As discussed in this article by the AP, the SEC has suddenly gone from a "flush with cash" situation where it couldn't even spend its entire budget to a serious budget crunch.  According to the article, unplanned cost overruns might total $50 million through fiscal 2007, and the SEC staff was told last week

"to put all nonessential travel, training and conferences on hold, effective immediately. Hiring for all but the most qualified candidates also is on the back burner."

The primary cause of this budget crunch appears to be real-estate cost overruns related to the SEC's move to a new Washington headquarters and its relocation of offices in Boston and New York.  Peter Derby, the SEC managing executive for operations, reportedly stated that higher-than-expected security and building costs for the new offices could run between $48 million and $50 million over the next two-and-a-half years.