White House negotiating federal preemption of state AI laws in exchange for Hill priorities

The White House is negotiating with Capitol Hill to secure federal preemption of some state regulations on artificial intelligence (AI) in exchange for technology policies related to kids safety and deepfake protections.

Sen. Marsha Blackburn (R-Tenn.) is “spearheading” the negotiations with the White House to finalize text for an AI preemption package, the senator’s spokesperson told The Hill on Tuesday. The package will also include “protections for kids, creators, and communities.”

These policies would come through the Senate version of the Kids Online Safety Act (KOSA), a long-debated social media accountability measure, along with the NO FAKES Act (Nurture Originals, Foster Artistry and Keep Entertainment Safe Act) to protect artists from AI impersonation.

The package would also include age verification requirements, another hotly contested issue in the kids online safety space.

The White House has been trying to codify federal preemption of some state AI laws for more than a year, after attempts failed in both the Senate and House last year.

Blackburn’s spokesperson added the package would be “subject-matter preemption,” rather than a “blanket preemption of all laws regulating AI or kids safety.” This means states would be prohibited only from legislation on the same subject matters addressed by the package.

The Hill reached out to the White House for comment.

The negotiations, first reported by Axios, come just days after a bipartisan pair of House lawmakers released their long-awaited draft of a national framework on AI, aiming to preempt some state laws on AI, minimize the technology’s risks and expand research.

The draft, released by Reps. Jay Obernolte (R-Calif.) and Lori Trahan (D-Mass.), proposes overriding state regulations that target AI model development for three years. This would not necessarily preempt state laws dictating how AI is used once released, according to the text.

The road to passage of either of these packages remains an uphill battle as time is running out this Congress. Intraparty and partisan debates, along with fierce pushback from AI safety advocates, have delayed any movement, while the Senate and House do not appear aligned on a path forward.