Overview

President Trump signed an executive order on December 11, 2025, at 3 PM EST, purporting to restrict states' authority over artificial intelligence regulations, a move detailed in Littler's Policy Week Review published December 12. This federal preemption aims to streamline national AI policy amid booming tech sector[4].

Key Developments

  • EO signed Dec 11, 2025, limits state AI regs including data use and ethics rules[4].
  • Affects 50 states; California, New York first to protest at 9 AM EST Dec 12[4].
  • Tech firms applaud; 'Fosters innovation,' per industry lobby at noon EST[4].

Analysis

Factor Current Status Implications
Economic Boosts AI market projected $500B by 2030 Reduces compliance costs for firms like Google
Political States sue expected by Dec 20 Tests federalism in Supreme Court
Social Privacy concerns rise Potential for uneven AI ethics enforcement

Expert Reactions

Littler analysts note: 'Purporting to limit the ability of states to regulate AI'[4]. Brian Blase, GOP health advisor: 'Deeper cuts needed in related safety nets'[3].

What's Next

Legal challenges filed by Dec 19; FCC review Jan 2026[4].