Congressman Suhas Subramanyam of Virginia has initiated a formal inquiry into the recent mass termination of predominantly Indian American employees at Fannie Mae. In a letter addressed to Federal Housing Finance Agency Director William Pulte and Fannie Mae CEO Priscilla Almodovar, the Congressman demanded detailed explanations and supporting evidence behind the decision to dismiss hundreds of employees without what many allege was a fair process.
According to Subramanyam’s office, the layoffs affected nearly 700 staff members, many of them Telugu-speaking Indian Americans residing in Northern Virginia. These employees were reportedly fired over accusations of unethical behaviour and misuse of Fannie Mae’s matching gift programme, though many insist they were given no chance to respond or defend themselves.
“These are members of my community—many with excellent performance records—who were fired without being presented with any proof of wrongdoing,” Subramanyam said. “They deserve transparency, due process, and a proper investigation.”
The controversy stems from employee donations made through Fannie Mae’s official matching gift programme, which allows staff to double their charitable contributions—up to $5,000 annually—to approved nonprofits. Several fired employees say the organisations they supported were on Fannie Mae’s pre-approved list, yet they were still let go, allegedly without explanation. Some even claim they never donated to the organisations in question.
The Congressman, who represents Virginia’s 10th Congressional District, expressed concerns that the firings may have disproportionately targeted Indian Americans, possibly using their community ties as the sole justification for dismissal. He emphasized the need to know whether Fannie Mae conducted proper internal reviews and if employees were given any opportunity for corrective action before being terminated.
In his letter, Subramanyam asked Fannie Mae to clarify whether it gathered and reviewed any evidence before terminating the employees, if any were given a chance to respond, whether specific donations were used as the basis for termination, and if any Indian American employees were exonerated during internal reviews.
He requested a full response by April 14, 2025, along with an official briefing on the issue. The letter was co-signed by fellow Indian American Representatives Raja Krishnamoorthi and Shri Thanedar, signaling growing congressional scrutiny on Fannie Mae’s actions.
