HR 7266: Rural and Municipal Utility Cybersecurity Act

HR 7266 in plain English: This bill reauthorizes through FY2030 a Department of Energy program that provides cybersecurity assistance and funding to rural electric cooperatives and small electric utilities. It authorizes $250,000,000 for fiscal years 2026 through 2030, allows funding to be awarded on a competitive or noncompetitive basis, and expands protections against public disclosure of information shared under the program.

Stated purpose

This bill reauthorizes a federal program through FY2030 that provides cybersecurity grants and technical assistance to rural electric cooperatives and small or municipal electric utilities, helping them defend against cyber threats to their systems.

Key points

• Authorizes $250,000,000 for FY2026–2030 for cybersecurity grants and technical assistance to rural and municipal electric utilities.
• Allows the Department of Energy to award assistance on a competitive or noncompetitive basis, expanding on current competitive-only rules.
• Requires prioritizing utilities that operate, not just own, defense critical electric infrastructure.
• Expands FOIA and state disclosure protections to all information shared under the program with any level of government.

Arguments supporters make

• Small and rural utilities often lack the money and staff to defend against sophisticated cyberattacks, so targeted federal help fills a real gap that could prevent widespread power outages.
• Electric infrastructure serving military and defense facilities needs strong cybersecurity, and prioritizing those systems protects national security.
• Allowing noncompetitive awards gives DOE flexibility to quickly reach the most vulnerable utilities that might struggle to compete for grants on their own.

Arguments opponents make

• Shielding all program-related information from FOIA and open-records laws reduces public oversight and makes it harder to know whether taxpayer dollars are being spent effectively.
• Allowing noncompetitive awards removes a key check on how $250 million is distributed, which could favor certain utilities or regions without a transparent process.
• The federal government may be taking on responsibilities that utilities and states should handle themselves, creating long-term dependence on federal funding rather than building lasting local capacity.

Tradeoffs

Broader information-sharing protections may encourage utilities to participate more openly, but they also limit public and press accountability over how federal funds are used. Allowing noncompetitive awards can speed help to the most vulnerable utilities, but reduces the transparency and fairness that a competitive process provides.

Current status in Congress: Passed House.

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