Does Executive Order on AI State Law Preemption require Transparency & Disclosure?

United States • enforcing

Yes — 1 provision

Requirements at a glance

This regulation imposes 3 specific requirements for Transparency & Disclosure across 1 provision:

Commerce Evaluation of State AI Laws #

Obligation:
Transparency
enforcing
Effective:
Dec 11, 2025
Risk tier:
all
Scope:
providers, deployers
cross-domainhigh-impact
Directs the Secretary of Commerce to evaluate existing state AI laws within 90 days and identify those that conflict with federal objectives. The evaluation includes a BEAD Program policy notice making states with conflicting AI laws ineligible for broadband funding. Also directs FTC to issue a policy statement on how the FTC Act preempts state laws mandating alterations to truthful AI outputs. No direct obligations for AI developers — but the evaluation results will shape which state laws survive federal challenge.

Requirements

RequirementDetails
State law evaluationCommerce must evaluate state AI statutes within 90 days and identify "onerous laws that conflict" with federal objectives
BEAD funding restrictionCommerce to issue policy notice making states with conflicting AI laws ineligible for broadband infrastructure funds
FTC preemption statementFTC Chair to issue policy statement within 90 days on FTC Act preemption of state laws requiring AI output alterations

Penalties

ViolationFine
N/ANo penalties on AI companies. States may lose federal funding eligibility for non-aligned AI regulations.
View full regulation View obligation Obligation matrix