The Trump administration’s budget proposal for fiscal year (FY) 2027 would shift research funding at the Department of Energy’s (DOE) cybersecurity and emergency response office away from traditional cybersecurity and toward artificial intelligence (AI), while also placing the office under a new funding structure.
DOE’s Office of Cybersecurity, Energy Security, and Emergency Response (CESER), which oversees U.S. energy infrastructure security and resilience, would undergo a 16% funding cut in FY 2027 compared to FY 2026 if the administration’s proposal is adopted.
In addition to that funding cut, DOE said CESER would undergo a new budget structure in FY 2027 to reduce duplication, streamline the budget request, and align resources with CESER’s mission.
Funding under that new model would be delivered through two new programs: the Threat Analysis and Incident Response (TAIR) program and the Infrastructure Hardening and Technology Development program.
Other programs currently and previously funded – such as policy preparedness and risk analysis, and management tools and technologies – would receive no funding under the Trump administration’s proposal.
The Infrastructure Hardening and Technology Development program focuses on protecting critical energy systems from cyber, physical, natural, and supply chain threats by pairing infrastructure upgrades with advanced research and development.
If the Trump administration’s 2027 budget proposal is enacted, the program would shift more research funding toward AI-focused cybersecurity efforts, including Artificial Intelligence for Operationally Resilient Technologies and Systems – or AI-FORTS. That move “shifts funding from more traditional cybersecurity R&D [research and development] to focused research on AI dominance,” according to the proposal.
“FY 2027 efforts will focus research and development investments on enhancing critical infrastructure cybersecurity through AI-driven solutions and addressing the risks posed by natural and manmade hazards,” the proposal states.
Comparably, the Trump administration’s FY 2026 budget request emphasized “next generation tools and technologies” across a wide range of threats, including cyber, supply chain, electromagnetic, and natural hazards. The FY 2027 shift moves that balanced approach to AI-enabled defense.
The TAIR program serves as a central hub for identifying and responding to risks facing U.S. energy infrastructure. It integrates intelligence from energy operators, the Intelligence Community, and DOE national laboratories to assess threats, maintain a risk register, and provide guidance to industry.
It also focuses on long-term resilience by offering technical assistance, sharing security best practices, and running joint exercises with government and industry partners. According to the FY2027 budget request, TAIR would also place emphasis on threat analysis, information sharing, and all-hazards emergency response capabilities.
Overall, if enacted, CESER would be funded at just over $160,000 in FY 2027. That’s compared to the enacted budgets of $200,000 in FY 2025 and $190,000 in FY 2026.
CESER recently outlined a five-year strategy to bolster protections for U.S. energy systems as they face mounting cyber, physical, and geopolitical threats. The plan, spanning FY 2026–2030, focuses on deploying advanced security technologies, strengthening infrastructure resilience, and improving coordination across federal agencies during disruptions.
More broadly, DOE is shifting toward a “risk-informed” approach to infrastructure protection and streamlining emergency authorities to improve coordination with state and local partners.