President Obama will propose a 50 percent increase on the CFTC’s budget for the 2013 fiscal year, from a $205 million budget to $308 million.
The increase is intended to assist with the agency’s implementation of financial reforms and investigation into MF Global’s downfall. The MF Global investigation has been unfolding since October, and the Dodd-Frank Act enhanced the CFTC’s responsibilities.
Last year, the White House filed the same $308 million funding request for the 2012 fiscal year. The proposal failed to gain support in Congress, which instead increased the derivatives regulator’s budget by $3 million, up from the 2011 fiscal year. The CFTC’s budget has been a partisan debate, as Democrats seek additional resources and Republicans attempt to limit the agency’s spending as a mechanism to reduce government deficits.
It is predicted that the Obama administration will ask for user fees as funding for a large amount of the agency’s budget. The 2013 fiscal year will begin October 1.