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Obama, Barack

President Obama's Budget Request Boosts Financial Regulators, Prioritizes Internet Access and Competition

Strategic Insights

— 1 min read

President Obama's 2016 budget request marks a significant increase in funding for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), reflecting his commitment to increasing oversight of the financial sector. As part of his plan, Obama aims to impose a new fee on the nation's largest financial institutions to cover the costs of these increased regulatory efforts. Meanwhile, FCC Chairman Tom Wheeler is set to propose a draft decision pre-empting state laws that restrict municipal broadband services, aligning with the administration's broader effort to assert federal authority over Internet access. Furthermore, the Department of Labor and Federal Trade Commission (FTC) are initiating regulatory reviews to identify areas in need of updates, modification, or repeal.

Key Takeaways:

  • President Obama's 2016 budget request includes a 15% boost in funding for the SEC, with $1.7 billion allocated for the agency, the highest-ever funding request.
  • The CFTC is set to receive a 29% funding increase, with $322 million requested for the agency, which has struggled with budget constraints in the past.
  • The proposed budget would allow the CFTC to raise additional funds by assessing user fees on the financial industry, similar to other regulatory bodies.
  • The Obama administration is pushing for increased oversight of the financial sector, despite ongoing efforts to roll back parts of the Dodd-Frank financial reform law.
  • FCC Chairman Tom Wheeler is set to propose a draft decision pre-empting state laws that restrict municipal broadband services.
  • The proposed decision would align with the administration's broader effort to protect competition and increase access to the Internet.
  • The Department of Labor and FTC are launching regulatory reviews to identify areas in need of updating, modification, or repeal.
  • President Obama has consistently advocated for higher funding levels for financial regulators in his prior budgets.

Statistics:

  • $1.7 billion: total funding requested for the SEC in the 2016 budget.
  • 15%: increase in funding requested for the SEC compared to the prior year.
  • $322 million: total funding requested for the CFTC in the 2016 budget, a 29% increase.
  • $215 million: current budget for the CFTC.
  • 19 states: number of states with laws in place that restrict municipal broadband services.
  • February 26: scheduled date for the FCC's vote on new net neutrality rules.

Sources:

  • [1] The Hill
  • [2] The President's Fiscal 2016 Budget Request

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