President Donald Trump’s nominee to head the Federal Deposit Insurance Corporation (FDIC), Travis Hill, has received crucial support from Senator John Kennedy (R-La.), overcoming earlier reservations due to concerns about the agency's handling of workplace harassment. This endorsement is significant, clearing a major hurdle for Hill, whose appointment is also widely backed by the banking industry and other Republican Senators.

Last month, Senator Kennedy unexpectedly announced he would withhold his vote for Hill, demanding a comprehensive report from the FDIC on its measures to tackle sexual harassment and other forms of workplace misconduct. At the time, Kennedy expressed dissatisfaction with the lack of communication from Hill on these issues since he assumed the role of acting chair in January.

This Tuesday, Kennedy stated, "I am satisfied with the progress the agency is making. I intend to vote to confirm Mr. Travis Hill as FDIC Chairman. This is no country for creepy old men.” His office released the FDIC report he had requested, which highlighted "long-overdue plans" to revamp the agency’s workplace culture, confirming that reforms were being implemented.

According to the report, in the fiscal year 2025, 26 FDIC employees were removed from their positions due to substantiated allegations of misconduct—either through termination or resignation prior to potential firing. The document also outlined newly implemented efforts to overhaul the complaint process, enhance training, and establish dedicated offices for professional conduct and harassment prevention.

Hill, in his contribution to the report, noted, “I have instituted new leadership across the agency, and today not a single FDIC executive with substantiated allegations of misconduct remains with the agency.”

The issue has not only captured the attention of Republicans but also of leading Democrats. Senator Elizabeth Warren (D-Mass.), the top Democrat on the Banking Committee, expressed concerns at Hill’s confirmation hearing last month, pointing out a lack of evidence that Hill had actively addressed the FDIC’s problematic workplace culture prior to the revelations in 2023.

These concerns date back to the tenure of former FDIC Chair Martin Gruenberg, whose final months were marred by these issues under the Biden administration. Amidst pressure, Gruenberg agreed to resign in May 2024, paving the way for new leadership. However, the Senate failed to vote on President Biden’s nominee, leading to Gruenberg’s resignation just a day before Trump’s second inauguration earlier this year.

With Kennedy’s backing, Travis Hill is now poised for a confirmation vote in the Senate Banking Committee, marking a potentially new chapter for the FDIC under his leadership.