U.S. Moves Toward Federal AI Regulation Framework Amid State-Level Policy Debates

Jul 28, 2026

The Trump administration is advancing a National Policy Framework for Artificial Intelligence to establish a unified federal standard and reduce the growing patchwork of state-level regulations. While states like Illinois enact landmark mandatory auditing laws with industry backing, federal lawmakers are pushing bipartisan proposals like the Great American AI Act to mandate third-party audits and licensing. Meanwhile, global leaders at the G7 summit in Évian have shifted focus toward international AI governance, highlighting the tension between state, federal, and global regulatory efforts.

Federal AI regulation framework

▪The Trump administration published its National Policy Framework for Artificial Intelligence on March 20, 2026, as a non-binding legislative proposal.
▪President Donald Trump signed Executive Order 14409 on June 2, 2026, to strengthen cybersecurity protections for advanced artificial intelligence technologies.

G7 AI governance summit

▪Heads of state at the G7 summit in Évian, France, met alongside chief executives of private artificial intelligence companies.
▪The G7 summit in Évian, France, shifted its traditional agenda to focus on the international governance and sovereignty of artificial intelligence.

Mandatory third-party AI audits

▪The Great American AI Act discussion draft was unveiled by Representative Jay Obernolte and Representative Lori Trahan.
▪The bipartisan Great American AI Act discussion draft identifies mandatory third-party audits as the baseline for responsible frontier AI development.

AI licensing requirements

▪Proposed artificial intelligence licensing would rely on audits performed by independent agencies based on standards established by the National Institute of Standards and Technology.
▪Under an emerging regulatory regime, frontier artificial intelligence models would require a license issued by a designated government entity.

Export control authority limits

▪The executive branch used opaque export control authority to impose a kill switch during the Mythos-Fable situation.
▪To ensure the success of a new federal AI law, Congress must mandate specific modifications to the executive branch's export control authority.

State-level AI audit laws

▪The Illinois artificial intelligence auditing law has received endorsement and support from premier AI companies including OpenAI and Anthropic.
▪Illinois enacted the first state-level law requiring mandatory annual third-party auditing for large-scale artificial intelligence models.