On December 11, 2025, President Trump issued an Executive Order (EO) setting forth that it is the Policy of the United States to sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI. The EO specifically targets existing State regulations that are described as onerous and excessive and calls for a carefully crafted national framework to ensure that the United States wins the AI race. In addition, the EO states that the Administration must act with Congress to develop a minimally burdensome national standard, not 50 discordant State ones and the resulting national framework must forbid State laws that conflict with that framework. Finally, the EO states that until such a national standard exists it is imperative that the Administration takes action to check the most onerous and excessive State laws that threaten to stymie innovation.
The EO requires that within 30 days of this Order, the Attorney General shall establish an AI Litigation Task Force whose sole responsibility shall be to challenge State AI laws that are deemed to be inconsistent with the U.S. Policy. In addition, within 90 days of this Order, the Secretary of Commerce in consultation with other relevant federal authorities, will publish an evaluation of existing State AI laws that conflict with the Policy established by the EO as well as laws that should be referred to the AI Litigation Task Force. Also, within 90 days the Secretary of Commerce shall issue a Policy Notice specifying the conditions under which States may be eligible for remaining funding under the BEAD Program. States with onerous AI laws will be ineligible for BEAD non-deployment funds to the maximum amount allowed by Federal law. The EO also requires the preparation of a legislative recommendation establishing a uniform Federal Policy Framework for AI that preempts State AI laws that conflict with that Framework. In addition, the EO directs the FCC to initiate a proceeding to determine whether to adopt a Federal reporting and disclosure standard for AI models that preempts conflicting State laws. FCC Chairman Carr issued a statement endorsing the requirement to initiate such a proceeding.
In regard to BEAD non-deployment funding, in June, 2025, NTIA issued a Policy Notice outlining extensive changes to the BEAD Program (see ICORE Blog dated 6/11/25) as originally defined in the BEAD Notice of Funding Opportunity (NOFO). The NOFO included a list of non-deployment activities eligible for funding including cybersecurity training, remote learning or tele-health services/facilities, implementation of digital equity plans, direct subsidies for broadband services to improve affordability, and many other eligible activities. In the June, 2025 Policy Notice, however, NTIA stated that funding for non-deployment purposes is under review and NTIA will issue updated guidance in the future. To date, NTIA has not issued further guidance regarding non-deployment.
The issue of BEAD non-deployment funding has generated considerable Legislative interest at both the State and Federal level. On December 9, 2025, 160 Bipartisan State Legislators sent a letter to Secretary of Commerce, Howard Lutnick, urging the release of BEAD non-deployment funds as required by the Infrastructure Investment and Jobs Act (IIJA). These legislators put forth the case that non-deployment funds are critical to accomplishing the goals of the BEAD program and absent this funding, BEAD will fail to deliver the full value intended by Congress. On December 18, 2025 the Success for BEAD Act was introduced in the U.S. Senate. The Bill addresses BEAD non-deployment funds and would authorize the States to utilize these funds for projects that support the States’ deployment plans.
Based on the terms and requirements of the EO, there will be a considerable amount of activity in the coming months at the State and Federal level regarding AI regulation and BEAD funding for non-deployment related projects. We will continue to monitor these important issues and will provide updates as more information becomes available.
