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Security Organizations at Risk as US Slashes Cyber Spending

Making cents?
David Eberly
Contributing Writer

The U.S. federal government is adjusting its cybersecurity investments under the current administration, including proposed budget reductions for the Cybersecurity and Infrastructure Security Agency (CISA) and for cyber programs across civilian agencies. CISA, which has previously expanded its role in protecting critical infrastructure, is now operating with a limited budget, a smaller workforce, and a more focused mission; changes that have drawn attention from some cybersecurity experts and former officials.

At the same time, the broader White House budget proposal for FY2026 seeks a $1.23 billion reduction in civilian cybersecurity spending compared to 2024 levels.

These cuts come in the face of rising cyber threats from both nation-state and criminal actors, leading analysts to question the administration’s strategic vision for cyber risk management across federal and local entities.

Why It Matters: As cyber threats targeting critical infrastructure and government systems continue to evolve, some experts express concern that reduced federal cyber resources could affect key programs, public-private collaboration, and efforts to develop future cybersecurity talent and innovation.

  • Under Pressure: CISA’s budget is set to lose at least $135 million, following an initial White House proposal to cut nearly $500 million. CISA has seen a reduction of approximately one-third of its workforce, along with the closure of some external engagement offices and programs, including information-sharing councils. These changes are influencing the agency’s role in the field and its engagement with industry partners.
  • Cuts Across Civilian Agencies: The FY2026 budget proposal includes a 10% decrease in overall cybersecurity spending compared to 2024. While some agencies are set to get modest increases in cyber funding, others could see their budgets significantly reduced or even eliminated, pointing to changing priorities, though it’s still not clear what overall strategy is guiding these decisions.
  • Private Sector and States Left in the Lurch: With CISA scaling back, more responsibility may shift to states and private infrastructure operators. Observers note that smaller or rural entities could face challenges without additional funding or support, and that current automation and AI tools may not yet be fully equipped to replace certain human-led capabilities.
  • Impacts on National Programs and Talent Pipelines: The proposed cuts could also influence education and workforce development efforts. Programs such as the NSF’s ‘Scholarship for Service,’ which supports the training and placement of cyber professionals in public service roles, may be at risk. Additionally, agencies like NIST and its cybersecurity division could face reduced funding and operational capacity.
  • Congressional Pushback: Some House committees have moved to restore partial funding for agencies like CISA. However, the broader budgeting process remains complex, and a clearly defined federal cybersecurity strategy has yet to emerge. Ongoing confirmation delays for key leadership positions, including CISA’s director, contribute to continued uncertainty.

Go Deeper → Top U.S. cyber agency keeps shrinking under Trump 2.0 – Axios

Trump seeks unprecedented $1.23 billion cut to federal cyber budget – CSO Online

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