Context: A New Wave of Federal AI Directives

In late July 2025, the White House significantly advanced its artificial intelligence agenda by releasing America’s AI Action Plan alongside several executive orders. These measures, announced by President Trump and AI Advisor David Sacks, are designed to establish U.S. leadership in AI, akin to the strategic imperatives of a new space race. For federal agencies and partners in the AI sector, such as Sprinklenet, these directives present both opportunities and imperatives for action. They underscore the need for rapid progress, the removal of obstacles, and the alignment of AI development with American principles and priorities.

As a small business with over 15 years of experience in enterprise AI applications, bolstered by leadership and personnel with backgrounds in government contracting, Sprinklenet regards this development as a critical juncture. For regular updates on evolving federal AI policies, subscribe to our weekly AI Newsletter here.

In the following analysis, we examine the recent White House AI policies and provide insights on how agencies may address them, highlighting areas where collaboration with an agile, reliable partner can facilitate compliance and achievement.

America’s AI Action Plan: Winning the AI Race

Issued on July 23, 2025, America’s AI Action Plan is a comprehensive 28-page framework that delineates more than 90 federal actions organized under three pillars:

• Accelerating AI Innovation
• Building American AI Infrastructure
• Leading in International AI Diplomacy and Security

Fundamentally, the plan advocates for accelerated innovation, expansive infrastructure development, and global leadership to ensure that the United States, rather than competitors, defines AI standards for the future.

The plan adopts an ambitious approach, prioritizing deregulation and efficiency.

Federal agencies are directed to identify and eliminate regulations that impede AI advancement or implementation unnecessarily, including the potential withholding of funding from states enacting restrictive AI policies.

This perspective posits that excessive regulation could stifle technological progress. Instead, the emphasis is on promoting AI models grounded in free speech and American values. For instance, the National Institute of Standards and Technology (NIST) is tasked with updating its AI Risk Management Framework to remove references to misinformation, Diversity, Equity, and Inclusion (DEI), and climate change, which are viewed as extraneous to primary goals. As President Trump stated, “We are getting rid of woke… The American people do not want woke Marxist lunacy in the AI models.” This viewpoint informs a central theme: federal AI systems must maintain political neutrality and emphasize factual precision, avoiding the imposition of social ideologies.

The plan is anchored by three foundational principles applicable across all pillars:

• American Workers at the Center: AI innovation should generate employment, enhance productivity, and improve living standards for U.S. workers. Initiatives include workforce training and retraining programs for those affected by automation, such as expanding roles for electricians and HVAC technicians to support a national network of data centers.
• Trustworthy, Unbiased AI: Federal AI systems must be devoid of ideological bias and committed to objective truth. This principle is elaborated in a dedicated executive order on “woke AI” (detailed below), addressing concerns that AI outputs could be influenced by embedded political or cultural prejudices. The directive emphasizes the deployment of AI that agencies and the public can rely upon for neutrality and accuracy.
• Security and Global Leadership: The United States must safeguard its technologies from adversarial exploitation. Measures include strengthening export controls on key AI components, enhancing cybersecurity for AI infrastructure, and encouraging allies to adopt U.S. standards over those of competitors. The plan critiques China’s AI advancements and positions American AI as the international benchmark, encompassing hardware, models, and applications.

In essence, America’s AI Action Plan frames AI as a vital national resource to be harnessed through pro-innovation policies and substantial infrastructure commitments, while protecting American values and security. As articulated by White House AI Advisor David Sacks, “To win the AI race, the U.S. must lead in innovation, infrastructure, and global partnerships.”

The administration supports these objectives with specific, actionable mandates.

If the document does not display, view the original on the White House website.

Executive Orders: From Infrastructure to “Woke AI”

Complementing the Action Plan, President Trump issued three executive orders on July 23, 2025, to expedite its execution. These orders address distinct facets of the AI landscape—infrastructure, international technology promotion, and ethical governance—collectively reinforcing a government-wide commitment to AI acceleration. Below is an overview of each:

• Accelerating AI Infrastructure: The executive order titled “ACCELERATING FEDERAL PERMITTING OF DATA CENTER INFRASTRUCTURE” focuses on the foundational elements of AI. It expedites the development of data centers and high-performance computing facilities by simplifying environmental and permitting processes. It also authorizes the use of federal lands for such projects and mandates grid enhancements to accommodate increased power demands. This approach effectively promotes expansive construction to secure the computational and semiconductor resources essential for AI supremacy. Notably, it rescinds a prior Biden-era policy imposing additional climate and DEI mandates on AI infrastructure, aligning with the Action Plan’s emphasis on reducing regulatory burdens. For agencies, this implies expanded capacity and funding for AI-related infrastructure, potentially accompanied by expectations for robust AI implementations.
• Promoting the American AI Tech Stack Abroad: The executive order “PROMOTING THE EXPORT OF THE AMERICAN AI TECHNOLOGY STACK” creates the American AI Exports Program to bundle U.S.-developed AI solutions for allies and international markets. Within 90 days, the Department of Commerce is required to seek proposals from industry groups for comprehensive AI offerings, including chips, cloud services, models, and applications, for deployment in partner nations. The objective is to surpass competing AI ecosystems, establishing American AI as the preferred option globally. This initiative serves as a mechanism for soft power: dominating global AI compute and platforms reinforces U.S. influence. For vendors, it may create federally supported international opportunities. The order also directs coordination with the Small Business Administration to bolster U.S. small businesses in the AI supply chain, recognizing the contributions of agile firms beyond large corporations in advancing American AI globally.
• Preventing “Woke AI” in Government: The executive order “PREVENTING WOKE AI IN THE FEDERAL GOVERNMENT” addresses ideological neutrality in AI. It requires agencies to procure only AI models that prioritize truth-seeking and ideological impartiality. Within 120 days, the Office of Management and Budget (OMB) will release guidance on “Unbiased AI” standards, after which agencies must mandate vendor certifications that large language models (LLMs) emphasize accuracy and avoid partisan or extremist biases. Contracts will incorporate enforcement clauses, with sanctions for non-compliance. The order defines “woke AI” as models that compromise truthfulness for ideological purposes, citing DEI or critical race theory as examples of undesirable influences. Federal AI tools, such as chatbots or decision-support systems, must deliver factual, objective outputs and maintain transparency on sensitive issues. For agencies, this elevates procurement standards, necessitating thorough evaluations of models for adherence to neutrality criteria, potentially involving reviews of existing applications, model retraining, or transitions to compliant alternatives.

These executive orders are effective immediately, with implementation deadlines of 90 or 120 days. In conjunction with the Action Plan, they convey a directive for agencies to adopt AI swiftly, patriotically, and in accordance with the administration’s priorities. As David Sacks remarked at the White House AI Summit, this era demands “out-innovating the competition” while averting misuse of AI.

What It Means for Federal Agencies

For agency leaders and program managers, the White House’s AI initiatives offer promise alongside challenges. They provide high-level support and resources for AI endeavors, mandating system modernization, experimentation, and workforce preparation. Bureaucratic hurdles are being addressed through procurement reforms, including earlier 2025 changes to facilitate engagement with emerging vendors and small businesses for expedited delivery.

However, agencies face heightened obligations and scrutiny. Key considerations include:

• Governance and Strategy: Building on April 2025 OMB memoranda (M-25-21 and M-25-22), which mandated Chief AI Officers and governance boards, agencies are refining AI strategies. The Action Plan requires alignment with national objectives and progress reporting. Leaders must adapt governance to integrate evolving principles, such as forthcoming Unbiased AI guidelines.
• Procurement Standards: Acquisition processes must incorporate the truthful and neutral AI requirements, extending evaluations beyond technical and cost factors to include training data, algorithms, and vendor philosophies. This may entail bias audits or documentation demands, representing novel demands for procurement personnel.
• Infrastructure Projects: The data center executive order and associated funding will enable agencies, particularly in defense, energy, and research, to expand AI capabilities. Yet, these efforts demand accelerated timelines for environmental assessments, site planning, and power logistics, requiring coordination with departments like Commerce and Energy.
• AI Applications and Pilots: Agencies are encouraged to pursue use cases ranging from customer service to intelligence analysis. The Action Plan supports pilots via NIST’s AI Centers of Excellence. The focus is on scaling successful pilots securely and interpretably, avoiding fragmented efforts—a concern highlighted in Sprinklenet’s prior analysis of federal AI mandates here.
• Risk Management and Ethics: While favoring minimal regulation, agencies must address privacy, security, and ethical risks to maintain public trust. Risk assessments and red-teaming remain essential, with recalibration toward priorities like adversarial threats or ideological bias over others such as environmental impacts.

Agencies are thus compelled to achieve AI outcomes that balance speed, commercial integration, neutrality, security, and mission alignment. External expertise and partnerships will be instrumental in meeting these demands.

Partnering for Success: Sprinklenet’s Role

The White House’s strategy acknowledges the vital contributions of innovative small businesses, facilitating their involvement through the Action Plan, export programs, and procurement adjustments. Sprinklenet welcomes this framework and stands prepared as a dependable small-business collaborator for agencies navigating these AI requirements.

With a foundation in deploying AI in commercial contexts, supported by leadership experienced in government contracting, Sprinklenet offers aligned expertise. While our direct AI deployments have focused on enterprise environments, our team’s government contracting experience positions us to effectively support federal initiatives. Our earlier guide on federal AI mandates outlined essential implementation pillars—governance, rapid prototyping, risk management, transparency, and workforce development—which resonate with current directives:

• Strategic Guidance & Governance: We assist in translating directives into actionable strategies, supporting Chief AI Officers in establishing boards, compliant policies, and investment plans tailored to OMB guidelines.
• Rapid Prototyping, Done Right: Specializing in efficient AI development, we deliver proofs-of-concept—such as predictive tools or chatbots—with integrated compliance, security, and documentation, enabling responsible acceleration.
• Bias Audits & Model Evaluation: Addressing the “woke AI” order, our audits probe models for neutrality, identifying biases and recommending safeguards through rigorous testing.
• Transparent, Trustworthy AI Solutions: We prioritize auditable systems, providing traceability, explainability, and monitoring features to meet transparency mandates.
• Workforce Training & Change Management: Aligning with the plan’s worker focus, we offer training to build AI literacy, addressing adoption barriers and enhancing capabilities.

As a certified federal contractor with approved AI labor categories, Sprinklenet facilitates seamless engagements via established vehicles like service schedules or Other Transaction Authorities. Our approach integrates commercial-off-the-shelf products, open-source tools, and custom solutions efficiently. For further details on our offerings, refer to our Capabilities Statement.

Moving Forward

The recent AI directives represent a transformative phase for federal technology, instilling urgency and a unified mandate to scale AI deployment in service of American interests. Agencies that respond strategically will enhance public services and reinforce U.S. leadership. Success hinges on collaboration, precise execution, and adaptive learning.

Sprinklenet is motivated by the Action Plan’s vision, which echoes our commitment to responsible AI for government transformation and national advancement. We value the emphasis on diverse innovation sources, including small businesses. As agencies advance, we remain available as advisors, developers, and bridges between technological innovation and public objectives. We recommend initiating with targeted prototypes that fulfill mission needs and comply with standards, fostering momentum for broader initiatives.

The directive to “build responsibly and build fast” is achievable with appropriate strategies and partnerships. Sprinklenet is equipped to support agencies from inception to deployment.

Sources

• White House, “Winning the Race – AMERICA’S AI ACTION PLAN” (2025)
• White House, Executive Order “PREVENTING WOKE AI IN THE FEDERAL GOVERNMENT” (July 23, 2025)
• White House, Executive Order “PROMOTING THE EXPORT OF THE AMERICAN AI TECHNOLOGY STACK” (July 23, 2025)
• Epstein Becker & Green, “Summary of AI Action Plan” (July 24, 2025)
• GovTech, “Reactions Are Mixed as Trump Unveils AI Action Plan” (July 23, 2025)
• Sprinklenet Blog, “Delivering on the Federal AI Mandate: A Practical Guide” (April 11, 2025)
• Wired, “Trump Says He’s ‘Getting Rid of Woke’… in AI Policy Speech” (July 23, 2025)