Trump Administration Releases AI Action Plan and Issues Executive Orders to Promote Innovation

The Trump administration has announced a multi-faceted policy designed to facilitate US innovation and global leadership in AI. On July 23, 2025, the White House published Winning the Race: America’s AI Action Plan (Action Plan), completing a key directive from President Trump’s January 2025 executive order, Removing Barriers to American Leadership in AI. The Action Plan seeks to promote the US’s global dominance in AI and expand the use of AI in the private and public sectors. It includes around ninety policy recommendations, organized into three pillars:

• Accelerate American AI Innovation
• Build American AI Infrastructure
• Lead in International AI Diplomacy and Security

The same day, President Trump issued three executive orders that implement key recommendations from the Action Plan. These orders aim to (i) ensure that all models procured by the federal government are free of ideological bias; (ii) accelerate the construction of AI infrastructure by streamlining federal permitting requirements; and (iii) promote the export of a fully American AI technology stack. Key agencies will need to work out the specifics of implementing these orders, which will significantly affect their potential scope and impact.

The Action Plan

The Action Plan focuses on innovation, infrastructure, and international diplomacy and security — and across all three pillars, the theme of the plan is to turbocharge the development of American AI and foster international adoption of and reliance on American AI systems. Notably, the Action Plan and the EOs do not address the copyright or right of publicity issues that have been the subject of significant discussion and litigation, as well as public comment.

To promote innovation, the Plan calls for:

• Federal Deregulation: The Plan recommends that OSTP and OMB launch a Request For Information to identify current regulations that hinder AI innovation and adoption and work with agencies to revise or repeal regulations or guidance that necessarily hinder AI development and deployment. The Action Plan also recommends that the FTC review all investigations commenced under the Biden administration “to ensure that they do not advance theories of liability that unduly burden AI Innovation.”
  
  
• Countering State Regulation of AI: The Plan directs agencies with AI-related discretionary funding to limit funding “if the state’s AI regulatory regimes may hinder the effectiveness of that funding or award.”
  
  
• Combating Ideological Bias & American Values: The Plan includes three policy recommendations tied to reducing ideological bias in AI outputs. It directs the National Institute of Standards and Technology (NIST) to revise the AI Risk Management Framework, a voluntary AI governance framework that NIST published in 2023, to eliminate references to misinformation, diversity, equity, and inclusion, and climate change. The Action Plan also recommends additional antibias-related requirements for large language models (LLMs) procured by the Federal Government procures and evaluation of Chinese models for government talking points and censorship.
  
  
• Open Source Models and Promoting R&D: The Plan emphasizes the importance of open-source and open-weight AI, noting that, as compared to close-sourced models, open-source models are more likely to become global standards with geostrategic value, promote adoption of AI by avoiding concerns with sending confidential data to a closed-source provider, facilitate academic research, and level the playing field between small/medium-sized organizations and large companies. To promote open-source development, the Plan recommends ensuring access to large-scale computing resources, finding ways to connect researchers and educators to computing resources, and convening stakeholders to drive adoption of open models by small/medium-sized businesses.

The second section of the Action Plan is focused on easing regulatory burdens on AI infrastructure. Specifically, it calls for changes to the National Environmental Policy Act (NEPA) and environmental permitting process, electric grid optimization, and AI workforce training changes to accelerate the development of private sector infrastructure. It also provides recommendations for enhancing critical infrastructure cybersecurity and building AI incident response frameworks.

The final section of the Plan seeks to drive adoption of American AI systems abroad, with guardrails to address national security risks and counter Chinese AI development and influence in governance bodies through:

• US Exports of Full-Stack AI Export Packages: The Plan recommends that the Department of Commerce facilitate deals for the export of full-stack AI packages (i.e., hardware, software, models, and applications) that meet US-approved security requirements and standards.
  
  
• Export Controls: The Plan recommends leveraging location verification features on advanced AI compute, monitoring end-use in countries where there is a high chance of diversion, and implementing export controls for semiconductor manufacturing subsystems to avoid fueling China’s AI capabilities.
  
  
• Foster Favorable International AI Governance Standards and Export Environment: The Plan recommends that the US advocate against burdensome international AI governance standards that could impose requirements on American-developed AI systems beyond domestic requirements and suggests that the US should encourage partners and allies to follow US controls and continue to drive US exports.
  
  
• National Security: Recognizing the potential for AI-related national security risks, including cyberattacks and development of chemical, biological, radiological, nuclear, or explosives (CBRNE) weapons, the Plan recommends that the Center for AI Safety and Innovation at the Department of Commerce assess the capabilities of US and foreign systems.

JULY 23, 2025 Executive Orders on AI

The same day that the White House published the AI Action Plan, President Trump signed three AI-related executive orders to implement key recommendations from the AI Action Plan.

Executive Order: Preventing Woke AI in the Federal Government

Preventing Woke AI in the Federal Government seeks to ensure that the government only contracts with large language model (LLM) developers who ensure that their systems are objective and free from ideological bias. It does so by placing restrictions on agency procurement of LLMs unless they comply with two “Unbiased AI Principles”:

• “Truth-Seeking: LLMs shall be truthful in responding to user prompts seeking factual information or analysis. LLMs shall prioritize historical accuracy, scientific inquiry, and objectivity, and shall acknowledge uncertainty where reliable information is incomplete or contradictory.”
  
  
• “Ideological Neutrality: LLMs shall be neutral, nonpartisan tools that do not manipulate responses in favor of ideological dogmas such as DEI. Developers shall not intentionally encode partisan or ideological judgments into an LLM’s outputs unless those judgments are prompted by or otherwise accessible to the end user.”

According to the EO, in “the AI context, DEI includes the suppression or distortion of factual information about race or sex; manipulation of racial or sexual representation in model outputs; incorporation of concepts like critical race theory, transgenderism, unconscious bias, intersectionality, and systemic racism; and discrimination on the basis of race or sex.”

To operationalize these procurement requirements, the EO directs OMB to issue guidance to the agencies, including potential disclosure of system specifications and documentation for verification during the procurement process. Further, the EO instructs agencies to include terms in their federal vendor contracts that require compliance with the two principles.

Executive Order: Accelerating Federal Permitting of Data Center Infrastructure

Accelerating Federal Permitting of Data Center Infrastructure revokes and replaces President Biden’s Executive Order 14141, Advancing United States Leadership in Artificial Intelligence Infrastructure (Jan. 14, 2025). This new EO is intended to fast track construction and permitting of data centers and related projects (including energy infrastructure) for AI development.

The EO outlines several different ways through which AI data center and related infrastructure projects can receive additional financial support from the Department of Commerce, including loans and loan guarantees, grants, tax incentives, and offtake agreements.

Additionally, the EO attempts to streamline several applicable regulatory barriers by calling for expedited permitting review by the Federal Permitting Improvement Steering Council (FPISC) and consideration of nationwide permits under section 404 of the Clean Water Act or section 10 of the Rivers and Harbors Appropriation Act of 1899.

The EO also directs EPA, Department of the Interior, Department of Energy, and Department of Defense to identify potential sites where authorizations or competitive leases could be granted for qualifying projects.

Executive Order: Promoting the Export of the American AI Technology Stack

Promoting the Export of the AI Technology Stack directs the Secretary of Commerce to establish and implement a program to support the development and deployment of United States full-stack AI export packages within 90 days (by October 21, 2025) and mobilizes federal financing tools to support such exports. Under the EO, a full-stack AI technology package includes AI-optimized computer hardware, data pipelines and labeling systems, AI models and systems, security and cybersecurity measures, and AI applications for specific use cases.

The Secretary will start the program by issuing a call for proposals from industry. Proposals should identify target countries for export engagement, describe a proposed business and operational model, detail requested federal incentives and support mechanisms, and comply with US export control regimes, outbound investment regulations, and end-user policies. The Secretary will then designate selected full-stack AI technology package proposals as “priority AI export packages.” Designated packages will receive priority access to available federal financing tools, including direct loans and loan guarantees; equity investments, co-financing, political risk insurance, and credit guarantees; and technical assistance and feasibility studies.

Finally, the EO tasks the Secretary of State with developing and executing a unified federal government strategy to promote the export of American AI technologies, including by coordinating with international partners.

Implications

The Action Plan and related executive orders emphasize the Trump administration’s continued focus on decreasing barriers to AI innovation at home and promoting US technological dominance abroad. Companies developing large language models that contract with the federal government (or are interested in doing so) should closely monitor upcoming OMB guidance and agency implementing directives for the Preventing Woke AI EO, which should provide further details on how bias will be assessed and the types of information and documentation about their models that companies will need to disclose in order to meet procurement requirements. Meanwhile, the implementation of the Data Center Infrastructure EO opens up potential avenues for federal financial support and expedited regulatory review timelines for companies involved in AI infrastructure development. The EO does not, however, directly impact state-related power and permitting issues, which continue to be significant. And as the Administration seeks to boost exports of US AI products and increase cross-border collaboration with US partners, potential opportunities exist for companies involved in every aspect of the AI ecosystem. Companies should closely monitor the Department of Commerce’s implementation of American AI Technology Stack EO and call for proposals to determine potential eligibility for federal financial and export assistance.

If you have any questions or would like more detailed advice regarding the Action Plan or EOs or the implications for your business, please contact the authors of the report or your O’Melveny contact.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Reema Shah, an O’Melveny partner licensed to practice law in New York; Jonathan P. Schneller, an O’Melveny partner licensed to practice law in California; David N. Kelley, an O’Melveny partner licensed to practice law in Connecticut and New York; Greta L. Nightingale, an O’Melveny partner licensed to practice law in the District of Columbia; Kevin Feder, an O’Melveny partner licensed to practice law in California and the District of Columbia; Mark Liang, an O’Melveny partner licensed to practice law in California; David Makarechian, an O’Melveny partner licensed to practice law in California; Tristan Morales, an O’Melveny partner licensed to practice law in California and the District of Columbia; Amy R. Lucas, an O’Melveny partner licensed to practice law in California; Phillip Oldham, an O’Melveny partner licensed to practice law in New Mexico and Texas; Nexus U. Sea, an O’Melveny partner licensed to practice law in New Jersey and New York; Cassandra Seto, an O’Melveny partner licensed to practice law in California; Sergei Zaslavsky, an O’Melveny partner licensed to practice law in Maryland and the District of Columbia; Scott W. Pink, an O’Melveny special counsel licensed to practice law in California and Illinois; and Gillian Mak, an O’Melveny associate licensed to practice law in the District of Columbia, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

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