Federal cost cutting leads cyber contractors to rework ties with government

The Cyber X-Games 2018 hosted by the Army Reserve Cyber Operations Group (ARCOG), 335th Signal Command (Theater), included 72 participants form across the ARCOG, U.S. Air Force personnel from network and cyber operations centers/squadrons and civilian network and cyber professionals from government contractor entities June 13-19 at the University of Texas at San Antonio. (U.S. Army Reserve photo by Sgt. Erick Yates)

By David DiMolfetta • May 06, 2025

On the sidelines of last week’s RSAC Conference, cybersecurity practitioners said the Trump administration’s broad cost-cutting push is pressuring government contractors to rethink how they deliver their cybersecurity services to agencies with diminished budgets.

The Department of Government Efficiency’s federal reduction plans have targeted swaths of agencies who have budgeted for digital defense tools like antivirus or endpoint detection software. Parallel efforts led by senior administration officials have also targeted core security offices like the Cybersecurity and Infrastructure Security Agency, which recently ended some threat hunting contracts alongside the pursuit of broader workforce cuts.