The Daily Scoop Podcast

Episode: Trump Signs Executive Order Curbing State Regulation of AI
Date: December 12, 2025
Host: Billy Mitchell

Episode Overview

This episode covers two major developments in AI policy concerning the U.S. government:

• President Donald Trump’s new executive order restricting individual states' ability to regulate artificial intelligence, establishing a centralized, national policy framework.
• The Office of Management and Budget’s (OMB) release of new requirements for federal agencies aimed at preventing "woke AI" and ensuring government use of AI adheres to principles of ideological neutrality and historical accuracy.

Key Discussion Points and Insights

1. Trump Executive Order: Limiting State Regulation of AI

(Starts at 00:01)

• Purpose: President Trump signed an executive order to limit the ability of states to implement their own AI regulations, instead establishing a minimally burdensome federal framework.

  • Background: This decision follows extensive debate in Washington over the best approach to govern AI, particularly as states started passing their own (potentially conflicting) AI laws due to the lack of federal standards.

  • Industry Impact:

    • Major AI developers view this as a significant win, believing that state-by-state regulations hinder innovation and U.S. global competitiveness.
    • The order could affect hundreds of state laws currently in consideration or already enacted.

• Key Mechanisms:

  • AI Litigation Task Force:

    • The order directs the Attorney General to set up a task force tasked with challenging state AI laws that contradict federal policy.
    • The directive specifically targets laws that "unconstitutionally regulate interstate commerce, are preempted by existing federal regulations or are otherwise unlawful," with the Attorney General given discretion to make these judgments.

  • Federal Agency Involvement:

    • The heads of the Federal Trade Commission (FTC) and Federal Communications Commission (FCC) are granted powers to oversee certain aspects of state laws, especially concerning reporting and disclosure standards.

• National Ambition:

  • Quote:
    • President Trump (Oval Office signing event, [01:30]):

      "We're leading China, we're leading everybody by a tremendous amount."

2. OMB’s Guidance to Prevent "Woke AI" in Federal Government

(Starts at 02:10)

• New OMB Memo:

  • The Office of Management and Budget, led by Director Russell Vogt, released comprehensive guidance dictating how federal agencies should ensure AI systems are "unbiased" when procured and deployed.
  • The memo addresses ambiguities left by a previous executive order (July 2025) which prohibited federal procurement of AI models that "sacrifice truthfulness and accuracy to ideological agendas."

• Requirements for Agencies:

  • Contractual & Procurement Adjustments:

    • Agencies must update AI procurement contracts and existing partnerships to align with the order’s guidelines.

  • Evaluation Principles:

    • Truth-Seeking:
      • AI must be "based in historical accuracy, objectivity, and scientific inquiry."
    • Ideological Neutrality:
      • Models must not be built on partisan beliefs.

• Vendor Compliance:

  • Vendors are now required to provide sufficient—but not overly sensitive—information to help agencies assess model risks (e.g., summaries of the training process, evaluation scores, acceptable use policies). Agencies are steered away from demanding proprietary details like model weights.
  • Emphasis is placed on collaboration, including with government resellers, and the need for user feedback channels.

Notable Quotes & Memorable Moments

• President Trump on U.S. AI Leadership

  • [01:30]

    "We're leading China, we're leading everybody by a tremendous amount."

  • Speaker: President Donald Trump, referring to the U.S. position in global AI development post-signing.

• On the Meaning of the OMB’s "Unbiased AI Principles"

  • [02:55]

    "AI must be truth seeking or based in historical accuracy, objectivity, and scientific inquiry, and also have ideological neutrality by not building models based on partisan beliefs."

  • Source: Summary/paraphrase by Billy Mitchell of the OMB memo.

Timestamps for Important Segments

• 00:01 – 02:05: Trump signs executive order curbing state AI regulation: Background, provisions, implications, and industry response.
• 02:10 – 03:45: OMB releases new requirements to ensure federal agencies prevent "woke AI": Agency procurement guidance, vendor responsibilities, details of compliance.
• 03:45 – End: Sign-off, credits, and non-content.

Summary

This episode delivers an in-depth look at significant federal actions shaping AI policy in the U.S.:

• President Trump’s executive order marks a decisive move toward centralized, uniform regulation of AI—aiming to prevent a confusing patchwork of state rules and bolster U.S. AI competitiveness on the global stage. The executive order’s litigation task force and the involvement of FTC/FCC signal aggressive federal enforcement and oversight.

• The OMB guidance operationalizes the administration’s push against "woke AI" in government, rolling out strict procurement standards that require "truth-seeking" and ideologically neutral AI. This will shape how federal agencies select, assess, and interact with AI vendors going forward.

Listeners receive a succinct but comprehensive briefing on both the legal and practical ramifications for government leaders, technology companies, and the broader AI ecosystem.

For further details, refer to the official OMB memo and the text of President Trump’s executive order, as referenced in today’s Daily Scoop Podcast.