Texas Cyber Command LAR Seeks $235M in Exceptional Items

Texas Cyber Command (TXCC) is requesting about $235 million in exceptional-item funding in its first Legislative Appropriations Request (LAR) for a full biennium of operations, with proposed investments in shared cyber protection, AI and quantum risk, incident intake, threat warning and information-sharing modernization.

The agency, established by House Bill 150, is completing the transfer of specified cybersecurity and network-security functions, personnel, contracts, property, records and appropriated funds from the Department of Information Resources (DIR).

TXCC’s baseline request totals about $243 million for the biennium, plus about $235 million in exceptional items — a total of $478 million.

The agency is requesting seven exceptional items, the largest being about $66 million for shared cyber protection for Texas government, Regional Security Operations Centers (RSOCs) and partners.

That request would support consistent identity security, public and private certificate lifecycle services, managed edge and protective Domain Name Service, cloud posture and workload protection and RSOC regional delivery and expansion. TXCC says existing entity identity systems, certificate services, network and Domain Name Service providers, cloud-native controls and local practices provide uneven coverage and lack a common statewide service catalog, onboarding model, lifecycle control, telemetry interface, support model or unit-cost basis.

The shared cyber protection request includes about $12 million for identity security, about $8 million for public and private certificate-authority services, about $8 million for managed edge and protective Domain Name Service, about $7 million for cloud posture and workload protection and $31 million for RSOC regional delivery and expansion.

TXCC is also requesting about $54 million to sustain statewide cybersecurity services transferred from DIR and replace historical cost-recovery funding. The agency says the item would support existing security monitoring and threat detection, multifactor authentication, penetration testing, Texas Risk and Authorization Management Program assessments, incident reporting and response, cybersecurity awareness and training and shared cybersecurity services.

Another $42 million is requested for securing AI and preparing Texas for quantum risk. TXCC says the funding would establish a statewide capability to discover, assess, test, secure and responsibly deploy emerging technologies while creating a cryptographic inventory and transition program.

The AI and quantum request includes $25 million for approved command AI model access, compute, automation and engineering; $10 million for statewide AI system security and assurance; and $6.5 million for cryptographic discovery and post-quantum readiness. The agency says the request excludes general AI application development, wholesale cryptographic replacement, named providers or any representation that a specific capacity level or procurement has already been approved.

TXCC is requesting about $29 million for 120 additional full-time equivalent positions to implement statewide cybersecurity responsibilities. The workforce exceptional-item narrative says the baseline request supports 84 full-time equivalent positions and that the additional positions would bring the requested complement to 204 if fully funded.

The additional positions would expand threat analysis and warning, 24-hour intake, coordination, response and recovery, digital evidence and forensic support, security operations, information sharing, standards, training, readiness, assurance, partnerships and administrative controls.

Other exceptional items include about $18 million for earlier warning for Texas critical infrastructure, about $14 million for rapid cyber incident intake, coordination and recovery and about $12 million for Information Sharing and Analysis Organization governance modernization.

The critical infrastructure item would support the Cybersecurity Threat Intelligence Center, which TXCC describes as the state’s early-warning capability. Funding would support bounded collection sensors, critical infrastructure decision support and analysis, threat data and analyst training and mission travel.

The incident intake item would fund a common incident portal, authoritative case service and hotline technology. TXCC says existing hotline, ticketing, collaboration, response and partner channels do not maintain a single tested record from initial contact through assignment, response, evidence handoff, recovery, follow-up analysis and closure.

The Information Sharing and Analysis Organization item would establish integrated information-sharing, governance, risk-management and authorization capabilities. TXCC says current functions remain fragmented across manual workflows, separate records, contractor-supported assessments and inconsistent information sharing.

TXCC’s baseline capital budget also includes technology items such as Armis Centrix Security Operations Center Management, a Cyware threat intelligence platform and an Armis Whole State Enterprise agreement. The capital schedule lists about $7.7 million in Fiscal Year 2028 and about $8.2 million in FY 2029 for acquisition of information-resource technologies.