Trump AI Order Sets Up Potential Clash With Texas Laws

A new executive order from President Donald Trump aims to override state-level AI regulations that conflict with a federal push for a “minimally burdensome” national policy.

The directive, signed Dec. 11, has direct implications for Texas’ AI governance landscape, particularly the Texas Responsible Artificial Intelligence Governance Act, or TRAIGA, enacted through House Bill 149.

HB 149, passed during the 2025 legislative session and set to take effect Jan. 1, 2026, establishes one of the broadest state-level regulatory frameworks for AI in the country. The law requires developers and deployers of “covered AI systems” to disclose when AI is used in decisions involving housing, employment, education, health care or financial services, among other sectors. The law also mandates that AI systems be evaluated for potential disparate impact and prohibits deployment of AI in ways that result in algorithmic discrimination.

Covered entities must maintain documentation describing how their AI systems work, how they were evaluated for bias or risk, and what safeguards are in place. TRAIGA grants the Texas attorney general enforcement authority, including the ability to seek civil penalties for violations.

Trump’s executive order outlines a coordinated federal strategy to challenge laws such as TRAIGA. The order argues that a fragmented, state-by-state approach creates regulatory burdens that suppress innovation and may compel developers to alter the truthful outputs of AI systems. It directs the U.S. attorney general to establish an AI Litigation Task Force within 30 days to identify and challenge state laws that the administration views as unconstitutional, pre-empted by federal law or otherwise in conflict with national policy.

Within 90 days, the secretary of commerce must publish a formal evaluation identifying which state laws are considered inconsistent with the order. Other federal agencies are required to act on a similar timeline. The Federal Communications Commission must consider a national AI disclosure standard that would override conflicting state rules, and the Federal Trade Commission is expected to issue a policy statement asserting that certain state-mandated modifications to AI outputs could violate federal consumer protection laws. The Department of Commerce will also issue a policy notice linking state compliance with eligibility for certain federal broadband funds under the Broadband Equity, Access and Deployment Program.

The executive order instructs federal officials to draft legislation for a national framework that would pre-empt conflicting state laws. It includes carve-outs for state authority over child safety, permitting and government procurement. Whether TRAIGA qualifies for such an exception remains uncertain, as much of the law targets private-sector AI applications and mandates risk-based controls.

In addition to TRAIGA, the Texas Data Privacy and Security Act, passed in 2023 as House Bill 4, may also be implicated. While not AI-specific, HB 4 includes provisions that govern automated decision-making and profiling. It grants Texans the right to opt out of certain data processing and requires disclosures when automated systems are used to make significant decisions. These requirements could come under review if federal regulators determine they conflict with national policy or constitute compelled speech.

As the federal implementation deadlines approach, the Texas Office of the Attorney General and the Department of Information Resources may need to assess whether HB 149 and HB 4 are likely to be targeted by litigation, pre-emption actions or grant funding restrictions. Vendors and agencies working with or deploying AI tools in Texas could face new uncertainties about compliance obligations.