A 16.4% decrease in the budget for 2026 of the federal bank deposit insurance agency is attributable to staffing cuts made at the beginning of the year in line with White House demands, the agency said Tuesday.
According to the Federal Deposit Insurance Corp. (FDIC), the 2026 budget of $2.49 billion represents a “combined” $487 million reduction from the 2025 budget.
“The budget reflects the reduction in staffing resulting from the agency’s workforce optimization efforts in the first half of 2025, when the FDIC conducted a rigorous review of areas where the workforce could be streamlined without sacrificing the agency’s ability to fulfill its statutory mission,” the agency said in a statement.
The reductions last spring were spurred by the so-called “department of government efficiency” (DOGE) which imposed steep budget reductions on the FDIC and other federal financial institution regulators. The FDIC, for instance, reduced its budget by nearly 20%, according to a statement by Acting Chairman Travis Hill.
The agency said the new year’s budget, approved unanimously the by three-member FDIC Board Tuesday during its meeting, “continues to provide staffing and funding necessary to effectively execute the FDIC’s supervision, insurance, and resolution readiness functions to maintain stability and public confidence in the nation’s financial system.”
FDIC Board Approves 2026 Operating Budget
Leave a Reply