WASHINGTON — The Federal Deposit Insurance Corp. said a 16.4% reduction in its proposed 2026 budget reflects staffing cuts made earlier this year under White House-directed efforts to rein in federal spending.
The staffing cuts at the FDIC are similar to those that have taken place at NCUA.
The FDIC said its 2026 budget of $2.49 billion represents a combined reduction of $487 million from its 2025 budget. The decrease stems largely from workforce reductions carried out in the first half of 2025.
“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.
DOGE-Driven Cuts
The cuts were driven by pressure from the so-called Department of Government Efficiency, or DOGE, which pushed for steep budget reductions across federal financial regulators. Acting FDIC Chairman Travis Hill has said the agency reduced its budget by nearly 20% as part of that effort.
Despite the lower funding level, the FDIC said the proposed budget maintains sufficient resources to carry out its core responsibilities. The agency said the plan “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.”
The 2026 budget was approved unanimously by the FDIC’s three-member board during its meeting Tuesday.
