SEC Requests Flat Budget, Plans Nearly 10% Staff Cut Amid Restructuring

The U.S. Securities and Exchange Commission (SEC) has requested a flat budget of $2.15 billion for fiscal year 2026, signaling a major shift toward a leaner workforce after significant internal downsizing. The budget request, published Friday on the SEC’s website, keeps funding at the same level as the current fiscal year, which ends in September.

The SEC is also seeking approval for 4,101 full-time positions—down 9.8% from the 4,548 roles authorized by Congress this year. This marks a notable reduction in headcount following early-resignation offers accepted by approximately 600 staff members. Key divisions within the agency reportedly lost between 15% to 19% of their workforce over a few weeks earlier this year.

The reduction is part of a broader effort aligned with the Trump administration and Elon Musk’s federal workforce overhaul initiatives. Chairman Paul Atkins is scheduled to testify before the Senate on Tuesday regarding the budget proposal.

The SEC indicated that keeping the budget flat could result in an excess of over $100 million, which may be allocated to address emerging uncertainties. One such concern includes the possibility of absorbing responsibilities from a U.S. audit watchdog, which may be dissolved.

An agency spokesperson declined further comment beyond the published request. The agency’s strategy reflects an ongoing effort to streamline operations while maintaining regulatory effectiveness in volatile financial markets. The proposal underscores Wall Street’s top regulator adapting to shifting political dynamics and internal pressures, aiming to remain resilient despite workforce reductions.

This funding strategy and restructuring come at a time when the SEC continues to oversee evolving financial technologies and market behaviors, with a leaner staff expected to manage increasing oversight demands.