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The US Senate Committee on Appropriations has advanced a draft bill that sharply reduces funding for federal cybersecurity and information technology modernization initiatives. The proposed legislation allocates only $5 million to the Technology Modernization Fund (TMF), a dramatic decrease from the $75 million requested by the Biden administration and far below previous bipartisan efforts to expand the fund. The Office of the National Cyber Director would also see its budget cut by nearly 7%, receiving $20 million in line with the White House's request. These reductions follow calls from the Trump administration to significantly scale back federal investments in cybersecurity and IT modernization for 2026.
The steep funding cuts raise concerns about the ability of federal agencies to replace outdated legacy systems and undertake critical technology upgrades, as many departments rely on multi-year capital support or cross-agency investment vehicles like the TMF. The future of the fund is further complicated by a White House proposal to change its financing model, potentially allowing agencies to contribute a portion of their own budgets rather than depending solely on annual appropriations. The proposed reductions mark one of the smallest appropriations for the TMF since its creation under the Modernizing Government Technology Act of 2017, potentially impacting the federal government's overall cybersecurity posture and modernization efforts.
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A Senate bill reported on December 1, 2025 would slash funding for U.S. federal modernization efforts. The available references do not provide further detail on the bill's provisions or prior related events.
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A DHS “minibus” appropriations package would direct the Cybersecurity and Infrastructure Security Agency (**CISA**) to maintain “sufficient” staffing to execute its statutory missions, including support to federal civilian agencies and state/local/tribal/territorial partners. The accompanying congressional language also calls for maintaining at least **10 regional field offices** and having at least **one Cyber Security Advisor per state or territory**, while continuing to fund election security activities (including regional election security advisers and the Elections Infrastructure ISAC). The bill would provide **$2.6B for CISA**, down from roughly $3B previously cited in the reporting. The same funding package would extend authorization for the **Technology Modernization Fund (TMF)**—which had lapsed—through **Sept. 30** (end of FY2026), enabling continued federal IT modernization investments that are often tied to cyber risk reduction. It would also extend several cybersecurity-related statutory authorities, including the **Cybersecurity Information Sharing Act of 2015**, preserving a legal framework for private-sector sharing of cyber threat intelligence with U.S. government entities under specified liability protections. Separately, CISA leadership turmoil was reported as internal pushback halted an attempted management-directed reassignment of CISA CIO **Robert Costello**, adding to concerns about decision-making and stability amid ongoing pressure from persistent threats to federal networks and critical infrastructure.
Jun 29, 2026
The White House’s fiscal year 2027 budget proposal would cut about **$707 million** from the Cybersecurity and Infrastructure Security Agency, shrinking the agency by roughly 30% and narrowing its mission to federal civilian network defense and critical infrastructure protection. Budget documents and reporting say the plan would reduce spending on personnel, contractors, equipment, mission support, stakeholder engagement, and international affairs, while also eliminating CISA’s election security program and ending support for the Elections Infrastructure Information Sharing and Analysis Center. The proposal also restructures some Department of Homeland Security functions, including changes tied to the Office of Countering Weapons of Mass Destruction, while preserving selected technical efforts such as `CIRCIA` implementation and cybersecurity planning support for the 2028 Los Angeles Olympics. The proposed cuts have drawn warnings from state officials, industry groups, former agency personnel, and cybersecurity experts who say CISA’s reduced role could weaken threat intelligence sharing, incident response coordination, election security assistance, and cross-sector risk management. Multiple reports note that CISA has already faced layoffs, funding pressure, and leadership instability, and critics argue that further reductions could fragment national cyber defense at a time of continued intrusions linked to Russia, China, and Iran and growing concern over AI-enabled threats. The administration says the changes would eliminate waste, duplicative programs, and activities tied to misinformation work, but the final budget is expected to face significant congressional scrutiny.
Jun 29, 2026
Senior officials at **NIST** said significant workforce and budget reductions are forcing the agency to narrow and reprioritize work tied to national security and cybersecurity, including mandates related to **AI**, **cybersecurity**, and **post-quantum encryption**. NIST’s Information Technology Laboratory reported losing roughly **89 staff** over the past year (within a headcount of 289), amid broader agency reductions of **700+ positions**, and warned that additional congressional cuts (including a proposed **$13M** reduction to NIST’s labs program) could further constrain technical programs such as cryptographic testing and validation used for federal procurement and joint validation efforts with the Canadian Centre for Cybersecurity. On Capitol Hill, House Homeland Security Committee Democrats pressed **CISA** Acting Director **Madhu Gottumukkala** on major workforce reductions—reported as about **one-third of the agency’s employees** departing over the past 12 months—and whether the agency can sustain its mission under current funding and staffing levels. Gottumukkala defended the reductions as part of a “mission-first” effort to eliminate duplication and align work to statutory authorities, while also signaling **targeted hiring** for key roles but declining to provide lawmakers a clear vacancy count or a definitive answer on whether recently appropriated DHS funding is sufficient for CISA to execute its responsibilities.
Jun 29, 2026