BizTech Law Blog

On June 2, 2026, the Trump Administration issued a new executive order regarding advanced artificial intelligence (“AI”). Executive Order 14409, titled “Promoting Advanced Artificial Intelligence Innovation and Security” (“Executive Order 14409”), provides that it is the policy of the United States to promote AI innovation without imposing overly burdensome regulation, while simultaneously strengthening cybersecurity and national security infrastructure.

It is the stated purpose of Executive Order 14409 to promote working collaboratively with private sector businesses to harden AI information technology systems against external threats and exploitation. Executive Order 14409 focuses primarily on three (3) areas:

1. Rapid enhancement of federal cybersecurity systems;
2. Development of a voluntary framework for advanced “covered frontier models”, meaning highly advanced AI systems meeting certain classified cybersecurity capability thresholds as determined by the United States federal government; and
3. Prioritization of enforcement against AI-enabled cyber-crime.

Executive Order 14409 makes a call to action to upgrade United States technology systems by July 2, 2026, thirty (30) days after the date of Executive Order 14409, in the following ways:

• The Committee on National Security Systems must prioritize the cyber defense of National Security Systems;
• The Secretary of War shall prioritize the cyber defense of the Department of War’s information technology systems;
• The Secretary of Homeland Security, collaboratively with the Director of the Office of Management and Budget (“OMB”), the Assistant to the President for National Security Affairs, and the National Cyber Director (“NCD”), must issue binding operational directives and related guidance to:
• (a) expedite and prioritize the cyber defense of civilian federal government information systems in order to protect vital functions of such national systems;
• (b) create or expand upon preexisting federal programs and cybersecurity services that enhance AI-enabled defensive tools; and
• (c) encourage access to cybersecurity and data protection tools and services, including those incorporating or supporting “covered frontier models”, for agencies, state and local authorities, and operators of critical infrastructure (e.g., rural hospitals, community banks, local utilities, etc.);

• The Secretary of the Treasury, collaboratively with the NCD, the Secretary of War, and the Secretary of Homeland Security, must form an AI cybersecurity clearinghouse, in voluntary coordination with the AI industry and operators of critical infrastructure, that scans for software vulnerabilities, discovers and validates such vulnerabilities, and coordinates remediation and distribution of at-risk patches; and
• The Director of OMB, in coordination with the NCD and the Director of the Cybersecurity and Infrastructure Security Agency (“CISA”), shall determine whether any federal grant programs have available and relevant funding that can be directed toward applicants developing advanced AI vulnerability detection in furtherance of the purposes of Executive Order 14409.

Within sixty (60) days of the date of Executive Order 14409, by August 1, 2026, the following actions must take place:

• The Director of the Office of Personnel Management must expand the United States Tech Force Information Cybersecurity Specialist hiring and placement paths; and
• The Secretary of the Treasury, the Secretary of War, and the Secretary of Homeland Security, in collaboration with the White House Chief of Staff, the Assistant to the President for Science and Technology, the Secretary of Commerce, and other appropriate agencies, must:
• (a) develop and maintain a confidential benchmarking process to analyze the advanced cyber capabilities of AI models and determine the threshold at which an AI model should be designated a “covered frontier model” for the purposes of Executive Order 14409; and
• (b) share such assessments with AI developers and researchers, as needed;
• (c) create a voluntary framework with AI developers through which developers would be able to:
• (i) engage the United States federal government to determine whether AI model(s) under development meet the designation of “covered frontier model”;
• (ii) provide the federal government with access to “covered frontier models”, subject to appropriate confidentiality, data privacy and security, insider-risk, and intellectual-property protection, use, and nondisclosure requirements, for a period of up to thirty (30) days before such developers or researchers plan to release such models to other trusted partners; and
• (iii) collaborate with the United States federal government to select trusted partners that will have early access to “covered frontier models” to promote secure innovation and strengthen the data privacy and cybersecurity of essential technological infrastructure.

In addition, the Attorney General is directed to prioritize enforcement of federal criminal laws against individuals who use AI to unlawfully access or damage computer systems or to facilitate other criminal activity. Notably, Executive Order 14409 does not intend to impose any mandatory licensing, preclearance, or permitting requirements on AI developers or researchers, instead favoring a voluntary, collaborative framework between the federal government and the private sector.

For more information regarding this rapidly evolving regulatory landscape, or to discuss how these developments may affect your organization’s use, development, or deployment of AI systems, please contact an attorney in our Business and Tax Law Practice Group / Technology Law Group.

• Lindsey Mead…517.371.8326...lmead@fosterswift.com