PCAOB Approves Budget Decrease for 2026

At an open meeting on December 19, 2025, the PCAOB unanimously approved a $362.1 million proposed budget for the 2026 fiscal year. The 2026 budget represents a 9.4% decrease from the $399.7 million budget in 2025. In a prepared statement, PCAOB Acting Chair George Botic stated that the PCAOB is running about 6% under budget for 2025 and the 2026 budget “is a continuation of a belt-tightening that is already underway.” Acting Chair Botic specifically noted that the PCAOB anticipated a decrease in staffing levels next year and the budget decreased Board member salaries by 52% for the Chair and 42% for the other Board members.

Outgoing PCAOB Board Member Christina Ho commented that while the budget decrease “is not insignificant, it pales in comparison to the approximately 40% increase in the PCAOB’s budget between 2022 and 2025.” Board Member Ho added several reasons why she felt the budget decrease could have been greater, including excessive staffing levels and an expected shift in inspection focus in 2026 from individual audits to firms’ systems of quality management.

PCAOB Board Member Kara Stein also issued a statement on the budget. She emphasized that she is “not opposed to being cost conscious and efficient, or reviewing organizational effectiveness, but we have to keep the context and risks in mind.” Specifically, she expressed “concern[] about real risks this organization faces, including the retention of talented staff, the development of higher skilled, technology-enabled capacity, and the attraction of talented leadership in the future.”

PCAOB Board Member Anthony Thompson issued a statement on the budget “encourage[ing] leaders across the PCAOB to continue identifying ways to streamline processes to reduce costs.” He stated that he expects the PCAOB’s regulatory approach to continue to evolve including increased in-person inspection activity, advancing technological capabilities, and considering new ways to gather input and expertise to more effectively progress standards-setting projects.

The budget is subject to approval by the SEC. 

The PCAOB's announcement is available here and a video of the open meeting can be found here.

Acting Chair Botic’s prepared remarks are available here. Board Member Ho’s prepared remarks are available here. Board Member Stein’s prepared remarks are available here. Board Member Thompson’s prepared remarks are available here.