Executive Order 14365: Ensuring a National Policy Framework for Artificial Intelligence

Applies To

Overview

President Trump signed Executive Order 14365 on 11 December 2025, and it was published in the Federal Register on 16 December 2025. It sets a policy of a minimally burdensome national framework for AI and directs federal agencies to act against state AI laws that conflict with it. A draft circulated in November 2025 under the title 'Eliminating State Law Obstruction of National Artificial Intelligence Policy'. Section 3 told the Attorney General to set up an AI Litigation Task Force within 30 days to challenge state AI laws in court. It was announced on 9 January 2026. Section 4 told the Secretary of Commerce to publish, within 90 days, an evaluation of existing state AI laws that conflict with the policy. That evaluation was due by 11 March 2026 and had not been publicly released as of spring 2026. Section 5 ties funding to state AI policy. Commerce, through NTIA, must make states with onerous AI laws ineligible for some non-deployment funds under the BEAD broadband program. Agencies must also consider similar conditions on discretionary grants. Section 6 directs the FCC Chairman to start a proceeding within 90 days after the Commerce evaluation. It will consider a federal AI reporting and disclosure standard that would preempt conflicting state laws. Section 7 directs the FTC to issue a policy statement on how its ban on unfair or deceptive practices applies to AI models. The FTC proposed that statement on 1 July 2026, after the 90-day deadline, with comments due by 31 July 2026. Section 8 asks White House advisers to prepare a legislative proposal for a federal framework that would preempt conflicting state AI laws. The order itself preempts no state law and sets no penalties for companies. State laws stay enforceable until a court or final federal action displaces them.

Key Requirements

• •The Attorney General set up an AI Litigation Task Force to challenge conflicting state AI laws (announced 9 January 2026).
• •Commerce had to publish an evaluation of state AI laws by 11 March 2026; it had not been publicly released as of spring 2026.
• •States with onerous AI laws can lose some non-deployment BEAD broadband funds, and agencies may condition other grants.
• •The FCC must open a proceeding on a federal AI reporting and disclosure standard within 90 days of the Commerce evaluation.
• •The FTC must issue a policy statement on AI under its unfair or deceptive practices ban; it proposed one on 1 July 2026.
• •The order preempts no state law by itself and sets no penalties for companies.

What Your Organization Must Do

• →Keep complying with existing state AI laws, since this order preempts nothing by itself.
• →Map state AI obligations that may conflict with the emerging federal position, and flag them for counsel.
• →Watch for the Commerce evaluation of state AI laws, which was due 11 March 2026 and unreleased as of spring 2026.
• →Track the FTC proposed policy statement issued 1 July 2026 on unfair or deceptive practices and AI models.
• →Brief public sector grant teams on the risk that some non-deployment BEAD broadband funds turn on state AI policy.
• →Monitor AI Litigation Task Force cases and any FCC proceeding on federal AI reporting and disclosure.

Playbook Guidance

Step-by-step implementation guidance for compliance teams.

Frequently Asked Questions

Which state AI laws are most likely to be targeted for federal preemption under EO 14365?

The Commerce evaluation, due by 11 March 2026, is meant to name conflicting state laws. It had not been publicly released as of spring 2026. Broad laws such as Colorado's are the likeliest targets.

What is the deadline for the Commerce Department's evaluation of state AI laws under this Executive Order?

The order required it within 90 days of 11 December 2025, so by 11 March 2026. It had not been publicly released as of spring 2026.

Does EO 14365 impose direct financial penalties on private companies?

No. The order does not establish any independent penalty or fine structure. Enforcement is indirect, relying on federal preemption litigation coordinated by the AI Litigation Task Force and existing agency rulemaking authority such as FTC enforcement.

What will the FTC's required policy statement cover and when is it due?

It covers how the FTC Act's ban on unfair or deceptive practices applies to AI models, including state laws that would force changes to truthful outputs. The FTC proposed it on 1 July 2026 and took comments until 31 July 2026.

Should companies currently complying with state AI laws pause those compliance programs pending federal action?

Not necessarily, but companies should flag state obligations that may conflict with the emerging federal baseline and monitor the Commerce evaluation closely. Pausing compliance efforts prematurely could create legal exposure under state law before any federal preemption is finalized through litigation or rulemaking.

How does the AI Litigation Task Force created by EO 14365 differ from a new federal AI regulatory agency?

The Task Force is not a regulatory agency and does not issue binding rules or licenses. Its sole function is to coordinate federal legal challenges to conflicting state AI regulations using existing agency authority, meaning it operates through litigation rather than direct regulation of private entities.

What does Section 6 of EO 14365 ask the FCC to do?

It directs the FCC Chairman to open a proceeding on whether to adopt a federal AI reporting and disclosure standard that would preempt conflicting state laws. The clock starts when Commerce publishes its evaluation of state AI laws.

How does EO 14365 use federal funding?

It makes states with onerous AI laws ineligible for some non-deployment BEAD broadband funds. It also asks agencies to consider similar conditions on their discretionary grants.