US Government

The Trump Administration is considering multiple proposals to raise revenue from patent holders, including direct assessments on patent holders, changes to the existing patent fee schedule, and potentially a new mechanism for sharing profits from university-owned patents obtained through federal research funds. 

Patent Tax

First, Commerce Secretary Howard Lutnick is reportedly considering assessing a charge…

Continue Reading Commerce Department and U.S. Patent and Trademark Office Exploring a Patent Tax and Patent Fee Changes

On September 10, Senate Commerce, Science, and Transportation Committee Chair Ted Cruz (R-TX) released what he called a “light-touch” regulatory framework for federal AI legislation, outlining five pillars for advancing American AI leadership.  In parallel, Senator Cruz introduced the Strengthening AI Normalization and Diffusion by Oversight and eXperimentation (“SANDBOX”) Act (S. 2750), which…

Continue Reading Senator Cruz Unveils AI Framework and Regulatory Sandbox Bill

Federal legislation to “pause” state artificial intelligence regulations will not become law—for now—after the Senate stripped the measure from the budget reconciliation package, the One Big Beautiful Bill Act (H.R. 1).

The Senate voted 99–1 to strike the moratorium language from the bill during a marathon 27-hour “vote-a-rama” on July 1. The Senate voted 51–50, with Vice President J.D. Vance breaking the tie, to pass the bill (without the moratorium) and send it back to the House.  The House passed the Senate-amended bill on July 3 by a vote of 218–214, with all Democrats and two Republicans voting against.  President Trump signed the bill into law on July 4.

Continue Reading Senate Nixes State AI Enforcement Moratorium, For Now

In a surprise move, Senate Parliamentarian Elizabeth MacDonough ruled that a proposed moratorium on state and local AI laws satisfies the Byrd Rule, the requirement that reconciliation bills contain only budgetary provisions and omit “extraneous” policy language.  While MacDonough’s determination allows the Senate Commerce Committee’s version of the moratorium to remain in the bill, its…

Continue Reading Senate Parliamentarian Clears Revised State AI Enforcement Moratorium for Reconciliation Bill, But Passage Remains in Doubt

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

This is part of an ongoing series of Covington blogs on the AI policies, executive orders, and other actions of the Trump Administration.  This blog describes AI actions taken by the Trump Administration in April 2025, and prior articles in this series are available here.

White House OMB Issues AI Use & Procurement Requirements for Federal Agencies

On April 3, the White House Office of Management & Budget (“OMB”) issued two memoranda on the use and procurement of AI by 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”).  The two memos partially implement President Trump’s January 23 Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence,” which, among other things, directs OMB to revise the Biden OMB AI Memos to align with the AI EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance.”  The OMB AI Use Memo outlines agency governance and risk management requirements for the use of AI, including AI use case inventories and generative AI policies, and establishes “minimum risk management practices” for “high-impact AI use cases.”  The OMB AI Procurement Memo establishes requirements for agency AI procurement, including preferences for AI “developed and produced in the United States” and contract terms to protect government data and prevent vendor lock-in.  According to the White House’s fact sheet, the OMB Memos, which rescind and replace AI use and procurement memos issued under President Biden’s Executive Order 14110, 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.”

Continue Reading April 2025 AI Developments Under the Trump Administration

Updated June 24, 2025.  Originally posted April 30, 2025.

In April, the Federal Communications Commission (“FCC”) adopted a Notice of Proposed Rulemaking (“NPRM”) that proposes to clarify existing definitions in the FCC’s foreign ownership rules and codify certain practices regarding the filing requirements for, and the agency’s processing of, foreign ownership petitions (Petitions…

Continue Reading FCC Proposes Changes to Foreign Ownership Rules and Related Filings Processes

This quarterly update highlights key legislative, regulatory, and litigation developments in the first quarter of 2025 related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), and cryptocurrencies and blockchain. 

I. Artificial Intelligence

A. Federal Legislative Developments

In the first quarter, members of Congress introduced several AI bills addressing national security, including bills that would encourage the use of AI for border security and drug enforcement purposes.  Other AI legislative proposes focused on workforce skills, international investment in critical industries, U.S. AI supply chain resilience, and AI-enabled fraud.  Notably, members of Congress from both parties advanced legislation to regulate AI deepfakes and codify the National AI Research Resource, as discussed below.

  • CREATE AI Act:  In March, Reps. Jay Obernolte (R-CA) and Don Beyer (D-VA) re-introduced the Creating Resources for Every American To Experiment with Artificial Intelligence (“CREATE AI”) Act (H.R. 2385), following its introduction and near passage in the Senate last year.  The CREATE AI Act would codify the National AI Research Resource (“NAIRR”), with the goal of advancing AI development and innovation by offering AI computational resources, common datasets and repositories, educational tools and services, and AI testbeds to individuals, private entities, and federal agencies.  The CREATE AI Act builds on the work of the NAIRR Task Force, established by the National AI Initiative Act of 2020, which issued a final report in January 2023 recommending the establishment of NAIRR.
Continue Reading U.S. Tech Legislative & Regulatory Update – First Quarter 2025

This is part of an ongoing series of Covington blogs on the AI policies, executive orders, and other actions of the Trump Administration.  This blog describes AI actions taken by the Trump Administration in March 2025, and prior articles in this series are available here.

White House Receives Public Comments on AI Action Plan

On March 15, the White House Office of Science & Technology Policy and the Networking and Information Technology Research and Development National Coordination Office within the National Science Foundation closed the comment period for public input on the White House’s AI Action Plan, following their issuance of a Request for Information (“RFI”) on the AI Action Plan on February 6.  As required by President Trump’s AI EO, the RFI called on stakeholders to submit comments on the highest priority policy actions that should be in the new AI Action Plan, centered around 20 broad and non-exclusive topics for potential input, including data centers, data privacy and security, technical and safety standards, intellectual property, and procurement, to inform an AI Action Plan to achieve the AI EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance.”

The RFI resulted in 8,755 submitted comments, including submissions from nonprofit organizations, think tanks, trade associations, industry groups, academia, and AI companies.  The final AI Action Plan is expected by July of 2025.

NIST Launches New AI Standards Initiatives

Continue Reading March 2025 AI Developments Under the Trump Administration

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