The Department of Justice announced on January 9, 2026, the creation of an artificial intelligence litigation task force dedicated to challenging state-level AI regulations, escalating the conflict between federal and state approaches to governing the rapidly evolving technology. The move implements President Trump's December 11 executive order targeting what the administration characterizes as "excessive" and "cumbersome" state AI rules.
Attorney General Pam Bondi's internal memo to Justice Department employees outlined the task force's mission: ensuring AI companies can "be free to innovate without cumbersome regulation" by challenging state laws on grounds they are illegal, unconstitutionally regulate interstate commerce, or are preempted by existing federal regulations.
Targeting State AI Laws
The task force will collaborate with White House AI and crypto czar David Sacks, a prominent Silicon Valley venture capitalist who has defended the administration's approach to limiting state oversight. Sacks posted on social media that the executive order "will provide the tools necessary for the federal government to push back against the most onerous and excessive state regulation."
Multiple state AI laws became effective on January 1, 2026, making them prime targets for federal challenge. California's Transparency in Frontier Artificial Intelligence Act requires large AI developers to publish frameworks describing their approach to managing catastrophic risks. Texas's Responsible Artificial Intelligence Governance Act establishes similar transparency requirements. Colorado, Illinois, Maryland, and Utah have enacted their own AI regulations addressing issues from employment decisions to deepfakes.
The task force will be led by either the Attorney General or an appointee, with representatives from the offices of the Deputy and Associate Attorney General, the Justice Department's Civil Division, and the Solicitor General's office.
Legal and Political Battleground
The executive order directing the task force argued that a "patchwork" of overlapping state regulations could imperil AI industry competitiveness against China. However, opponents from both parties pushed back.
In December, Senate Democrats led by Senator Ed Markey introduced legislation blocking Trump's executive order. Critics argue that absent comprehensive federal legislation, states appropriately filled the regulatory vacuum.
Implementation and Uncertainty
Critically, the executive order itself does not invalidate existing state or local AI laws. Unless a court blocks a law via injunction or Congress enacts federal legislation preempting state counterparts, state AI laws remain enforceable. This creates significant uncertainty for businesses operating across multiple states about which regulations to follow.
The Commerce Secretary must publish by March 11, 2026, an evaluation identifying burdensome state AI laws that conflict with federal policy and merit referral to the task force for legal challenge. The Federal Trade Commission faces the same deadline to issue a policy statement describing how the FTC Act applies to AI.
Employers and AI companies must navigate this evolving legal landscape carefully, complying with existing state laws while preparing for potential federal challenges that could reshape the regulatory environment.
