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FDIC board approves just over $3 billion operating budget for 2025
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Summary
The FDIC board approved a proposed 2025 operating budget of just over $3,000,000,000, citing modest year-over-year growth to sustain supervision, receivership readiness and workplace-culture reforms; the roll-call vote recorded the chair, Vice chairman Hill, Director McKernan, Director Hsu and Director Chopra voting aye.
The Federal Deposit Insurance Corporation's board voted to approve the agency's proposed 2025 operating budget, a package the staff described as "a little over $3,000,000,000," with most of the increase tied to salary and benefit costs and new funds to implement the FDIC's workplace action plan.
In a staff presentation, the deputy director for corporate planning and performance management walked the board through the assumptions and drivers behind the request, saying the proposal was "up about $64,000,000 or 2.2% from this year" and that the ongoing operations component is the primary source of the increase. The staff also described the budget as split into three components: ongoing operations, receivership funding and the separately appropriated Office of Inspector General.
The board was given a number of details about the request: the receivership funding budget is proposed at $250,000,000 (down from larger recent levels), proposed authorized staffing of 6,876 (about 6,500 permanent), and an overall emphasis on maintaining readiness to respond to failures. The presentation noted that 67% of the ongoing operations budget is for salaries and benefits and that the staff expects occupancy and vacancy rates to improve in 2025.
The budget includes resources tied to the FDIC's action plan to transform workplace culture: staff described roughly 53 new positions and nearly $48,000,000 to establish an Office of Professional Conduct (about 30 positions) and an Office of Equal Employment Opportunity (about 20 positions), contract funds for investigations and training, and $7,300,000 in expected expenditures for a board-approved culture-change adviser. The independent transformation monitor proposed a $9,300,000 budget for next year, staff said.
Chair (unidentified) framed the vote as sustaining the FDIC's ability "to continue next year fulfilling its important mission responsibilities for maintaining stability and public confidence in the nation's banking system," and noted continuing downside risks to the industry from interest-rate volatility, unrealized losses on securities and commercial real estate stress.
An unnamed director who spoke earlier told the board the initial staff draft would have increased staffing by a net 105 positions but that board discussion produced a final package with fewer net positions and $45,000,000 less spending than the initial draft; that director said they would vote in favor while urging the FDIC to pursue additional operational efficiencies.
An unnamed board member moved to approve "the resolution regarding the FDIC's 2025 operating budget." The chair called the roll; the chair (unnamed) said "I vote aye," Vice chairman Hill said "Aye," Director McKernan said "Aye," Director Hsu said "Aye," and Director Chopra said "Aye." The motion was adopted.
The board approved the budget with the staff-recommended staffing levels and directed no further immediate action in the open meeting. Following the vote, the chair thanked members and the open session was adjourned; the board moved into a closed session.
Notes: the presentation and the chair used slightly different percentage figures (staff said 2.2%; the chair summarized the increase as 2.1%). Where the transcript did not attribute a motion to a named director, the mover and seconder are recorded as unnamed board members in the meeting minutes.
