US Shutdown Halts Tech Regulation: Key Agencies Scaling Back Operations
The ongoing US government shutdown has led to significant disruptions in federal agencies, with the Trump administration considering mass firings and numerous departments scaling back operations. This includes key bodies overseeing the technology industry, raising concerns about regulatory oversight.
The shutdown, which began on Wednesday after President Trump and lawmakers failed to reach a funding deal, has affected a vast majority of the Commerce Department's nearly 43,000 staff. Most research activities at the National Institute of Standards and Technology (NIST) have ceased. This comes as a blow to the tech industry, as the department plays a crucial role in surveillance and regulation.
The Federal Trade Commission (FTC), another key player in tech oversight, has closed and furloughed around 400 employees, roughly a third of its workforce. This is expected to cause delays in active litigation, including antitrust lawsuits against tech giants like Amazon and Meta. The Justice Department's antitrust division is also expected to reduce to 60% of its staff during the shutdown, further impacting ongoing cases.
The Federal Communications Commission (FCC) is set to send home a vast majority of its staff, ceasing many of its operations. Meanwhile, the Justice Department will seek delays or extensions in civil cases during the shutdown, as most of its major tech cases are civil in nature.
The shutdown's impact on tech oversight is significant, with key agencies like the FTC and parts of the Commerce Department facing reduced operational capacity or paused activities. Hundreds of thousands of workers, including those in tech regulation, face potential furloughs. As the shutdown continues, the tech industry and consumers alike await the resolution of these disruptions.
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