Ensuring National AI Policy Framework Executive Order 14365, December 2025

On December 11, 2025, President Donald Trump signed Executive Order 14365, titled "Ensuring a National Policy Framework for Artificial Intelligence," published in the Federal Register on December 16, 2025 (90 Fed. Reg. 58499). The EO is a final, operative directive effective upon signing. It builds on EO 14179 of January 23, 2025 ("Removing Barriers to American Leadership in Artificial Intelligence") and directs federal agencies to assert primacy over state AI regulation through spending conditions and agency review mechanisms.

Section 4 of EO 14365 directs the Assistant to the President for Science and Technology (APST), in consultation with the Special Advisor for AI and Crypto, to evaluate existing state AI laws and identify those that impose restrictions the administration deems onerous. Section 5(a) conditions eligibility for funding under the Broadband Equity, Access, and Deployment (BEAD) program (47 U.S.C. §§ 1702(e)–(f)) on states not maintaining such laws. A separate provision addresses state laws that would compel AI developers to engage in conduct the federal government characterizes as deceptive, directing agencies to assess whether discretionary grant programs should similarly exclude states with such requirements.

For AI developers and deployers — including those building AI systems for DeFi protocols, crypto compliance tools, and automated trading infrastructure — EO 14365 signals that federal executive authority, not state legislatures, will set the primary rules for AI deployment in the United States. States that have enacted or plan to enact AI-specific disclosure, liability, or registration requirements may find those laws targeted in the Section 4 review. States with such laws on the books also face potential loss of BEAD program broadband infrastructure funding, which can reach hundreds of millions of dollars per state.

No federal statute yet codifies the EO's preemption approach; the order operates through executive branch spending conditions and agency review, not through direct statutory preemption of state law. Which specific state laws will be designated "onerous" under Section 4, and what process states may use to contest such a designation, remain open questions as of March 16, 2026. The order's interaction with state AI laws already in force — including those in Colorado, California, and Texas — and with pending state legislation across dozens of jurisdictions is an active area of legal and legislative development.

Source: Executive Order 14365 of December 11, 2025, "Ensuring a National Policy Framework for Artificial Intelligence," 90 Fed. Reg. 58499 (December 16, 2025), https://www.federalregister.gov/documents/2025/12/16/2025-23092/ensuring-a-national-policy-framework-for-artificial-intelligence, confirmed March 16, 2026.

The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.