In the midst of ongoing debates over federal spending, Rep. Steve Womack voiced his opposition to a proposed budget increase for the Federal Trade Commission (FTC). During Thursday’s House Appropriations Committee hearing, Womack raised pointed criticisms at FTC Chair Lina Khan.
“The FTC, with a cavalier attitude, is weighing in on areas that are outside of its authority and deciding on issues through subjective means,” he said.
“Congress is locked in a fierce debate regarding the fiscal trajectory of our nation,” Womack added. “Requests of this magnitude must be explained and justified thoroughly.”
The FTC is requesting an additional $160 million over last year’s enacted levels, a roughly 37 percent increase for an independent agency that “has seen yearly increases,” according to Womack. He expressed concerns over the FTC’s recent track record and its involvement in issues outside of its authority.
“Moving beyond the objective to the subjective is discouraging to all kinds of business activity,” he said.
Womack’s statement drew a sharp response from the FTC’s Khan, who defended the agency’s work and emphasized the need for additional resources.
“The FTC is small but mighty … taking on some of the most powerful corporations in our economy,” Khan said. “We are making this request because Congress has given the FTC a critical job, but our resources have not kept up.”
Khan pointed to the FTC’s record of pursuing illegal mergers and anti-competitive practices, as well as the agency’s success in securing record monetary judgments.
“The commission is also using all of its authorities provided by Congress to tackle illegal mergers and anti-competitive practices,” Khan said. “Additional resources would allow us to expand the critical work that the FTC staff is doing.”
FTC Commissioner nominee Lina M. Khan testifies during a Senate Commerce on Capitol Hill in Washington on April 21, 2021. Graeme Jennings/Pool/Reuters
The agency has attempted to block a planned acquisition of gaming behemoth Activision by tech giant Microsoft, arguing it would reduce competition in the video game industry. Regulators in the U.K. have also placed obstacles upon the would-be merger earlier this week.
Despite Khan’s arguments, Womack remained steadfast in his opposition to the budget increase.
“I can’t support a massive increase for the FTC budget, especially given the Commission’s recent track record and given the nation’s current fiscal outlook,” Womack said.
The debate over the FTC’s budget comes as part of a broader conversation around federal spending and government priorities. Some lawmakers have argued that spending must be reined in to address the growing national debt, while others have claimed more federal funding could benefit taxpayers down the line.
For the FTC, the outcome of this debate could have significant implications for the agency’s budget. Khan closed her opening statements by saying the FTC’s work is vital to ensuring a level playing field for businesses and protecting consumers from unfair and deceptive practices.
“The work that the FTC does is critical to the health of our economy and to the well-being of American consumers,” she said. “We hope that Congress will recognize the importance of our mission and provide us with the resources we need to continue our work.”
