GOP Proposes 7% Reduction in SEC Budget
House Republicans have introduced a plan to reduce the Securities and Exchange Commission’s (SEC) budget by 7% for fiscal year 2026. The proposal includes significant cuts to enforcement funding for a Biden-era rule requiring public companies to report cyberattacks promptly. This would result in an 8% overall reduction for multiple agencies, including the SEC and Treasury.
Impact on Cybersecurity Disclosure Rule
The budget plan specifically prohibits the SEC from enforcing its 2023 cybersecurity disclosure rule. This regulation requires public companies to disclose cyberattacks within four days unless national security or public safety is at risk. Companies must also report their cyber risk management strategies annually.
Reactions to the Proposal
Democrats oppose the Republican-led budget plan, arguing it weakens corporate accountability. Rosa DeLauro, Committee Ranking member, said the plan lets corporations “cheat on taxes and scam Americans.” Dave Joyce, subcommittee chair, maintains the cuts target wasteful spending.
Key Details
- $153.9 million reduction to SEC’s 2026 budget
- Restrictions on enforcing cybersecurity disclosure rules
- Banking groups previously opposed the rule, calling it a tool for ransomware criminals
