Post by : Rameen Ariff

Lina Khan, the former chair of the United States Federal Trade Commission (FTC), is emerging as a pivotal figure in the administration of New York City's mayor-elect, Zohran Mamdani. Last week, she was appointed co-chair of Mamdani’s transition team, diving into strategies for utilizing seldom-leveraged legal powers to advance his ambitious reform agenda.

In an upcoming interview with Pod Save America’s Tommy Vietor—scheduled for November 23—Khan emphasized her mission to activate underutilized powers available to the mayor’s office, aiming to help Mamdani fulfill his commitment to transform public services and affordability in NYC.

Khan's experience at the FTC has made her adept at identifying dormant legal resources. She stated, “I’ll be particularly focused on understanding all the laws and authorities the mayor can independently utilize.” This insight stems from her time in Washington, where she learned the importance of exploring executive powers.

A Progressive Platform Demands Robust Tools

Mamdani, just 34 and a self-identified democratic socialist, has proposed transformative measures such as free citywide public transportation, universal childcare for children from six months to five years, and a rent freeze on over a million rent-stabilized homes.

However, executing this agenda comes with a hefty price tag, estimated at $10 billion in new annual revenue. Mamdani has suggested that tax hikes on millionaires and corporations should foot the bill. Yet, with taxation powers resting with the state government and Governor Kathy Hochul signaling no plans for tax increases, this poses immediate obstacles for the incoming mayor.

Hochul's skepticism regarding the feasibility of free bus services stems from the Metropolitan Transit Authority's (MTA) reliance on fare revenue to manage $17 billion in bonds.

Khan: Exploring Limits Amidst Collaboration Challenges

Acknowledging potential political and financial barriers, Khan stressed that while cooperation with the governor and state representatives is crucial, the mayor also has substantial capacity for unilateral actions.

“He should have significant authority to make decisions independently,” she stated. “It’s crucial for him to be aware of what that authority entails.”

Sources close to her indicate that Khan is investigating new and recently enacted regulations concerning algorithmic price discrimination and junk fees—elements that could facilitate stricter corporate governance at the city level.

A Controversial Figure Facing Backlash

Khan, 36, has been a polarizing presence within the Biden administration. As the youngest FTC chair, she often found herself at odds with major corporate entities, inciting frequent criticism over her expanded antitrust initiatives, especially following early legal setbacks against Meta and Microsoft.

Her participation in Mamdani’s transition has already drawn criticism. Billionaire hedge fund manager Daniel Loeb, a known opponent of Mamdani’s candidacy, lambasted Khan on social media, predicting her influence would result in “Soviet-style centralized control” that could harm the economy.

Despite his disparaging remarks, Loeb humorously concluded, “But let’s give @ZohranKMamdani a chance.”

Leveraging Historical Laws for Modern Solutions

One of Khan's pivotal decisions at the FTC involved reviving the Robinson-Patman Act, a rarely enforced 1936 law, during litigation against Southern Glazer’s Wine and Spirits. She believes that outdated laws can be powerful assets—an approach she seeks to replicate in NYC.

“It was astounding to discover how much dormant authority remained untapped,” she stated. “Our goal is to thoroughly understand the full range of powers at City Hall.”

Confronting Big Technology at the Local Level

Khan hinted that under Mamdani's leadership, NYC might adopt a more assertive stance against tech platforms through the Department of Consumer and Worker Protection, which shares regulatory goals with the FTC.

“They possess a comprehensive array of laws designed to prevent corporate abuses of power,” she pointed out. “I’m excited to see those put into practice.”

A Transition Team Ready for Challenge

As Mamdani prepares to assume office on January 1, Khan’s strategy signals a government poised to test limits and confront established norms surrounding executive authority. With considerable expectations from progressive backers and staunch resistance from established interests, the incoming mayor may heavily depend on Khan’s expertise to uncover every available legal instrument.

Her approach could be pivotal in transforming Mamdani’s boldest proposals from mere campaign promises into a new narrative for governance in New York City.

#Global