In a recent and unexpected decision, the US Cybersecurity and Infrastructure Security Agency (CISA) reduced federal funding for the Multi-State Information Sharing and Analysis Center (MS-ISAC) as part of a broader Department of Government Efficiency cost-reduction initiative.
The MS-ISAC has historically provided cybersecurity guidance, threat intelligence, and incident response support to state, local, tribal, and territorial (SLTT) governments. Scaling back financial support raises concerns about the vulnerability of these government entities, which often operate with limited security expertise and budgets.
The MS-ISAC has served as a central hub for collecting and disseminating timely threat intelligence, best practices, and incident response strategies across SLTT jurisdictions since 2003, serving upwards of 18,000 members.
Many smaller municipalities and agencies do not possess the internal resources or highly skilled personnel required for robust cybersecurity operations. Through its coordination of defense measures and real-time threat sharing, MS-ISAC has played a pivotal role in bolstering the overall security posture of these organizations.
Consequently, the reduction of federal funding may limit their capacity to address emerging cyber threats effectively.
Over the past several years, a “whole-of-state” approach to cybersecurity has gained prominence in the United States. Led by state governments, this strategy aims to centralize security services for local governments and critical infrastructure entities that lack the financial and human resources needed to establish comprehensive cybersecurity programs independently.
By pooling resources and implementing measures such as defense-in-depth, crowdsourcing of intel, and centralization of services, states can enhance real-time information sharing and create more cohesive defenses against sophisticated adversaries while leveraging economies of scale.
However, recent cuts to the MS-ISAC, which serves as a force multiplier to whole-of-state efforts, may disrupt these collaborative efforts, potentially weakening the collective cyber resilience of state-level and local institutions.
The United States operates under a federated system of governance characterized by federalism, home rule, and various constitutional protections. This model grants considerable autonomy to states and localities, permitting a wide range of cybersecurity practices and policies.
While this structure can stimulate innovation, it also poses challenges in standardizing security strategies and coordinating threat responses across diverse jurisdictions. The MS-ISAC has long helped bridge this gap by facilitating unified efforts. In its reduced capacity, states may now face greater hurdles in sustaining cost-effective statewide security programs.
Within this federated framework, the state, local, and education, (SLED) sector constitutes an immense yet often under-recognized market. Comprised of thousands of entities – including school districts, public universities, municipal governments, and utilities – the SLED domain collectively invests significant resources in technology and cybersecurity.
Israel's cybersecurity is centralized
However, Israeli start-ups and established companies frequently focus on US federal contracts or large private enterprises, overlooking the extensive opportunities the SLED sector presents for delivering advanced security solutions tailored to decentralized environments.
Israel’s cybersecurity framework, by contrast, is centralized and supported by robust collaboration among government entities, academia, and the private sector. Its companies and research institutions have earned international acclaim for their expertise in advanced threat detection, incident response, and security automation.
With CISA’s funding cuts to the MS-ISAC, there is an opportunity for Israeli entities to collaborate more closely with US state and local authorities to deliver innovative and integrated cybersecurity solutions. States and municipalities could leverage Israeli competencies to fill the emerging resource gaps.
Such partnerships can strengthen critical infrastructure defenses, enhance incident response, and streamline information sharing in alignment with the whole-of-state approach. By drawing on Israel’s expertise in cybersecurity – including system integration, centralization, and public-private partnerships – both countries can fortify their security postures and protect essential public services.
Through sustained collaboration between the US and Israeli governments, academia, and the private sector, American jurisdictions may further unify their strategies while Israeli innovators gain broader access to the SLTT market – ultimately delivering mutual benefits across both nations.
The writer, the president of Government Affairs, Cybersecurity Strategy, and Enterprise Resilience at Open District Solutions, will participate in the Cybertech Global Tel Aviv Expo, March 24-26.