House Republicans have passed through committee a nationwide, 10-year moratorium on the enforcement of state and local laws and regulations that impose requirements on AI and automated decision systems. The moratorium, which would not apply to laws that promote AI adoption, highlights the widening gap between a wave of new state AI laws and the
Continue Reading House Republicans Push for 10-Year Moratorium on State AI Laws
Matthew Shapanka
Matthew Shapanka practices at the intersection of law, policy, and politics. He advises clients before Congress, state legislatures, and government agencies, helping businesses to navigate complex legislative, regulatory, and investigations matters, mitigate their legal, political, and reputational risks, and capture business opportunities.
Drawing on more than 15 years of experience on Capitol Hill and in private practice, state government, and political campaigns, Matt develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies. He regularly counsels and represents businesses in legislative and regulatory matters involving intellectual property, national security, regulation of critical and emerging technologies like artificial intelligence, connected and autonomous vehicles, and other tech policy issues. He also represents clients facing congressional investigations or inquiries across a range of committees and subject matters.
Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters before the Committee, particularly federal election and campaign finance law, Federal Election Commission nominations, and oversight of the legislative branch. Most significantly, Matt led the Committee’s staff work on the Electoral Count Reform Act – a landmark bipartisan law that updates the procedures for certifying and counting votes in presidential elections—and the Committee’s bipartisan joint investigation (with the Homeland Security Committee) into the security planning and response to the January 6th attack.
Both in Congress and at Covington, Matt has prepared dozens of corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at congressional committee hearings and depositions. He is a skilled legislative drafter who has composed dozens of bills and amendments introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas. Matt also leads the firm’s state policy practice, advising clients on complex multistate legislative and regulatory matters and managing state-level advocacy efforts.
In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, and the election and political laws of states and municipalities across the country.
Before law school, Matt served in the administration of former Governor Deval Patrick (D-MA) as a research analyst in the Massachusetts Recovery & Reinvestment Office, 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.
OMB Issues First Trump 2.0-Era Requirements for AI Use and Procurement by Federal Agencies
On April 3, the White House Office of Management and Budget (“OMB”) released two memoranda with AI guidance and requirements for federal agencies, Memorandum M-25-21 on Accelerating Federal Use of AI through Innovation, Governance, and Public Trust (“OMB AI Use Memo“) and Memorandum M-25-22 on Driving Efficient Acquisition of Artificial Intelligence in Government (“OMB AI Procurement Memo”). According to the White House’s fact sheet, the OMB AI Use and AI Procurement Memos (collectively, the “new OMB AI Memos”), which rescind and replace OMB memos on AI use and procurement issued under President Biden’s Executive Order 14110 (“Biden OMB AI Memos”), shift U.S. AI policy to a “forward-leaning, pro-innovation, and pro-competition mindset” that will make agencies “more agile, cost-effective, and efficient.” The new OMB AI Memos implement President Trump’s January 23 Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence” (the “AI EO”), which directs the OMB to revise the Biden OMB AI Memos to make them consistent with the AI EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance.”
Overall, the new OMB AI Memos build on the frameworks established under President Trump’s 2020 Executive Order 13960 on “Promoting the Use of Trustworthy Artificial Intelligence in the Federal Government” and the Biden OMB AI Memos. This is consistent with the AI EO, which noted that the Administration would “revise” the Biden AI Memos “as necessary.” At the same time, the new OMB AI Memos include some significant differences from the Biden OMB’s approach in the areas discussed below (as well as other areas).Continue Reading OMB Issues First Trump 2.0-Era Requirements for AI Use and Procurement by Federal Agencies
Agencies Deliver America First Trade Policy Recommendations to White House
Today the White House released an executive summary of the policy reviews President Trump ordered in his America First Trade Policy (AFTP) memorandum, issued on January 20. Although the full report to the President is nonpublic, according to the executive summary it contains twenty-four chapters, organized into three main pillars: (1) Addressing Unfair and Unbalanced Trade, (2) Economic and Trade Relations with the People’s Republic of China, and (3) Additional Economic Security measures, which includes reviews of export control programs, outbound investment, and other national security policies.
Several of these reviews directly affect the technology industry broadly. Although the executive summary contains little specific policy detail on these key issues, it does provide an overview of the Administration’s findings and next steps:Continue Reading Agencies Deliver America First Trade Policy Recommendations to White House
California Frontier AI Working Group Issues Report on Foundation Model Regulation
On March 18, the Joint California Policy Working Group on AI Frontier Models (the “Working Group”) released its draft report on the regulation of foundation models, with the aim of providing an “evidence-based foundation for AI policy decisions” in California that “ensure[s] these powerful technologies benefit society globally while reasonably managing emerging risks.” The Working Group was established by California Governor Gavin Newsom (D) in September 2024, following his veto of California State Senator Scott Wiener (D-San Francisco)’s Safe & Secure Innovation for Frontier AI Models Act (SB 1047). The Working Group builds on California’s partnership with Stanford University and the University of California, Berkeley, established by Governor Newsom’s 2023 Executive Order on generative AI.
Noting that “foundation model capabilities have rapidly improved” since the veto of SB 1047 and that California’s “unique opportunity” to shape AI governance “may not remain open indefinitely,” the report assesses transparency, third-party risk assessment, and adverse event reporting requirements as key components for foundation model regulation.Continue Reading California Frontier AI Working Group Issues Report on Foundation Model Regulation
Flurry of Trump Administration Executive Orders Shakes Up Tech Policy, Creates Industry Opportunities
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: Continue Reading Flurry of Trump Administration Executive Orders Shakes Up Tech Policy, Creates Industry Opportunities
January 2025 AI Developments – Transitioning to the Trump Administration
This is the first in a new series of Covington blogs on the AI policies, executive orders, and other actions of the new Trump Administration. This blog describes key actions on AI taken by the Trump Administration in January 2025.
Outgoing President Biden Issues Executive Order and Data Center Guidance for AI Infrastructure
Before turning to the Trump Administration, we note one key AI development from the final weeks of the Biden Administration. On January 14, in one of his final acts in office, President Biden issued Executive Order 14141 on “Advancing United States Leadership in AI Infrastructure.” This EO, which remains in force, sets out requirements and deadlines for the construction and operation of “frontier AI infrastructure,” including data centers and clean energy facilities, by private-sector entities on federal land. Specifically, EO 14141 directs the Departments of Defense (“DOD”) and Energy (“DOE”) to lease federal lands for the construction and operation of AI data centers and clean energy facilities by the end of 2027, establishes solicitation and lease application processes for private sector applicants, directs federal agencies to take various steps to streamline and consolidate environmental permitting for AI infrastructure, and directs the DOE to take steps to update the U.S. electricity grid to meet the growing energy demands of AI. Continue Reading January 2025 AI Developments – Transitioning to the Trump Administration
Trump Administration Seeks Public Comment on AI Action Plan
On February 6, the White House Office of Science & Technology Policy (“OSTP”) and National Science Foundation (“NSF”) issued a Request for Information (“RFI”) seeking public input on the “Development of an Artificial Intelligence Action Plan.” The RFI marks a first step toward the implementation of the Trump Administration’s January 23 Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence” (the “EO”). Specifically, the EO directs Assistant to the President for Science & Technology (and OSTP Director nominee) Michael Kratsios, White House AI & Crypto Czar David Sacks, and National Security Advisor Michael Waltz to “develop and submit to the President an action plan” to achieve the EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance” to “promote human flourishing, economic competitiveness, and national security.” Continue Reading Trump Administration Seeks Public Comment on AI Action Plan
Senator Hawley Introduces Sweeping U.S.-China AI Decoupling Bill
On January 29, Senator Josh Hawley (R-MO) introduced the Decoupling America’s Artificial Intelligence Capabilities from China Act (S. 321), one of the first bills of 119th Congress to address escalating U.S. competition with China on artificial intelligence. The new legislation comes just days after Chinese AI company DeepSeek launched its R1 AI model with advanced capabilities that has been widely viewed as a possible turning point in the U.S.-China AI race. If enacted, S. 321 would impose sweeping prohibitions on U.S. imports and exports of AI and generative AI technologies and R&D to and from China and bar U.S. investments in AI technology developed or produced in China. The bill, which was referred to the Senate Judiciary Committee, had no cosponsors and no House companion at the time of introduction.
Specifically, S. 321 would prohibit U.S. persons—including any corporation or educational or research institution in the U.S. or controlled by U.S. citizens or permanent residents—from (1) exporting AI or generative AI technology or IP to China or (2) importing AI or generative AI technology or IP developed or produced in China. In addition, the bill would bar U.S. persons from transferring AI or generative AI research to China or Chinese educational institutions, research institutions, corporations, or government entities (“Chinese entities of concern”), or from conducting AI or generative AI R&D within China or for, on behalf of, or in collaboration with such entities.
Finally, the bill would prohibit any U.S. person from financing AI R&D with connections to China. The bill specifically prohibits U.S. persons from “holding or managing any interest in” or extending loans or lines of credit to Chinese entities of concern that conduct AI- or generative AI-related R&D, produce goods that incorporate AI or generative AI R&D, assist with Chinese military or surveillance capabilities, or are implicated in human rights abuses. Continue Reading Senator Hawley Introduces Sweeping U.S.-China AI Decoupling Bill
What Commerce Secretary Nominee Howard Lutnick’s Confirmation Hearing Tells Us about Technology Policy in the Trump Administration
U.S. Secretary of Commerce nominee Howard Lutnick delivered a detailed preview of what to expect from the Trump Administration on key issues around technology, trade, and intellectual property. At his nomination hearing before the Senate Committee on Commerce, Science, and Transportation on Wednesday, January 29, Lutnick faced questions from senators about the future of the CHIPS and Science Act, global trade, and particularly U.S. technological competition with China, including export controls and artificial intelligence after the release of China’s AI model “DeepSeek.” Lutnick, who was introduced by Vice President J.D. Vance, committed to implementing the Trump Administration’s America First agenda.
If confirmed, Lutnick will lead the Commerce Department’s vast policy portfolio, including export controls for emerging technologies, broadband spectrum access and deployment, AI innovation, and climate and weather issues through the National Oceanic and Atmospheric Administration (“NOAA”). In his responses to senators’ questions, Lutnick emphasized his pro-business approach and his intent to implement President Trump’s policy objectives including bringing manufacturing—particularly of semiconductors—back to the United States and establishing “reciprocity” with China in response to what he called “unfair” treatment of U.S. businesses.Continue Reading What Commerce Secretary Nominee Howard Lutnick’s Confirmation Hearing Tells Us about Technology Policy in the Trump Administration
U.S. AI Policy Expectations in the Trump Administration, GOP Congress, and the States
The results of the 2024 U.S. election are expected to have significant implications for AI legislation and regulation at both the federal and state level.
Like the first Trump Administration, the second Trump Administration is likely to prioritize AI innovation, R&D, national security uses of AI, and U.S. private sector investment and leadership in AI. Although recent AI model testing and reporting requirements established by the Biden Administration may be halted or revoked, efforts to promote private-sector innovation and competition with China are expected to continue. And while antitrust enforcement involving large technology companies may continue in the Trump Administration, more prescriptive AI rulemaking efforts such as those launched by the current leadership of the Federal Trade Commission (“FTC”) are likely to be curtailed substantially.
In the House and Senate, Republican majorities are likely to adopt priorities similar to those of the Trump Administration, with a continued focus on AI-generated deepfakes and prohibitions on the use of AI for government surveillance and content moderation.
At the state level, legislatures in California, Texas, Colorado, Connecticut, and others likely will advance AI legislation on issues ranging from algorithmic discrimination to digital replicas and generative AI watermarking.
This post covers the effects of the recent U.S. election on these areas and what to expect as we enter 2025. (Click here for our summary of the 2024 election implications on AI-related industrial policy and competition with China.)Continue Reading U.S. AI Policy Expectations in the Trump Administration, GOP Congress, and the States