National AI Legislative Framework: Healthcare Entity Implications

April 14, 2026

National AI Legislative Framework Announced: What Does This Mean for Healthcare Entities?

Carolyn Metnick, Arushi Pandya Sheppard, Mullin, Richter & Hampton LLP + Follow Contact LinkedIn Facebook X Send Embed

On March 20, 2026, the White House issued a National Policy Framework (the “Framework”) for artificial intelligence (AI) that addresses six key objectives.[i] The Framework calls on Congress to establish a federal policy framework which preempts state laws that impose “undue burdens.” The Framework follows a December 2025 Executive Order (Ensuring a National Policy Framework for Artificial Intelligence) (the “EO”) which called for a uniform federal policy framework for AI.[ii]

Below are some takeaways for healthcare entities as they try to navigate the tension between state laws, both existing and proposed, and the newly announced Framework.

1. State Laws Are Not Preempted Yet: The Framework states “Congress should preempt state AI laws that impose undue burdens to ensure a minimally burdensome national standard consistent with [the Framework]…” The Framework has a call to Congress, but no legislation has been passed yet. In the interim, state laws governing AI (such as the Utah AI Act, Colorado AI Act, and AI amendments to the California Consumer Privacy Act, to name a few) are still in effect. The EO called on the Secretary of Commerce to publish an evaluation of existing state AI laws that identifies onerous laws that conflict with the policy set forth in the EO by March 11, 2026. The Department of Commerce has not released this evaluation, and healthcare organizations should monitor for its publication. Furthermore, states are likely to challenge any preemption in courts, creating additional uncertainty on the status of AI laws.
2. Children and Minors Are a Focus: The first objective of the Framework is “protecting children and empowering parents.” Healthcare AI tools that may interact with minors, such as mental health chatbots, or healthcare entities that treat minors, such as pediatric practices and children’s hospitals, should evaluate their use and governance of AI tools.
3. Innovation and Adoption of AI is Encouraged: The Framework emphasizes and encourages the use and deployment of AI. Healthcare entities that deploy AI, or companies which offer AI solutions in the healthcare industry, may receive additional flexibilities, enforcement discretion, and a more AI-friendly regulatory environment, based on the principles set forth in the Framework as well as the current administration’s approach to AI adoption.
4. Current Federal Enforcement Patchwork May Continue: Although the Framework pushes for a national standard for AI, it also calls on Congress not to create any new federal rulemaking body to regulate AI. Instead, the Framework aims to support development and deployment of sector-specific AI applications through existing regulatory bodies. AI in the healthcare industry would therefore likely be governed by the same federal agencies as today, such as CMS, DOJ, and FDA, and continue to be subject to overlapping oversight by multiple agencies. It is unclear when and how Congress will act, especially with midterm elections occurring later this year. In the meantime, healthcare entities and companies should monitor proposed federal legislation and carefully track their obligations under state laws.

FOOTNOTES

[i] President Donald J. Trump Unveils National AI Legislative Framework – The White House, White House National Policy Framework for AI - Legislative Recommendations.

[ii] Ensuring a National Policy Framework for Artificial Intelligence – The White House.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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