Airbnb contributed $750,000 to an independent political committee supporting Los Angeles Mayor Karen Bass's reelection campaign—spending that surfaced as Bass advances a proposal to loosen city restrictions on short-term rentals, a move that could directly benefit the company.
The mayor's proposal would allow some second homes, investment properties and other nonprimary residences to operate as short-term rentals through the end of 2028. Current Los Angeles rules generally limit short-term rentals to a host's primary residence.
City Councilwoman Nithya Raman, Bass's challenger in the November runoff, quickly accused the mayor of "pay-to-play politics," arguing the policy benefits corporate interests at the expense of renters. Raman said filings showing Airbnb's PAC spending were published hours after she held a press conference exposing the proposal.
Political analyst Michael Fahey said a company spending $750,000 to influence a mayoral race is notable, but its overlap with a policy that could directly benefit the company makes the contribution especially worth scrutiny. He cautioned that campaign finance records alone do not establish an improper exchange between Airbnb and Bass. The political risk for Bass, Fahey said, lies less in a technical violation than in whether voters perceive the company as gaining special access or influence.
The $750,000 went to an independent expenditure committee, which is legally prohibited from coordinating with Bass or her campaign—a distinction her campaign will likely emphasize as Raman escalates her attacks.
The Bass administration argues that temporarily expanding rental rules is necessary ahead of major international events, including the 2026 FIFA World Cup and the 2028 Olympics, which will require increased tourist lodging. Supporters of the proposal, citing a Beacon Economics report, say the city has lost hundreds of millions in transient occupancy taxes since tighter rules took effect, and contend short-term rentals represent a small fraction of the housing stock concentrated in wealthier areas.
Housing advocates counter that allowing more investment properties and second homes to become short-term rentals could pull units off the long-term housing market—a concern that carries weight in a city where housing affordability remains a charged political issue.
Nick Smith, who previously worked on short-term rental policy for the New York City Council's Housing Committee, said Airbnb faces competing pressures: protecting its market share against accusations of reducing affordable housing while supporting low-to-moderate income homeowners who rely on rentals for extra income.
Bass campaign spokesman Alex Stack dismissed Raman's accusations as a desperate conspiracy theory and said the city should explore every revenue option from visitors rather than burden local residents.
