain “high-risk AI systems,” as well as California’s recently enacted Transparency in Frontier AI Models Act, which imposes transparency, reporting, and whistleblower requirements for developers of “frontier models” deemed to pose “catastrophic risks” to public safety.  While these laws are noted as motivating factors for the draft EO, agency actions taken pursuant to the draft EO would presumably apply to state laws deemed to conflict with the policies adopted in the draft.

The draft EO follows a series of recent efforts to curb state AI laws and, if ultimately finalized, could reshape the balance of federal and state authority over AI regulation.  On July 1, the Senate, by a 99–1 vote, rejected a proposed amendment to the budget reconciliation bill, the One Big Beautiful Bill Act, that would have imposed a moratorium on state and local AI enforcement.  Later in July, the White House released its AI Action Plan, which called on federal agencies to limit funding to states with “burdensome” AI laws and urged the FCC to evaluate potential preemption under the Communications Act.  And in recent weeks, and with support from the President, House Republicans have renewed efforts for federal legislation to preempt state AI laws, pushing to include an AI preemption provision in the Fiscal Year 2026 National Defense Authorization Act (NDAA). 

While it remains uncertain whether President Trump will ultimately issue the draft EO as prepared or whether the latest legislative efforts to preempt state AI legislation will succeed, the debate over the proper scope of AI regulation—and the role of federal and state governments in adopting and enforcing those regulations—will persist. 

*              *              *

For more updates on developments related to artificial intelligence and technology, see our Inside Global Tech, Global Policy Watch, and Inside Privacy blogs.

Tags: AI
Photo of Matthew Shapanka Matthew Shapanka

Matthew Shapanka is a strategic policy and regulatory attorney who helps technology companies and other businesses navigate complex, high-stakes legislative, regulatory, and enforcement matters at the intersection of law and politics. Drawing on 15+ years of experience across private practice, the U.S. Senate…

Matthew Shapanka is a strategic policy and regulatory attorney who helps technology companies and other businesses navigate complex, high-stakes legislative, regulatory, and enforcement matters at the intersection of law and politics. Drawing on 15+ years of experience across private practice, the U.S. Senate, state government, and political campaigns, Matt develops comprehensive policy strategies that identify regulatory risks and position clients to shape policy outcomes.

Public Policy and Regulatory Strategy

Matt serves as a strategic advisor to Fortune 200 companies on emerging technology policy, including artificial intelligence regulation, connected and autonomous vehicles, semiconductors, IoT, and national security matters. He translates complex legal and technical issues into actionable legislative and regulatory strategy, building the policy frameworks and advocacy infrastructure that enable clients to influence policy. He develops policy collateral for federal, state, and international advocacy, coordinates multi-stakeholder coalitions, and represents clients before Congress, federal agencies, and state legislative and regulatory bodies.

His technology policy experience includes securing unprecedented Presidential intervention in the $118 billion Qualcomm-Broadcom transaction (for which Covington was recognized as The American Lawyer 2019 “Dealmakers of the Year”), advising Fortune 200 companies on Bureau of Industry and Security connected vehicle rules, and counseling major internet platforms on autonomous vehicle policy across dozens of states.

Matt leads Covington’s state public policy practice, managing complex multistate legislative and regulatory advocacy campaigns. His state-level work includes securing a last-minute amendment to California’s 2023 money transmitter legislation on behalf of a fintech client and representing major technology companies on state AI, autonomous vehicle, and political advertising compliance matters across dozens of jurisdictions.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration under Chairwoman Amy Klobuchar (D-MN), where he negotiated the landmark bipartisan Electoral Count Reform Act – legislation that updated presidential election certification procedures for the first time in nearly 140 years. He also oversaw the Committee’s bipartisan January 6th investigation, developing protocols that resulted in unanimous passage of new Capitol security legislation.

Both in Congress and at Covington, Matt has prepared dozens of corporate executives, nonprofit leaders, academics, and presidential nominees for testimony at congressional committee hearings and depositions. He is a skilled legislative drafter and strategist who has composed dozens of bills and amendments introduced in Congress and state legislatures, including many that have been enacted into law.

Election and Political Law Compliance and Enforcement

As a member of Covington’s Chambers-ranked (Band 1) Election and Political Law practice, Matt advises businesses, nonprofits, political committees, candidates, and donors on the full range of federal and state political law compliance matters, including:

Election and campaign finance laws
Lobbying disclosure
Government ethics rules
The SEC Pay-to-Play Rule

He also conducts political law due diligence for M&A transactions, counsels major political funders and donors in compliance and enforcement matters, and represents candidates, ballot measure committees, and donors in election disputes and recounts.

Before law school, Matt served in the administration of former Governor Deval Patrick (D-MA), where he worked on policy, communications, and compliance matters for federal economic recovery funding awarded to the state. He has also staffed federal, state, and local political candidates in Massachusetts and New Hampshire.

Read more about Matthew ShapankaEmail
Show more Show less
Photo of August Gweon August Gweon

August Gweon counsels national and multinational companies on new regulatory frameworks governing artificial intelligence, robotics, and other emerging technologies, digital services, and digital infrastructure. August leverages his AI and technology policy experiences to help clients understand AI industry developments, emerging risks, and policy…

August Gweon counsels national and multinational companies on new regulatory frameworks governing artificial intelligence, robotics, and other emerging technologies, digital services, and digital infrastructure. August leverages his AI and technology policy experiences to help clients understand AI industry developments, emerging risks, and policy and enforcement trends. He regularly advises clients on AI governance, risk management, and compliance under data privacy, consumer protection, safety, procurement, and platform laws.

August’s practice includes providing comprehensive advice on U.S. state and federal AI policies and legislation, including the Colorado AI Act and state laws regulating automated decision-making technologies, AI-generated content, generative AI systems and chatbots, and foundation models. He also assists clients in assessing risks and compliance under federal and state privacy laws like the California Privacy Rights Act, responding to government inquiries and investigations, and engaging in AI public policy advocacy and rulemaking.

Read more about August GweonEmailAugust's Linkedin Profile
Show more Show less
  • Posted in:
    Technology and AI
  • Blog:
    Inside Global Tech
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
  • About LexBlog
  • The Field We Built
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo