New Executive Order to Establish a National AI Policy Framework

The White House has issued an executive order that establishes a national policy framework for artificial intelligence (“AI”). The order, titled “Ensuring a National Policy Framework for Artificial Intelligence” (the “Order”), was signed on December 11, 2025. The Order prioritizes a “minimally burdensome” federal approach that is intended to promote and maintain U.S. AI leadership. The Order also seeks to limit state-level AI regulation, and explicitly targets state measures that purportedly compel “ideological bias”, impose burdens on interstate commerce, or are otherwise determined to be unlawful. The key directives from the Order are:

• Within 30 days of the Order, the Attorney General is tasked with establishing an AI Litigation Task Force that will challenge state AI laws that are inconsistent with the “minimally burdensome” national policy framework established by the Order. Specific litigation vectors mentioned in the Order include targeting laws that impermissibly regulate interstate commerce, are federally preempted, or that are deemed “otherwise unlawful in the Attorney General’s judgment…”

• Within 90 days of the Order, the Secretary of Commerce is directed to publish an evaluation of existing state AI laws that conflict with the stated policy in the Order. This evaluation will be particularly focused on state laws that require AI models to alter their “truthful outputs”, or that mandate certain disclosures from AI developers or deployers. Further, the Secretary of Commerce is also directed to implement potential restrictions on funding to states under various federal programs if a state is identified as having such conflicting laws. 

• Within 90 days after the publication of the evaluation by the Secretary of Commerce, the Chairman of the Federal Communications Commission (“FCC”) is directed to initiate a proceeding to determine whether to adopt a federal reporting and disclosure standard for AI models that preempts conflicting state laws.

• Within 90 days of the Order, the Chairman of the Federal Trade Commission (“FTC”) must issue a policy statement on the application of the FTC Act’s prohibition on unfair and deceptive trade practices to AI models. This statement must specifically address the circumstances under which state laws that require alterations to “truthful outputs” of AI models are preempted by the FTC Act’s prohibition on engaging in deceptive acts or practices affecting commerce. 

• Certain advisors to the President are tasked with preparing legislative recommendations to establish a uniform federal policy framework for AI that will preempt state AI laws that conflict with the policy priorities of the Order. 

Our Guidance
For now, parties subject to state level AI regimes (“Impacted Parties”) should continue to treat those regimes as operative and binding unless and until (1) concrete federal action has been taken in furtherance of the Order; (2) court interventions occur; or (3) contrary federal legislation is passed. While the immediate legal effect of the Order on Impacted Parties is limited, Impacted Parties must continue to diligently monitor the implementation of the Order, related litigation, and legislation, to best position themselves to react to major potential changes in their obligations related to AI. With Katten’s interdisciplinary technical and legal expertise, we assist clients in navigating the existing and contemplated regulatory labyrinth.