The Senate Appropriations Committee asked the Securities and Exchange Commission Thursday to cut back hiring.
The committee called “unsustainable” the regulator’s increased demand for resources, following its growth of $150 million in congressional spending authority for the current fiscal year, an amount added to the $74 million carried over from the previous year.
Much of the new money has been used to hire additional staffers to increase the financial advisor examination rate beyond the 10 percent of advisors it now covers per year.
The Obama administration wants to add more examiners to boost this advisor oversight even further.
However, the Senate committee voted to join its House counterpart in approving SEC funding of $1.5 billion for the 2016 budget year beginning October 1, an amount identical to the authorization it received this year.
The White House had asked for $1.722 billion.
The SEC’s practice of not spending all the money it is given in a year helped it keep its doors open while other federal agencies went dark during the October 2013 federal government shutdown.
For 2016, the committee wants to make the SEC one of the few agencies barred from using leftover funds from one budget year for the next.