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October 6, 2025

Federal Funding Cut Threatens State and Local Cybersecurity Protections

Cybersecurity Dive
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Contributed by: Drex DeFord
Summary
The recent expiration of federal funding for the Multi-State Information Sharing and Analysis Center (MS-ISAC) has severely impacted state and local governments' cybersecurity capabilities, particularly for smaller jurisdictions that rely on its resources. The loss of this funding, initiated by the Trump administration, ends a 21-year partnership with the Department of Homeland Security that provided essential services to mitigate local cyber threats. As a result, MS-ISAC expects to lose two-thirds of its state members and thousands of local governments, which could jeopardize the cybersecurity of critical infrastructure, including schools and hospitals. The shift to higher membership fees could further exclude financially constrained local entities from accessing necessary cybersecurity support.

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