Shortly before leaving for the August district work period, the House Appropriations Subcommittee on Financial Services and General Government advanced the FY2026 Financial Services and General Government Appropriations bill. One of its most notable provisions targets the Federal Trade Commission (FTC), cutting its budget and blocking Chair Lina Khan’s latest efforts to expand her regulatory reach.
As Charles Sauer explains in RealClearMarkets, the bill “reduces the FTC’s budget by $37 million or 8.7%” while also prohibiting the agency from imposing new burdensome requirements on businesses seeking merger approval.
Stopping Lina Khan’s Merger Red Tape
Khan’s proposed revisions to the Hart-Scott-Rodino (HSR) pre-merger notification form would dramatically increase the time and cost of filing. Sauer notes:
“The FTC estimates the new form will add approximately 68 hours to the time it takes businesses to prepare the pre-approval form.”
According to the law firm Vinson & Elkins, the changes would create “significant additional burdens for filing parties, including expanded document productions, increased reporting of buy-side structures, minority shareholders, and information about certain officers and directors, and new narrative responses about relationships between the buyer and the target.”
By including a prohibition on funding for these changes, Congress is ensuring that businesses aren’t saddled with unnecessary paperwork that stifles innovation and growth.
Blocking Collusion With Foreign Regulators
The bill also prevents the FTC from using taxpayer funds to collaborate with foreign regulators like the European Union, the United Kingdom, or China. Sauer highlights why this is critical:
“Despite continually complaining that her agency was underfunded, Chair Khan spent taxpayer money to send FTC staffers to Brussels to help implement the Digital Markets Act (DMA).”
The DMA forces American “big tech” companies to hand over access to their intellectual property and platforms, undermining property rights and competitiveness. Five of the seven companies targeted as “gatekeepers” by the EU are American firms.
Protecting U.S. Companies from Foreign Influence
Khan’s cooperation with overseas regulators even extended to high-profile cases. As Sauer points out, documents suggest FTC influence in the UK Competition and Markets Authority’s reversal on Microsoft’s acquisition of Activision.
Congressional leaders recognize the danger of letting unelected bureaucrats use foreign alliances to undermine American companies. Sauer argues that codifying this prohibition now “will make it easier to include in future spending bills, thus preventing the next ‘progressive’ to chair the FTC from working with foreign governments to make American companies less competitive and undermine Congress’s authority.”
A Step Toward Limiting the FTC’s Power
While more work remains to permanently rein in the FTC’s excesses, these provisions represent a significant step in the right direction. As Sauer concludes, “all supporters of limiting the FTC’s power over the American economy should hope these provisions make it into the final spending bill that Congress will be working on this fall.”
By cutting waste, reducing red tape, and curbing international meddling, Congress is protecting American innovation and competitiveness.
Read the full article at RealClear Markets by clicking here.
