Source: Citizen.org

Citizen.org provides a detailed legal analysis of a leaked draft executive order titled "Eliminating State Law Obstruction of National AI Policy," circulated in November 2025. The analysis highlights that the draft order does not directly preempt state laws due to a lack of congressional authorization but instead directs federal agencies to use existing powers to discourage or challenge state AI regulations. Specifically, Section 3 of the draft instructs the Department of Justice to establish a task force dedicated to seeking judicial invalidation of state AI laws, while Section 5 directs the Commerce Department to declare states with "onerous" AI laws ineligible for certain federal broadband funding.

The report argues that the executive order targets specific state legislations, such as California’s disclosure laws and Colorado’s algorithmic discrimination statutes, viewing them as obstacles to a "minimally burdensome" national framework. The analysis suggests that the administration is attempting to bypass the legislative process by using agency rulemaking and funding conditions to achieve preemption that it cannot legally enact directly. Furthermore, the draft proposes that the Federal Communications Commission (FCC) adopt disclosure standards that would ostensibly preempt conflicting state laws, a move the authors contend may exceed the FCC's statutory authority regarding AI regulation.