Cybersecurity is a growing priority at every level of government, and Texas businesses — both cybersecurity companies and businesses investing in cybersecurity improvements — can access federal grants, state programs, and defense contracting opportunities related to cybersecurity. This guide covers the major programs available.
Federal Cybersecurity Grant Programs
SBIR/STTR Cybersecurity Topics
Multiple federal agencies issue SBIR and STTR solicitations with cybersecurity-related topics. Texas businesses developing cybersecurity technology, tools, or services can compete for R&D grants through:
- Department of Defense (DOD): DOD is one of the largest SBIR funders and regularly includes cybersecurity topics covering network defense, secure communications, supply chain security, and cyber operations.
- Department of Homeland Security (DHS): DHS SBIR topics frequently address critical infrastructure protection, cybersecurity threat detection, and information sharing.
- National Science Foundation (NSF): NSF funds cybersecurity research through its Secure and Trustworthy Cyberspace program and SBIR/STTR solicitations.
- Department of Energy (DOE): DOE cybersecurity topics focus on energy infrastructure security, grid protection, and operational technology security.
Phase I SBIR awards typically range from $50,000 to $275,000 for feasibility studies. Phase II awards can reach $1 million or more for full development. Texas has a strong base of cybersecurity companies in Austin, Dallas, San Antonio, and Houston.
State and Local Cybersecurity Grant Program (SLCGP)
The federal State and Local Cybersecurity Grant Program, established by the Infrastructure Investment and Jobs Act, provides funding to state and local governments to improve cybersecurity posture. While this program primarily funds government entities, it creates opportunities for Texas cybersecurity businesses as service providers, consultants, and technology vendors serving state and local government clients.
CISA Programs
The Cybersecurity and Infrastructure Security Agency provides resources, assessments, and technical assistance to organizations across the country. While CISA does not typically provide direct grants to businesses, their programs can benefit Texas businesses by improving cybersecurity awareness and providing free assessment tools. CISA resources are available to critical infrastructure operators, including Texas energy, healthcare, and financial sector businesses.
Texas Cybersecurity Initiatives
Texas Department of Information Resources (DIR)
DIR oversees cybersecurity for Texas state agencies and provides guidance and resources relevant to businesses working with state government. DIR maintains a list of approved cybersecurity vendors for state procurement, creating opportunities for Texas cybersecurity businesses to serve government clients.
San Antonio as a Cybersecurity Hub
San Antonio is one of the nation's leading cybersecurity centers, anchored by Joint Base San Antonio, the NSA Texas cryptology center, and a concentration of cybersecurity companies and military operations. Businesses in the San Antonio area can leverage this ecosystem for defense contracting, workforce talent, and industry partnerships.
Defense Contracting Opportunities
Texas cybersecurity businesses can access significant federal contracting opportunities:
- 8(a) Program: Federal contracting preferences for socially and economically disadvantaged businesses.
- HUBZone: Contracting preferences for businesses in designated zones.
- SDVOSB: Contracting preferences for service-disabled veteran-owned businesses, particularly relevant given the strong military-to-cybersecurity career pipeline in Texas.
- Mentor-Protege Programs: DOD and SBA programs that pair small cybersecurity firms with established defense contractors.
Workforce Training for Cybersecurity
Texas businesses investing in cybersecurity workforce development can access:
- Skills Development Fund: Grants for customized cybersecurity workforce training through community college partnerships.
- WIOA Programs: Federal workforce training funds that can support cybersecurity training for new hires.
- Apprenticeship Programs: Registered apprenticeship programs for cybersecurity roles, supported by federal and state incentives.
- WOTC: Federal tax credits for hiring from targeted groups, including veterans transitioning from military cybersecurity roles.
General Business Programs
Beyond cybersecurity-specific programs, Texas cybersecurity businesses can access all standard business incentive programs:
- SBA loan programs for working capital and growth
- Federal and state R&D tax credits for qualified research
- Texas HUB certification for state contracting preferences
- Local property tax abatements and economic development incentives
Find Programs That May Fit Your Business
Texas cybersecurity businesses can access both industry-specific and general business programs. Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →