The Trump administration’s fiscal year 2026 discretionary budget proposal outlines sweeping federal funding changes that could impact the physical security and cybersecurity industries, including the elimination of a longstanding hospital preparedness initiative and significant reductions to FEMA and CISA programs. At the same time, the budget proposes historic investments in border security and infrastructure protection.
Among the most notable proposed cuts is the elimination of the Hospital Preparedness Program (HPP), administered by the Administration for Strategic Preparedness and Response (ASPR). The $240 million program is the primary federal funding mechanism for supporting healthcare system readiness during emergencies and disasters. While HPP has not traditionally been a direct funding source for physical security technologies such as video surveillance or access control, it has supported critical emergency coordination systems, communications infrastructure and planning tools that may interface with broader facility security operations.
Bryan Warren, president and chief consultant at WarSec Security, said the elimination would likely have “a huge impact not only on security technology as far as the decision-making process on purchasing and the ability to purchase for a lot of the smaller to medium-sized hospitals, but also on weakening the collaborative partnerships between healthcare facilities and external response agencies like local police and fire.”
Warren pointed to the value that ASPR and its Technical Resources, Assistance Center and Information Exchange (TRACIE) platform have provided over the years — including checklists, white papers and guidance related to active assailant response and workplace violence.
“Just a few years ago,” he added, “HPP funds were used to purchase metal detectors at some hospitals. It’s not theoretical. It has directly helped with tangible security upgrades in resource-constrained environments.”
Warren also emphasized that the benefits of HPP extend beyond physical infrastructure investments.
“Even if it’s not a tangible grant,” he said, “the program has provided critical training, information sharing and guidance to help hospitals prepare for real-world threats like active shooters and workplace violence.”
He pointed SecurityInfoWatch readers to a summary of these efforts, available from the American College of Emergency Physicians (ACEP), here.
911 Consulting President Bo Mitchell, a nationally recognized expert in the field of emergency management and preparation, echoed concerns, warning that eliminating or even drastically reducing HPP funding could deepen the strain already felt by struggling hospitals.
“This looks like a train wreck no matter how much money is involved,” he said. “If the funding gets cut in half, now you’re setting up a competition for a dwindling pool of money. Hospitals will be forced to fight each other for limited support — and that’s if the people running the program understand what’s at stake.”
Mitchell emphasized the vulnerability of rural and under-resourced facilities, noting that “hospitals are already closing, especially in rural areas, and this will only accelerate that trend.”
Without federal support, he warned, the ability to ensure even basic safety and security infrastructure will erode further.
Looking ahead, Warren encouraged healthcare security leaders to take proactive steps. “Start by reengaging with your local emergency partners. Have the conversation now — before something goes sideways — about how you’ll support each other if this funding goes away,” he said. “Figure out the worst-case scenarios together and plan your resource priorities accordingly.”
FEMA funding faces sharp reductions
The budget proposal also seeks a $646 million reduction in FEMA’s non-disaster grant programs, eliminating several initiatives that previously supported local and regional emergency response capabilities. Programs such as the National Domestic Preparedness Consortium and Targeted Violence and Terrorism Prevention efforts are slated for termination, with the administration asserting a refocus on core emergency management and resilience at the state level.
Warren noted that FEMA’s Nonprofit Security Grant Program, which has been used by hospitals for physical security enhancements, could also be at risk. “If a hospital doesn’t have the resources and it’s in a community that can’t afford to provide the level of protection needed in a potential attack or credible threat, that’s going to be huge,” he said.
Jake Parker, senior director of government relations for the Security Industry Association (SIA), said the lack of detail in the budget proposal makes it difficult to assess exactly which FEMA Homeland Security Grant programs would be affected.
“We've long advocated for level funding for these programs,” he said, adding that past proposals to eliminate similar grants during the previous Trump administration were ultimately rejected by Congress. “But obviously we’re in a different age now.”
Mitchell warned that FEMA’s role is facing systemic dismantling. “FEMA has hit the iceberg,” he said. “It will take time to sink, but the main program is dead. Personnel are being replaced, training resources are evaporating, and the entire apparatus that supports 50 states and 30,000 jurisdictions is being hollowed out.”
CISA refocus raises security questions
The budget also calls for a $491 million cut to the Cybersecurity and Infrastructure Security Agency (CISA). According to the administration, the proposal would “refocus CISA on its core mission — Federal network defense and enhancing the security and resilience of critical infrastructure,” while eliminating what it labels as “weaponization and waste.”
Offices related to misinformation, international affairs and external engagement would be removed on the grounds that they are duplicative of other programs at the federal or state level.
While CISA is best known for its cybersecurity mission, Warren emphasized that its role in physical and operational security should not be overlooked.
“CISA runs the Office of Bombing Prevention and has produced exceptional resources on hospital security — everything from bomb threat guidance to counter-IED webinars and resilience guides,” he said. “Hospitals are considered primary or secondary targets in many communities, and the loss of CISA’s support in this area would be felt.”
Parker said the proposed CISA cuts also lack specificity but noted that its core infrastructure protection functions “do benefit security in the industry.” He added that the guidance CISA produces is often valuable to SIA members, and that any shift away from that focus would be closely monitored by the association.
On the cybersecurity side, Warren warned that hospitals remain a “target-rich environment” due to the value of protected health information (PHI). “Unlike a credit card, PHI doesn’t expire — a criminal can keep coming back and exploiting that data for years,” he said. “Healthcare is already overwhelmed with ransomware and cyberattacks, and further cuts to federal cybersecurity support are not well timed.”
Border, facility security could get a boost
Conversely, the Department of Homeland Security (DHS) would see a significant funding boost under the proposal. More than $43 billion in new DHS budget authority for 2026 is included as part of a broader reconciliation bill, supporting a range of initiatives including expanded border wall construction, advanced surveillance procurement, and upgraded Coast Guard and Secret Service capabilities.
The funding also targets preparedness for high-profile events such as the 2026 FIFA World Cup and 2028 Summer Olympics, likely spurring demand for technologies like mobile surveillance systems, access control infrastructure and large-scale crowd safety platforms.
Parker noted that the reconciliation package includes provisions that could drive near-term opportunity for security technology providers. He highlighted $46 billion allocated for border-related infrastructure and technology, including lighting, cameras, and monitoring tools, as well as $5 billion for upgrades to Customs and Border Protection (CBP) facilities. “That will definitely include a lot of building systems and security systems,” he said.
He also pointed to a proposed $500 million grant program for state and local agencies to acquire counter-UAS (unmanned aerial systems) technologies for tracking, detecting and identifying drones — a capability increasingly relevant to critical infrastructure operators.
“That’s a very significant amount of money and would essentially be a new grant program,” Parker said. “There are a number of SIA members that provide those systems, and this could be a big opportunity for them.”
