NEW YORK

Mayor Zohran Mamdani appointed former Federal Trade Commission Chair Lina Khan to head the city's Economic Development Corporation board, a move that has drawn sharp criticism from business groups already wary of Khan's regulatory record.

The appointment comes as New York City faces a documented exodus of wealthy residents. Millionaires have fled to Florida, Texas and Tennessee, taking an estimated $11 billion in tax revenue with them. New York City's business community already operates under some of the nation's heaviest regulation and tax burdens.

During her tenure as FTC Chair under President Biden, Khan pursued an aggressive regulatory agenda. Critics point to her role in halting a proposed merger between Amazon and iRobot, which resulted in hundreds of layoffs at the Massachusetts robotics company. Khan has also made public remarks characterizing entrepreneurs as "mob bosses."

At a press conference introducing Khan, Deputy Mayor for Economic Justice Julie Su described her as "someone watching over" the EDC — language that departs from the traditional board chair role and raises questions about the scope of Khan's authority relative to Anthony Shorris, the EDC's president and CEO.

Business groups have questioned Khan's priorities. Sources familiar with her involvement in the search for an EDC president said her questions did not focus heavily on job creation or expanding the city's tax base.

Khan's background is primarily in academia and government, with limited experience in the private sector. Before her FTC appointment, she co-chaired Mamdani's transition team, where she was tasked with identifying city regulations that the mayor could eliminate through executive power, potentially bypassing the City Council.

In announcing the appointment, Mamdani said Khan had "fought exploitation and dishonesty" and provided "the blueprint for a government that delivers for working people."

The irony is stark: Khan's new role requires attracting investment from the same companies toward which she demonstrated hostility during her federal service.