WSJ Tech News Briefing: What Trump’s Second Term Could Mean for the Top U.S. Cyber Agency

Release Date: November 19, 2024
Host: Belle Lynn
Reporters: Angel Au Young, James Rundle
Podcast: WSJ Tech News Briefing by The Wall Street Journal

Introduction

In the November 19, 2024 episode of WSJ Tech News Briefing, host Belle Lynn delves into two prominent topics shaping the tech landscape. First, she explores the emerging trend of tech professionals opting to network in saunas instead of traditional venues like bars and boardrooms. Following this, the podcast shifts focus to the potential ramifications of President Elect Donald Trump's second term on the Cybersecurity and Infrastructure Security Agency (CISA), the leading U.S. cybersecurity agency.

Techies Take to Saunas: A New Networking Frontier

Anti-Alcohol Movement Fuels Sauna Trend

Belle Lynn opens the episode by highlighting a novel trend in Silicon Valley: tech founders and investors are increasingly choosing saunas as their preferred venues for meetings and networking events. This shift away from conventional settings is attributed to a broader anti-alcohol movement sweeping through the tech industry.

Angel Au Young Explains the Trend
WSJ reporter Angel Au Young provides insight into this movement. At [00:19], Belle Lynn introduces the topic and follows up by asking Angel about the reasons behind the surge in sauna-based networking.

Angel Au Young [01:24]: "There is an anti-alcohol movement that's sweeping through the tech industry and it's making investors and founders and employees just hungry for gathering places outside of bars or restaurants where the typical activity would be drinking or eating."

Angel elaborates that saunas offer a sober alternative where professionals can connect without the influence of alcohol. These venues can accommodate anywhere from 20 to 90 people, making them versatile for various event sizes. The trend appears to skew towards younger professionals, with event attendees ranging from their late 20s to their 50s.

Biohacking and Efficiency Drive the Movement
When queried about the origins of the anti-alcohol sentiment, Angel connects it to Silicon Valley's obsession with biohacking and personal efficiency.

Angel Au Young [02:09]: "It all relates to Silicon Valley's obsession with biohacking and trying to hack your own body in different ways to make yourself more efficient. Efficiency is a big theme in Silicon Valley that's partially tied to why people are just turning away from alcohol."

Effectiveness and Reception of Sauna Networking
Belle Lynn probes the effectiveness of these sauna gatherings, to which Angel responds that they are proving to be valuable networking opportunities. Investors appreciate the ability to connect with founders on both professional and personal levels in a relaxed environment.

Angel Au Young [02:31]: "It seems like for the people who have been invited to these type of events, it has become a really good networking opportunity. But what investors have told me is that it's also a way to get to know founders, both from a professional standpoint and a personal level."

Angel shares an anecdote about a first meeting at Asana, where a founder connected over family life, highlighting the personal touch facilitated by such informal settings. However, she notes that the intense environment of a sauna—where individuals meet in swimwear and endure high temperatures—might not be comfortable for everyone.

Future Outlook: Expansion of Sauna Events
Looking ahead, Angel anticipates that while sauna networking is still in its early stages, the trend is gaining traction in major tech hubs like San Francisco, New York, and Boulder. The growth is facilitated by the recent availability of suitable sauna facilities.

Angel Au Young [04:11]: "These types of social saunas have popped up this year in San Francisco, Louisiana, New York, Boulder, which are tech hotspots. And one of the investors that I spoke to for this story, he said that there's always going to be a scenario where somebody's going to feel uncomfortable regardless of what the activity is. But right now saunas are taking off because new facilities have just popped up."

CISA Under Scrutiny: Implications of Trump's Second Term

Overview of CISA's Role and Responsibilities

Transitioning to the main segment, Belle Lynn introduces the topic of the Cybersecurity and Infrastructure Security Agency (CISA) and its uncertain future under President Elect Trump's second administration. She highlights reports by James Rundle on the agency's critical role and the mounting criticisms it faces.

James Rundle Details CISA's Mandate
At [06:27], James Rundle outlines CISA's primary responsibilities:

James Rundle: "CISA is the primary federal agency responsible for cybersecurity among civilian branch agencies in the government. So everything basically outside of DoD, it's responsible for coordinating between them, making sure they have the appropriate protections in place, and they're all secure from hackers."

Additionally, CISA interfaces with 16 critical infrastructure sectors, including telecommunications, energy, and financial services, and plays a pivotal role in election security, encompassing both cyber and physical aspects.

Trump's Complicated Relationship with CISA
Belle and James discuss President Trump's intricate history with CISA. Trump established the agency in 2018 but had a contentious relationship with its first director, Christopher Krebs.

James Rundle [07:35]: "Trump stood up the agency himself back in 2018. It was his creation. But over the first couple of years, it was a bit of a rocky relationship. And it came to a head in the 2020 election when its first director, Christopher Krebs, came onto Twitter now X obviously, and said there was no evidence of elections hampering or fraud or anything of the sort. And Trump famously fired him by tweet."

Since Krebs's dismissal, Trump has remained largely silent on CISA, allowing critics, including Republican lawmakers and conservative think tanks like those behind Project 2025, to spearhead the discourse against the agency.

Criticism from Lawmakers and Policy Proposals
Project 2025, a policy document developed by a conservative think tank with ties to Trump's first administration, calls for significant reductions in CISA's scope and budget, advocating for the transfer of many of its responsibilities to the Department of Transportation.

James Rundle [08:27]: "... it called basically for the complete gutting of CISA, for a lot of its roles to be transferred to the Transportation Department, and for a real narrowing of its mission."

Corporate Cybersecurity Leaders Support CISA
Despite political pressures, corporate cybersecurity executives generally hold a positive view of CISA. James notes that CISA has strengthened its collaboration with the private sector through initiatives like the Joint Cyber Defense Collaborative, fostering intelligence sharing during major events and cyber incidents.

James Rundle [08:36]: "They're broadly pretty positive from the people I speak to, at least. CISA has done a lot over the last four years, in particular to really boost its relationships with the private sector."

While some critique CISA's effectiveness, the prevailing sentiment underscores its essential role in safeguarding against escalating cyber threats from nation-states and malicious actors targeting both government and private sectors.

Impact of the Department of Government Efficiency (DOGE)
The recent appointment of Elon Musk and Vivek Ramaswamy to lead the Department of Government Efficiency (DOGE) introduces further uncertainty for CISA. DOGE aims to reduce government spending and restructure federal agencies, positioning CISA as a potential target for budget cuts and mission realignment.

James Rundle [09:31]: "CISA is kind of a ripe target for the kind of things that DOGE wants to do. Its budget has increased over the last year from 2 billion to $3 billion. It's hired pretty widely. The criticism from Republicans makes it seem like it does a lot more than its core mission."

Experts suggest that DOGE may impose a pause on new initiatives and possibly roll back existing programs to ensure CISA's mission remains focused. This could involve reductions in budget and personnel, or even the dissolution of certain divisions.

Likelihood of CISA's Dissolution
Concerns about CISA's survival are balanced by the agency's entrenched position within the federal government and bipartisan recognition of its importance. Senator Rand Paul of Kentucky, despite advocating for CISA's dismantling, acknowledges the challenges in eliminating an agency so deeply integrated across various government functions.

James Rundle [10:01]: "People we spoke to said that there are lawmakers on both sides of the House that would pretty much go to the map for CISA. They understand its importance. And also CISA is so deeply embedded now in so many various parts of the federal government, it would be hard to extract it quickly."

The potential dismantling of CISA raises concerns about a return to fragmented federal cybersecurity efforts, reminiscent of pre-CISA times, which could lead to decreased coordination and increased vulnerability to cyber threats.

CISA's Response and Future Outlook
CISA has maintained a diplomatic stance amidst the uncertainty, expressing commitment to a smooth transition under the incoming administration. Current Director Jenny Salee announced her departure alongside other politically appointed officials, signaling forthcoming leadership changes.

James Rundle [10:36]: "CISA remains diplomatic about this. A spokesman said the agency is fully committed to a seamless transition and left it there."

As CISA braces for potential restructuring, the tech and cybersecurity communities await concrete developments, recognizing that any significant changes could have far-reaching implications for national security and corporate cybersecurity strategies.

Conclusion

The November 19 episode of WSJ Tech News Briefing provides a comprehensive look into evolving networking trends within Silicon Valley and the precarious future of the nation's leading cybersecurity agency under President Elect Trump's anticipated second term. While the sauna networking phenomenon reflects broader cultural shifts towards health and efficiency, the spotlight on CISA underscores the intricate interplay between politics, national security, and technological innovation. As these narratives unfold, stakeholders across the tech and government sectors remain vigilant, anticipating the next steps in these dynamic arenas.

Notable Quotes:

• Angel Au Young [01:24]: "There is an anti-alcohol movement that's sweeping through the tech industry and it's making investors and founders and employees just hungry for gathering places outside of bars or restaurants where the typical activity would be drinking or eating."

• James Rundle [06:27]: "CISA is the primary federal agency responsible for cybersecurity among civilian branch agencies in the government."

• James Rundle [07:35]: "Trump stood up the agency himself back in 2018. It was his creation. But over the first couple of years, it was a bit of a rocky relationship."

• James Rundle [08:36]: "They're broadly pretty positive from the people I speak to, at least. CISA has done a lot over the last four years, in particular to really boost its relationships with the private sector."

• James Rundle [10:36]: "CISA remains diplomatic about this. A spokesman said the agency is fully committed to a seamless transition and left it there."

This summary is based on the transcript provided and aims to encapsulate the key discussions and insights shared during the podcast episode.