In a Board meeting statement, the Federal Deposit Insurance Corporation set out its proposed 2026 operating budget for Board vote, projecting a USD 487 million decrease from the 2025 budget, a 16.4% reduction. The proposal is driven primarily by a nearly 20% cut in authorized staffing while aiming to maintain resources for bank supervision, deposit insurance, and the resolution of failed institutions. The staffing reduction follows a weeks-long review of the FDIC’s organizational structure conducted in spring 2025, which identified areas where headcount could be reduced without compromising core responsibilities. Additional savings reflect efficiencies such as cancelling or not renewing non-mission-critical contracts and restricting non-mission-critical travel.
Federal Deposit Insurance Corporation 2025-12-16
Federal Deposit Insurance Corporation proposes 2026 operating budget cutting USD 487 million and reducing authorized staffing by nearly 20%
The Federal Deposit Insurance Corporation proposed a 2026 operating budget with a USD 487 million decrease from 2025, reflecting a 16.4% reduction. This proposal includes a nearly 20% cut in authorized staffing, following a review of the FDIC’s organizational structure, while maintaining resources for core functions. Additional savings are achieved through efficiencies like cancelling non-essential contracts and travel.