Lina Khan's Strategies to Elevate Zohran Mamdani’s Authority in NYC

Lina Khan, the former chair of the U.S. Federal Trade Commission (FTC), is positioned as a key influencer for New York City’s mayor-elect, Zohran Mamdani. Appointed co-chair of Mamdani’s transition team last week, Khan is investigating how the new mayor can make full use of rarely activated legal powers to fulfill his ambitious agenda.

In a discussion with Pod Save America host Tommy Vietor—scheduled for full release on November 23—Khan emphasized her mission to unearth lesser-known authorities within the mayor’s office. She aims to equip Mamdani to meet his commitments in reshaping NYC's affordability and public services.

Khan’s background with the FTC has familiarized her with dormant regulatory tools. “My focus will be on ensuring we comprehensively account for all laws and authorities the mayor can independently invoke,” she stated. This approach reflects lessons learned during her time in Washington.

A Comprehensive Progressive Agenda Demanding Significant Resources

Mamdani, a 34-year-old democratic socialist, is pushing transformative initiatives such as free citywide bus services, universal childcare for children from six months to five years, and freezing rents for over one million rent-stabilized apartments.

The financial demands of this agenda are substantial, estimated at around $10 billion in new revenue annually. Mamdani has proposed that these funds primarily come from hiking taxes on millionaires and corporations. However, with tax policies under state control and Governor Kathy Hochul publicly opposing tax increases, he faces immediate challenges.

Hochul has raised concerns regarding the feasibility of free bus service, citing the Metropolitan Transit Authority's (MTA) dependence on fare revenue to manage $17 billion in farebox bonds.

Khan: Exploring Limits Amid Political Challenges

Recognizing the political and financial obstacles, Khan remarked that collaboration with the governor and state legislators is crucial, yet the mayor holds considerable authority to act independently.

“He should also retain a great deal of capacity to act unilaterally,” she noted. “We want to ensure he understands what that power entails.”

According to sources close to her plans, Khan is also examining new and recently enacted laws regarding algorithmic price discrimination, junk fees, and surveillance pricing that could empower the administration in regulating corporate practices at the city level.

Controversial Figure Faces New Criticism

Khan, 36, has been a divisive figure during the Biden administration. As the youngest FTC chair, she frequently clashed with corporate interests, leading to critiques from Wall Street and tech giants regarding her aggressive antitrust stance, particularly following early legal setbacks against Meta and Microsoft.

Her involvement in Mamdani’s transition has already garnered backlash, with hedge fund magnate Daniel Loeb, a vocal opponent of Mamdani, criticizing Khan on X for potentially steering the administration towards “Soviet-style centralized control” and allegedly jeopardizing the economy.

Despite his criticism, Loeb suggested humorously that we should allow Mamdani a chance.

Revitalizing Old Laws for Contemporary Needs

One of Khan’s notable actions at the FTC was revitalizing the Robinson-Patman Act, a seldom-enforced 1936 law, illustrated in a lawsuit against Southern Glazer’s Wine and Spirits. She intends to apply this unique approach to New York City governance.

“It was astonishing how much dormant authority was lying unused,” she commented. “We aim to fully grasp the city’s authority.”

Combating Big Tech at the Local Level

Khan indicated that Mamdani’s administration could take bold measures against tech entities via the city’s Department of Consumer and Worker Protection, which aligns closely with the FTC’s mission.

“They possess a complete set of laws designed to prevent corporate abuse of power,” she stated. “I anticipate them utilizing those effectively.”

A Transition Team Ready for Action

As Mamdani gears up to assume office on January 1, Khan’s plans indicate an administration prepared to challenge established norms regarding executive authority. With substantial expectations from progressive supporters and strong opposition from traditional business sectors, the new mayor may significantly depend on Khan’s ability to identify every available legal resource.

Ultimately, her methods may shape whether Mamdani’s grand promises evolve from mere campaign rhetoric to a transformative reality in New York City governance.