Per usual, federal and state policies rarely align and it isn’t much different with AI. Waiting for all the stars to line up between Washington and your state’s capital in hopes of a unified approach is not the best use of time.
In December 2025, President Trump signed an executive order aimed at establishing a national AI policy framework that challenged laws deemed inconsistent with federal priorities. The intent was to limit state-level AI regulations that honestly varied drastically across the states. This past March (2026), the White House released its National Policy Framework for Artificial Intelligence, outlining legislative recommendations focused on innovation and reducing "undue burdens" (state laws) on AI development. It is clear that the federal stance is to reduce state-imposed laws, create federal uniformity, and win the AI arms race.
States are pushing back and this is why we find ourselves witnessing a fight between states and the federal government. Over 1,200 AI-related bills were introduced across states in 2025 alone. Alabama has active AI legislation moving through its current session, including a bill requiring AI literacy instruction in K-12 schools. Tennessee recently enacted a law banning the marketing of AI as a qualified mental health professional. California and Colorado continue to strongly pushback on AI with the creation of AI accountability frameworks. So we find ourselves with a patchwork approach to AI governance versus a much needed unified approach. This web of disjointed laws, policies, guidelines, and executive orders puts organizations at risk.
Whether you're a nonprofit receiving state funding, a small business with customers across state lines, a local government agency using AI-assisted tools, or an academic institution handling student data, the regulatory environment around AI is shifting. Organizations should build an internal governance strategy now that creates a foundation that allows them to flex with the dynamic regulatory environment.
Not sure how current AI policy developments affect your specific sector or state? I track this landscape closely and translate it into practical guidance for small businesses, nonprofits, and government agencies. Let's connect at TawanaTownsendConsulting.com.