---
kind: "section"
citation: "15 U.S.C. § 7219"
title: "15"
title_heading: "Commerce and Trade"
number: "7219"
heading: "Funding"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/7219"
units:
  - "Chapter 98 — Public Company Accounting Reform and Corporate Responsibility"
  - "Subchapter I — Public Company Accounting Oversight Board"
---

# §7219. Funding

- (a) **In general—** The [Board](/usc/15/7201.md?p=5), and the standard setting body designated pursuant to [section 77s(b) of this title](/usc/15/77s.md?p=b), shall be funded as provided in this section.
- (b) **Annual budgets—** The [Board](/usc/15/7201.md?p=5) and the standard setting body referred to in [subsection (a)](#a) shall each establish a budget for each fiscal year, which shall be reviewed and approved according to their respective internal procedures not less than 1 month prior to the commencement of the fiscal year to which the budget pertains (or at the beginning of the [Board](/usc/15/7201.md?p=5)’s first fiscal year, which may be a short fiscal year). The budget of the [Board](/usc/15/7201.md?p=5) shall be subject to approval by the [Commission](/usc/15/7201.md?p=6). The budget for the first fiscal year of the [Board](/usc/15/7201.md?p=5) shall be prepared and approved promptly following the appointment of the initial five [Board](/usc/15/7201.md?p=5) members, to permit action by the [Board](/usc/15/7201.md?p=5) of the organizational tasks contemplated by [section 7211(d) of this title](/usc/15/7211.md?p=d).
- (c) **Sources and uses of funds—**
  - (1) **Recoverable budget expenses—** The budget of the [Board](/usc/15/7201.md?p=5) (reduced by any registration or annual fees received under [section 7212(e) of this title](/usc/15/7212.md?p=e) for the year preceding the year for which the budget is being computed), and all of the budget of the standard setting body referred to in [subsection (a)](#a), for each fiscal year of each of those 2 entities, shall be payable from annual accounting support fees, in accordance with subsections [(d)](#d) and [(e)](#e). Accounting support fees and other receipts of the [Board](/usc/15/7201.md?p=5) and of such standard-setting body shall not be considered public monies of the United States.
  - (2) **Funds generated from the collection of monetary penalties—** Subject to the availability in advance in an appropriations Act, and notwithstanding [subsection (j)](#j), all funds collected by the [Board](/usc/15/7201.md?p=5) as a result of the assessment of monetary penalties shall be used to fund a merit scholarship program for undergraduate and graduate students enrolled in accredited accounting degree programs, which program is to be administered by the [Board](/usc/15/7201.md?p=5) or by an entity or agent identified by the [Board](/usc/15/7201.md?p=5).
- (d) **Annual accounting support fee for the Board—**
  - (1) **Establishment of fee—** The [Board](/usc/15/7201.md?p=5) shall establish, with the approval of the [Commission](/usc/15/7201.md?p=6), a reasonable annual accounting support fee (or a formula for the computation thereof), as may be necessary or appropriate to establish and maintain the [Board](/usc/15/7201.md?p=5). Such fee may also cover costs incurred in the [Board](/usc/15/7201.md?p=5)’s first fiscal year (which may be a short fiscal year), or may be levied separately with respect to such short fiscal year.
  - (2) **Assessments—** The [rules of the Board](/usc/15/7201.md?p=13) under [paragraph (1)](#d-1) shall provide for the equitable allocation, assessment, and collection by the [Board](/usc/15/7201.md?p=5) (or an agent appointed by the [Board](/usc/15/7201.md?p=5)) of the fee established under [paragraph (1)](#d-1), among [issuers](/usc/15/7201.md?p=7), in accordance with [subsection (g)](#g), and among [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4), in accordance with [subsection (h)](#h), and allowing for differentiation among classes of [issuers](/usc/15/7201.md?p=7), [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4), as appropriate.
  - (3) **Brokers and dealers—** The [Board](/usc/15/7201.md?p=5) shall begin the allocation, assessment, and collection of fees under [paragraph (2)](#d-2) with respect to [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4) with the payment of support fees to fund the first full fiscal year beginning after July 21, 2010.
- (e) **Annual accounting support fee for standard setting body—** The annual accounting support fee for the standard setting body referred to in [subsection (a)](#a)—
  - (1) shall be allocated in accordance with [subsection (g)](#g), and assessed and collected against each [issuer](/usc/15/7201.md?p=7), on behalf of the standard setting body, by 1 or more appropriate designated collection agents, as may be necessary or appropriate to pay for the budget and provide for the expenses of that standard setting body, and to provide for an independent, stable source of funding for such body, subject to review by the [Commission](/usc/15/7201.md?p=6); and
  - (2) may differentiate among different classes of [issuers](/usc/15/7201.md?p=7).
- (f) **Limitation on fee—** The amount of fees collected under this section for a fiscal year on behalf of the [Board](/usc/15/7201.md?p=5) or the standards setting body, as the case may be, shall not exceed the recoverable budget expenses of the [Board](/usc/15/7201.md?p=5) or body, respectively (which may include operating, capital, and accrued items), referred to in [subsection (c)(1)](#c-1).
- (g) **Allocation of accounting support fees among issuers—** Any amount due from [issuers](/usc/15/7201.md?p=7) (or a particular class of [issuers](/usc/15/7201.md?p=7)) under this section to fund the budget of the [Board](/usc/15/7201.md?p=5) or the standard setting body referred to in [subsection (a)](#a) shall be allocated among and payable by each [issuer](/usc/15/7201.md?p=7) (or each [issuer](/usc/15/7201.md?p=7) in a particular class, as applicable) in an amount equal to the total of such amount, multiplied by a fraction—
  - (1) the numerator of which is the average monthly equity market capitalization of the [issuer](/usc/15/7201.md?p=7) for the 12-month period immediately preceding the beginning of the fiscal year to which such budget relates; and
  - (2) the denominator of which is the average monthly equity market capitalization of all such [issuers](/usc/15/7201.md?p=7) for such 12-month period.
- (h) **Allocation of accounting support fees among brokers and dealers—**
  - (1) **Obligation to pay—** Each [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) shall pay to the [Board](/usc/15/7201.md?p=5) the annual accounting support fee allocated to such [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) under this section.
  - (2) **Allocation—** Any amount due from a [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) (or from a particular class of [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4)) under this section shall be allocated among [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4) and payable by the [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) (or the [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4) in the particular class, as applicable).
  - (3) **Proportionality—** The amount due from a [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) shall be in proportion to the net capital of the [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) (before or after any adjustments), compared to the total net capital of all [brokers](/usc/15/7220.md?p=3) and [dealers](/usc/15/7220.md?p=4) (before or after any adjustments), in accordance with rules issued by the [Board](/usc/15/7201.md?p=5).
- (i) **Omitted—**
- (j) **Rule of construction—** Nothing in this section shall be construed to render either the [Board](/usc/15/7201.md?p=5), the standard setting body referred to in [subsection (a)](#a), or both, subject to procedures in Congress to authorize or appropriate public funds, or to prevent such organization from utilizing additional sources of revenue for its activities, such as earnings from publication sales, provided that each additional source of revenue shall not jeopardize, in the judgment of the [Commission](/usc/15/7201.md?p=6), the actual and perceived independence of such organization.
- (k) **Start-up expenses of the Board—** From the unexpended balances of the appropriations to the [Commission](/usc/15/7201.md?p=6) for fiscal year 2003, the Secretary of the Treasury is authorized to advance to the [Board](/usc/15/7201.md?p=5) not to exceed the amount necessary to cover the expenses of the [Board](/usc/15/7201.md?p=5) during its first fiscal year (which may be a short fiscal year).

## Source credit

(Pub. L. 107–204, title I, § 109, July 30, 2002, 116 Stat. 769; Pub. L. 111–203, title IX, § 982(h), July 21, 2010, 124 Stat. 1930.)

## Notes

### Editorial Notes

### Codification

Section is comprised of section 109 of Pub. L. 107–204. Subsec. (i) of section 109 of Pub. L. 107–204 amended section 78m of this title.

### Amendments

2010—Subsec. (c)(2). Pub. L. 111–203, § 982(h)(1), substituted “subsection (j)” for “subsection (i)”.

Subsec. (d)(2). Pub. L. 111–203, § 982(h)(2)(A), substituted “and among brokers and dealers, in accordance with subsection (h), and allowing for differentiation among classes of issuers, brokers and dealers, as appropriate” for “allowing for differentiation among classes of issuers, as appropriate”.

Subsec. (d)(3). Pub. L. 111–203, § 982(h)(2)(B), added par. (3).

Subsecs. (h) to (k). Pub. L. 111–203, § 982(h)(3), (4), added subsec. (h) and redesignated former subsecs. (h) to (j) as (i) to (k), respectively.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

### Obligation of Funds for Accounting Scholarship Program

Pub. L. 116–93, div. C, title VI, § 620(b), Dec. 20, 2019, 133 Stat. 2481, provided that: “Beginning in fiscal year 2021 and for each fiscal year thereafter, the Board [Public Company Accounting Oversight Board] shall have authority to obligate funds for the scholarship program established by section 109(c)(2) of the Sarbanes-Oxley Act of 2002 (Public Law 107–204) [15 U.S.C. 7219(c)(2)] in such fiscal year in an aggregate amount not exceeding the amounts of funds collected by the Board between October 1 and September 30 of such fiscal year, including accrued interest, as a result of the assessment of monetary penalties. Funds made available for obligation in any fiscal year shall be in addition to amounts made available in prior fiscal years and shall remain available until expended.”

### Monetary Penalties To Fund Scholarships for Accounting Students

Pub. L. 116–6, div. D, title VI, § 620, Feb. 15, 2019, 133 Stat. 184, provided in part that: “Beginning in fiscal year 2020 and for each fiscal year thereafter, monetary penalties collected pursuant to 15 U.S.C. 7215 shall be deposited in the Public Company Accounting Oversight Board account as discretionary offsetting receipts.”