The SLED cybersecurity community was thrown into some confusion when DHS’s Cybersecurity and Infrastructure Security Agency (CISA) announced that it would stop funding the Multi-State Infrastructure Security and Analysis Center (ISAC) at the end of September 2025. The cut was announced as part of the cost-reduction efforts of the Department of Government Efficiency (DOGE). At that time, Nick Andersen, Executive Assistant Director for the Cybersecurity Division (CSD) at CISA, described the move as “expanding shared responsibility nationwide.”
Early indicators from this move are positive. An analysis by the Center for Internet Security (CIS), which operates the MS-SAC, found that the “impact of the MS-ISAC’s transition to a fee-based membership model…is minimal overall and in some aspects actually positive.” Moreover, it appears that the move to a fee-based model is facilitating a “whole-of-state” approach to cybersecurity as state governments purchase full statewide access for local and educational agencies using their own-source funds and federal homeland security grants.
A quick dive into GovSpend data, using the platform’s AI search tool, finds ready evidence of the trends in play. In a purchase order dated December 29, 2025, Rhode Island procured “state/territory-wide membership” for a population-based fee of $177,000. As of January 16th, Government Technology magazine reported that 11 states had procured statewide memberships. Another 13 states had purchased the ISAC’s cyber threat intelligence (CTI) services only for state agencies.
GovSpend data for December 2025 includes numerous purchase orders for local and educational agencies. The City of Mankato (MN) procured an annual membership at the tier four level for $4,995. Napa County (CA) purchased services for $9,889.79. The Great Oaks (OH) Career Campuses procured services for $1,995 with the P.O. indicating that their membership fell into the $25 million to $100 million budget range.
Vendors should keep in mind that MS-ISAC services are focused on intelligence collection, analysis, production, and dissemination. For many other service needs, the CIS offers a CyberMarket, which they claim uses the “purchasing power of the 18,000+ member strong MS-ISAC to simplify the complex cybersecurity vendor landscape into solutions.” Looking at GovSpend data for the last 60 months reveals that nearly 1,000 agencies have purchased $117 million in cybersecurity products and solutions from CIS.
Without a doubt, the change to MS-ISAC funding has disrupted the SLED cybersecurity landscape. Relying on fee-for-service funding creates a hybrid public-private market for vendors to provide CTI services to any states and localities that do not join the ISAC. Vendors can also find channel opportunities via CyberMarket. GovSpend data provides valuable insights that vendors can use to optimize their portfolios as this market seeks its new normal.
About the Author: Chris Dixon
