Angela Juneau Authors Article "The New AI Executive Order and Its Impact on Pending New Jersey Legislation"
The rapid advancement of artificial intelligence (AI) technologies has prompted legislative and executive action at the federal and state levels. President Donald Trump’s recently announced AI executive order sets forth a national framework for AI governance, which raises questions about current and pending state-level initiatives, including in New Jersey.
Trump’s new AI executive order establishes a comprehensive federal strategy for the development and oversight of artificial intelligence. The executive order:
- Establishes an AI task force to challenge state AI laws that impose additional regulatory burdens on the AI industry beyond a national policy framework;
- Directs the Secretary of Commerce to publish a list of state AI laws that potentially conflict with a national policy framework;
- Restricts Broadband Equity Access and Deployment funding for states with onerous AI laws;
- Directs executive departments and agencies to assess their discretionary grant programs and determine whether they can condition further discretionary grant monies on a state’s compliance with the AI executive order;
- Directs the Chairman of the Federal Communications Commission to initiate adoption of a federal reporting and disclosure standard for AI entities that would preempt conflicting state laws;
- Directs the Charman of the Federal Trade Commission to issue a policy statement about when state AI requirements regarding altering AI outputs are preempted by the Federal Trade Commission Act’s prohibition on engaging in deceptive acts or practices that affect commerce; and
- Directs the Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology to prepare a uniform federal policy framework to govern AI to be presented to the Legislature.
Currently pending in the New Jersey Legislature are multiple bills that aim to govern AI. Senate Bill 3357, introduced in June 2024, would establish the NJ Artificial Intelligence Advisory Council that would primarily guide state agencies in their use of AI. Assembly Bill 4821/Senate Bill 3742/, introduced in September and October 2024 respectively, would require the Office of Information Technology (“OIT”) to establish AI safety requirements and require AI companies to conduct safety tests and report results to the OIT. Senate Bill 4463/Assembly Bill 5603, both of which were introduced in May 2025, would prohibit AI systems from advertising themselves as licensed mental health providers. And Senate Bill 4485/Assembly Bill 5728, both of which were also introduced in May 2025, would establish the New Jersey Innovation Authority, a thirteen-member authority that would centralize all oversight of digital advancement and implementation.
Most recently, the Senate introduced Bill No. 4867, which primarily seeks to protect the state’s workforce from disruptions caused by the AI industry. The bill would establish the AI Horizon Fund within the New Jersey Economic Development Authority to support the workforce and communities impacted by AI development and to invest in clean AI energy. The bill also would require the Department of Labor and Workforce Development to, among other things, regularly publish sectors of the workforce that are at risk for displacement due to AI advancements and engage with communities to bring them into the AI sector. The bill would also require high-risk AI systems that are implemented in New Jersey to undergo impact assessments before they are deployed.
Trump’s new AI executive order sets a broad federal agenda for AI governance, with major implications for state-level policy. Although no federal AI framework exists yet, the executive order, which plainly seeks to preempt all state regulation of AI, may create a conflict with these bills pending in the New Jersey legislature. New Jersey legislators will no doubt continue navigating the interplay between the state’s priorities and new federal directives. By harmonizing state and federal efforts, New Jersey can continue to position itself as a leader in responsible AI development.