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# Does the federal AI executive order cancel NYC Local Law 144?

Published: 2026-10-21 · By Holistic AI

Executive Order 14365 targets state AI laws, but it doesn't switch off NYC's AI hiring law. What the order does, what it can't do, and why bias audits still matter.

**In short:** No. The order signals that Washington wants fewer state and local AI rules. But an executive order can't repeal a city law. Until a court or Congress says otherwise, Local Law 144 still applies.

## What the order does

Executive Order 14365 was signed in December 2025.

It tells federal agencies to push back on state AI laws they see as burdensome.

It set up a Department of Justice AI Litigation Task Force to challenge some of those laws in court.

And it asks Congress to consider a single national approach.

## What it can't do

| The order can | The order can't |
|---|---|
| Direct federal agencies to challenge state AI laws | Repeal or pause a city or state law |
| Set up a DOJ task force to bring lawsuits | Stop private discrimination claims |
| Ask Congress for a national standard | Change Title VII or other federal statutes |

It can't erase a law on its own.

A city or state law stays in force until a court blocks it or Congress passes a law that overrides it.

It also doesn't touch the federal antidiscrimination laws you already follow. Title VII, the age and disability statutes, and state equivalents all still apply. People can still bring claims under them.

As of the latest reporting we've seen, the task force hadn't sued over any state or local AI hiring law.

## Why pausing compliance is a poor bet

Imagine you stop doing bias audits and wait.

Any court challenge would take months, probably years.

Local Law 144 penalties can build up every day in the meantime.

And if a candidate brings a discrimination claim, you'd have no audit to show you were paying attention.

## The lawsuits are moving the other way

Private litigation over AI hiring is growing.

The best known case, Mobley v. Workday, is testing whether a company that sells AI screening software can be held responsible alongside the employers who use it.

That question doesn't depend on any executive order.

A current, independent bias audit is one of the few pieces of evidence that helps you in a case like that.

## What to do

- [ ] Keep your Local Law 144 program running
- [ ] Watch for any court challenge that names NYC's law directly
- [ ] If you hire in several states, plan one program that covers them all
- [ ] Make sure vendor contracts say who tests what, and who shares data

Our free 2027 playbook maps every AI hiring law employers face, state by state. Get it from the sidebar.

*This article is general information, not legal advice.*

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Holistic AI carries out independent Local Law 144 bias audits. What the service includes: https://www.nycbiasaudit.com/services.md. To commission a bias audit or ask a question, book a call at https://www.nycbiasaudit.com/demo or email we@holisticai.com.
