This is the first in a new series of Covington blogs on the AI policies, executive orders, and other actions of the new Trump Administration.  This blog describes key actions on AI taken by the Trump Administration in January 2025.

Outgoing President Biden Issues Executive Order and Data Center Guidance for AI Infrastructure

Before turning to the Trump Administration, we note one key AI development from the final weeks of the Biden Administration.  On January 14, in one of his final acts in office, President Biden issued Executive Order 14141 on “Advancing United States Leadership in AI Infrastructure.”  This EO, which remains in force, sets out requirements and deadlines for the construction and operation of “frontier AI infrastructure,” including data centers and clean energy facilities, by private-sector entities on federal land.  Specifically, EO 14141 directs the Departments of Defense (“DOD”) and Energy (“DOE”) to lease federal lands for the construction and operation of AI data centers and clean energy facilities by the end of 2027, establishes solicitation and lease application processes for private sector applicants, directs federal agencies to take various steps to streamline and consolidate environmental permitting for AI infrastructure, and directs the DOE to take steps to update the U.S. electricity grid to meet the growing energy demands of AI. 

On January 14, and in tandem with the release of EO 14141, the Office of Management and Budget (“OMB”) issued Memorandum M-25-03 on “Implementation Guidance for the Federal Data Center Enhancement Act,” directing federal agencies to implement requirements related to the operation of data centers by federal agencies or government contractors.  Specifically, the memorandum requires federal agencies to regularly monitor and optimize data center electrical consumption, including through the use of automated tools, and to arrange for assessments by certified specialists of data center energy and water usage and efficiency, among other requirements.  Like EO 14141, Memorandum M-25-03 has yet to be rescinded by the Trump Administration.

Trump White House Revokes President Biden’s 2023 AI Executive Order

On January 20, President Trump issued Executive Order 14148 on “Initial Recissions of Harmful Executive Orders and Actions,” revoking dozens of Biden Administration executive actions, including the October 2023 Executive Order 14110 on the “Safe, Secure, and Trustworthy Development and Use of AI” (“2023 AI EO”).  To implement these revocations, Section 3 of EO 14148 directs the White House Domestic Policy Council (“DPC”) and National Economic Council (“NEC”) to “review all Federal Government actions” taken pursuant to the revoked executive orders and “take all necessary steps to rescind, replace, or amend such actions as appropriate.”  EO 14148 further directs the DPC and NEC to submit, within 45 days of the EO, lists of additional Biden Administration orders, memoranda, and proclamations that should be rescinded and “replacement orders, memoranda, or proclamations” to “increase American prosperity.”  Finally, EO 14148 directs National Security Advisor Michael Waltz to initiate a “complete and thorough review” of all National Security Memoranda (“NSMs”) issued by the Biden Administration and recommend NSMs for recission within 45 days of the EO. 

Although the revocation of President Biden’s 2023 AI EO has been widely expected under the new administration, it remains unclear how the revocation will impact the over 100 federal agency actions that have been completed pursuant to the 2023 AI EO, including two OMB memoranda on AI issued in March and October 2024, the White House’s October 2024 National Security Memorandum on AI, and the establishment of the U.S. AI Safety Institute within the Department of Commerce.  With this said, a subsequent order from the Trump Administration –  Executive Order 14179, discussed below – directs OMB to “revise” the Biden Administration’s March and October 2024 OMB memoranda on AI, which suggests that some aspects of those memoranda could continue to exist in modified form.  These and other actions pursuant to the 2023 AI EO are currently subject to review and could be modified or replaced by the Trump Administration in the coming months.  Other ongoing actions pursuant to the 2023 AI EO, such as the Department of Commerce’s ongoing rulemaking to implement the 2023 AI EO’s dual-use foundation model reporting and red-teaming requirements, are likely to be halted under EO 14148 and EO 14179, discussed below.

White House Announces Stargate AI Infrastructure Partnership

On January 21, the White House announced the creation of “Stargate,” a partnership that plans to invest $500 billion in AI infrastructure in the U.S.  In his statement, President Trump noted that the goal of Stargate is to “keep [AI technology development] in this country” in light of AI competition from China and other countries, including the construction of data centers and “the physical and virtual infrastructure to power the next generation of advancements in AI.”  The Stargate announcement follows the White House’s Executive Order 14156 on “Declaring a National Energy Emergency,” issued on January 20, which directs federal agencies to take steps to facilitate the leasing and generation of domestic energy resources on federal and non-federal lands and directs federal agencies and the U.S. Army Corps of Engineers to use emergency permitting provisions in federal environmental laws to “facilitate the Nation’s energy supply,” among other things.

The Stargate partnership highlights the Trump Administration’s focus on U.S. AI infrastructure and energy development as a core aspect of White House AI policy and could signal continuity with aspects of the Biden Administration’s EO 14141 on AI Infrastructure, discussed above. 

President Trump Issues Executive Order on U.S. Leadership in AI

On January 23, President Trump issued Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence” (“2025 AI EO”).  The 2025 AI EO establishes the U.S. policy of “sustain[ing] and enhance[ing] America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security.”  The 2025 AI EO is relatively light on specific policy directives and instead directs Assistant to the President for Science & Technology (and Office of Science & Technology Policy (“OSTP”) Director nominee) Michael Kratsios, White House AI & Crypto Czar David Sacks, and National Security Advisor Michael Waltz to “develop and submit to the President an [AI] action plan” within 180 days of the 2025 AI EO.  On February 6, the White House OSTP and National Science Foundation issued a Request for Information seeking public input on the AI Action Plan and listing 20 AI policy topics for potential public comment.

To implement the revocation of the Biden Administration’s 2023 AI EO, the 2025 AI EO also directs Kratsios, Sacks, and Waltz to immediately review and identify “all policies, directives, regulations, orders, and other actions” taken pursuant to the 2023 AI EO that “are or may be inconsistent with, or present obstacles to,” the U.S. policy of sustaining and enhancing America’s global AI dominance, and instructs federal agencies to suspend, revise, or rescind such actions.  Finally, as mentioned above, the 2025 AI EO directs OMB to “revise” the Biden Administration’s March and October 2024 OMB memoranda on AI “as necessary to make them consistent with” the 2025 AI EO’s U.S. policy, within 60 days of the 2025 AI EO.

White House and Congress Respond to Launch of DeepSeek-R1

On January 20, Chinese AI company DeepSeek released its R1 model on U.S. app stores, sparking concerns about China’s advancements in the U.S.-China AI race and the effectiveness of U.S. AI export controls.  On January 24, the U.S. Navy issued an internal memo instructing service members to “refrain from downloading, installing, or using” DeepSeek AI models “in any capacity,” re-iterating the Navy’s 2023 policy against the use of commercial generative AI systems.  On January 27, President Trump stated that the release of DeepSeek-R1 was a “wakeup call for [U.S. AI] industries” and, on January 28, the White House confirmed that a National Security Council review of DeepSeek’s AI models was ongoing. 

Members of Congress have also quickly responded to the launch of DeepSeek’s model.  On January 29, Senator Josh Hawley (R-MO) introduced the Decoupling America’s Artificial Intelligence Capabilities from China Act (S. 321), which would impose sweeping prohibitions on U.S. imports and exports of AI and R&D to and from China and bar U.S. investments in Chinese AI technology.  On January 29, House Select Committee on the Chinese Communist Party Chair John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) sent a letter to the White House urging the Trump Administration to “consider updating Federal Acquisition Regulations (FAR) to prohibit the federal government from acquiring AI systems based on PRC models such as DeepSeek.”  On February 3, Senators Hawley and Elizabeth Warren (D-MA) sent a letter to Commerce Secretary nominee Howard Lutnick urging him to “strengthen our export controls on the PRC” in response to the release of DeepSeek-R1 by strengthening the Department’s AI Diffusion Rule and restricting H20 chips, equivalent chips, and other critical AI components, among other actions.

State lawmakers have issued their own responses to DeepSeek and other Chinese AI developers.  On January 31, Texas Governor Greg Abbott (R) issued a ban on the use of AI apps affiliated with China, including DeepSeek, on state government-issued devices.  Similarly, on February 6, lawmakers introduced bills in Georgia (SB 104) and Kansas (HB 2313) that would ban the use of DeepSeek-R1 and other Chinese AI models from use on state government-issued devices.  The Kansas bill would also prohibit AI models controlled by the governments of Cuba, Iran, North Korea, Russia, or Venezuela.

Tags: Artificial Intelligence (AI)
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Robert Huffman Robert Huffman

Bob Huffman counsels government contractors on emerging technology issues, including artificial intelligence (AI), cybersecurity, and software supply chain security, that are currently affecting federal and state procurement. His areas of expertise include the Department of Defense (DOD) and other agency acquisition regulations governing…

Bob Huffman counsels government contractors on emerging technology issues, including artificial intelligence (AI), cybersecurity, and software supply chain security, that are currently affecting federal and state procurement. His areas of expertise include the Department of Defense (DOD) and other agency acquisition regulations governing information security and the reporting of cyber incidents, the Cybersecurity Maturity Model Certification (CMMC) program, the requirements for secure software development self-attestations and bills of materials (SBOMs) emanating from the May 2021 Executive Order on Cybersecurity, and the various requirements for responsible AI procurement, safety, and testing currently being implemented under the October 2023 AI Executive Order. 

Bob also represents contractors in False Claims Act (FCA) litigation and investigations involving cybersecurity and other technology compliance issues, as well more traditional government contracting costs, quality, and regulatory compliance issues. These investigations include significant parallel civil/criminal proceedings growing out of the Department of Justice’s Cyber Fraud Initiative. They also include investigations resulting from False Claims Act qui tam lawsuits and other enforcement proceedings. Bob has represented clients in over a dozen FCA qui tam suits.

Bob also regularly counsels clients on government contracting supply chain compliance issues, including those arising under the Buy American Act/Trade Agreements Act and Section 889 of the FY2019 National Defense Authorization Act. In addition, Bob advises government contractors on rules relating to IP, including government patent rights, technical data rights, rights in computer software, and the rules applicable to IP in the acquisition of commercial products, services, and software. He focuses this aspect of his practice on the overlap of these traditional government contracts IP rules with the IP issues associated with the acquisition of AI services and the data needed to train the large learning models on which those services are based. 

Bob is ranked by Chambers USA for his work in government contracts and he writes extensively in the areas of procurement-related AI, cybersecurity, software security, and supply chain regulation. He also teaches a course at Georgetown Law School that focuses on the technology, supply chain, and national security issues associated with energy and climate change.

Read more about Robert HuffmanEmail
Show more Show less
Photo of Nooree Lee Nooree Lee

Nooree Lee represents government contractors in all aspects of the procurement process and focuses his practice on the regulatory aspects of M&A activity, procurements involving emerging technologies, and international contracting matters.

Nooree advises government contractors and financial investors regarding the regulatory aspects of…

Nooree Lee represents government contractors in all aspects of the procurement process and focuses his practice on the regulatory aspects of M&A activity, procurements involving emerging technologies, and international contracting matters.

Nooree advises government contractors and financial investors regarding the regulatory aspects of corporate transactions and restructurings. His experience includes preparing businesses for sale, negotiating deal documents, coordinating large-scale diligence processes, and navigating pre- and post-closing regulatory approvals and integration. He has advised on 35+ M&A deals involving government contractors totaling over $30 billion in combined value. This includes Veritas Capital’s acquisition of Cubic Corp. for $2.8 billion; the acquisition of Perspecta Inc. by Veritas Capital portfolio company Peraton for $7.1 billion; and Cameco Corporation’s strategic partnership with Brookfield Renewable Partners to acquire Westinghouse Electric Company for $7.8+ billion.

Nooree also counsels clients focused on delivering emerging technologies to public sector customers. Over the past several years, his practice has expanded to include advising on the intersection of government procurement and artificial intelligence. Nooree counsels clients on the negotiation of AI-focused procurement and non-procurement agreements with the U.S. government and the rollout of federal and state-level regulations impacting the procurement and deployment of AI solutions on behalf of government agencies.

Nooree also counsels clients navigating the Foreign Military Sales (FMS) program and Foreign Military Financing (FMF) arrangements. Nooree has advised both U.S. and ex-U.S. companies in connection with defense sales to numerous foreign defense ministries, including those of Australia, Israel, Singapore, South Korea, and Taiwan.

Nooree maintains an active pro bono practice focusing on appeals of denied industrial security clearance applications and public housing and housing discrimination matters. In addition to his work within the firm, Nooree is an active member of the American Bar Association’s Section of Public Contract Law and has served on the Section Council and the Section’s Diversity Committee. He also served as the firm’s Fellow for the Leadership Council on Legal Diversity program in 2023.

Read more about Nooree LeeEmailNooree's Linkedin Profile
Show more Show less
Photo of Ryan Burnette Ryan Burnette

Ryan Burnette is a government contracts and technology-focused lawyer that advises on federal contracting compliance requirements and on government and internal investigations that stem from these obligations. Ryan has particular experience with defense and intelligence contracting, as well as with cybersecurity, supply chain…

Ryan Burnette is a government contracts and technology-focused lawyer that advises on federal contracting compliance requirements and on government and internal investigations that stem from these obligations. Ryan has particular experience with defense and intelligence contracting, as well as with cybersecurity, supply chain, artificial intelligence, and software development requirements.

Ryan also advises on Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) compliance, public policy matters, agency disputes, and government cost accounting, drawing on his prior experience in providing overall direction for the federal contracting system to offer insight on the practical implications of regulations. He has assisted industry clients with the resolution of complex civil and criminal investigations by the Department of Justice, and he regularly speaks and writes on government contracts, cybersecurity, national security, and emerging technology topics.

Ryan is especially experienced with:

Government cybersecurity standards, including the Federal Risk and Authorization Management Program (FedRAMP); DFARS 252.204-7012, DFARS 252.204-7020, and other agency cybersecurity requirements; National Institute of Standards and Technology (NIST) publications, such as NIST SP 800-171; and the Cybersecurity Maturity Model Certification (CMMC) program.
Software and artificial intelligence (AI) requirements, including federal secure software development frameworks and software security attestations; software bill of materials requirements; and current and forthcoming AI data disclosure, validation, and configuration requirements, including unique requirements that are applicable to the use of large language models (LLMs) and dual use foundation models.
Supply chain requirements, including Section 889 of the FY19 National Defense Authorization Act; restrictions on covered semiconductors and printed circuit boards; Information and Communications Technology and Services (ICTS) restrictions; and federal exclusionary authorities, such as matters relating to the Federal Acquisition Security Council (FASC).
Information handling, marking, and dissemination requirements, including those relating to Covered Defense Information (CDI) and Controlled Unclassified Information (CUI).
Federal Cost Accounting Standards and FAR Part 31 allocation and reimbursement requirements.

Prior to joining Covington, Ryan served in the Office of Federal Procurement Policy in the Executive Office of the President, where he focused on the development and implementation of government-wide contracting regulations and administrative actions affecting more than $400 billion dollars’ worth of goods and services each year.  While in government, Ryan helped develop several contracting-related Executive Orders, and worked with White House and agency officials on regulatory and policy matters affecting contractor disclosure and agency responsibility determinations, labor and employment issues, IT contracting, commercial item acquisitions, performance contracting, schedule contracting and interagency acquisitions, competition requirements, and suspension and debarment, among others.  Additionally, Ryan was selected to serve on a core team that led reform of security processes affecting federal background investigations for cleared federal employees and contractors in the wake of significant issues affecting the program.  These efforts resulted in the establishment of a semi-autonomous U.S. Government agency to conduct and manage background investigations.

Read more about Ryan BurnetteEmail
Show more Show less
Photo of Matthew Shapanka Matthew Shapanka

Matthew Shapanka practices at the intersection of law, policy, and politics. He advises clients before Congress, state legislatures, and government agencies, helping businesses to navigate complex legislative, regulatory, and investigations matters, mitigate their legal, political, and reputational risks, and capture business opportunities.

Drawing…

Matthew Shapanka practices at the intersection of law, policy, and politics. He advises clients before Congress, state legislatures, and government agencies, helping businesses to navigate complex legislative, regulatory, and investigations matters, mitigate their legal, political, and reputational risks, and capture business opportunities.

Drawing on more than 15 years of experience on Capitol Hill and in private practice, state government, and political campaigns, Matt develops and executes complex, multifaceted public policy initiatives for clients seeking actions by Congress, state legislatures, and federal and state government agencies. He regularly counsels and represents businesses in legislative and regulatory matters involving intellectual property, national security, regulation of critical and emerging technologies like artificial intelligence, connected and autonomous vehicles, and other tech policy issues. He also represents clients facing congressional investigations or inquiries across a range of committees and subject matters.

Matt rejoined Covington after serving as Chief Counsel for the U.S. Senate Committee on Rules and Administration, where he advised Chairwoman Amy Klobuchar (D-MN) on all legal, policy, and oversight matters before the Committee, particularly federal election and campaign finance law, Federal Election Commission nominations, and oversight of the legislative branch. Most significantly, Matt led the Committee’s staff work on the Electoral Count Reform Act – a landmark bipartisan law that updates the procedures for certifying and counting votes in presidential elections—and the Committee’s bipartisan joint investigation (with the Homeland Security Committee) into the security planning and response to the January 6th attack.

Both in Congress and at Covington, Matt has prepared dozens of corporate and nonprofit executives, academics, government officials, and presidential nominees for testimony at congressional committee hearings and depositions. He is a skilled legislative drafter who has composed dozens of bills and amendments introduced in Congress and state legislatures, including several that have been enacted into law across multiple policy areas. Matt also leads the firm’s state policy practice, advising clients on complex multistate legislative and regulatory matters and managing state-level advocacy efforts.

In addition to his policy work, Matt advises and represents clients on the full range of political law compliance and enforcement matters involving federal election, campaign finance, lobbying, and government ethics laws, the Securities and Exchange Commission’s “Pay-to-Play” rule, and the election and political laws of states and municipalities across the country.

Before law school, Matt served in the administration of former Governor Deval Patrick (D-MA) as a research analyst in the Massachusetts Recovery & Reinvestment Office, where he worked on policy, communications, and compliance matters for federal economic recovery funding awarded to the state. He has also staffed federal, state, and local political candidates in Massachusetts and New Hampshire.

Read more about Matthew ShapankaEmail
Show more Show less
Photo of August Gweon August Gweon

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks…

August Gweon counsels national and multinational companies on data privacy, cybersecurity, antitrust, and technology policy issues, including issues related to artificial intelligence and other emerging technologies. August leverages his experiences in AI and technology policy to help clients understand complex technology developments, risks, and policy trends.

August regularly provides advice to clients on privacy and competition frameworks and AI regulations, with an increasing focus on U.S. state AI legislative developments and trends related to synthetic content, automated decision-making, and generative AI. He also assists clients in assessing federal and state privacy regulations like the California Privacy Rights Act, responding to government inquiries and investigations, and engaging in public policy discussions and rulemaking processes.

Read more about August GweonEmail
Show more Show less