Mayor Zohran Mamdani has appointed Lina Khan, known for her antitrust advocacy during the Biden administration, to chair the board of the New York City Economic Development Corporation (EDC). Khan, who previously led the Federal Trade Commission (FTC), will also oversee interviews for the EDC president position, with Anthony Shorris, a former de Blasio administration official and McKinsey & Company partner, selected for that role.
This appointment signals a potential departure from the EDC's traditional focus on growth, investment, and job creation, suggesting a move towards reshaping the city's economy with a progressive agenda. Historically, the EDC has been instrumental in overseeing real estate development and public-private partnerships, facilitating projects such as Hudson Yards and the NYC ferry system. However, under Mamdani's leadership, the EDC's direction may shift, with reports indicating that interviews for leadership positions focused on accountability and economic justice rather than solely on economic competitiveness.
Mamdani's administration has already introduced initiatives that reflect this evolving approach. The EDC has launched a government-backed insurance program aimed at affordable housing and rent-stabilized units, a move critics argue addresses rising property insurance costs without tackling root causes like state tort laws. Additionally, the EDC is tasked with spearheading a government-run grocery store plan, which has drawn criticism from local bodega owners who view it as direct competition that threatens their businesses. This plan reportedly proceeded without a small-business impact analysis.
Khan's tenure at the FTC was marked by a departure from traditional antitrust enforcement. She oversaw the removal of a clause from the agency's mission statement that aimed to avoid unduly burdening legitimate business activity, and expanded the FTC's scope to include actions against "junk fees" and broader rule-makings that affected entire economic sectors. Notable actions included a nationwide ban on noncompete agreements, which was later struck down by a federal court, and attempted regulations on data security and advertising. The FTC also blocked high-profile mergers, such as the proposed Albertsons-Kroger deal.
Khan's supporters view her approach as a necessary recalibration to curb corporate power and rebalance the economy in favor of smaller businesses. Conversely, critics express concern that her influence could make New York City less attractive to businesses, particularly as the city competes with Sun Belt cities offering lower taxes and perceived greater business-friendliness. The effectiveness of this new direction for the EDC, especially in spurring job growth and maintaining economic competitiveness, remains to be seen.