WASHINGTON (Agencies): The United States Cyber Command (USCYBERCOM) has been ordered to freeze new hiring and significantly limit contracts with private contractors, according to reports by iPaper and other sources. The directive comes as part of sweeping federal budget cuts implemented by the Department of Government Efficiency (DOGE).
Sources within USCYBERCOM revealed that the budget reduction is already taking a toll on operational capacity, particularly in areas involving international cooperation. “The loss of funding has begun to damage our ability to work effectively with allies, especially on Russia-related operations,” one source told iPaper.
The move is expected to have a “chilling effect” on joint cyber missions with key partners, including the United Kingdom. Analysts warn that this could undercut efforts to counteract growing cyber threats from adversarial states, particularly Russia.
In March, The Record reported that U.S. Defense Secretary Pete Hegseth ordered a stand-down on all planning and operations targeting Russia, including offensive cyber missions. Although Bloomberg later reported that no formal order had been issued, the conflicting accounts have added to concerns about the weakening of U.S. cyber posture.
The cuts are part of a broader federal effort to reduce spending and streamline government functions. Under DOGE’s mandate, thousands of civilian employees across government agencies have been laid off or placed under hiring freezes. The Department of Defense recently announced a workforce reduction of 5% to 8%, including the dismissal of over 5,000 probationary staff.
On Saturday, Defense Secretary Hegseth defended the decision, stating, “Efficiency must come before bureaucracy. We must rethink how we secure the nation in the digital age.”
However, critics argue the timing of the cuts could not be worse. Senate Majority Leader Chuck Schumer warned that scaling back cyber operations gives adversaries like Russia a “free pass” at a time of rising global tensions. “Pulling back now sends the wrong signal to our enemies,” Schumer said in an earlier statement.
The developments come amid rising geopolitical strain, with cybersecurity emerging as a key domain of strategic competition. As USCYBERCOM reassesses its priorities under new budget constraints, allies and analysts alike are watching closely to gauge the long-term impact on America’s cyber defenses.