White House Weighs US Incubator for Cyber Research, Startups
The Trump administration is weighing a plan to establish a government-led incubator aimed at investing in cybersecurity research and spinning out startups focused on developing tools for the government to use, according to people familiar with the situation.
The White House’s Office of the National Cyber Director has been drafting an executive order that would establish a program to research and develop cyber technologies that are aligned with the priorities of the U.S. government, the people said, asking not to be identified because the plans aren’t yet public. The effort’s goal is to attract money from private venture capital investors, and in one version of the draft order, the program is described as a cyber foundry that would spawn new companies, they said.
Related: OpenAI’s Rogue Agents Probed Hugging Face for Weaknesses Two Months Before Major Hack
Inside the U.S. government, the effort has been compared with the way Israel closely aligns its military priorities with the focus of cybersecurity startups, venture capital investments and academic research in the country, according to the people familiar with the plans. A number of high-profile cybersecurity companies including Wiz, Palo Alto Networks Inc. and Check Point Software Technologies Ltd. have been founded by former members of Israel’s cyber intelligence unit.
The Pentagon’s Defense Advanced Research Projects Agency, or DARPA, has for decades funded technology research and invested in early-stage ideas with national security applications. The Central Intelligence Agency similarly funds In-Q-Tel, a nonprofit VC firm focused on startups used by military and intelligence agencies. But a cyber-specific effort in the US doesn’t exist.
The order is taking shape as the Trump administration grapples with how to address a new wave of cyber threats from artificial intelligence. Cutting-edge AI systems are increasingly capable of accelerating cyberattacks and in some cases, the models themselves have coordinated to hack third-party entities undetected. Those risks are fueling demand for fresh cyber talent.
The executive order being drafted would also establish a cybersecurity academy, consolidating a number of already existing government-run training programs for cybersecurity professionals, according to the people familiar with the matter. Its aim would be to emphasize skills-based certifications, create a more streamlined pipeline for new cyber talent and establish common competency standards, they said.
The possible timing of the draft order — most importantly whether President Donald Trump would sign off or if he has approved it — is unclear, but it has been shared among relevant people at several agencies, the people said.
A White House spokesperson said that any policy announcement will come from the president and that any discussion about potential executive orders is speculation. The Office of the National Cyber Director did not respond to a request for comment.
Plans for the order align with a key pillar of the Trump administration’s cyber strategy, which calls for a stronger cybersecurity talent pipeline and urges the government to work with industry and academic partners to build a skilled workforce. The strategy also says the U.S. should use venture capital opportunities to strengthen its talent pipeline.
The government has struggled to recruit and retain cyber talent. Private-sector roles are often more lucrative and don’t require security clearances or other approvals that can slow the hiring process. Those shortages have worsened because of personnel losses over the last year.
Related: Glassdoor: Adjusters Dislike, Fear AI More Than Others
The Cybersecurity and Infrastructure Security Agency, or CISA, lost more than a third of its workforce last year amid personnel cuts and voluntary departures after Trump’s return to the White House, Bloomberg previously reported. Subsequent reorganization efforts led to significant pay cuts for some staffers after the end of a decade-old program intended to address persistent cyber talent shortages but plagued by mismanagement, according to the Homeland Security inspector general. The Department of Homeland Security referred questions to the White House.
The order is part of a bigger effort across the administration to work more closely with private industry. Last month, it opened a new pathway for companies to conduct cyberattacks against foreign targets on behalf of the U.S. government, subject to oversight by the Justice Department and Department of Homeland Security. The Senate is also considering a proposal to allow private companies to hack on behalf of the military.