Trump Moves To Centralize AI Policy

On December 11, 2025, President Trump signed a new executive order that could reshape how AI is governed in the U.S. This executive order titled “Ensuring a National Policy Framework for Artificial Intelligence,” aims to limit the ability of individual states to enact their own AI regulations, thereby establishing a unified and “minimally burdensome” approach to AI policy nationwide (up until this point, there has been a patchwork of state-level AI regulations). This executive direction follows a wave of proposed state-level AI bills spanning the gamut of legislative action categories; from data-use and discrimination safeguards to transparency requirements and ethical AI standards.

The intent of the new EO is to promote U.S. national and economic security and dominance through innovation, and it directs the federal government, through DOJ task force, to act against those states with “onerous” AI laws by contesting them in court and reconsidering eligibility for federal funding programs such as BEAD. The EO does not specifically establish a federal framework for AI but does order the White House to submit a legislative recommendation to Congress to implement a federal policy framework for AI that preempts state AI laws.

Potential Downstream Implications

While the new Executive Order doesn’t automatically invalidate current state-level AI legislation, it does send a federal nod towards the centralization of AI policy. IT companies should stay abreast of developing regulations and standards and foster federal compliance expertise. Those that can align existing capabilities with both federal priorities and state operational needs will be well-positioned for success in 2026.

For industry, this EO could pave the way for more streamlined compliance for AI-related tools and solutions. The existing patchwork of state-level AI regulations has proven challenging for companies selling AI-related solutions to SLED agencies, particularly as states like California and Colorado recently enacted stringent requirements related to AI transparency and algorithmic bias. A uniform federal standard could simplify overall compliance, minimize legal risk and reduce the need for state-by-state product customizations.

Many states are also highly dependent on federal funding for technology upgrades, and if states risk losing eligibility programs such as BEAD due to new state-level regulations, they may end up focusing efforts on federally aligned solutions that meet national standards. Eventually, this could increase spending on federal compliance and certification expertise, generating demand for companies that can assist with alignment efforts. We may also see a restructuring of the procurement process, with emphasis on language that aligns well with federal standards and minimizes state-specific regulatory responses.

Some states have expressed concern and opposition to the President’s new AI framework; this could present short-term purchasing uncertainty, making it much more important to ensure your products or solutions are positioned for transparency and adaptability. 

Ultimately, rather than slowing AI adoption, this new federal push for uniformity may accelerate it, changing the conversation from whether state and local governments can use AI to how quickly they can deploy it to solve their modernization and citizen service-delivery efforts. As the federal government continues to emphasize AI-policy consolidation, there is a clear signal that innovation will be rewarded; but it must be supported by transparency, consistency, and trust. In 2026, IT companies that can offer scalable, compliant AI solutions will have a competitive advantage as state and local governments continue their modernization efforts.

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About the Author: Yvonne Maffia is the senior analyst covering state, local and education markets. She applies insights and analysis to purchasing trends to help vendors and partners shorten their sales cycles. Prior to joining TD SYNNEX Public Sector, Yvonne spent 8 years working in state and local government, where she oversaw advisory boards across the State of Florida and served as an analyst to a local politician. Yvonne currently lives in Washington, DC.