Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, and Representatives Brad Sherman (D-CA) – the Ranking Member on the Subcommittee on Capital Markets – Bill Foster (D-IL), Sean Casten (D-IL), and Juan Vargas (D-CA), sent a letter to U.S. Securities and Exchange Commission (SEC) Acting Director Mark Uyeda in response to reports that the General Services Administration (GSA) is terminating leases for SEC regional offices in Los Angeles, Philadelphia, and Chicago by the end of the summer.

In the letter, the lawmakers highlight the critical role regional offices play as “first responders” in carrying out the agency’s mission and warn that the absence of these offices could severely impact the agency’s ability to effectively oversee financial markets, enforce regulations, and protect investors. They also question whether these forthcoming closures serve as an effort to fire dedicated public servants and shutter regional offices completely.

“We are sending this letter in response to reports that the General Services Administration (GSA) is terminating leases for the Los Angeles, Philadelphia and, perhaps, the Chicago offices of the U.S. Securities and Exchange Commission (SEC) by the end of summer 2025. According to an internal email sent to SEC staff, these lease terminations allegedly are ‘not directly tied to any staff reorganizations or layoffs within the SEC,’” wrote the lawmakers. “...This regional presence ensures timely intervention and allows the SEC to address a wide variety of issues across the country, from helping local small-businesses access needed capital to examining SEC registrants, to bringing enforcement actions against bad actors—all of which have the potential to impact national and global markets. Additionally, SEC regional offices have staff members with specialized knowledge of local industries and practices of regulated intermediaries, enabling them to effectively target enforcement and examination efforts, focusing on high-risk practices to maximize efficiency.”

The lawmakers conclude by demanding that Acting Director Uyeda respond to a series of questions no later than March 28, 2025. This includes questions on operational practices, records of correspondence with external agencies such as the Department of Government Efficiency and the GSA, future plans for reopening regional offices, and importantly, confirmation of the employment status of affected federal workers.

See the letter HERE. 

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