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U.S. AI Policy Expectations in the Trump Administration, GOP Congress, and the States

By August Gweon, Matthew Shapanka, Holly Fechner & Yaron Dori on December 18, 2024
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The results of the 2024 U.S. election are expected to have significant implications for AI legislation and regulation at both the federal and state level. 

Like the first Trump Administration, the second Trump Administration is likely to prioritize AI innovation, R&D, national security uses of AI, and U.S. private sector investment and leadership in AI.  Although recent AI model testing and reporting requirements established by the Biden Administration may be halted or revoked, efforts to promote private-sector innovation and competition with China are expected to continue.  And while antitrust enforcement involving large technology companies may continue in the Trump Administration, more prescriptive AI rulemaking efforts such as those launched by the current leadership of the Federal Trade Commission (“FTC”) are likely to be curtailed substantially.

In the House and Senate, Republican majorities are likely to adopt priorities similar to those of the Trump Administration, with a continued focus on AI-generated deepfakes and prohibitions on the use of AI for government surveillance and content moderation. 

At the state level, legislatures in California, Texas, Colorado, Connecticut, and others likely will advance AI legislation on issues ranging from algorithmic discrimination to digital replicas and generative AI watermarking. 

This post covers the effects of the recent U.S. election on these areas and what to expect as we enter 2025.  (Click here for our summary of the 2024 election implications on AI-related industrial policy and competition with China.)

The White House

As stated in the Republican Party’s 2024 platform and by the president-elect on the campaign trail, the incoming Trump Administration plans to revoke President Biden’s October 2023 Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (“2023 AI EO”).  The incoming administration also is expected to halt ongoing agency rulemakings related to AI, including a Department of Commerce rulemaking to implement the 2023 AI EO’s dual-use foundation model reporting and red-team testing requirements.  President-elect Trump’s intention to re-nominate Russell Vought as Director of the Office of Management and Budget (“OMB”) suggests that a light-touch approach to AI regulation may be taken across all federal agencies.  As OMB Director in the prior Trump Administration, Vought issued a memo directing federal agencies to “avoid regulatory or non-regulatory actions that needlessly hamper AI innovation and growth.”

Recent OMB efforts to implement the 2023 AI EO also are likely to be narrowed or revoked, including the “minimum risk management practices” for federal agencies’ use and procurement of rights- and safety-impacting AI established under two OMB memoranda issued earlier this year.  In contrast to these detailed testing, documentation, and incident reporting requirements, the incoming administration is likely to return to the approach of the first Trump Administration’s Executive Order No. 13960, which set out nine guiding principles for federal agencies when designing, developing, acquiring, or using AI, including transparency and accountability. 

It is unclear how the Trump Administration will act on the over 100 other federal agency actions that have been completed pursuant to the 2023 AI EO.  Some of these initiatives, such as the National AI Research Resource (“NAIRR”) pilot and the U.S. AI Safety Institute, have attracted bipartisan and industry support and could be maintained by the Trump Administration or codified in future legislation like the CREATE AI Act (H.R. 5077, S. 2714), which advanced out of its respective House and Senate committees earlier this year.  Initiatives related to AI innovation, defense, and workforce talent also may continue, potentially under a new executive order or guidance similar to the first Trump Administration’s Executive Order No. 13859, which established an action plan to protect U.S. AI technologies from competitors and foreign adversaries, directed federal agencies to prioritize AI R&D, and called for increased access to federal data and computing resources for AI research.  We previously covered EO 13859 here.

Although other aspects of the incoming administration’s AI policy agenda remain to be seen, the administration can be expected to take a more industry-friendly approach, as signaled by the president-elect’s announcement of venture capitalist David Sacks as White House “AI & Crypto Czar” and head of the Presidential Council of Advisors for Science & Technology.  Other AI policy priorities for the incoming administration could include expanding energy supply to power AI data centers, as the president-elect indicated on the campaign trail and in his announcement of South Dakota Governor Doug Burgum (R) as his nominee for Interior Secretary and as head of the National Energy Council.  Additionally, Vice President-elect JD Vance has expressed support for open-source AI models to address concentration in the AI industry.  Vivek Ramaswamy, co-chair of the yet-to-be-established “Department of Government Efficiency,” has called for the replacement of legacy technology across the federal government, which could entail increased acquisition and deployment of AI tools by federal agencies.

FTC and DOJ Enforcement

In light of the president-elect’s announcement that he will name Commissioner Andrew Ferguson as Chair of the FTC, replacing incumbent Chair Lina Khan, agency efforts to regulate AI through rulemaking under Section 5 of the FTC Act likely will be wound down.  While Commissioner Ferguson has stated that he will “focus antitrust enforcement against Big Tech monopolies, especially those companies engaged in unlawful censorship,” he has also promised to “end the FTC’s attempt to become an AI regulator” and “terminate all initiatives investigating . . . AI ‘bias.’”  Similarly, although the nomination of Gail Slater, a former FTC attorney and policy advisor to Vice President-elect Vance, as Assistant Attorney General for the Department of Justice (“DOJ”) Antitrust Division suggests that scrutiny of “Big Tech” under current-Assistant Attorney General Jonathan Kanter will remain an important enforcement priority, it is unclear whether the DOJ will continue to focus on AI in other enforcement actions.

The 119th Congress

With Republican majorities in both houses of Congress, incoming-Senate Majority Leader John Thune (R-SD) and House Speaker Mike Johnson (R-Louisiana) are likely to focus Congress’s AI policy agenda on the issues described above, particularly on maintaining U.S. advantages over China in AI models and applications critical to national security and defense.  Members of Congress also may pursue AI legislation that enjoyed bipartisan support in the current Congress, including legislation to codify NAIRR and legislation sponsored by Sen. Thune to codify the U.S. AI Safety Institute.  Congress also is expected to continue legislative efforts to address AI-generated digital replicas and nonconsensual online deepfakes, such as the TAKE IT DOWN Act (S.4569), introduced by Sen. Ted Cruz (R-Tex.)—the likely incoming chair of the Senate Commerce Committee—and passed by the Senate on December 3.  Other potential AI issues for the GOP majority include requirements for federal agency uses of AI and energy infrastructure improvements to support AI development.  On November 14, for example, incoming-Chair of the House Energy & Commerce Committee Brett Guthrie (R-KY) signed a letter urging the Secretary of Energy to consider the “critical energy infrastructure needs” of AI systems.

On December 17, the bipartisan House AI Task Force released its final report on principles, recommendations, and policy proposals for congressional policymaking on AI.  The report’s recommendations, including establishing nationwide protections against digital replicas and deepfakes, considering legislation to address safety risks of advanced AI, and establishing a commission to study cross-sector AI regulation and federal preemption, may shed light on the AI policy goals of the 119th Congress. 

State Legislatures

In 2024, states enacted dozens of AI laws related to deepfakes, digital replicas, generative AI, synthetic content labeling, and high-risk AI systems.  State lawmakers can be expected to continue to pursue legislation on these and other AI issues in 2025—a trend that could be accelerated by a slowdown in prescriptive AI regulatory efforts at the federal level. 

In Texas, Missouri, California, and other states, lawmakers already have drafted or pre-filed AI legislation ahead of the 2025 legislative sessions, including AI consumer protection legislation similar to the Colorado AI Act (SB 205) enacted earlier this year.  State lawmakers also are likely to pursue public safety regulations for large AI models in 2025, similar to the Safe & Secure Innovation for Frontier AI Models Act (SB 1047) passed by the California legislature in August.  Following California Governor Gavin Newsom (D)’s veto of SB 1047, supporters of the legislation indicated that they would continue to push for similar guardrails in 2025.

*              *              *

Follow our Global Policy Watch, Inside Global Tech, and Inside Privacy blogs for ongoing updates on key AI and other technology legislative and regulatory developments.

August Gweon

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks…

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks, and policy trends.

August regularly provides advice to clients for complying with federal, state, and global privacy and competition frameworks and AI regulations. He also assists clients in investigating compliance issues, preparing for federal and state privacy regulations like the California Privacy Rights Act, responding to government inquiries and investigations, and engaging in public policy discussions and rulemaking processes.

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Matthew Shapanka

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes…

Matthew Shapanka draws on more than 15 years of experience – including on Capitol Hill, at Covington, and in state government – to advise and counsel clients across a range of industries on significant legislative, regulatory, and enforcement matters. He develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies, many with significant legal and political opportunities and risks.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters within the Committee’s jurisdiction, including federal election law and campaign finance, and oversight of the Federal Election Commission, legislative branch agencies, security and maintenance of the U.S. Capitol Complex, and Senate rules and regulations.

Most significantly, Matt led the Rules Committee staff work on the Electoral Count Reform and Presidential Transition Improvement Act – landmark bipartisan legislation to update the antiquated process of certifying and counting electoral votes in presidential elections that President Biden signed into law in 2022.

As Chief Counsel, Matt was a lead attorney on the joint bipartisan investigation (with the Homeland Security and Governmental Affairs Committee) into the security planning and response to the January 6, 2021 attack on the Capitol. In that role, he oversaw the collection review of documents, led interviews and depositions of key government officials, advised the Chairwoman and Committee members on two high-profile joint hearings, and drafted substantial portions of the Committees’ staff report on the attack. He also led oversight of the Capitol Police, Architect of the Capitol, Senate Sergeant at Arms, and executive branch agencies involved in implementing the Committees’ recommendations, including additional legislation and hearings.

Both in Congress and at the firm, Matt has prepared many corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at legislative, oversight, or nomination hearings before congressional committees, as well as witnesses appearing at congressional depositions and transcribed interviews. He is also an experienced legislative drafter who has composed dozens of bills introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas.

In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, as well as the election and political laws of states and municipalities across the country.

Before law school, Matt worked as a research analyst in the Massachusetts Recovery & Reinvestment Office, where he worked on all aspects of state-level policy, communications, and compliance for federal stimulus funding awarded to Massachusetts under the American Recovery & Reinvestment Act of 2009. He has also worked for federal, state, and local political candidates in Massachusetts and New Hampshire.

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Photo of Holly Fechner Holly Fechner

Holly Fechner has two decades of legal, legislative and public policy experience in the public and private sectors.  Ms. Fechner has a broad-based practice handling legislative and regulatory matters for clients in areas including healthcare, tax, intellectual property, education, and employee benefits.  Drawing…

Holly Fechner has two decades of legal, legislative and public policy experience in the public and private sectors.  Ms. Fechner has a broad-based practice handling legislative and regulatory matters for clients in areas including healthcare, tax, intellectual property, education, and employee benefits.  Drawing on her extensive congressional and private sector experience, Ms. Fechner offers clients comprehensive advocacy services, including strategic advice, substantive legal and regulatory expertise, and policy and message development.  She has a proven track record in assisting clients fulfill their government affairs goals.

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Photo of Yaron Dori Yaron Dori

Yaron Dori is co-chair of the Communications & Media Practice Group. He practices primarily in the area of telecommunications, privacy and consumer protection law, with an emphasis on strategic planning, policy development, commercial transactions, investigations and enforcement, and overall regulatory compliance. Mr. Dori…

Yaron Dori is co-chair of the Communications & Media Practice Group. He practices primarily in the area of telecommunications, privacy and consumer protection law, with an emphasis on strategic planning, policy development, commercial transactions, investigations and enforcement, and overall regulatory compliance. Mr. Dori advises clients on, among other things, federal and state wiretap and electronic storage provisions, including the Electronic Communications Privacy Act (ECPA); regulations affecting new technologies such as online behavioral advertising; and the application of federal and state telemarketing, commercial fax, and other consumer protection laws to voice, text and video transmissions sent to wireless devices and alternative distribution platforms. Mr. Dori also has experience advising companies on state medical marketing privacy provisions, and, more broadly, on state attorney general investigations into a range of consumer protection issues.

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  • Posted in:
    International
  • Blog:
    Global Policy Watch
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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