House Republicans have advanced a proposal to reduce the Securities and Exchange Commission’s budget by 7%, putting the agency’s funding at $2.03 billion for fiscal year 2026.
The budget reduction specifically targets enforcement resources for cybersecurity disclosure rules, which require public companies to report cyber threats. Industry stakeholders from banking and crypto sectors argue these rules could unintentionally aid ransomware attackers by exposing vulnerability details.
Democrats have voiced strong opposition to the cuts, cautioning they may weaken corporate accountability and hamper market oversight capabilities. They warn diminished resources could undermine the SEC’s regulatory effectiveness.
The proposal additionally includes restrictions on the SEC’s ability to collect certain fees, creating further concerns about the agency’s operational capacity and enforcement reach.