A sweeping executive order from US President Donald Trump has ignited a fierce debate on both sides of the Atlantic, with critics warning it could directly contribute to higher housing costs by shielding controversial property technology from regulation.
The Executive Order and the Backlash
On Thursday, 16 December 2025, President Trump signed an order directing federal agencies to challenge what it termed "onerous" state laws governing artificial intelligence. The order argues that to compete globally, US AI firms require a "minimally burdensome national standard" rather than a confusing patchwork of fifty different state rules.
The move was met with immediate fury from state regulators and civil rights advocates. California Governor Gavin Newsom accused the President and his AI adviser, David Sacks, of "running a con". The order also instructs the US Attorney General to establish an 'AI Litigation Task Force' with the specific job of contesting state AI laws that clash with White House policy.
The AI Threat to Affordable Housing
At the heart of the controversy is the rapid adoption of AI in the real estate sector, particularly software used to algorithmically set rental prices. Companies like RealPage, a Texas-based firm, have used vast pools of confidential data to provide landlords with real-time pricing recommendations.
Critics allege this practice amounts to illegal "algorithmic collusion", enabling landlords to collectively push rents to their maximum possible level under the guise of neutral computer calculations. Fearing this could automate discrimination and inflate costs, numerous local authorities—including San Francisco, Philadelphia, and Minneapolis—have banned AI-driven rent setting. States like New York and Colorado have passed broader laws against algorithmic discrimination.
Nikitra Bailey of the National Fair Housing Alliance warned that weakening these state-led protections would "worsen the fair and affordable housing crisis."
Industry Support and Political Connections
The executive order has found strong support within the technology and real estate industries, which argue that disparate state laws stifle innovation and impose heavy compliance costs. President Trump's relationships with AI leaders are notably close, with figures from firms like OpenAI and Nvidia having donated to his causes and attended his events.
However, political opposition is vehement. Virginia Democrat Don Beyer, co-chair of the bipartisan Congressional AI Caucus, called the order "a terrible idea" that would create a "lawless Wild West" for AI. Meanwhile, figures within Trump's own circle, like former adviser Steve Bannon, have reportedly criticised the move as an "AI amnesty" misguidedly championed by David Sacks.
While the order carves out exceptions for state laws on child safety, it leaves the White House significant latitude to determine which other regulations can be challenged. The coming months will reveal whether the administration uses this power to directly target the growing number of laws designed to keep algorithmic pricing in check.
