White House Pushes One AI Rule to End State Law Madness
Published Date: 12/16/2025
Presidential Document
Summary
The President wants the U.S. to lead the world in AI by creating one clear set of rules for the whole country, instead of 50 different state laws that confuse companies and slow innovation. This new national policy will protect kids, respect copyrights, and keep communities safe while helping American AI businesses grow fast and strong. The government is moving quickly to make this happen and keep the U.S. ahead in the AI race.
Analyzed Economic Effects
7 provisions identified: 5 benefits, 2 costs, 0 mixed.
States with Onerous AI Laws May Lose BEAD Funds
Within 90 days of December 11, 2025, the Department of Commerce must issue a Policy Notice saying States identified with onerous AI laws may be ineligible for non-deployment funds under the Broadband Equity Access and Deployment (BEAD) Program. The order links State AI law status to BEAD funding eligibility and warns a fragmented State AI landscape could undermine BEAD deployments.
Recommendation to Create Uniform Federal AI Law
The Administration will prepare a legislative recommendation to establish a uniform Federal AI policy framework that preempts conflicting State AI laws, while excluding proposals to preempt otherwise lawful State laws on child safety protections, most AI compute and data center infrastructure rules (except general permitting reforms), and State government procurement and use of AI.
Attorney General Task Force to Sue States
Within 30 days of December 11, 2025, the Attorney General must create an AI Litigation Task Force to challenge State AI laws that conflict with the national policy, including on Commerce Clause or preemption grounds. This action is aimed at blocking State AI laws the federal government deems unlawful.
Commerce Will List 'Onerous' State AI Laws
Within 90 days of December 11, 2025, the Secretary of Commerce must publish an evaluation identifying State AI laws that conflict with the national policy, including laws that require AI models to alter truthful outputs or that may force disclosures violating the Constitution. The evaluation may also identify State laws that promote AI innovation.
Federal Grants May Be Conditioned on State AI Laws
Federal agencies must review discretionary grant programs and may condition awards on States not enacting conflicting AI laws, or on States agreeing not to enforce such laws during the grant performance period. This applies to grants assessed in consultation with the Administration's AI advisor.
FCC to Consider Federal AI Reporting Standard
Within 90 days after the Commerce identification in section 4, the FCC Chairman must initiate a proceeding to decide whether to adopt a Federal reporting and disclosure standard for AI models that would preempt conflicting State laws. This could establish uniform federal AI disclosure rules.
FTC to Preempt State Laws Forcing False AI Outputs
Within 90 days of December 11, 2025, the FTC Chairman must issue a policy statement explaining when the FTC Act's ban on unfair or deceptive acts (15 U.S.C. 45) preempts State laws that require AI models to alter truthful outputs. The statement must describe circumstances where such State laws are preempted as deceptive.
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