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How did Franklin D. Roosevelt's New Deal expand the use of administrative regulation?
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Administrative law
Cartoon depicting a uniformed Interstate Commerce Commission officer shining a large searchlight on U.S. railroad executive Edward Henry Harriman, who is struggling to carry a large load of packages and toy trains, some labeled “merger.”
President Franklin D. Roosevelt’s New Deal significantly expanded the use of administrative regulation by establishing numerous independent agencies to implement economic relief, recovery, and reform programs. Because these programs required specialized, technical, and precise oversight that Congress could not provide directly, the administration delegated broad authority to these new bodies.1234
Key ways the New Deal expanded this regulatory framework included:
- Creation of Specialized Agencies: The administration established entities such as the Securities and Exchange Commission (SEC) to regulate financial markets, the National Labor Relations Board (NLRB) to oversee industrial relations, and the Federal Communications Commission (FCC) to manage communication standards.125
- Delegation of Legislative and Judicial Functions: These agencies were empowered to set standards (legislative function) and conduct hearings or pass judgments on compliance (judicial function), often utilizing administrative law judges.24
- Broad Economic Intervention: Agencies like the Agricultural Adjustment Administration and the National Recovery Administration were granted authority to shape industrial codes, control production, and regulate wages and hours.1
This rapid growth of the "administrative state" eventually led to the Administrative Procedure Act of 1946, which was enacted to standardize how these powerful agencies make and enforce regulations.4