A convergence of federal funding programs is directing hundreds of millions of dollars toward open-standards private 5G deployment and operational technology (OT) security training for U.S. manufacturers. Mid-sized plants stand as primary beneficiaries of a multi-agency push to modernize factory-floor connectivity. The programs span the Departments of Commerce, Labor, and Defense, each carrying compliance requirements designed to prevent vendor lock-in and strengthen cybersecurity resilience across the industrial base.
Background
The policy foundation for this funding wave dates to the CHIPS and Science Act of 2022, which appropriated $1.55 billion for the National Telecommunications and Information Administration's (NTIA) Public Wireless Supply Chain Innovation Fund. The fund's mandate, rooted in the FY2021 National Defense Authorization Act (NDAA), is to accelerate "open and interoperable" Radio Access Network (RAN) architectures - specifically Open RAN - to break the dominance of a small vendor group that NTIA has identified as a national security and supply chain risk. NTIA has awarded over $550 million across 35 projects through the fund's first two rounds, covering testing facilities and commercialization of open radio units.
On the OT security side, NIST's National Cybersecurity Center of Excellence (NCCoE) this month released initial public draft SP 1800-41, a cybersecurity practice guide designed to help manufacturers respond to and recover from cyberattacks targeting industrial control systems (ICS) and OT environments. The guidance arrives as OT threats intensify: according to Fortinet's 2025 State of Operational Technology and Cybersecurity Report, organizations with higher OT security maturity reported fewer intrusions and faster recovery times.
Details
The NTIA's third Notice of Funding Opportunity (NOFO 3) under the Innovation Fund represents the most direct federal signal yet for manufacturing-sector private 5G. The third round targets software solutions that use Open RAN innovations - including the RAN Intelligent Controller (RIC) - to drive productivity gains for industry verticals explicitly including manufacturing, utilities, and mining. NTIA plans to issue grants ranging from $24 million to $50 million for industry vertical solutions, with a 30% minimum cost-share requirement for applicants in that category. More than 90 applications requesting nearly $3 billion were submitted before the April 16, 2025 deadline, and NTIA expects to make awards on a rolling basis.
Open RAN standards - set by bodies including the O-RAN Alliance, 3GPP, and the Telecom Infra Project - are explicitly cited in the program's statutory objectives. Vendors on federal prohibited lists are ineligible costs under the fund, effectively mandating supply-chain screening as a condition of award.
Workforce development funding runs in parallel. The Department of Labor announced a $30 million Industry-Driven Skills Training Fund for FY2025, listing advanced manufacturing as a priority sector. NIST's Manufacturing Extension Partnership (MEP) received a bipartisan appropriation of $175 million for FY2025, with MEP centers operating across all 50 states providing OT cybersecurity consulting and technology adoption support to small and medium-sized manufacturers (SMMs). MEP centers already assist manufacturers with automation, workforce shortages, and supply chain optimization.
The convergence of private 5G and OT risk is well-documented. Private 5G networks allow manufacturers to deploy ultra-low latency communications, autonomous robotics, predictive maintenance systems, and real-time industrial analytics within controlled environments, according to industry analysis. Security analysts warn, however, that the same connectivity enabling edge automation also expands the attack surface on legacy OT systems originally designed for isolated networks.
Outlook
NTIA expects rolling awards under NOFO 3 through the remainder of 2025 and into 2026, with individual projects permitted performance periods of up to five years. The FY2026 NDAA further amplified private 5G investment by mandating a prioritized list of military bases for private 5G deployment - a move policy analysts say will push defense supplier compliance requirements into the broader manufacturing supply chain. Manufacturers and automation integrators that align proposals with O-RAN Alliance interoperability standards, NIST SP 800-82 OT security controls, and documented multi-vendor integration strategies are best positioned to qualify for awards across these overlapping programs.
