backOn June 22, 2026, President Trump signed two companion Executive Orders addressing quantum technology: “Securing the Nation Against Advanced Cryptographic Attacks” (EO 144091The Executive Order number is cited as reflected in the White House presidential-actions materials; it should be confirmed against the Federal Register upon publication.), which directs a government-wide shift to new encryption standards designed to withstand quantum computers, and “Ushering in the Next Frontier of Quantum Innovation” (EO 14411), which launches a coordinated federal effort to develop and commercialize quantum computing, sensing, and networking. Together, the two Orders form a unified strategy: one accelerates the build-out of quantum capability, while the other defends against the security risks that same technology creates.
The cryptography Order (EO 14409) responds to what national-security officials call the “harvest now, decrypt later” threat — the risk that adversaries are collecting encrypted U.S. data today with plans to unlock it once quantum computers become powerful enough to break current encryption. The Order warns that large-scale quantum computers “in the hands of adversaries will pose a significant threat to widely used cryptographic security systems,” and directs the government to adopt new, quantum-resistant encryption standards developed by the National Institute of Standards and Technology, the Department of Commerce agency responsible for developing federal technology standards and guidance (“NIST”).
The Order assigns the Office of Management and Budget (“OMB”) and the National Cyber Director significant roles in coordinating the government’s encryption upgrade. The Department of Commerce, through NIST and in coordination with the National Security Agency and the Cybersecurity and Infrastructure Security Agency (“CISA”), will provide agencies with technical guidance. The Order directs OMB to require agencies to identify their most critical systems and migrate them to quantum-resistant encryption by December 31, 2030 (for key establishment) and December 31, 2031 (for digital signatures).
The Order also directs changes to federal contracting rules. The Order directs the Federal Acquisition Regulatory Council (“FAR Council”) to propose a rule requiring covered contractors to comply with NIST’s quantum-resistant encryption standards by December 31, 2030. A second proposed rule would require contractors to maintain vulnerability disclosure policies, including reporting of encryption weaknesses such as the use of outdated algorithms.
These requirements may be especially relevant for AI companies that contract with the federal government or provide systems, software, or services used in federal environments. Model weights and training data are highly valuable, and AI systems may rely on the encryption that threat actors may try to defeat using quantum technology. For AI developers, upgrading to quantum-resistant encryption is not just a compliance exercise but can protect core intellectual property.
The innovation Order (EO 14411) takes the offensive side of the strategy. It declares the Administration’s policy to “maintain[] a strategic technical advantage” in quantum technology and to lead “a robust and trusted quantum ecosystem” spanning research, manufacturing, commercialization, and practical applications. The Order directs the Assistant to the President for Science and Technology to update the National Quantum Strategy within 180 days, with an emphasis on commercialization, the supply chain for quantum components, and partnerships with U.S. industry.
The Order’s centerpiece is the Quantum Computer for Application Development and Discovery Science (“QC-ADDS”) Effort: a national initiative to build a quantum computer powerful enough to “initiate the era of quantum-enabled scientific discovery.” At least one such machine will be installed at a Department of Energy facility and made available to the scientific community. To attract commercial partners, the Order directs the Secretary of Commerce to develop a plan “potentially including advance market commitments” to encourage contributions from private quantum-computing companies. The Order also directs five-year plans for deploying quantum sensors and networks, measures to strengthen domestic supply chains and manufacturing, a government-wide quantum workforce strategy, an expansion of a counterintelligence team focused on protecting the quantum ecosystem, and coordinated engagement with international partners on market access, export controls, and research security. The QC-ADDS Effort’s goal of standing up a science-enabling computer parallels the Administration’s broader federal efforts to leverage AI for scientific discovery.
Read together, the two initiatives suggest a converging federal strategy in which AI and quantum systems are positioned as complementary engines of scientific and economic advantage.
Potential Downstream Implications
Described below is a preliminary overview of the potential downstream legal and regulatory issues that may arise as the Executive Orders are implemented and areas where agencies, Congress, regulators, or private litigants may seek to build on the Orders’ policy direction over time:
- Export Controls and Foreign Investment. The innovation Order’s references to export controls, research security, and coordinated engagement with international partners signal that quantum technology may face heightened scrutiny under the Export Administration Regulations (“EAR”). Companies developing quantum hardware, software, or components should monitor whether the Order leads to new or expanded export licensing. The Order’s emphasis on counterintelligence protection and guarding against “adversarial threats” to the quantum ecosystem also suggests that foreign investment in U.S. quantum companies may face closer review under CFIUS, potentially as a ‘critical technology’ where the relevant technology is export-controlled and the transaction otherwise meets the mandatory-filing criteria.
- Government Contractor Compliance and Enforcement Risk. The FAR amendments required by the cryptography Order are expected to create new compliance obligations and potentially new enforcement exposure. Contractors who misrepresent their cryptographic compliance status, fail to maintain the required vulnerability disclosure policies, or continue using outdated encryption algorithms while certifying compliance could face False Claims Act exposure, depending on the final rule and certification structure. Given the hard December 31, 2030, deadline, contractors should begin assessing their current cryptographic posture and planning their migration now.
- Congressional Action and Funding. The Orders build on the National Quantum Initiative Act (“NQIA”), but their implementation, particularly large-scale initiatives like QC‑ADDS, will depend on future congressional appropriations and any reauthorization or expansion of the NQIA framework. The reauthorization debate will provide signals about long-term federal investment.
- State Privacy Law Implications. As NIST’s post-quantum cryptographic standards become the federal baseline, they may also reshape what constitutes “reasonable security” under state privacy, cybersecurity, and data-breach laws. Regulators and private plaintiffs could increasingly look to NIST’s post‑quantum standards as a benchmark for “reasonable security,” particularly for long-lived sensitive data. Over time, continued reliance on quantum‑vulnerable encryption (after federal standards and migration timelines are established) may face greater scrutiny.
- Standard Essential Patents. To the extent NIST’s post-quantum cryptographic standards require implementation of patented technology, mandatory adoption through federal procurement rules could raise licensing and cost issues for contractors and technology providers. Any disputes would likely turn on whether relevant patents are actually essential to the standards, whether licensing commitments apply, and whether terms are reasonable and non-discriminatory. These issues could become more significant as agencies and covered contractors move toward the 2030 migration deadline, particularly for smaller vendors that must update products or services to remain eligible for federal work.
Conclusion
These two Executive Orders represent a significant federal commitment to both advancing and defending against quantum technology. For companies in the quantum, AI, and technology sectors—and for government contractors across industries—the Orders establish concrete federal migration deadlines and point toward future contractor compliance obligations. The 2030 and 2031 cryptographic migration deadlines are not distant; organizations may benefit from starting to assess their systems, supply chains, and contracting relationships now. At the same time, the innovation Order creates potential opportunities for companies positioned to contribute to the QC-ADDS Effort or grow with the federal investment in quantum infrastructure. We will continue to monitor implementation guidance from OMB, NIST, and the FAR Council, as well as Congressional action on the NQIA reauthorization and related appropriations.
