House Passes Spending Bill
The House of Representatives passed a $1.2 trillion omnibus spending bill that sets funding priorities for fiscal year 2026. The package includes allocations for modernizing federal IT systems, enhancing cybersecurity across civilian agencies, and making targeted investments in artificial intelligence capabilities.
- The spending package passed the House in stages; a large "minibus" of bills passed with a widely bipartisan vote of 341-88, while the more contentious Homeland Security appropriations bill passed with a narrower 220-207 margin. - While the bill allocates funds for cybersecurity, funding for key civilian agencies will largely flatline, remaining at fiscal year 2024 levels rather than seeing increases of prior years. This contrasts with the Department of Defense's cyber activities budget, which is slated to increase by 4.1% to about $15.1 billion. - For the third consecutive year, the bill eliminated new funding for the Technology Modernization Fund (TMF), a central pot of money for federal IT upgrades. However, lawmakers did agree to a separate $5 million earmark for the fund. - The Pentagon's FY 2026 budget request includes a record $13.4 billion specifically for artificial intelligence and autonomy, marking the first time a dedicated budget line has been allocated for these capabilities. - The Cybersecurity and Infrastructure Security Agency (CISA) is slated to receive $2.6 billion, a reduction from its previous budget of approximately $3 billion. This includes $39.6 million to continue election security programs. - Key legislative authorities were extended through the end of the fiscal year as part of the package, including the Cybersecurity Information Sharing Act of 2015 and the State and Local Cybersecurity Grant Program. - The bill provides a significant boost to the Department of the Treasury's Cybersecurity Enhancement Account, increasing its funding to $99 million from $36.5 million in fiscal 2025, with funds aimed at implementing zero trust architecture and enhancing cloud security. - The National Institute of Standards and Technology (NIST) is set to receive $55 million for AI research and measurement efforts, which includes up to $10 million for the U.S. Center for AI Standards and Innovation.
