SEC Faces 7% Budget Cut, Cyber Rule Halted by GOP

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SEC Faces 7% Budget Cut, Cyber Rule Blocked in House Republican Proposal

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 22, 2025

Key Takeaways

House Republicans propose cutting the SEC’s 2026 budget by 7%, down to $2.03 billion;
The plan blocks SEC funding to enforce a rule requiring fast disclosure of cybercrimes;
The bill also restricts SEC data collection and new rules on private securities offerings.

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SEC Faces 7% Budget Cut, Cyber Rule Blocked in House Republican Proposal

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Republican lawmakers in the US House of Representatives are pushing to reduce the Securities and Exchange Commission’s budget for 2026 and block funding tied to a rule introduced under former President Biden.

On July 21, a House Appropriations subcommittee approved a $23.3 billion funding package that outlines budgets for several agencies, including the SEC and the Treasury Department.

The overall proposal represents a nearly 8% decrease, roughly $410 million, compared to the current fiscal year, which ends on September 30.

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Under the plan, the SEC is expected to receive around $2.03 billion in 2026. That is around 7% less than its 2025 budget and falls short of the $2.149 billion the agency requested to support over 4,100 full-time staff.

The draft bill includes several restrictions on how the SEC can use its funds. One key provision would prevent the agency from enforcing a 2023 rule that requires companies to report major cyberattacks within four days.

The proposal also bars the SEC from collecting personal data through a system designed to monitor trading in stocks and options. Additionally, it would prevent the agency from creating new rules for private securities offerings.

Representative Dave Joyce, who leads the subcommittee, said the measure aims to reduce unnecessary government spending. The proposal was approved along party lines and advances to the full House Appropriations Committee.

Meanwhile, Thailand's SEC recently requested public feedback on possible changes to its rules for people who invest in crypto token sales. What did the agency say? Read the full story.