HWG LLP AI & Emerging Technologies Alert

By: Austin Bonner, Jocelyn Aqua, and Alex Tate

On Friday, March 20, 2026, the White House released its legislative recommendations for a national policy framework on artificial intelligence—one of several Administration actions directed by Executive Order 14365 to “check the most onerous and excessive” state AI laws. In this high-level overview, the White House calls on Congress to adopt a “minimally burdensome national standard.” That package of federal laws should, in the Administration’s view, replace unduly burdensome state AI regulation that would “regulate AI development,” “penalize AI developers for a third party’s unlawful conduct involving their models,” or “unduly burden Americans’ use of AI for activity that would be lawful if performed without AI.”

Congress has debated several proposals to preempt state AI laws, including a House-approved provision in the One Big Beautiful Bill Act that would have enacted a 10-year federal moratorium on state regulation of AI models and systems. That provision failed in the Senate amid questions about what federal standard would replace the state rules and the scope of preemption.

These White House recommendations aim to address both of those concerns. First, the framework recommends new federal laws and actions related to protecting children, managing data infrastructure, respecting intellectual property, preventing censorship, and developing an AI-ready workforce. Key recommendations include legislative action to:

  • Establish age-assurance requirements and mandate AI platform features to prevent sexual exploitation and self-harm among minors;
  • Ensure that residential ratepayers do not pay more for electricity because of new AI data centers (consistent with the Ratepayer Protection Pledge); and
  • Provide a way for Americans to “seek redress from the Federal Government” when agencies “censor expression on AI platforms or dictate the information provided by an AI platform.”

The framework also calls on Congress to provide resources for: expanding law enforcement efforts to combat AI-enabled fraud and scams; making federal datasets available in AI-ready formats; studying “trends in task-level workforce realignment driven by AI”; and promoting small business AI adoption. The White House also recommends that Congress use non-regulatory methods (presumably funding, primarily) to encourage existing workforce training efforts to include AI.

Second, the framework addresses the scope of preemption. Executive Order 14365 concluded that state laws addressing child safety protections, AI compute and data center infrastructure (other than generally applicable permitting reform), and state government AI use and procurement should not be preempted. This legislative proposal further recommends that Congress not restrict states’ “traditional police powers” to “enforce laws of general applicability against AI developers and users, including particular laws to protect children, prevent fraud, and protect consumers.”

Additionally, the framework recognizes a role for the federal judiciary. It encourages Congress to avoid “actions that would impact the judiciary’s resolution of whether training on copyrighted material constitutes fair use.”

As last year’s failed attempts to head off state AI regulation illustrate, members of Congress and other stakeholders face a significant task in translating this framework into concrete legislative proposals. If you’d like further guidance on how to approach AI governance and compliance issues in this fast-changing regulatory environment, please contact Austin Bonner or Jocelyn Aqua.

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HWG LLP’s cross-disciplinary Artificial Intelligence and Emerging Technologies practice advises clients on federal and state legislative and regulatory proceedings, company compliance, and related litigation matters. This advisory is not intended to convey legal advice. It is circulated publicly as a convenience and does not reflect or create an attorney-client relationship.