💰SEC Approves 2026 PCAOB Budget and Accounting Support Fee

Acclara AI•January 22, 2026

The SEC has green-lit the PCAOB's 2026 budget, marking a 9.4% decrease from last year. This move includes significant cuts to Board members' compensation and aims to balance audit quality improvements with fiscal responsibility.

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Key Points

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- 📉 Budget Cut: 2026 PCAOB budget set at $362.1M, a 9.4% decrease from 2025
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- 💸 Compensation Slashed: 52% reduction for chairperson, 42% for other Board members
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- 📊 ASF Down: Accounting support fee totals $306M, an 18.4% drop
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- 🏛️ Public Companies: $280.3M ASF to be assessed on public company issuers
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- 📉 Brokers and Dealers: $25.7M ASF to be assessed on brokers and dealers

🧐 What’s the Big Deal?

The Securities and Exchange Commission (SEC) just gave the thumbs up to the 2026 budget for the Public Company Accounting Oversight Board (PCAOB). The budget is set at $362.1 million, which is a notable 9.4% decrease from the previous year. This budget cut doesn't just stop there—it includes a 52% pay cut for the chairperson and a 42% reduction for other Board members. Talk about tightening the belt!

“All regulators must continually assess how and whether current approaches to fulfilling the Board’s responsibilities provide benefits to investors without imposing excessive burdens on businesses,” said SEC Chairman Paul S. Atkins.

The accounting support fee (ASF) has been slashed too, totaling $306 million, an 18.4% decrease. Of this, $280.3 million will be assessed on public company issuers and $25.7 million on brokers and dealers. Fiscal discipline much?

💼 Why the Cuts?

So, why the axe? SEC Chairman Paul S. Atkins emphasized the importance of balancing audit quality with fiscal responsibility. The PCAOB’s budget is a key component of this balancing act. Atkins stated, “The PCAOB must exhibit a strong commitment to responsible stewardship of the accounting support fee, which is its primary source of funding.”

Essentially, the SEC is making sure the PCAOB doesn’t go on a spending spree with the money it collects from public companies and broker-dealers. This year’s budget cut is a step towards ensuring that every dollar is spent wisely and effectively.

“The decrease in this year’s budget does not detract from the significance of the PCAOB’s mission. Rather, it underscores that fiscal discipline and regulatory effectiveness complement each other,” Atkins added.

🔍 The Bigger Picture

The PCAOB, established by the Sarbanes-Oxley Act of 2002, is overseen by the SEC, which reviews and approves its budget annually. This year’s budget reduction is seen as progress in the ongoing initiatives by the SEC and PCAOB to reassess the Board’s strategic plan, operations, and budget.

SEC Chief Accountant Kurt Hohl stated, “The ongoing initiatives by the Commission and PCAOB to reassess the PCAOB’s strategic plan, operations, and budget remain key priorities for the future.”

This move is not just about cutting costs; it’s about ensuring that the PCAOB operates transparently and justifiably, maintaining the trust of investors and the public.

📈 Looking Ahead

While the budget cuts might seem like a big deal, they’re actually part of a broader strategy to improve audit quality without overburdening businesses. The SEC is committed to robust oversight of the PCAOB, ensuring that its operations are transparent and justified.

Hohl reassured, “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.”

So, while the PCAOB tightens its belt, the mission remains clear: protect investors and ensure audit quality without unnecessary financial strain on companies.