Cdk9 is the catalytic subunit of a general RNA polymerase II elongation factor known as positive transcription elongation factor b (P-TEFb). The kinase function of P-TEFb requires phosphorylation of Thr-186 in the T-loop of Cdk9 to allow substrates to access the catalytic core of the enzyme. To identify human phosphatases that dephosphorylate the T-loop of Cdk9, we used a Thr-186-phosphospecific antiserum to screen a phosphatase expression library. Overexpression of PPM1A and the related PPM1B greatly reduced Cdk9 T-loop phosphorylation in vivo. PPM1A and Cdk9 appear to associate in vivo as the proteins could be co-immunoprecipitated. The short hairpin RNA depletion of PPM1A resulted in an increase in Cdk9 T-loop phosphorylation. In phosphatase reactions in vitro, purified PPM1A could dephosphorylate Thr-186 both with and without the association of 7SK RNA, a small nuclear RNA that is bound to ϳ50% of total cellular P-TEFb. PPM1B only efficiently dephosphorylated Cdk9 Thr-186 in vitro when 7SK RNA was depleted from P-TEFb. Taken together, our data indicate that PPM1A and to some extent PPM1B are important negative regulators of P-TEFb function.The positive transcription elongation factor b (P-TEFb) 2 is a cellular kinase complex that regulates elongation of most mammalian protein-coding genes transcribed by RNA polymerase II (1, 2). P-TEFb enhances the processivity of RNA polymerase II through the phosphorylation of the carboxyl-terminal domain (CTD) of the polymerase as well as antagonizing the actions of negative factors such as negative elongation factor and 5,6-dichloro-1--D-ribofuranosylbenzimidazole sensitivity-inducing factor. P-TEFb is comprised of cyclin-dependent kinase 9 (Cdk9), the kinase core, and its cyclin partner, either Cyclin T1, Cyclin T2, or Cyclin K. Two isoforms of Cdk9 exist, a major 42-kDa protein and a minor 55-kDa protein that contains 117 residues at the amino terminus that are absent in the 42-kDa protein (3). In most cells examined, Cyclin T1 is the predominant regulatory subunit for Cdk9. The Cyclin T1/P-TEFb complex has been studied extensively as this P-TEFb complex is targeted by the human immunodeficiency virus type 1 Tat protein to activate RNA polymerase II transcription of the integrated provirus, and this is essential for viral replication.As a key transcription factor, the activity of P-TEFb is carefully regulated within the cell. The first level of control is mediated by the regulated expression of its components, namely Cdk9 and its Cyclin partners. In primary human CD4 ϩ T lymphocytes and monocytes, Cdk9 and Cyclin T2 expression are relatively high, whereas that of Cyclin T1 is low. Upon T cell activation or monocyte differentiation, Cyclin T1 protein expression is strongly up-regulated by post-transcriptional mechanisms, whereas expression of Cdk9 and Cyclin T2 remains relatively constant (4 -9). Low levels of Cyclin T1 in resting CD4ϩ T cells and freshly isolated blood monocytes may function as one of the rate-limiting factors not only for transcription of many cellul...