Senator Cotton Urges Treasury to Enhance Cybersecurity for Critical Infrastructure

Senator Tom Cotton has sent a letter to Treasury Secretary Scott Bessent advocating for tax code adjustments to promote investment in operational technology (OT) that secures critical infrastructure. He highlighted the vulnerabilities of outdated OT systems, particularly in rural areas, which are susceptible to cyberattacks. Recent incidents include Iranian-linked hackers exploiting programmable logic controllers and a coordinated attack affecting over 30 community water systems in Minnesota. Cotton emphasized that federal tax guidance currently discourages necessary investments in OT security. He proposed that developing security software for industrial control systems should qualify as research under the tax code, thereby incentivizing modernization efforts. Cotton's letter reflects a growing concern over the increasing frequency of cyberattacks on civilian infrastructure, which he describes as a routine tactic in modern warfare.

Key Points: • Senator Cotton calls for tax code changes to boost investment in operational technology. • Recent cyberattacks have targeted critical infrastructure, including water systems in Minnesota. • Cotton emphasizes the need for modernization of outdated technology to enhance cybersecurity.