By the early 1990s, Congress had created more than 100 federal regulatory agencies in fields ranging from trade
to communications, from nuclear energy to product safety, and from medicines to employment opportunity. Among the
newer ones are the Federal Aviation Administration, which was established in 1966 and enforces safety rules
governing airlines, and the National Highway Traffic Safety Administration (NHSTA), which was created in 1971 and
oversees automobile and driver safety. Both are part of the federal Department of Transportation. 70
Many regulatory agencies are structured so as to be insulated from the president and, in theory, from political
pressures. They are run by independent boards whose members are appointed by the president and must be confirmed by
the Senate. By law, these boards must include commissioners from both political parties who serve for fixed terms,
usually of five to seven years. Each agency has a staff, often more than 1,000 persons. Congress appropriates funds
to the agencies and oversees their operations. In some ways, regulatory agencies work like courts. They hold
hearings that resemble court trials, and their rulings are subject to review by federal courts. Despite the
official independence of regulatory agencies, members of Congress often seek to influence commissioners on behalf
of their constituents. Some critics charge that businesses at times have gained undue influence over the agencies
that regulate them; agency officials often acquire intimate knowledge of the businesses they regulate, and many are
offered high-paying jobs in those industries once their tenure as regulators ends. Companies have their own
complaints, however. Among other things, some corporate critics complain that government regulations dealing with
business often become obsolete as soon as they are written because business conditions change
rapidly.
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