Independent Report – The U.S. Securities and Exchange Commission SEC plans to keep its current budget level for the next fiscal year. While significantly reducing its workforce. This decision reflects an effort by the SEC to operate more efficiently after a period of substantial staff reductions across the agency.
The SEC has requested a budget of $2.15 billion for the fiscal year 2026. Which is the same amount currently approved by lawmakers. By keeping the budget steady, the agency hopes to avoid any financial uncertainty and maintain its activities without interruptions. This budget proposal was published on the SEC’s official website on Friday.
Alongside the budget request, the SEC plans to reduce its full-time positions from 4,548 to 4,101, representing a decrease of nearly 10 percent. This significant cut in staff reflects the agency’s efforts to streamline its operations after a wave of voluntary resignations and early retirement programs. Many employees have left the agency in recent months, shrinking its workforce considerably.
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Paul Atkins, the SEC chairman, is scheduled to testify before the Senate on Tuesday to discuss the agency’s budget request and workforce plans. When asked for further comments, an SEC spokesperson declined to provide additional details beyond the official budget documents. The SEC’s current fiscal year runs through the end of September.
The budget proposal signals the agency’s intention to operate with a leaner team in the future. Hundreds of employees have departed through voluntary exit programs. Which were designed to reduce the number of staff while minimizing disruption to ongoing work. The staff reductions come at a time when other government agencies are also experiencing turnover related to shifts in federal employment policies.
During the first few months of this year, several key SEC divisions experienced a reduction of between 15 and 19 percent in their permanent workforce. Around 600 employees resigned amid ongoing debates about the future size and role of the federal workforce. This includes pressure from political figures, such as former President Donald Trump and tech entrepreneur Elon Musk. Who have advocated for changes to the federal workforce structure.
Maintaining the budget at the current level is expected to leave the SEC with a surplus of more than $100 million. The agency indicated that this extra funding might be necessary to handle various uncertainties in the regulatory environment. One of these uncertainties involves the potential transfer of oversight responsibilities for U.S. auditors. A function that may be removed from the Public Company Accounting Oversight Board (PCAOB) and given to the SEC.
The SEC’s budget and staffing plans reflect its effort to balance fiscal responsibility with the need to adapt to changing regulatory demands. While the agency will operate with fewer employees, it aims to preserve its core functions, including market oversight. Enforcement actions, and investor protection.
By keeping its budget unchanged, the SEC ensures stability in its financial resources while preparing to manage challenges posed by evolving market conditions and regulatory requirements. This cautious approach also allows the agency to respond flexibly to new duties that Congress may assign in the future.
The SEC’s decision to freeze funding and cut staff reflects a strategic move to stay effective during a transition. The agency will continue to focus on safeguarding the integrity of U.S. financial markets with a smaller, more streamlined workforce.
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