Federal Agencies and Their Powers

Federal administrative agencies wield enormous power over the economy and daily life. Understanding how they are structured and what powers they exercise is essential for navigating the regulatory landscape.

Agency Powers

Agencies exercise three types of governmental power:

Quasi-legislative power (rulemaking) — agencies create regulations that have the force of law. Federal regulations are published in the Federal Register and codified in the Code of Federal Regulations (CFR).

Quasi-judicial power (adjudication) — agencies decide individual cases through administrative hearings conducted by Administrative Law Judges (ALJs). Examples include Social Security disability claims, immigration proceedings, and SEC enforcement actions.

Executive power (enforcement) — agencies investigate violations, issue subpoenas, conduct inspections, and bring enforcement actions (administrative, civil, or criminal referrals).

Major Federal Agencies

Environmental Protection Agency (EPA) — administers the Clean Air Act, Clean Water Act, RCRA, CERCLA, and other environmental statutes.

Securities and Exchange Commission (SEC) — regulates securities markets, enforces securities laws, and oversees broker-dealers and investment advisers.

Federal Trade Commission (FTC) — protects consumers from unfair and deceptive trade practices and enforces antitrust law.

Federal Communications Commission (FCC) — regulates interstate and international communications (radio, television, wire, satellite, cable).

Occupational Safety and Health Administration (OSHA) — sets and enforces workplace safety standards.

Food and Drug Administration (FDA) — regulates food safety, pharmaceuticals, medical devices, cosmetics, and tobacco products.

Agency Funding and Resources

Agencies are funded through:

Congressional appropriations — the primary funding source for most agencies

User fees — fees charged to regulated entities (e.g., FDA drug application fees)

Fines and penalties — collected from enforcement actions

Constraints on Agency Power

Agency power is checked by:

Congressional oversight — hearings, appropriations, and the Congressional Review Act

Presidential control — executive orders, appointment power, and OMB regulatory review

Judicial review — courts can invalidate agency actions that exceed statutory authority or violate the APA

Public participation — notice-and-comment rulemaking, Freedom of Information Act (FOIA) requests

The Freedom of Information Act (FOIA)

FOIA gives any person the right to request access to federal agency records. Agencies must disclose records unless they fall within one of nine exemptions (classified information, trade secrets, personal privacy, law enforcement records, etc.).

Federal Agencies and Their Powers