If you follow AI policy news, you have probably seen coverage suggesting that federal action might override Colorado's AI Act before it takes effect. The coverage is not wrong — federal preemption has been seriously proposed and seriously attempted. But the legal and political reality is more nuanced than the headlines suggest, and for Colorado businesses trying to make compliance decisions, the most important fact is this: the Colorado AI Act is going into effect on June 30, 2026 until a court or Congress says otherwise. Neither has done so.
What Has Actually Happened Federally
Senator Ted Cruz introduced a ten-year moratorium on state AI laws as an amendment to the One Big Beautiful Bill Act. The Senate voted 99 to 1 to remove it. That is not a close vote. That is bipartisan rejection.
The moratorium was then proposed as an addition to the 2025 National Defense Authorization Act. Congress left it out. Two attempts, two failures.
President Trump signed an executive order in December 2025 directing the Department of Justice to challenge state AI laws and conditioning federal broadband funding on states not enforcing AI regulations. That order faces significant legal challenges — an executive order cannot preempt a state law by itself. Only Congress or a court ruling can do that, and neither has happened.
On March 20, 2026, the White House released a National Policy Framework for Artificial Intelligence recommending that Congress pass federal preemption legislation. The Framework is not a law. It is a recommendation. Congress has already declined to act on similar recommendations twice.
Colorado Has Fought Back
Colorado is not a passive participant in this fight. The state's attorney general joined nearly two dozen other state AGs in pushing back against federal preemption efforts. Colorado's legislature originally passed SB 24-205 with bipartisan support and has resisted pressure to repeal it entirely, choosing instead to modify and delay certain provisions.
The political dynamics in Colorado are different from Texas, where TRAIGA was also signed by a Republican governor. Colorado's AI Act has Democratic support and is closely tied to the state's consumer protection identity. The current AG is an aggressive enforcer who has made AI governance a priority.
Why Waiting Is the Wrong Strategy
There are two possible outcomes. The Colorado AI Act survives — in which case businesses with compliance records are protected and businesses that waited are exposed. Or the Colorado AI Act is preempted — in which case businesses with compliance records have lost nothing, because the documentation they built transfers directly to whatever federal framework replaces state law.
There is no scenario where building a Colorado AI Act compliance record now turns out to have been a mistake. The impact assessments, vendor documentation, and risk management policies you create to satisfy Colorado represent good governance practice that serves your business regardless of which regulatory framework ultimately governs.
June 30th is ten weeks away. The businesses that will be in the best position — whether Colorado's law survives or is eventually preempted — are the ones that built compliance records before the first investigation began.
This article is for informational purposes and does not constitute legal advice. For legal advice specific to your situation, consult a licensed Colorado attorney.