White House ties federal preemption of state AI laws to child safety legislation in new deal

White House AI Regulation Deal Links Federal Preemption to Child Safety

The White House is pursuing a legislative deal with Congress that would establish federal preemption of state AI laws for three years in exchange for passing a bundle of federal online safety laws 2

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. Senator Marsha Blackburn is spearheading the legislative negotiations to finalize text for an AI preemption package that includes the Senate version of the Kids Online Safety Act (KOSA), the NO FAKES Act, and age verification requirements 3

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. The package represents the administration's latest attempt to override the legally messy state-by-state approach to AI regulation that Big Tech lobbyists have been fighting for months 1

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This marks a significant shift in strategy for the Big Tech AI regulation push. After Congress rejected preemption twice—including a 99-1 Senate vote to remove AI preemption from the One Big Beautiful Bill Act earlier this year—the administration is now bundling it with legislation that has bipartisan appeal 2

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. The timing is critical as states have accelerated regulation in the opposite direction, with 1,208 AI bills introduced in 2025 and 145 enacted 2

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Legislative Deal with Congress Faces Multiple Obstacles

The proposed package would include KOSA, which requires social media platforms to restrict content deemed harmful to minors with enforcement powers given to the Federal Trade Commission. The NO FAKES Act would protect individuals from AI-generated deepfakes of their likeness, while age verification would mandate identity checks for online services 2

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. Blackburn's spokesperson clarified this would be "subject-matter preemption" rather than blanket preemption of all laws regulating AI or child safety, meaning states would only be prohibited from legislating on the same subject matters addressed by the package 4

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However, the negotiations have created confusion among lawmakers. The White House apparently did not inform House Republicans—who had just passed their own version of KOSA—that it was using Blackburn's legislation as a vehicle. Democrats who worked with Blackburn on the Senate's version of KOSA were also left out of the loop 1

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. A Republican lobbyist told The Verge that "no one knows really who's driving this thing" and expressed deep skepticism about the bill's movement 1

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Risk Mitigation for AI Developers and the Four Cs Framework

The White House AI regulation approach has been influenced by Mike Davis, a Trump-allied lawyer who led a successful attempt to kill a different AI moratorium in the Senate last year. Davis insisted that preemption law should protect the "Four Cs": children, conservatives, creators, and communities 1

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. The inclusion of KOSA satisfies the "children" requirement, while the NO FAKES Act addresses creator protections. Davis warned there is "no chance in hell AI preemption will pass if it does not address the Four Cs" 1

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A separate bipartisan proposal from Reps. Jay Obernolte and Lori Trahan would also preempt state AI laws for three years, formally establish the Center for AI Standards and Innovation, and require certain developers to address risks prior to releasing models 3

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. However, the White House negotiations with Blackburn suggest this House bill is not the likely vehicle for AI policy in this Congress 3

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Free Speech Advocates Raise Alarm Over Online Safety for Children Provisions

Free speech advocates have expressed serious concerns about the package. The Foundation for Individual Rights and Expression warned that "taken together, these bills would fundamentally change the internet as we know it" 2

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. The organization argues KOSA would give the FTC broad power to hold platforms accountable for lawful speech, while the age verification mandate would effectively end anonymous internet use 2

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The Intercept reported that KOSA's age verification requirements would make it nearly impossible to browse the internet anonymously, a concern spanning the political spectrum. The legislation would give whichever administration controls the FTC significant leverage over how platforms moderate content for roughly 71% of US adults who regularly use Instagram alone . The road to passage remains uncertain as time runs out this Congress, with intraparty and partisan debates delaying movement while the Senate and House appear misaligned on a path forward 4

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