House GOP Proposes 7% SEC Budget Cut Plus Restrictions

US House Republicans have advanced a funding measure that would cut the SEC’s 2026 budget by 7%, eliminating funds for enforcing a key Biden-era cyber disclosure rule.

The move targets agencies including the SEC as part of the party’s broader push to eliminate regulations.

A Nearly 8% Overall Spending Reduction

A House Appropriations subcommittee voted on Monday for a $23.3 billion funding plan for fiscal year 2026.

This plan proposes nearly an 8% cut overall compared to fiscal year 2025, reducing the total by approximately $410 million.

Subcommittee Chair Dave Joyce called the measure “an effort to rein in wasteful spending.”

7% SEC Budget Cut with Enforcement Restrictions

Specifically for the Securities and Exchange Commission, the plan represents a 7% cut of roughly $153.9 million.

Its proposed 2026 budget of just over $2.03 billion falls short of the agency’s requested funding.

The SEC had requested $2.149 billion last month.

Worse yet, the measure imposes spending restrictions for 2026: funds banned from enforcing the cyber incident disclosure rule adopted in mid-2023.

Additionally, the funds will be restricted from:

• Collecting personally identifiable information via the PIED database
• Making new rules governing private securities offerings

Cyber Attack Disclosure Rule Faces Elimination

Under the rule, public companies and foreign private issuers must disclose a cybersecurity incident within four days unless it affects national security or public safety. Yearly disclosure of cyber risk management strategies is also required.

This rule has been a focal point for opponents, including banking groups who filed a May brief asking the SEC to kill it, claiming it has been “weaponized as an extortion method by ransomware criminals.”

Food for thought: The related rule partially impacted Coinbase in May. Following alleged data leaks by contractors to the exchange, the company rejected a ransom demand and estimated potential damages up to $400 million.

“Blow to Everyday Americans”: Democratic Criticism Widespread

Facing Democrat backlash, House Appropriations Chair Rosa DeLauro called the plan a “blow to everyday Americans,” enabling corporations to “skirt the law and hoard even more wealth.”

According to the law democrat [Staff](https://www.linkedin.com/in/morgan-slater-0715a516)”> Morgan Slater said the plan would allow corporations to “cheat on their taxes, poison consumers, [and] continue to scam everyday Americans out of their hard-earned money.”