Government AI Policy: White House Framework Sets Federal Direction

The White House released its National Policy Framework for Artificial Intelligence on March 20, 2026, a four-page document authored by AI and crypto policy leads Michael Kratsios and David Sacks. The framework establishes six core objectives for government AI governance: child safety, community and infrastructure protection, intellectual property rights, free speech, innovation and competitiveness, and workforce development.

The framework's central move is its call for broad federal preemption of state AI laws. Under the proposed approach, states would be barred from regulating AI model development or holding developers liable for how third parties use their tools. The administration's rationale: a patchwork of state-level rules would stifle innovation and create compliance burdens that slow public sector AI adoption.

It also opposes creating a new federal AI regulator, instead favoring existing agency authority to oversee AI within their current jurisdictions. The framework proposes regulatory sandboxes with exemptions of up to 10 years, designed to let companies experiment with government automation and AI-driven services without immediate regulatory consequences.

For public agencies, the preemption provisions carry the most practical weight. If Congress adopts the framework's recommendations, state and local governments would lose authority over how AI permit processing and other automated decision-making tools are regulated within their borders. The administration has drawn its line — federal oversight, minimal new bureaucracy, and wide latitude for industry to build.

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Sources

• White House Releases National Policy Framework for Artificial Intelligence — WilmerHale