SEC Approves $362.1 Million 2026 Budget for PCAOB with Reduced Accounting Support Fee

USA: SEC Approves 2026 PCAOB Budget and Accounting Support Fee

The U.S. Securities and Exchange Commission announced that it has approved the Public Company Accounting Oversight Board’s (PCAOB) 2026 budget, setting the total at $362.1 million—a 9.4% ($37.6 million) decrease from the prior year.

Budget Overview

The revised budget reflects significant cuts to board compensation, with a 52% reduction for the chairperson and a 42% reduction for other board members. Despite the lower overall figure, the SEC emphasized that the PCAOB’s mission to enhance audit quality remains unchanged.

Accounting Support Fee Details

The accounting support fee (ASF), the PCAOB’s primary funding source, totals $306.0 million for 2026, marking an 18.4% ($68.9 million) decline. Of this amount, $280.3 million will be levied on public‑company issuers, while $25.7 million will be assessed on brokers and dealers.

Commissioner Statements

SEC Chairman Paul S. Atkins said, “Both during my time as a Commissioner and now as Chairman, I have recognized—and continue to recognize—the importance of driving improvements in audit quality. Nevertheless, all regulators, including the Commission and the PCAOB, must continually assess how and whether current approaches provide benefits to investors without imposing excessive burdens on businesses.” He added that the budget reduction underscores the Board’s responsibility to steward the ASF responsibly.

SEC Chief Accountant Kurt Hohl noted, “This year’s budget decrease represents progress. However, the ongoing initiatives by the Commission and PCAOB to re‑assess the PCAOB’s strategic plan, operations, and budget remain key priorities for the future.” He reaffirmed the SEC’s commitment to transparent oversight.

Regulatory Context

The Sarbanes‑Oxley Act of 2002 created the PCAOB and assigned the SEC oversight authority, including annual review and approval of the Board’s budget and ASF. The SEC’s approval process serves as a check on the Board’s considerable authority over audit firms.

Future Outlook

Commissioners indicated that fiscal discipline and regulatory effectiveness are intended to complement each other, suggesting that the reduced budget will not diminish the PCAOB’s core functions. Ongoing evaluations of the Board’s strategic plan and operational efficiency are slated to continue throughout the year.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.