Monday, July 28, 2014

President Issues Veto Message on SEC Spending Bill

The President issued a veto message on the FY 2015 Financial Services and General Government Appropriations Act (H.R. 5016), which the House approved on a vote of 228-195 to provide annual funding for the SEC, the Treasury Department, the Judiciary, the Small Business Administration, and several other agencies. The legislation sets the SEC budget for FY 2015 at $1.4 billion, which is $50 million above the FY 2014 enacted level and $300 million below the president’s budget request. The increase in funds is targeted specifically toward critical information technology initiatives. The legislation also includes a prohibition on the SEC spending any money out of its reserve fund.

In a Statement of Policy, the Administration strongly objected to the funding level of $1.4 billion for the SEC, which is $300 million below the FY 2015 Budget request. The bill also prohibits authorized spending from the agency's mandatory Reserve Fund, which would reduce the resources available to the SEC in FY 2015 by an additional $50 million. At this funding level, noted the Administration, the SEC would be unable to add critical positions in market oversight, compliance, and enforcement to carry out its financial oversight responsibilities under the Dodd-Frank Act and other authorities. The SEC is fee-funded and its funding level has no impact on the deficit, the Statement pointed out.