Former FTC Chair Lina Khan, now co-chair of NYC mayor-elect Zohran Mamdani’s transition team, says she’s reviewing little-used municipal laws to help the incoming administration push forward an ambitious affordability agenda. But many of Mamdani’s core proposals depend on Albany, where Governor Kathy Hochul has already thrown cold water on tax hikes and free buses.
Why Lina Khan Is Digging Through NYC’s “Dormant” Laws
Former Federal Trade Commission Chair Lina Khan says she’s exploring the full range of executive powers available to New York City’s next mayor—even those buried in rarely cited statutes. In a conversation taped for Pod Save America (airing Nov. 23), Khan said she wants to ensure mayor-elect Zohran Mamdani can use “every authority the mayor can unilaterally deploy” once he takes office on Jan. 1.
Khan, whom Mamdani appointed as co-chair of his transition team, is advising him on economic policy, personnel, and governance structure. Her mission, she said, is to ensure the administration can deliver on its “extraordinarily ambitious agenda.”
What Mamdani Ran On—and Why It’s Hard to Implement
Mamdani, a democratic socialist, won the mayoral race on proposals that would dramatically reshape the city’s social infrastructure:
- Free, citywide bus service
- Free, universal childcare for children from 6 months to age 5
- A rent freeze on more than 1 million rent-stabilized units
His administration estimates these programs require $10 billion in new revenue, primarily from taxing millionaires and corporations.
The Albany Problem
Tax policy in New York is controlled by the state legislature, not City Hall.
Governor Kathy Hochul has already stated:
- She has no plans to raise taxes.
- She’s skeptical of free buses, noting MTA fare revenue backs $17 billion in farebox bonds.
This puts much of Mamdani’s platform outside direct mayoral reach.
Khan’s Strategy: Identify Every Executive Lever City Hall Can Pull
Drawing from her FTC experience, Khan said she was surprised by “how much dormant, unused authority” exists in government—and she wants to avoid overlooking similar powers in NYC.
What She’s Reportedly Reviewing
According to a person familiar with the process, Khan is evaluating current and proposed city laws related to:
- Algorithmic price discrimination
- Surveillance-based pricing
- Junk fees
These areas mirror the regulatory priorities she championed in Washington and could influence policy across industries—tech platforms, healthcare providers, food distributors, and more—via the city’s Department of Consumer and Worker Protection.
A good place for an infographic: “Which regulatory powers NYC can use without state approval?”
Why Khan’s Role Is Raising Eyebrows—and Criticism
Khan has long been a lightning rod for Wall Street, corporate America, and critics of President Biden’s regulatory agenda. During her FTC tenure, business groups and billionaires attacked her for:
- Reviving aggressive antitrust enforcement
- Bringing merger challenges against Meta and Microsoft (both unsuccessful)
- Reinvigorating the Robinson-Patman Act, a once-dormant price discrimination law
So it was no surprise that her appointment drew immediate backlash.
Daniel Loeb Weighs In
Hedge fund manager Daniel Loeb, a vocal opponent of Mamdani who funded campaigns against him, blasted Khan on X, writing:
“I would hire this person if I were dead set on crafting Soviet-style centralized control… But we should give @ZohranKMamdani a chance.”
His criticism reflects a broader anxiety in the financial sector about how Mamdani and Khan might reshape regulation in the city.
Can Khan Help Mamdani Push Through His Agenda Without Albany?
The short answer: only partially.
Where City Hall Has Strong Independent Power
- Housing enforcement and rent stabilization administration
- Local consumer protection regulations
- Zoning, permitting, and land-use decisions
- Municipal contracting and procurement
- Certain fee-based rulemaking powers
Where the Mayor Has Limited Autonomy
- Taxes: require Albany
- Major transit policy: shared with the governor and legislature
- City budget expansions: heavily influenced by state aid and mandates
Khan acknowledged this tension in the interview:
“A lot of what he is going to be looking to deliver is going to be requiring working closely with other institutional actors… but he should also have a lot of ability to do things unilaterally.”
Why Khan’s Approach Could Shift NYC Governance
If Khan identifies underused authorities, Mamdani could—at least on the margins—advance parts of his affordability platform without waiting on the legislature.
Potential levers:
- Local rules against algorithmic exploitation that lower consumer costs.
- Aggressive enforcement of corporate misconduct through existing city laws.
- Administrative reforms that make childcare and housing programs more accessible.
Even without Albany’s support, incremental wins could shape Mamdani’s first year, frame public expectations, and apply political pressure on state leaders.
The Bigger Picture
Khan’s effort reflects a broader trend:
Incoming leaders, especially progressives with ambitious agendas, increasingly rely on creative regulatory interpretation when traditional legislative routes are blocked.
For Mamdani, the challenge is acute. His agenda—free buses, universal childcare, a rent freeze—depends heavily on revenue streams he doesn’t control.
Khan’s task is to find every lever City Hall does control, dormant or not, and pull them hard.
Whether that sparks friction with the governor, Wall Street, or federal regulators is almost guaranteed.
Whether it delivers measurable change for New Yorkers is what will ultimately define Mamdani’s administration.
