MTS CYBER Act of 2026
Summary
HR 7625 (MTS CYBER Act) is an early-stage bill that orders a GAO review of Coast Guard cybersecurity resources. It authorizes zero funding and has no direct market impact. The bill is purely informational and has not moved past committee referral.
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Key Takeaways
- 1.HR 7625 authorizes zero funding – it is a study mandate, not a spending bill.
- 2.No direct impact on cybersecurity vendors or maritime operators in the near term.
- 3.The bill is in early stage with a long legislative path; passage probability is low.
Market Implications
No immediate market implications. The bill is too early-stage and too procedural to move any sector. Cybersecurity stocks ($CRWD, $PANW) are not affected. Maritime transportation stocks ($CSX, $UNP, $DAL) are not affected. Monitor for future appropriations bills that could fund Coast Guard cybersecurity procurement.
⚡ Government Convergence
Active government convergence in this signal’s sector right now.
Over the last 90 days, 80 separate government actions have converged on Cybersecurity / Zero Trust. What that means: federal dollars are already moving — agencies are soliciting bids and awarding contracts, not just talking, and legislation and executive action are building the policy and funding tailwind behind it. When independent channels move together like this — 47 federal contracts, 21 bills, 9 procurement notices, 2 executive actions and 1 patents — it's the clearest early tell that Washington is committing to cybersecurity / zero trust, the kind of build-up that reshapes the sector well before it's obvious in the headlines.
Converging government actions
- ContractDELL FEDERAL SYSTEMS L.P: $1.0B Department of Veterans Affairs Contract · 2025-04-01
- ContractSCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $135M Department of State Contract · 2025-05-09
- BillWater Cybersecurity Enhancement Act of 2025 · 2025-10-28
- ContractLOCKHEED MARTIN CORPORATION: IGF::OT::IGF AFSOC ACTS AWARD OF CONTRACT FOR CLS, ENGINEERING, INSTRUCTION, CYBERSECURITY, DMO · 2026-03-20
- ContractCACI, INC. - FEDERAL: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP A DEFEND A OPTION EXERCISE AND TRANSFER FROM PIID 47QFCA18F0050 · 2026-04-07
- ContractGENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.: THE SCOPE OF THIS REQUIREMENT INCLUDES PROGRAM MANAGEMENT SERVICES, TRANSITION SERVICES, AND A FULL RANGE OF ENTERPRISE IT-RELATED SERVICES · 2026-05-26
- Executive actionExecutive Order: Promoting Advanced Artificial Intelligence Innovation and Security · 2026-06-02
- Executive actionPresidential Memorandum: National Security Presidential Memorandum/NSPM-12 · 2026-06-12
- ContractCGI FEDERAL INC.: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP C DEFEND C · 2026-07-07
- ContractBOOZ ALLEN HAMILTON INC: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP B DEFEND B · 2026-08-31
- ContractCGI FEDERAL INC.: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE TASK ORDER GROUP F (DEFEND F) · 2026-09-03
- Procurement noticeZero Trust Architecture (ZTA) Vendor Framework · 2026-09-10
- ContractMAXIMUS FEDERAL SERVICES, INC.: INFORMATION TECHNOLOGY SUPPORT SERVICES 2 (ITSS2): THE PURPOSE OF THE ITSS2 CONTRACT IS TO PROVIDE SUPPORT FOR IT OPERATION AND MAINTENANCE · 2026-09-14
- ContractIRON VINE SECURITY LLC: ENTERPRISE CYBERSECURITY SUPPORT SERVICES · 2026-09-15
Full Analysis
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What happened: On February 20, 2026, Rep. McDowell (R-NC) introduced HR 7625, the MTS CYBER Act. The bill was referred to two committees (Transportation & Infrastructure; Homeland Security) and then to subcommittees. As of June 3, 2026, it remains in early stage – no hearings, no markup, no floor vote. The bill text directs the Comptroller General (GAO) to review the Coast Guard's budget, resources, and capabilities as co-Sector Risk Management Agency for the marine transportation system. It does not authorize or appropriate any funding.
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Money trail: Zero. The bill is a study mandate. It does not create a grant program, tax credit, or procurement authorization. Any future cybersecurity spending for the Coast Guard would require a separate appropriations bill. The bill's findings note that $20B was allocated for port infrastructure under the Investing in America Agenda but that cybersecurity-specific allocations were unspecified – this bill does not change that.
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Structural winners/losers: No direct winners or losers. The bill is procedural. If it leads to future appropriations for Coast Guard cybersecurity, endpoint security vendors like CrowdStrike ($CRWD) and network security vendors like Palo Alto Networks ($PANW) could eventually benefit. However, that is a multi-step inference with low confidence. The bill does not mandate any private-sector compliance changes, so maritime operators (e.g., $CSX, $UNP, $DAL) are unaffected.
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Real market data: No real market data was provided for price trends. Based on structural positioning, cybersecurity stocks have no near-term catalyst from this bill.
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Timeline: The bill must pass both House committees, then the full House, then the Senate, then be signed. Given its early stage and lack of urgency, passage in the 119th Congress is uncertain. Even if passed, the GAO study would take 6-12 months, with any resulting procurement years away.
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
GAO review of Coast Guard cybersecurity budget and resources; no direct mandate or funding for private sector.
Who must act
Coast Guard (DHS) – must provide budget/resource data to GAO.
What happens
No immediate change in cybersecurity spending or regulatory requirements for maritime operators.
Stock impact
CrowdStrike's Falcon platform is used by federal agencies; a future Coast Guard procurement could increase revenue, but this bill only authorizes a study – no procurement trigger.
What the bill does
GAO review of Coast Guard cybersecurity budget and resources; no direct mandate or funding for private sector.
Who must act
Coast Guard (DHS) – must provide budget/resource data to GAO.
What happens
No immediate change in cybersecurity spending or regulatory requirements for maritime operators.
Stock impact
Palo Alto Networks' Prisma and firewalls are used by federal agencies; a future Coast Guard procurement could increase revenue, but this bill only authorizes a study – no procurement trigger.
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
Executive Order: Promoting Advanced Artificial Intelligence Innovation and Security
BOOZ ALLEN HAMILTON INC: $172M Department of Veterans Affairs Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $196M Department of State Contract
ECS FEDERAL, LLC: $181M General Services Administration Contract
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION: $208M General Services Administration Contract
ADVANCED TECHNOLOGY INTERNATIONAL: $102M Department of Energy Federal Award
ECS FEDERAL, LLC: $218M General Services Administration Contract
ECS FEDERAL, LLC: $181M General Services Administration Contract
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
RESTORING AMERICAN SALTWATER ANGLING AND RECREATION
This executive order directs federal agencies (primarily NOAA and the Department of Commerce) to shift fisheries management toward prioritizing recreational fishing over commercial interests by modernizing data collection, replacing outdated mail-in surveys with real-time mobile reporting, and allowing state-collected data to substitute for federal data when error rates are lower. It also mandates reviewing and potentially revising National Standards under the Magnuson-Stevens Act, rescinding regulations that restrict marine access, and launching pilot programs for iconic fisheries like Atlantic striped bass, with the goal of boosting the $1.2 trillion outdoor recreation sector.
Excluding Certain Canadian Products from Importation into the United States in Response to Continued Discrimination Against the Commerce of the United States with Respect to Motor Vehicles
This proclamation bans imports of certain Canadian products, escalating a trade dispute over Canada's motor vehicle tariffs. It builds on prior actions under Section 338 of the Tariff Act of 1930 to impose an import exclusion, effective September 29, 2026, for goods currently subject to a 50% duty. The measure directs U.S. Customs and Border Protection to implement the ban and removes these products from the tariff regime, potentially disrupting supply chains in automotive and related sectors.
Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed to Offset Canadian Discrimination Against the United States with Respect to Motor Vehicles
This proclamation modifies the list of Canadian products subject to the existing 50% additional ad valorem duty imposed under Proclamation 11048, effective September 15, 2026. While some products remain covered (Part A), others are removed from the duty (Part B). The action is taken under Section 338 of the Tariff Act of 1930 and Section 604 of the Trade Act of 1974, and the duties stack on top of Section 232 tariffs. U.S. Customs and Border Protection is authorized to implement the changes.
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