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Cybersecurity Remains a Top Priority in FY25 Budget Request

The Biden Administration released the President's FY 2025 Budget Request last week, representing the fourth and final budget request from President Biden’s first term. This latest budget requested $7.3 trillion in total spending, including a proposed $895 billion for defense and approximately $621 billion in non-defense base discretionary. As a reminder, the President’s Budget is simply a recommendation to Congress on how this fiscal year’s spending bills should be formed. With slim majorities in both the House and Senate, the Administration is unlikely to get many of their recommendations included in this proposed budget.

However, as demonstrated by this budget request, cybersecurity policy continues to represent a policy arena where leaders from both parties can cross party lines and meet in the middle to create bipartisan wins, with strong support from the Biden administration. Especially as we near closer to the 2024 electoral cycle, policymakers will be focused on securing these wins wherever they can, and cybersecurity is one of the few remaining areas where both sides can come together on policy and funding.

Back in June last year, the White House Office of Management & Budget (OMB) published a letter outlining its cyber priorities for FY 2025, focused on five key pillars: 1) defending critical infrastructure; 2) disrupting and dismantling threat actors; 3) shaping market forces to drive security and resilience; 4) investing in a resilient future; and 5) forging international partnerships to pursue shared goals. Furthermore, there are a number of dynamics driving the federal focus on cyber defense – not the least of which is that several important cyber policies have been enacted over the past several years, which will require funding boosts for implementation over the next fiscal year. Furthermore, as there continues to be a growing number of cyber incidents worldwide and the technology landscape has only become more interconnected, it is critical that funding for enhanced cyber mechanisms continue to be prioritized by the federal government.

The FY25 budget includes several key cybersecurity funding suggestions:

Zero Trust: Prioritizes a transition to zero trust architecture across virtually all agencies, with the largest allocation requested for the Department of Defense, which would be positioned to receive $977 million for their zero trust transition under the budget request.

Healthcare Security: $800 million to help low-resourced hospitals with bolstering their cyber defenses, and another $500 million to incentivize all hospitals – regardless of size and nature – to invest in advanced cybersecurity practices.

Cyber Incident Reporting: $115.9 million specifically for the Cybersecurity & Infrastructure Security Agency (CISA)’s implementation of the mandatory incident reporting regime that was enacted through the 2022 Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA).

Cybercrime and Threat Protection: $25 million to boost cyber response and counterintelligence at the Department of Justice, as well as an additional $5 million for a new section within the DOJ focused specifically on cyber threats.

Cyber Protections for Treasury: $150 million for the Treasury Department’s Cybersecurity Enhancement Account, which is the agency’s centralized account focused on ensuring that Treasury can be more agile in responding to cyber incidents and leveraging cyber capabilities.


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