Katherine Sutton, the assistant secretary of defense for cyber policy, told lawmakers on Tuesday that the White House’s $1.5 trillion defense budget request for fiscal year (FY) 2027 represents “an increase in investment” for cyber priorities across the department.
The Department of Defense (DOD) – rebranded as the Department of War by the Trump administration – plans to allocate nearly $20.5 billion for cyberspace activities, including strengthening cybersecurity, investing in cyberspace operations, and cyber research and development activities. The FY 2026 defense budget included approximately $15.1 billion for cyberspace activities.
Sutton told lawmakers during a House Armed Services cyber subcommittee hearing that an overhaul of U.S. cyber forces and expanded digital warfare capabilities are central to the proposal’s increased funding levels.
“As we look at continuing to grow [cyber capabilities], we need to also make sure that we have the right approach to talent who are going to be really the linchpin in how we accomplish [cyber operations],” Sutton said. “Making sure that we have that right balance of being able to grow and train, and then also looking at where we can gain some efficiencies of implementing technology.”
The proposal includes a $12.1 billion to sustain ongoing cyber initiatives and fund new investments in areas such as weapons systems security, defense critical infrastructure, cybersecurity service providers, supply chain risk management, zero trust architecture, and cryptographic modernization. The budget request also allocates $7.7 billion for cyberspace operations.
The budget also designates $633 million for cyber research and development to modernize existing technologies and advance next-generation cybersecurity and cyberspace operations tools.
Rep. Pat Fallon, R-Texas, questioned whether the administration’s budget request for U.S. Cyber Command (CYBERCOM) reflects the urgency of current cyber threats. He also asked why the funding request does not appear to more fully support CYBERCOM 2.0, the command’s effort to build deeper expertise in specialties including cloud security architecture, industrial control systems, and AI.
According to the budget proposal, of the total allocated for cyberspace operations – $7.7 billion – CYBERCOM would receive $4.1 billion. The remaining $3.6 billion would be distributed among other military departments and other defense organizations, including the National Security Agency and the Defense Intelligence Agency.
Sutton said the CYBERCOM 2.0 investment strategy emphasizes workforce mastery over force expansion. “The capabilities of our personnel are deeper, with more time on keyboard, and that’s where we expect to see outsized impact, rather than simply expanding the size of the force,” Sutton explained.