The Securities and Exchange Commission (SEC) on January 22, 2026, approved the Public Company Accounting Oversight Board’s (PCAOB) 2026 budget and the related accounting support fee, instituting significant reductions in overall spending and board member compensation as part of a renewed emphasis on fiscal discipline and regulatory oversight.
The PCAOB’s 2026 budget totals $362.1 million, representing a 9.4% decrease—or $37.6 million less—than the prior year. The related accounting support fee is set at $306.0 million, down 18.4% from last year. Of this amount, $280.3 million will be assessed on public company issuers, while $25.7 million will be assessed on brokers and dealers.
In addition to the overall reductions, the budget includes major cuts to PCAOB leadership pay: a 52% reduction in the chairperson’s compensation and a 42% reduction for the other four board members. As a result, the chair is expected to earn about $323,000, and each of the other members about $317,000 this year.
SEC Chairman Atkins: Reductions Show Fiscal Discipline, Regulatory Effectiveness
The SEC as capital markets regulator oversees the audit regulatory board, and its annual budget and rule changes must be approved by the commission before they become effective. The PCAOB in December 2025 first approved its 2026 budget, and the reductions were not surprising given expectations by SEC Chairman Paul Atkins.
Moreover, Atkins was a critic of the large pay given to board members when he was a commissioner from 2002 to 2008. In 2007 Atkins voted against the PCAOB’s 2008 budget, objecting to a 3.3% increase in board member salaries.
In a statement approving the budget, Atkins emphasized the commission’s responsibility to ensure that PCAOB operations remain transparent, efficient, and aligned with the agency’s investor‑protection mission.
“All regulators, including the Commission and the PCAOB, must continually assess how and whether current approaches to fulfilling the Board’s responsibilities provide benefits to investors without imposing excessive burdens on businesses,” Atkins said. “For the Commission, its diligent oversight of the PCAOB is a crucial check on the considerable authority that the Board holds over audit firms and the risks of potentially excessive burdens.”
Atkins added that the PCAOB’s mission remains crucial, but the newly approved reductions demonstrate that “fiscal discipline and regulatory effectiveness complement each other.”
He also revisited concerns he raised in 2007 regarding excessive board member salaries, which are now addressed through the newly approved pay cuts, and the PCAOB’s need for a long‑term strategic plan, which he called “a key priority for 2026.”
Atkins said the upcoming strategic plan must help the PCAOB get back to basics, emphasizing audit integrity, reducing unnecessary complexity, and refocusing on core statutory obligations.
SEC Chief Accountant: Budget Cuts Are Progress, but Oversight Will Continue
SEC Chief Accountant Kurt Hohl described the reduced 2026 budget as progress, noting that both the SEC and PCAOB must continue to reevaluate its operations, strategy, and spending.
“The SEC remains committed to robust oversight of the PCAOB and ensuring that its operations are transparent, justified, and worthy of the trust placed in it by investors and the public,” he said in a statement.
The SEC’s approval order is in Release No. 33-11401.
The commission in the order emphasized its expectation for the PCAOB to continue quarterly meetings with SEC staff on policy and budget matters, provide written quarterly updates on operational activities and strategic initiatives, and submit its 2025 annual report by March 31, 2026.
The Office of Management and Budget has determined that the PCAOB’s 2026 budget is subject to sequestration under the Budget Control Act of 2011. For 2026, sequestration requires a 5.7%—$20.6 million—reduction. Because the PCAOB carried forward $22.8 million sequestered in 2025, the 2026 accounting support fee will be reduced by $2.2 million to offset this amount, according to the release.
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