Trump Removes Watchdog from US Housing Regulator Amid Political Tensions

Post by : Saif Nasser

In Washington, President Donald Trump has removed Joe Allen, the acting inspector general of the U.S. Federal Housing Finance Agency (FHFA). The move comes at a time when the housing regulator is involved in several cases linked to Trump’s political rivals.

Joe Allen’s removal has caused concern in political and legal circles because he was responsible for investigating wrongdoing inside the FHFA. The inspector general’s office is supposed to work independently to make sure that government agencies use public money properly and do not engage in corruption or misuse of power.

According to four people familiar with the matter, Allen received a notice from the White House telling him that his service was being ended. This came shortly after he tried to share important information with federal prosecutors. Sources said the information was legally required and could have been useful in an ongoing case. His removal also happened while he was preparing to send a letter to Congress saying that the FHFA was not cooperating with his investigations.

The FHFA was created after the 2008 financial crisis to supervise government-backed mortgage companies like Fannie Mae and Freddie Mac. Normally, it is not a political agency, but things have changed since Bill Pulte became its director. Pulte, a businessman and a supporter of President Trump, has been very active in promoting the administration’s goals. He started a public hotline to report mortgage fraud and made several criminal referrals against political figures who are known critics of Trump. These include New York Attorney General Letitia James, Federal Reserve Governor Lisa Cook, and California Senator Adam Schiff.

Pulte’s actions have raised many questions about whether the agency is being used for political purposes. Lawmakers and watchdog groups believe the FHFA should stay neutral and not be involved in targeting political opponents.

Letitia James, who has been one of Trump’s strongest critics, was charged earlier this year with bank fraud and lying to a financial institution. She has denied all charges and says the case is politically motivated. Her legal team argues that the prosecutor in her case, Lindsey Halligan, was unlawfully appointed by Trump and is acting out of revenge. James had previously won a $450 million fraud judgment against Trump in 2024, and many observers believe her prosecution is an act of retaliation.

Reports have also suggested that Director Pulte bypassed the FHFA’s inspector general’s office when handling these politically sensitive cases. This means he may have taken actions without proper internal review or oversight.

The firing of Joe Allen is part of a wider pattern. Since returning to office, President Trump’s administration has removed or reassigned nearly two dozen government watchdogs. These officials are supposed to act independently to prevent misuse of government funds and authority. The administration has also cut funding for the council that oversees these watchdogs, making it harder for them to do their jobs. Critics say these moves weaken government accountability and reduce transparency.

Democratic Senator Elizabeth Warren of Massachusetts reacted strongly to Allen’s removal, saying, “Director Pulte has some answering to do.” She has called for a full explanation from the FHFA about why Allen was fired and whether the agency is being used to target Trump’s political rivals.

The FHFA has not yet responded to emails or calls seeking comment about Allen’s removal. On its official website, the position of inspector general is now listed as “currently vacant.” The last version of the website that listed Allen in the role was from September 2025, according to the Internet Archive.

Allen, who could not be reached for comment, had worked for more than 40 years at the U.S. Department of Justice before joining the FHFA. He held several senior roles, including as a federal prosecutor and a top legal officer with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is not yet clear whether he will continue in his previous position as chief counsel in the FHFA inspector general’s office.

Political observers say this latest move reflects a growing struggle inside the U.S. government between career officials and political appointees. Many experts believe that removing watchdogs weakens the checks and balances that are meant to keep the government honest and responsible. Critics argue that when agencies take sides in political disputes, it damages public trust. They say independent offices like the inspector general are vital to ensure fairness and integrity in government work.

Supporters of the administration, however, argue that many watchdogs have been biased against Trump and his policies. They believe the president has the right to replace officials with people who share his goals and vision for the country.

The removal of Joe Allen has started a new debate in Washington about political interference in government investigations. Lawmakers from both parties are expected to question FHFA Director Bill Pulte about his actions and the direction of the agency.

Many fear that this may not be the last such removal. With the 2026 midterm elections approaching, tensions between the Trump administration and its critics are likely to grow even stronger.

The FHFA, once a quiet housing regulator, is now at the center of a major political storm. The firing of Joe Allen is not just an internal staffing change — it reflects a deeper fight over power, fairness, and political influence inside the U.S. government.