Big Tech’s lobbyists are facing a major setback in their quest for preemption, a comprehensive federal law that would override state-by-state AI regulation. The White House is proposing a deal with child safety groups, but the plan has caused confusion among lawmakers and industry stakeholders. The White House had not informed House Republicans of its decision, leaving them feeling left out of the loop. Meanwhile, a separate bipartisan-backed AI preemption bill is also making its way through the House.