Federal Deposit Insurance Corporation to vote on 2026 operating budget cutting USD 487 million and reducing authorized staffing by nearly 20%

The Federal Deposit Insurance Corporation set out its proposed 2026 operating budget for board approval, proposing a USD 487 million reduction from the 2025 budget, a 16.4% decline. The decrease is driven primarily by a nearly 20% reduction in authorized staffing and additional efficiency measures. Cost savings also include the cancellation or non-renewal of many non-mission-critical contracts and restrictions on non-mission-critical travel. The staffing reduction followed a weeks-long review of the FDIC’s organizational structure conducted last spring, which identified areas to reduce headcount while maintaining the agency’s ability to supervise banks, insure deposits, and resolve failed institutions. The FDIC board is scheduled to vote on the 2026 operating budget at its meeting.