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Policy

What is US AI policy?

Published June 1, 2026 · 5 min read

US AI POLICYA tug-of-war over one rope.Washington and the states pull opposite ends.Federalderegulate ·one national ruleStates (CA, CO)stricterAI dutiesBusiness owner: stands at centercomply with state law, watch the feds

Definition

US AI policy is the shifting mix of pro-growth federal executive orders and stricter state laws that, until Congress acts, together govern how companies build and use AI.

At a glance

  • No single federal AI law exists; rules come from presidential executive orders plus a patchwork of state statutes.
  • The federal stance is deregulation-first: it rescinded Biden’s 2023 order and issued a July 2025 “AI Action Plan” for US AI dominance[2][3].
  • Washington is trying to override state laws, but Congress has not passed a preemption law, so state rules still bind you[5].
  • California’s and Colorado’s AI laws are in force today and carry real penalties[4].

How the rules are made

Two sources, often in conflict. Federally, the President sets direction by executive order. To override state rules, a December 2025 order created a DOJ “AI Litigation Task Force,” ordered a catalog of burdensome state laws, and threatened to withhold $42B in broadband funds from states with tough AI rules[1].

What you must comply with now

California’s Transparency in Frontier AI Act (effective Jan 1, 2026) mainly hits the largest model developers, with penalties up to $1M per violation. Colorado’s AI Act targets high-risk AI in decisions like hiring, lending, and housing[4].

Bottom line

Until Congress settles the fight, comply with the state laws that apply to you today and watch federal action closely.

References

  1. Ensuring a National Policy Framework for Artificial Intelligence — The White House. The White House www.whitehouse.gov
  2. Executive Order 14179: Removing Barriers to American Leadership in Artificial Intelligence. Wikipedia en.wikipedia.org
  3. Winning the Race: America's AI Action Plan — The White House. The White House www.whitehouse.gov
  4. New State AI Laws are Effective on January 1, 2026, But a New Executive Order Signals Disruption — King & Spalding LLP. King & Spalding www.kslaw.com
  5. State AI laws under federal scrutiny: Key takeaways from the executive order establishing federal AI policy framework — White & Case LLP. White & Case LLP www.whitecase.com

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