State AI Rights in the Spotlight as California Responds to Trump EO Leak & NDAA Push

Key Takeaways

• AI and ADMT Moratorium: Federal proposals would freeze or limit state-level AI and automated decisionmaking laws without creating federal protections.
• NDAA Amendment Push: House leadership is attempting to add a nationwide moratorium on state AI laws to the National Defense Authorization Act.
• Executive Order Draft: A draft White House order would create a Department of Justice task force to challenge state AI regulations.
• Prior Senate Rejection: A similar five-year moratorium was rejected earlier this year by the Senate in a 99–1 vote.
• Impact on Existing Rights: CalPrivacy warns these efforts could undermine existing consumer protections, including California’s new ADMT rules under the CCPA.

Deep Dive

The California Privacy Protection Agency (CPPA or CalPrivacy) isn’t staying quiet as new federal proposals surface that could sideline state-level protections governing artificial intelligence and automated decision-making technology. This week, the agency came out firmly against two separate federal efforts, one in Congress and one inside the executive branch, that would make it harder for states to enforce their own guardrails on emerging technologies.

The first flashpoint arrived on Capitol Hill, where House leadership moved to attach a nationwide moratorium on state laws—from AI and automated decision-making technology (ADMT) laws to the still-pending National Defense Authorization Act (NDAA). The second emerged from the White House, where a draft executive order circulating yesterday proposed creating a Department of Justice task force tasked, in part, with challenging state AI laws.

CalPrivacy Executive Director Tom Kemp said both efforts would weaken consumer protections at a time when AI systems are rapidly expanding across industries.

“California has consistently demonstrated that it is possible to support innovation while providing consumers with critical privacy protections, and current federal efforts to block common sense state laws erode consumer safety and trust,” Kemp said. “These proposals would rob millions of Californians of rights they already enjoy, leaving consumers vulnerable during a time of rapid technological change. We cannot afford to press pause on privacy.”

Congress has not yet released the final language of the NDAA amendment, but the concept isn’t new: a similar moratorium introduced in this year’s federal budget bill would have barred states from enforcing their AI laws for five years. Senators rejected that plan in a 99–1 vote. Now, House leaders are trying to revive a version of it through a must-pass bill.

CalPrivacy warns that both the draft executive order and the revived moratorium would block state protections for an extended period without providing any federal replacement. That includes laws that are already in effect across more than a dozen states, as well as future measures intended to address new AI-driven risks.

California points to its own recent work as evidence that states are well-positioned to act quickly. The agency recently finalized regulations under the California Consumer Privacy Act (CCPA) governing consumer access and opt-out rights for businesses’ use of ADMT, rules that give people transparency and control over how automated systems process their personal information.

“States have been leaders in protecting Americans' privacy,” said Maureen Mahoney, CalPrivacy’s Deputy Director of Policy and Legislation. “We urge federal policymakers to recognize the important value of state privacy protections in the face of rapidly evolving artificial intelligence technologies.”

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