Federal agencies are like sports referees: vital for ensuring fair competition and protecting consumers. But like any referee, their actions must be guided by clear standards, impartial enforcement, and common sense.
While I have long supported former President Biden and applaud his many achievements, several federal agencies during his administration took politically motivated actions that disproportionately hurt U.S. businesses, particularly small businesses, that stifled innovation.
I spoke out when President Biden blocked Nippon Steel’s acquisition of U.S. Steel a move that politicized the CFIUS process just before the presidential transition. This decision threatens the very existence of a company that has long served as both an economic lifeline and a symbol of industrial strength in Pennsylvania—especially here in Bucks County where I’m from. Fortunately, it appears President Trump and his administration are working toward a deal with Nippon that could better support our nation’s steel industry and the workers who depend on it.
But the Nippon case isn’t the only example. President Trump has the opportunity to resolve another issue that has flown under the radar but cannot be ignored: the Federal Trade Commission’s (FTC) lawsuit against a small Idaho-based technology company named Kochava. In August 2022 – on the heels of the Supreme Court’s Dobbs decision – the FTC filed a lawsuit against Kochava, alleging that the company sold geolocation data that could potentially be used to track individuals visiting sensitive locations such as reproductive health clinics. Given the timing and nature of the lawsuit, it looked more like an attempt to score political points than a good-faith effort to protect privacy. I’m a pro-choice Democrat, but to me, this wasn’t about policy, and it sends the wrong message about the role of federal agencies.
President Trump and his administration now have an opportunity to resolve this matter and restore confidence in the regulatory process. While protecting consumer privacy is crucial, the FTC’s approach raises questions about fairness, transparency, and an over-reaching executive branch.
The Kochava case points to a broader issue: the growing politicization of federal agencies. While often well-intentioned, some of these actions have created uncertainty for businesses by relying on unrealistic standards and creating unnecessary burdens, especially on small businesses.
Under President Biden, the FTC significantly expanded merger reporting requirements, even for smaller deals, making it harder for startups to pursue acquisition exits, a vital path for venture-backed companies. These cases illustrate how federal agencies can place significant burdens on businesses, particularly smaller companies with limited resources.
President Trump has already taken steps to address concerns about regulatory overreach. His January 20, 2025, Executive Order emphasized that federal agencies must operate within their intended scope and avoid unfairly targeting businesses.
At a time when trust in our government and institutions is at historic lows, more must be done to restore trust in federal agencies to promote a balanced regulatory environment. Dropping ongoing litigation against companies like Kochava is an important step toward rebuilding public confidence in these institutions. Such actions would signal that federal agencies will not wield their power arbitrarily. We must return to a place where our institutions are guided by fairness, not politics.
When federal agencies overreach, the consequences have a chilling effect on small businesses and start-ups. It stifles innovation and drains resources from small businesses that can’t afford teams of lawyers or lobbyists. Today, 33 million small businesses employ over 60 million Americans, accounting for half of our workforce. Fixing this imbalance will keep entrepreneurs innovating and focused on growth, not legal defense. Resolving regulatory overreach is essential to keeping America’s business climate competitive, driving long-term economic progress.
As the former acting secretary of the Army, member of Congress, and venture capitalist, I urge the Trump administration to drop any litigation that is politically motivated and stems from regulatory overreach. Doing so signals an end to overly aggressive enforcement practices that create unnecessary burdens for U.S. businesses. By reining in some federal agency tactics, we can protect innovation, encourage investment, and ensure America’s economy remains strong.
Patrick Murphy is a former Pennsylvania congressman and former 32nd Army undersecretary who currently lectures at the Wharton Business School at the University of Pennsylvania.
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