IBM contract for overseas cyber assistance canned amid USAID shutdown

MalBot · February 27, 2025, 9:55pm

A $95 million IBM contract with the U.S. Agency for International Development focused on bolstering cybersecurity posture for a slew of allied European and Eurasian countries has been cancelled as the Trump administration has ordered the humanitarian aid agency to end most of its programs.

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The five-year USAID contract, which Nextgov/FCW has previously reported on, <a href=“US taps IBM for 5-year deal to boost European, Eurasian allies’ cyber posture - Nextgov/FCW”>tasked IBM</a> to deploy its cybersecurity staff to allies with USAID presence — including Albania, Moldova, Azerbaijan, Kosovo and others — to help build out security operations centers, train security practitioners and enhance critical infrastructure defenses across the region.

The company confirmed Thursday the contract was terminated but did not provide further details. The status of overseas cybersecurity staff delegated under the contract’s terms was not immediately known.

The Trump administration said Wednesday that it’s slashing 90% of USAID contracts. USAID canceled nearly 5,800 of its 6,200 multi-year awards, slashing $54 billion in funding — an overall reduction of 92%, a U.S. State Department spokesperson <a href=“https://www.reuters.com/world/us/usaid-workers-say-goodbye-headquarters-trump-drastically-cuts-foreign-aid-2025-02-27/”>told Reuters</a> on Wednesday. The White House also trimmed almost 30% of the State Department’s foreign aid grants, around $4.4 billion.

The IBM <a href=“SAM.gov”>project</a> supported USAID’s Cybersecurity Protection and Response program and was fueled in part by accelerated cyberattacks targeting European and Eurasian nations that have stemmed from Russia’s ongoing war in Ukraine.

“If you’ve been to that part of the world, it’s really tough to build a national system for managing internet use,” Mike Purcell, a retired Marine officer who focused on Eurasian security cooperation, previously told Nextgov/FCW. “And it would be in the U.S.’s interest if it’s able to link [the countries] into a reliable, safe internet and cyberspace connected to Western Europe and their economies.”

The foreign aid agency, which has become a prime target of President Donald Trump’s agenda to eliminate government spending waste, declared cybersecurity an economic development issue in 2021 and has been pushing to boost the technical prowess of underdeveloped nations, arguing those investments can help curtail cyberattacks launched by foreign adversaries and cybercrime groups.

The contract with the technology services giant contained both proactive and reactive components, a USAID technical expert previously told Nextgov/FCW. One reactive piece gave USAID the ability to direct IBM to deploy a rapid response team within 72 hours of a cyber incident and perform forensic analysis or system recovery.

As part of a renewed <a href=“US sets sights on partnerships to counter cyberthreats, secure AI in new global cyber strategy - Nextgov/FCW”>digital solidarity effort</a> unveiled by the State Department last year, Western officials hoped that worldwide coalition-building would help deter hacking threats against critical infrastructure. Hackers tied to Russia, China and others have been found to be burrowing into and sabotaging critical economic sectors — including water systems and healthcare providers — over the past several years.

Nextgov/FCW has asked the State Department and USAID for comment. The moves to eliminate much of the humanitarian agency’s business have been undergirded by what Trump officials call an “America First” agenda.

In recent years, the U.S. has worked to counter foreign influence over internet and telecom standards that could lead to cyber threats and geopolitical instability. Russia, for instance, has been accused of <a href=“Cyberattacks on Ukraine violate human rights”>human rights abuses</a> via its cyberattacks targeting Ukraine.

Notably, recent U.S. diplomatic initiatives indicate that the White House is actively <a href=“US defense chief suggests Ukraine should abandon hope of winning all territory back from Russia”>engaging with Moscow</a>, a strategy that Ukraine supporters in Washington contend could jeopardize U.S. national security and the stability of NATO allies.

Article Link: https://www.nextgov.com/cybersecurity/2025/02/ibm-contract-overseas-cyber-assistance-canned-amid-usaid-shutdown/403350/