President Obama called for a 35% increase in federal cybersecurity spending when he sent his final budget blueprint to Capitol Hill Monday.
"Cybersecurity is one of our most important national security challenges," Obama said in a statement accompanying the budget. "As our economy becomes increasingly digital, more sensitive information is vulnerable to malicious cyber activity."
The fiscal 2017 budget called for $19 billion in spending for cybersecurity – spending that the administration said would support a Cybersecurity National Action Plan.
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The spending blueprint included $174 million for federal agency efforts to support efforts to improve the cybersecurity posture of the private sector. It also included $682 million for the Department of Justice to investigate cybersecurity risks that threaten national security and economic stability, and $213 million for the Department of Homeland Security to identify, assess and respond to threats.
The budget called for $3.1 billion for the establishment of an Information Technology Modernization Fund to replace antiquated IT systems with ones that are more secure and efficient. The administration also proposed spending $746 million for the Department of Homeland Security to help federal agencies manage cybersecurity risks on a near real-time basis as well as to enhance the ability of agencies to identify risks. In addition, the budget included a plan to provide student loan forgiveness for cybersecurity experts joining the federal workforce.
When sending the budget to Congress, Obama said the federal government must continue to wind down the operations of Fannie Mae and Freddie Mac, which have been in conservatorship since 2008. He also called on Congress to enact comprehensive housing reform legislation. The Senate passed legislation that encompassed many of the administration proposals, including efforts to ensure private capital takes the lead in the housing finance system and any new financing system supports affordable housing efforts.
The budget included a $12 million increase – to $300 million – for the NCUA Operating Fund. The CFPB estimated it will need $636 million for the next fiscal year.
The budget proposals were simply administration recommendations. Congress will set actual spending levels in appropriations bills later this year and Obama has the option to sign or veto those measures.
NAFCU President/CEO Dan Berger praised the administration's cybersecurity efforts, but called for enactment of legislation that would hold retailers responsible for implementing security measures to protect consumer data. That legislation has been introduced in the House by Reps. Randy Neugebauer (R-Texas) and John Carney (D-Del.), and in the Senate by Sens. Tom Carper (D-Del.) and Roy Blunt (R-Mo.).
The House bill has been approved by the Financial Services Committee, but the Energy and Commerce Committee, which also has jurisdiction over the bill, has not considered it. The Senate bill is pending before the Commerce, Science and Transportation Committee.
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