How may a federal administrative agency institute new policy?

A federal administrative agency can institute new policy through rulemaking proceedings or by adjudication, making this the correct choice. Rulemaking is a formal process that involves the agency proposing rules to the public, allowing for comments, and subsequently finalizing a rule that has the force of law. This process often follows the Administrative Procedure Act (APA), which sets guidelines for how agencies can propose and implement regulations.

On the other hand, adjudication refers to the agency resolving disputes or making determinations about specific cases. Through this method, an agency can create policy by interpreting and applying existing laws to particular situations. Decisions made in adjudication can set precedents that influence future actions and policies of the agency.

The other options do not accurately represent how federal agencies can enact new policies. Public voting is not a mechanism available to administrative agencies; their roles are largely filled by expert agencies acting independently of direct public votes. Legislation is indeed a means of establishing federal policy, but it is conducted by Congress rather than by administrative agencies themselves. Thus, while they cannot introduce legislation directly, agencies can still enact policies through rulemaking and adjudication, which are essential functions within their regulatory frameworks.