DOJ Task Force authorized to challenge state AI laws under EO 14365

The DOJ Task Force established January 9, 2026 — under Trump's Executive Order 14365 — has been authorized to evaluate state-level AI laws for federal preemption challenges. To date the task force has not initiated litigation, but its existence is shaping state-level legislative behavior: several pending state AI bills have been pulled or softened in anticipation of federal challenge.

EO 14365 directs the task force to identify state laws that conflict with the administration's "minimally burdensome national policy framework for AI." California, New York, and Washington state have the most extensive existing state-level AI statutes; all three have at least one pending bill that has been delayed or amended specifically in response to the task force's creation.

The strategic posture is clear: federal regulation (limited, under the May 14 signal that Trump may now accept some) is acceptable; state regulation is not. This is the opposite of the EU's approach. Cross-border AI products will face increasingly different rule-sets depending on jurisdiction — a compliance burden that favors well-resourced incumbents.

Paul Hastings — EO challenging state laws → · Squire Patton Boggs — EO insights →