White House issues executive order to establish a federal AI policy and preempt state laws

Key actions

The EO aims to establish a uniform federal policy that promotes U.S. leadership in AI, while evaluating and preempting state laws to the contrary. The EO establishes as U.S. policy a framework that aims to ensure children are protected, censorship is prevented, copyrights are protected, and communities are safeguarded with respect to AI. Key actions include:

• Establish AI Litigation Task Force: The Attorney General shall create a Task Force to challenge state AI laws and policies that conflict with federal objectives, are preempted by federal law, or are otherwise unlawful in the Attorney General’s judgment.
• Evaluate State AI Laws: The Department of Commerce (Commerce) shall publish an evaluation of state AI laws that may conflict with federal objectives, including laws that require AI systems to alter truthful outputs or compel reporting in ways that may violate the First Amendment or other provisions of the Constitution. Problematic laws may be referred to the Task Force.
• Condition Federal Funding: Commerce shall issue a Policy Notice specifying Broadband Equity Access and Deployment (BEAD) Program funding conditions. States with “onerous” AI laws may be ineligible for non-deployment funds. Federal agencies shall also assess whether other discretionary grants should be conditioned on states refraining from enacting AI laws that conflict with federal policy or agreeing not to enforce existing ones during the funding period.
• FCC Federal Reporting and Disclosure Standard: The Federal Communications Commission (FCC) shall initiate a proceeding to determine whether to adopt a federal reporting and disclosure standard for AI that would preempt conflicting state requirements.
• FTC Guidance on Preemption: The Federal Trade Commission (FTC) shall issue guidance on the application of the FTC Act’s prohibition on unfair and deceptive practices to AI models, and the circumstances under which state laws that require AI systems to alter truthful outputs are preempted under the FTC Act’s prohibition on unfair or deceptive acts.
• Develop Legislative Recommendations: The Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology shall prepare recommendations for legislation establishing a uniform federal AI framework.
• Preserve State Laws on Certain Topics: The recommended legislation will preempt state laws except those relating to child safety, AI compute/data center infrastructure, state government procurement and use of AI, and other topics to be determined.

Key deadlines

• January 10, 2026
  • Attorney General to establish the AI Litigation Task Force.
• March 10, 2026
  • Commerce to publish an evaluation of state AI laws and issue the BEAD Policy Notice.
  • FCC to initiate a proceeding to determine whether to adopt a federal AI reporting and disclosure standard that pre-empts conflicting state laws.
  • FTC to issue guidance on deceptive AI models.

Next steps for engagement

Stakeholders involved in the development or use of AI systems may wish to engage with the initiatives directed under the EO in the following ways.

• Engage in FCC Proceedings: Submit formal comments on the FCC’s proposed federal reporting and disclosure standard. Highlight operational feasibility, timelines, alignment with industry standards, and impacts on AI-enabled services.
• Support Commerce Review: Track Commerce’s evaluation of state AI measures and consider providing input during any public comment period to flag laws that are overly burdensome, conflict with federal objectives, or impede innovation.
• Monitor Task Force Actions: Analyze potential Task Force legal challenges that may impact compliance obligations across jurisdictions.
• Track Funding Implications: Monitor BEAD and other discretionary grant conditions tied to state AI policies, and analyze impacts on funding opportunities.
• Prepare for Federal Legislation: Engage with legislators and other authorities to support workable legislative recommendations and prepare for compliance.
• Evaluate FTC Guidance: Evaluate how forthcoming FTC guidance may impact AI model design, disclosures, and state law compliance.

For questions about the EO or for guidance on assessing its impact on your business and planning next steps, please contact your Hogan Lovells team.

Authored by Mark Brennan, Katy Milner, Scott Loughlin, Melissa Levine, and Jaclyn Rosen.