A new Pentagon agency will expand covert U.S. activities targeting technologies developed by rival states that are considered a threat to U.S. military superiority.
The Technology Support Office (TSO) aims to develop tools and plans to hinder adversaries’ progress. Its work includes cyberattacks, deception operations and efforts to restrict rivals’ access to militarily significant technology.
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POLITICO reported in an investigation that the TSO was established in April 2026, while its activities remain largely secret. Its budget has not been made public. According to an estimate by a former senior Pentagon intelligence official, the agency’s classified contracts could exceed $1.5 billion.
One scenario mentioned in the report involves deceiving adversaries into installing defective components in their weapons, deliberately prepared by the agency.
The TSO has no legal authority to conduct covert operations itself, according to the sources cited. Its role is to work with military and intelligence leaders to prepare the tools and strategies that could be used in such activities.
The aim is to slow or halt the development of technologies that could give U.S. adversaries an advantage in a major military conflict. Some officials interviewed by POLITICO described the initiative as necessary, pointing to the use of artificial intelligence, drones and other modern technologies by various countries.
The agency was created by merging two secret Pentagon programs. Since 2023, they had conducted smaller-scale activities to obstruct or damage foreign adversaries’ technologies. Officials say the plan is to expand the operations and place them under a single organization.
The initiative was led by Deputy Defense Secretary Steve Feinberg, with assistance from his adviser Tom Rakusan. Rakusan previously worked in the CIA’s clandestine services and has experience with emerging technologies.
According to three former intelligence officials, planning to expand the existing programs began in early 2025. A document examining the possibility of merging and expanding them was drafted in the fall of that year.
Placing the programs under U.S. Cyber Command, the American command responsible for cyber operations, was initially considered. Ultimately, however, the recommendation was to establish a separate agency with its own budget and procurement authority.
This organization could acquire technology from private companies more quickly and assess which foreign military systems pose the greatest threat to the United States. A former Pentagon official said its creation was also intended to concentrate more control over certain intelligence programs in the hands of the Defense Department’s senior leadership.
Feinberg signed the document establishing the TSO on April 14, 2026. During the summer, Pentagon leaders appointed Grant Hundley, a former U.S. Marine Corps special operations officer, as the agency’s director.
William Nelson, a career U.S. Army official, was selected to oversee sensitive activities and special intelligence programs.
The exact amount of funding the TSO has received, or whether it has signed new contracts for its operations, has not been disclosed. However, two former Pentagon officials and a national security official said the agency had informed several defense companies of its interest in advanced cyberattack tools.
The figure of more than $1.5 billion is a former senior Pentagon intelligence official’s estimate of the agency’s potential secret contracts, not an officially confirmed amount.
Beyond covert operations, the TSO is expected to help coordinate emerging technologies and connect private companies with various military intelligence programs. One proposal is to create a shared catalog of approved artificial intelligence tools and other technologies that defense companies could use in secret projects.
However, the agency’s creation has drawn opposition within the Pentagon. According to sources, the special operations and cyber warfare commands have objected, fearing that the TSO could take away their funding and authority.
Some officials interviewed support the agency’s mission but raise questions about transparency and oversight. They warn that covert operations could affect civilians, aggravate relations with other countries or violate international law. The potential misuse of secret contracts is another concern.
A current national security official said plans for the agency had been disclosed to only a limited number of U.S. congressional staff members, which could make oversight by lawmakers more difficult.
A former senior Pentagon official warned that operating in a classified environment creates more opportunities to conceal or distort information about what is happening.
Pentagon spokesman Jacob Bliss disputed the report’s claims. He said the information used by the journalists was false and that the sources might be misinformed or seeking to deceive.
Bliss said the Defense Department respects its relationship with Congress and would continue working with the relevant committees to help them exercise oversight. He also dismissed concerns about conflicts of interest, saying officials are subject to ethics rules and financial checks.
According to sources cited in the report, the creation of the TSO reflects an effort to expand the use of technology in U.S. covert operations. However, the size of its budget, the agency’s specific activities and the level of oversight remain unclear.
