U.S. Federal Grants Back Open-Standards Private 5G and OT Security Training for Mid-Sized Manufacturers

A convergence of federal grant programs is directing hundreds of millions of dollars toward open-standard private 5G networks and operational technology (OT) security training at mid-sized U.S. manufacturers, accelerating modernization timelines while placing new demands on vendor ecosystems and plant workforces. The push spans the National Telecommunications and Information Administration (NTIA), the Cybersecurity and Infrastructure Security Agency (CISA), and the Department of Defense (DoD), each deploying distinct but complementary mechanisms to close connectivity and cybersecurity gaps across the industrial base.

Background

The federal impetus for open-standard 5G networks stems from supply chain concentration risk. The 5G equipment market has been dominated by a small group of vendors, some of which the U.S. government has flagged as national security threats, degrading supply chains and suppressing competition, according to NTIA. Open Radio Access Networks (Open RAN) address this by disaggregating traditionally monolithic base stations into interoperable components-centralized units (CU), distributed units (DU), and radio units (RU)-connected through standardized interfaces. This architecture enables network architects to source components from multiple vendors.

The manufacturing sector has emerged as the primary commercial proving ground for private 5G. Annual investment in private 5G networks for vertical industries is projected to grow at a compound annual growth rate of approximately 41% between 2025 and 2028, surpassing $5 billion by end of 2028, according to SNS Telecom & IT Research Director Asad Khan. Manufacturing remains the largest single industry in those projections, driven by multi-site deployments aimed at resolving patchy Wi-Fi coverage and network scalability constraints on production floors.

Simultaneously, OT security exposure has intensified. OT attacks have increased 87% year-over-year, affecting both mid-sized and large plants, according to industry security analysts. A persistent skills gap compounds the threat: OT engineers understand production systems but typically lack formal cybersecurity training, while IT security teams often have limited experience with programmable logic controllers (PLCs), SCADA systems, and industrial protocols. That divide creates ownership gaps in risk management.

Federal Programs and Funding Details

The NTIA's $1.5 billion Public Wireless Supply Chain Innovation Fund anchors the open-standards push. The fund supports development of open and interoperable wireless equipment, promotes multi-vendor network integration, and finances criteria for determining whether equipment adheres to open standards. As of early 2025, NTIA grants from the fund had delivered over $550 million across 35 awards to support Open RAN testing and interoperability, according to investment research tracking the program.

Separately, NTIA and the DoD jointly awarded a $7 million prize purse in the 2023 5G Challenge, which tested whether Open RAN components-including antennas and radio base stations-from different manufacturers could function together to form a multi-vendor, end-to-end 5G network. That test-bed work is informing procurement criteria for future grants targeting manufacturing facilities.

On the OT security side, CISA offers federally funded Industrial Control Systems (ICS) training designed for small- to medium-sized companies without dedicated OT risk management personnel. The training targets cybersecurity managers, OT engineers, network engineers, and plant operations managers-roles that overlap directly with the workforce needed to secure private 5G-connected production environments.

The DoD's Cybersecurity Maturity Model Certification (CMMC) 2.0 framework became effective November 10, 2025, and now requires defense-supply-chain manufacturers to demonstrate tiered cybersecurity compliance to remain eligible for new DoD solicitations. For mid-sized manufacturers supplying defense primes, CMMC Level 2 certification-which mandates third-party assessment against 110 NIST SP 800-171 practices-is adding urgency to OT security training investments. Preparing for CMMC Level 2 certification is estimated to cost $40,000 to $100,000 or more depending on size and scope, according to compliance specialists.

Workforce data underscores the scale of the skills challenge. A 2026 survey by the Manufacturing Institute found that 47% of manufacturers rank cybersecurity skills as "extremely important" when hiring over the next 12 months, with another 34% rating them "very important", reflecting near-universal prioritization of cyber-capable personnel across production organizations.

Outlook

For plant operators, the grants compress modernization timelines but introduce integration complexity. The Citizens Broadband Radio Service (CBRS) 3.5 GHz band, which enables enterprises to deploy private networks without acquiring mobile network operator-owned spectrum, underpins most factory-floor private 5G deployments in the U.S. Ensuring that Open RAN-compliant radio units, virtualized network functions, and OT security controls interoperate without disrupting production throughput during retrofits remains the central engineering challenge.

NTIA has signaled further evolution of the Innovation Fund toward AI-native network architecture, which could reshape how private 5G and OT monitoring systems are co-designed within manufacturing environments. For supplier ecosystems and automation integrators, that trajectory reinforces the case for building Open RAN-compatible product roadmaps today.