Bill Pulte Cuts the Budget of the Watchdog Investigating Him by 61%, and the FHFA Inspector General Says It Will End "Essentially All Criminal Investigations" — Nine Democratic Leaders Say Pulte "Should Resign," Elizabeth Warren Warns of "More Fraud in the Mortgage Market," and Pulte Says "Pocahontas Wants to Waste Precious Federal Money Like a Drunken Sailor"
The Federal Housing Finance Agency, led by Director Bill Pulte, has cut its Office of Inspector General's fiscal 2027 budget from about $51.3 million to $20 million — roughly 61% — against the $55 million the OIG requested. The decision, made Aug. 31, became public around Oct. 1, 2026. In correspondence read aloud by Sen. Elizabeth Warren (D-Mass.) at an Oct. 1 Senate Banking Committee hearing, the OIG said: "We will be forced to reduce staffing by approximately 70-80% in FY 2027, which will result in the discontinuance of essentially all criminal investigations." About 40 law enforcement staff face layoffs. FHFA says it is "right sizing" an outlier office whose request equaled 16% of the agency's budget, against roughly 2% for inspectors general government-wide. The FHFA inspector general's office had been examining Pulte's conduct, including his use of private mortgage data in criminal referrals of Trump critics; Trump removed the acting inspector general in November 2025. Pulte also served as acting Director of National Intelligence from June 2 until Jay Clayton's confirmation on July 28, 2026. On Oct. 1, nine Democratic leaders issued a joint statement calling for Pulte's resignation, and 11 Senate Banking Committee Democrats wrote to him that the decision was "unacceptable and yet another example of this administration's willingness to flout the law."
“[Joint statement by Sens. Dick Durbin, Chuck Schumer, Elizabeth Warren, Gary Peters and Richard Blumenthal and Reps. Hakeem Jeffries, Maxine Waters, Jamie Raskin and Robert Garcia:] Bill Pulte is shutting down the independent watchdog that is responsible for investigating his misconduct—like his efforts to weaponize private mortgage data in sham investigations against the President's perceived political enemies. Apparently it wasn't enough for President Trump to remove the acting inspector general last November—now Pulte wants to dismantle the office entirely. Pulte's corrupt crusade to protect himself and President Trump from accountability will likely result in the firing of approximately 40 law enforcement personnel who protect families from mortgage fraud. Bill Pulte should resign, and if he does not, Congress must hold him accountable.”