US SEC tells staff to prep for shutdown contingencies at midnight

By Chris Prentice and Douglas Gillison

NEW YORK (Reuters) -The U.S. Securities and Exchange Commission on Tuesday told employees to prepare for a potential lapse in funding, according to an email seen by Reuters, as the United States headed towards its potential 15th government shutdown since 1981.

Government funding will lapse at midnight unless Republicans and Democrats in Congress agree on a deal to temporarily fund federal agencies with Wednesday's start of a new fiscal year.

"We continue to watch the progress on FY2026 appropriations for the SEC," said Ken Johnson, the SEC's chief operating officer, in the memo to all staff.

The SEC did not respond immediately to request for comment. The email seen by Reuters included text provided by the White House blaming the shutdown on Democrats.

A shutdown would reduce the SEC to a skeletal staff of around 9% of current levels, according to its August 2025 plan for a lapse in government funding. This would severely limit the agency’s ability to review corporate filings, investigate misconduct, and oversee markets.

(Reporting by Chris Prentice in New York and Douglas Gillison in Washington)

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