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National Law Review2026-07-31

Tug of War – Independence and Innovation v. Interference and Infrastructure

Policy

President Trump has issued an executive order stating that the federal government will not require preclearance or permits for AI model development or distribution. A proposed bill would establish direct federal regulation of frontier AI models and create the Center for AI Standards and Innovation (CAISI).

The executive order removes the requirement of preclearance or permits for AI model development and distribution, meaning developers would not need to seek government approval before proceeding. The proposed bill, in contrast, would create a federal regulatory structure for frontier AI models, including the establishment of CAISI, a new center intended to develop AI standards and coordinate innovation-related oversight. The article notes the tension between the executive order's emphasis on independence and the bill's emphasis on infrastructure, and it presents both approaches in detail.

The article presents the conflict as unresolved. If the executive order stands, AI development would continue without federal preclearance or permitting requirements. If the bill is enacted, frontier AI model developers would face direct federal regulation and new infrastructure in the form of CAISI. The article does not predict the result, but frames the debate as a fundamental disagreement over the proper role of government in AI oversight.

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● REC · 2026