Grants Office Insights: Utilizing Grant Funding for Your Cybersecurity Projects

Prepared by Grants Office, April 2024 — As Texas workers increasingly use digital platforms and mobile devices, public entities are exposed to cybersecurity risks such as malware, ransom attacks, phishing, and other cybercrimes. Cybercriminals capitalize on security vulnerabilities to obtain personal information and data, resulting in a rise in financial fraud, unauthorized system access, and identity theft. Adopting cybersecurity technologies and providing cybersecurity training is essential in combating hackers, reducing ransom payments, preventing data theft, and decreasing system disruptions or outages. Grant funds can be utilized to aid local entities facing cybersecurity budget shortfalls. Two types of grants fund cybersecurity solutions and training: cybersecurity-focused grants and grants that fund cybersecurity as part of a larger, more comprehensive project.

Cybersecurity-focused grants include the State and Local Cybersecurity Grant Program SLCGP. This program aims to assist state, local, and tribal governments with managing and reducing systemic cyber risk by investing in cybersecurity hardware, software, and workforce training. The State of Texas has divided this grant into four funding opportunities: Planning and Governance, Assessment and Evaluation, Mitigation, and Workforce Development projects. In addition, the Rural and Municipal Utility Advanced Cybersecurity Grant & Technical Assistance aims to improve the cybersecurity resilience of electric utilities and improve energy resilience in rural communities.

Texas localities can also apply for Department of Homeland Security (DHS) grants to fund their cybersecurity needs. Texas State Homeland Security Programs (SHSP) provide funds to build capabilities at the State, local, and tribal levels to enhance our national resilience to absorb disruptions and rapidly recover from incidents both natural and manufactured. Activities implemented under SHSP must support terrorism preparedness by building or enhancing capabilities related to the prevention of, protection from, mitigation of, response to, and recovery from terrorism. Additionally, the Urban Areas Security Initiative (UASI) program is intended to provide financial assistance to high-threat, high-density Urban Areas in Houston, San Antonio, and Dallas, and to assist these areas in building and sustaining capabilities to prevent, protect against, mitigating, respond to, and recover from threats or acts of terrorism. Finally, the Emergency Management Performance Grant (EMPG) program provides funds to assist state, local, territorial, and tribal governments in preparing for all hazards. The EMPG program is essential for building and sustaining critical capabilities for disaster preparedness, response, recovery, and mitigation across the state.

Cybersecurity can also be funded as part of comprehensive projects. Several water infrastructure grants include cybersecurity as an eligible expense. For example, WaterSmart programs provide funds for water-related projects in drought-stricken states, including Texas. Other cybersecurity funding opportunities include HAVA Election Security Funds, public safety grants like the Edward Byrne Memorial Justice Assistance Grant (JAG), and broadband implementation grants including the Broadband Equity, Access, and Deployment Program (BEAD) program.

As cybersecurity requirements are implemented at the state and local level, grant funds will become a valuable resource for local governments, schools, healthcare facilities, and public safety agencies that do not have the necessary funding for these products and services.

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