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Claims Against Trump AI EO May Help Settle Federal-State Power Questions

President Donald Trump’s AI executive order from Dec. 11 raises legal questions about how the First Amendment might limit state regulatory authority and how much the federal government can intervene on state sovereignty, Sidley attorneys said Tuesday (see 2512120042).

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Other areas ripe for potential litigation include challenges of the president’s authority to condition federal grants through executive action and whether the “Major Questions Doctrine limits agency authority to regulate while waiting on Congress to step in with framework legislation,” they said.

“Companies will need to navigate a rapidly evolving AI legal landscape through nimble compliance and governance programs, while closely monitoring regulatory, litigation, and legislative developments,” they wrote.