Senators Investigate RealPage's Role in Advancing State AI Law Ban

Democratic senators are investigating whether RealPage, a software firm facing allegations of colluding with landlords to increase rents, lobbied for a proposed ten-year ban on state-level AI regulation. In a letter to RealPage CEO Dana Jones, Senators Elizabeth Warren (D-MA), Bernie Sanders (D-VT), Amy Klobuchar (D-MN), Cory Booker (D-NJ), and Tina Smith (D-MN) requested details on the company's "potential involvement" in a provision of the Republican budget reconciliation bill. This provision would prevent states from enacting laws affecting artificial intelligence or "automated decision" systems for a decade.

The senators contend this measure could undermine efforts to stop RealPage from pooling sensitive data from multiple landlords into an algorithm to recommend non-competitive rental prices.

A 2022 ProPublica report connected RealPage to rising U.S. rent prices, alleging its algorithm facilitates pricing coordination among landlords. The Department of Justice and eight states sued the company last year, accusing it of "depriving renters of the benefits of competition on apartment leasing terms." Meanwhile, cities including Minneapolis, Jersey City, Philadelphia, and San Francisco have enacted bans on rent-setting software, and states like Connecticut, New York, Massachusetts, and Washington are considering similar legislation.

"Republicans are attempting to clear the path for RealPage's rent-increasing algorithm."

The senators argue the Republican budget bill would halt pending state legislation and prevent enforcement of any regulations limiting RealPage's pricing algorithm. The bill seeks to bar states from enforcing any laws governing a wide array of automated computing systems, which would likely encompass RealPage's algorithms.

While major AI companies like OpenAI are the most visible supporters of this regulatory pause, lawmakers suspect RealPage may have also spent millions advocating for it. The letter states, "We seek information on RealPage's lobbying efforts, and on how the Republican provision would financially benefit RealPage and other large corporations by enabling them to take advantage of consumers."

The senators note RealPage "intensified" its Congressional lobbying in reaction to local laws threatening its business. They cite a Lever report finding that the National Multifamily Housing Council, a trade group representing RealPage, boosted its lobbying spending from $4.8 million in 2020 to $9 million in 2024. The report also noted the group lobbied on "issues surrounding the risks and opportunities posed by artificial intelligence," and "federal policies affecting usage of data, artificial intelligence, software," and other real estate technology.

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"RealPage significantly increased its multi-million dollar lobbying campaign in Congress, and subsequently, Congressional Republicans passed a provision to block states from protecting renters," Senator Warren told The Verge. "Americans are struggling with soaring rents, but instead of providing relief, Republicans are trying to give a green light to RealPage's rent-hiking algorithm."

The senators have demanded RealPage disclose its annual Congressional lobbying expenditures since 2020, along with the firms and individuals it hired. They also seek details on spending specifically targeting AI legislation and how the budget bill would affect RealPage in states considering bans on rent-setting software. RealPage has been asked to respond by June 10, 2025.

If passed by the Senate, the bill's impact could extend far beyond RealPage. In addition to restricting state regulation of AI chatbots, it could affect laws concerning deepfakes, automated hiring tools, facial recognition, sentencing algorithms, and more.