H.R. 5078 would extend until 2035 the requirements for the Department of Homeland Security (DHS) to make cybersecurity grants to state and local entities, assess grant applications, review state and local cybersecurity plans, and monitor the performance of grant recipients. H.R. 5078 also would expand the scope of the grant program to include state and local government investments in artificial intelligence systems. Finally, the bill would require the Comptroller General of the United States to periodically review the program. The requirement to make cybersecurity grants currently expires on September 30, 2025.

The costs of the legislation, detailed in Table 1, fall within budget function 450 (Community and Regional Development). For this estimate, CBO assumes that H.R. 5078 will be enacted near the start of fiscal year 2026 and that outlays will follow historical spending patterns for the affected programs. Implementing H.R. 5078 would cost $869 million over the 2025-2030 period, CBO estimates; such spending would be subject to the availability of appropriated funds.

Over the 2022-2025 period, lawmakers provided an average of $250 million per year for the DHS State and Local Cybersecurity Grant Program. CBO estimates that continuing to award grants at that level would cost $766 million over the 2025-2030 period.

On the basis of the costs to administer a similar grant program, CBO estimates that reviewing grant applications and cybersecurity plans, disbursing grants, communicating with state and local governments, and completing other oversight and administrative functions required by the bill would cost $103 million over the 2025‑2030 period.

On the basis of the costs of similar reviews, CBO estimates that the cost of the periodic review by the Comptroller General would be less than $500,000 over the 2025-2030 period.

The CBO staff contact for this estimate is Aldo Prosperi. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.