Since taking office, President Trump has issued dozens of executive orders, many addressing key technology policy areas that include international trade and investment, artificial intelligence (AI),  connected vehicles and drones, and trade controls.  Some of these executive actions reverse the previous administration’s efforts on these issues—such as the order revoking President Biden’s October 2023 executive order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence—and others initiate a formal review process, suggesting the Trump Administration will preserve, and perhaps strengthen or enhance, key tech policies implemented by the Biden Administration and the first Trump term.  

Several of the executive actions President Trump has taken so far offer important opportunities for stakeholders to weigh in with Executive Branch agencies as they consider next steps, including whether to revoke, expand, or retain tech policies initiated under President Biden. Key initiatives include: 

America First Trade Policy

The President’s America First Trade Policy memorandum, issued on January 20, directs certain federal agencies to review policies issued by the Biden Administration.  The memo does not provide specifically for public comment opportunities with respect to these policy reviews, but it provides insight into how the Administration may modify Biden Administration policy actions.  We recommend that interested stakeholders engage to share their views with the Administration.  Three critical areas in particular will affect stakeholders across tech industries:

  • China and Intellectual Property: Section 3(e) of the memo directs the Commerce Secretary to the assess the status of United States intellectual property rights such as patents, copyrights, and trademarks conferred upon PRC persons” and to “make recommendations to ensure reciprocal and balanced treatment of intellectual property rights with the PRC.” 
  • Connected Vehicles:  Section 4(d) The memo directs the Commerce Secretary to “review and recommend appropriate action with respect to the rulemaking by the Office of Information and Communication Technology and Services (ICTS) on connected vehicles.”  The memo specifically directs the Secretary to consider whether ICTS controls should be “expanded to account for additional connected products.”
  • Outbound Investment:  Section 4(e) of the President’s memo directs the Treasury Secretary, in consultation with the Commerce Secretary, to review whether President Biden’s outbound executive order “should be modified or rescinded and replaced,” and to “assess whether the [Treasury Department outbound investment regulation] includes sufficient controls to address national security threats.”  This review dovetails with the President’s America First Investment Policy memo, issued on February 21, which equates U.S. national security and U.S. economic security, and directs agencies to streamline regulatory reviews to promote foreign investment in the United States.

It is clear from the America First Trade Policy that the Trump Administration views investment restrictions, supply chain security, and IP protections as critical to U.S. global technology leadership and is prepared to take aggressive actions in each of these policy areas. 

Notably, the outbound investment and connected vehicle rules were finalized during the Biden Administration following a public notice-and-comment period.  The Trump Administration is not considering eliminating these rules, but rather assessing whether the outbound investment regulations are “sufficient . . . to address national security threats” and whether the CV rule should be “expanded” to additional products and technologies.  In other words, the Administration’s review of these policies does not suggest a reversal of the Biden-era approach, but an effort to consider whether to further leverage investment restrictions and trade controls to attempt to slow the growth of critical and emerging technologies outside the United States.

The policy reviews under the America First Trade Policy memo must be submitted to the President by April 1, 2025.

AI Action Plan Request for Information

Following the President’s revocation of the October 23, 2023 AI Executive Order, the National Science Foundation (NSF) and the White House Office of Science and Technology Policy (OSTP) issued a request for information (RFI) on the development of a new “AI Action Plan.”  The RFI seeks “concrete” suggestions for policy actions “needed to sustain and enhance America’s AI dominance, and to ensure that unnecessarily burdensome requirements do not hamper private sector AI innovation.”  The RFI does not include specific policy proposals for comment, but rather invites stakeholders to suggest policy priorities across a range of AI-related topics, including hardware and chips, data centers, energy consumption and efficiency, model development, explainability and assurance of AI model outputs, cybersecurity, data privacy and security, risks, regulation and governance, technical and safety standards, national security and defense, research and development, education and workforce, innovation and competition, intellectual property, procurement, international collaboration, and export controls. Comments are due on March 15, 2025.

AI Diffusion Rule

On January 15, at the end of the Biden Administration, the Commerce Department’s Bureau of Industry and Security (BIS) released its AI Diffusion Framework.  Together with a separate interim final rule on Implementation of Additional Due Diligence Measures for Advanced Computing Integrated Circuits, the AI Diffusion Framework, among other things:

  • Established a worldwide license requirement for certain advanced chips and related items subject to the Export Administration Regulations, and associated software and technology, as well as for non-public model weights for certain advanced AI models;
  • Implemented a three-tiered licensing framework applicable to exports, reexports, and in-country transfers of advanced chips;
  • Created a rebuttable presumption that certain advanced logic chips exported, reexported, or transferred (in-country) by a front-end fabricator or an Outside Semiconductor Assembly and Test (“OSAT”) company are subject to export controls and designed or marketed for use in datacenters and imposed certain due diligence and reporting requirements on front-end fabricators.

While BIS published the Framework as an interim final rule with immediate effect, the agency also requested public comment on the rule, with comments due on May 15, 2025.

Foreign Direct Product Rule

In December 2024, BIS also published an interim final rule (and request for comment) on export controls on advanced computing and semiconductor manufacturing items.  This rule adds new export controls for high-bandwidth memory chips, semiconductor manufacturing equipment, and associated software and technology, as well as expands the foreign direct product rule to cover certain non-U.S.-made semiconductor manufacturing equipment and related items.  Comments are due to BIS by March 14, 2025.

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Photo of Holly Fechner Holly Fechner

Holly Fechner advises clients on complex public policy matters that combine legal and political opportunities and risks. She leads teams that represent companies, entities, and organizations in significant policy and regulatory matters before Congress and the Executive Branch.

She is a co-chair of…

Holly Fechner advises clients on complex public policy matters that combine legal and political opportunities and risks. She leads teams that represent companies, entities, and organizations in significant policy and regulatory matters before Congress and the Executive Branch.

She is a co-chair of the Covington’s Technology Industry Group and a member of the Covington Political Action Committee board of directors.

Holly works with clients to:

Develop compelling public policy strategies
Research law and draft legislation and policy
Draft testimony, comments, fact sheets, letters and other documents
Advocate before Congress and the Executive Branch
Form and manage coalitions
Develop communications strategies

She is the Executive Director of Invent Together and a visiting lecturer at the Harvard Kennedy School of Government. She serves on the board of directors of the American Constitution Society.

Holly served as Policy Director for Senator Edward M. Kennedy (D-MA) and Chief Labor and Pensions Counsel for the Senate Health, Education, Labor & Pensions Committee.

She received The American Lawyer, “Dealmaker of the Year” award in 2019. The Hill named her a “Top Lobbyist” from 2013 to the present, and she has been ranked by Chambers USA – America’s Leading Business Lawyers from 2012 to the present. One client noted to Chambers: “Holly is an exceptional attorney who excels in government relations and policy discussions. She has an incisive analytical skill set which gives her the capability of understanding extremely complex legal and institutional matters.” According to another client surveyed by Chambers, “Holly is incredibly intelligent, effective and responsive. She also leads the team in a way that brings out everyone’s best work.”

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Photo of Matthew Shapanka Matthew Shapanka

Matthew Shapanka is a strategic policy and regulatory attorney who helps technology companies and other businesses navigate complex, high-stakes legislative, regulatory, and enforcement matters at the intersection of law and politics. Drawing on 15+ years of experience across private practice, the U.S. Senate…

Matthew Shapanka is a strategic policy and regulatory attorney who helps technology companies and other businesses navigate complex, high-stakes legislative, regulatory, and enforcement matters at the intersection of law and politics. Drawing on 15+ years of experience across private practice, the U.S. Senate, state government, and political campaigns, Matt develops comprehensive policy strategies that identify regulatory risks and position clients to shape policy outcomes.

Public Policy and Regulatory Strategy

Matt serves as a strategic advisor to Fortune 200 companies on emerging technology policy, including artificial intelligence regulation, connected and autonomous vehicles, semiconductors, IoT, and national security matters. He translates complex legal and technical issues into actionable legislative and regulatory strategy, building the policy frameworks and advocacy infrastructure that enable clients to influence policy. He develops policy collateral for federal, state, and international advocacy, coordinates multi-stakeholder coalitions, and represents clients before Congress, federal agencies, and state legislative and regulatory bodies.

His technology policy experience includes securing unprecedented Presidential intervention in the $118 billion Qualcomm-Broadcom transaction (for which Covington was recognized as The American Lawyer 2019 “Dealmakers of the Year”), advising Fortune 200 companies on Bureau of Industry and Security connected vehicle rules, and counseling major internet platforms on autonomous vehicle policy across dozens of states.

Matt leads Covington’s state public policy practice, managing complex multistate legislative and regulatory advocacy campaigns. His state-level work includes securing a last-minute amendment to California’s 2023 money transmitter legislation on behalf of a fintech client and representing major technology companies on state AI, autonomous vehicle, and political advertising compliance matters across dozens of jurisdictions.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration under Chairwoman Amy Klobuchar (D-MN), where he negotiated the landmark bipartisan Electoral Count Reform Act – legislation that updated presidential election certification procedures for the first time in nearly 140 years. He also oversaw the Committee’s bipartisan January 6th investigation, developing protocols that resulted in unanimous passage of new Capitol security legislation.

Both in Congress and at Covington, Matt has prepared dozens of corporate executives, nonprofit leaders, academics, and presidential nominees for testimony at congressional committee hearings and depositions. He is a skilled legislative drafter and strategist who has composed dozens of bills and amendments introduced in Congress and state legislatures, including many that have been enacted into law.

Election and Political Law Compliance and Enforcement

As a member of Covington’s Chambers-ranked (Band 1) Election and Political Law practice, Matt advises businesses, nonprofits, political committees, candidates, and donors on the full range of federal and state political law compliance matters, including:

Election and campaign finance laws
Lobbying disclosure
Government ethics rules
The SEC Pay-to-Play Rule

He also conducts political law due diligence for M&A transactions, counsels major political funders and donors in compliance and enforcement matters, and represents candidates, ballot measure committees, and donors in election disputes and recounts.

Before law school, Matt served in the administration of former Governor Deval Patrick (D-MA), where he worked on policy, communications, and compliance matters for federal economic recovery funding awarded to the state. He has also staffed federal, state, and local political candidates in Massachusetts and New Hampshire.

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