The President’s Executive Order on Artificial Intelligence (AI)

The Nonprofit Alliance (TNPA) reviewed the Trump administration’s December 11, 2025, Executive Order (EO), Ensuring a National Policy Framework for Artificial Intelligence. As expected, the EO lays out several new initiatives that will create bureaucratic roadblocks for AI regulation, building on the January Executive Order and July AI action plan, which included language regarding possible retaliation towards states that regulate AI and pushed for a general lack of AI oversight.

December 11th EO includes:

●a federal legislative push that would be “minimally burdensome” and would “forbid” state laws that are not in line with that national standard;

●language around the freedom that AI companies need to innovate without “cumbersome regulation”;

●the creation of an AI Litigation Task Force within 30 days which would singularly focus on challenging state AI laws not consistent with the administration’s position on AI;

●description of possible restrictions of funding for states, dependent on their AI positions.

The EO also calls for, within 90 days, an evaluation of state AI laws, including targeting “laws that require AI models to alter their truthful outputs, or that may compel AI developers or deployers to disclose or report information in a manner that would violate the First Amendment or any other provision of the Constitution.”

TNPA has been closely tracking legislative initiatives and policy statements around AI, flagging issues of concern raised publicly by members of both parties, such as child safety and the spreading of misinformation and/or falsehoods. State legislation introduced this year or state bills that have recently passed targeted the regulation of the use of AI in hiring practices, demanded public transparency in AI tools, and specified financial fines for a lack of compliance. As with data privacy regulation, TNPA asserts that a single national standard for AI development, use, and compliance oversight is ideal if that standard meaningfully addresses and ensures responsible and ethical use of AI.

AI implementation and usage are moving faster than oversight regulation. Despite this, AI provides both opportunities and challenges for the nonprofit sector. Some of TNPA’s recommendations for nonprofit organizations have included: educating staff on available AI resources and parameters for using such tools; providing AI training and education across all departments; assigning organizational responsibility for tracking AI regulations in relevant jurisdictions to ensure compliance; prioritizing cybersecurity investments; and maintaining privacy of sensitive beneficiary data. TNPA endorses the data ethics framework established by Fundraising.AI, which aligns with local, regional, and international standards and human-rights–based principles, affirming donor and beneficiary rights and elevating dignity, non-manipulation, and fairness as non-negotiables to help the sector innovate responsibly and scale good work without eroding trust.