Fannie Mae Terminates 200 Employees of Telugu Origin Over Alleged Grant Misuse
NRI PULSE STAFF REPORT
Washington, D.C., April 9, 2025 – In a major layoff that has shocked the Indian American community, U.S.-based mortgage finance company Fannie Mae has let go of around 700 employees. Of these, more than 200 employees, mostly of Telugu origin, were terminated on what the company called “ethical grounds.”
According to reports, these employees were removed for allegedly misusing Fannie Mae’s matching grants program. This program is designed to encourage charitable giving by employees. When an employee donates to an eligible nonprofit organization, the company matches the amount—effectively doubling the donation. However, in this case, some employees allegedly faked donations or collaborated with nonprofit groups to redirect the matched funds for personal use.
Federal authorities are now investigating. In December 2024, the U.S. District Court for Northern California subpoenaed the Telugu Association of North America (TANA), asking for donation records from 2019 to 2024. One of the terminated employees was reportedly a regional vice president at TANA, and the wife of a former American Telugu Association (ATA) president was also allegedly involved.
The layoffs have created panic, especially among employees on H1B work visas, who now have just 60 days to find another job or leave the U.S. Many are struggling with the uncertainty.
“This is heartbreaking,” said a Virginia-based software engineer who requested anonymity. “We came here chasing the American dream. Now, suddenly, everything feels like it’s slipping away.”
Community organizations are trying to help. Telugu associations in the U.S. have started networking drives and job placement efforts to assist those affected.
“We don’t condone any wrongdoing, but we are here to support our brothers and sisters in crisis,” said Kiran Vangala, a community leader in New Jersey. “Many of these families have children in school, mortgages to pay—it’s not easy to just pack up and leave.”
This is not the first such case. Earlier this year, Apple also fired several Indian-origin employees over similar misuse of its donation matching program, some of whom were allegedly tied to Telugu groups.
As the investigation continues, community members are calling for more education on corporate policies and transparency in nonprofit operations.
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