Earlier quoted context omitted.
It's one route to nationalization. Increase regulation, make impossible to manage until nobody believes the company can do the job, then add it to your political platform.
So cutting funding is increasing regulation how?
That said, I'm not entirely sure how increased regulation makes it impossible to manage as long as the rest of the market is allowed to work. It's fairly obvious that both capitalism and socialism have very real downsides when unfettered. It's a balancing act.