US Cyber Offense Rises, Defense and AI Funding Shift

The Trump administration has allocated $1 billion over four years for offensive cyber operations through the One Big Beautiful Bill, while cutting funding for U.S. cyber defense, including significant reductions to the Cybersecurity and Infrastructure Security Agency (CISA). The funding aims to boost U.S. Indo-Pacific Command's capabilities, particularly in countering cyber threats from China in the Asia-Pacific region. Critics, including Senator Ron Wyden, warn that reducing defensive resources may increase the nation's vulnerability to cyber retaliation by hostile actors. The specifics of the offensive operations remain undisclosed but could involve zero-day exploits, spyware, and disinformation campaigns. Additionally, major AI providers such as Anthropic, OpenAI, and xAI have secured substantial Department of Defense contracts, highlighting increased collaboration between tech companies and military cyber initiatives. These actions underscore a strategic shift in U.S. cyber operations, emphasizing offense and private-sector collaboration while reducing defense.