Key facts
- FHFA determined its OIG's initial budget request was nearly nine times higher than the average for federal inspector general offices.
- The OIG's requested budget was 16% of the agency's operating budget, compared to an average of 2% for similar offices.
- FHFA stated its OIG employees constitute 18% of the agency's workforce, versus an average of 4% for other inspector general offices.
- Congressional Democrats, including Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, condemned the FHFA's decision.
The Federal Housing Finance Agency (FHFA) announced Wednesday that it will adjust the budget for its Office of Inspector General (OIG) following a review that found its initial funding request to be disproportionately high compared to similar federal watchdog offices. The agency stated the decision aims to ensure the budget is "efficient and right-sized," aligning with its adoption of zero-based budgeting principles.
According to the FHFA, the OIG's original budget request was nearly nine times greater than the average for inspector general offices across the federal government. The agency noted that inspector general budgets typically represent about 2% of an agency's operating budget, whereas the FHFA OIG had requested 16%. Furthermore, employees within the FHFA's OIG constitute 18% of the agency's total workforce, significantly higher than the average of about 4% for comparable offices.
Congressional Democrats, including Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, issued a joint statement denouncing the FHFA's move as a "corrupt crusade." They alleged that Bill Pulte, identified as the head of the FHFA, is attempting to dismantle the independent watchdog responsible for investigating misconduct, including the alleged weaponization of private mortgage data. The Democrats warned that the decision could lead to the dismissal of approximately 40 law enforcement personnel and called for Pulte's resignation.