The Department of Defense is spending more money than ever before. For FY2026, the DoD budget is set at more than $961 billion, making it one of the largest defense budgets in U.S. history. This funding is already being used to support new programs, contracts, and technology across the defense industrial base.
For defense contractors, this sounds like a huge opportunity. And it is. But it also comes with a serious requirement that many companies are still not ready for.
As the DoD budget grows, so do cybersecurity expectations.
Much of the FY2026 funding is going toward areas like cybersecurity, IT systems, weapons programs, and research and development. These programs often involve Controlled Unclassified Information, or CUI. When CUI is involved, the DoD expects contractors to protect it properly.
That is where CMMC compliance requirements come in.
Many defense contractors feel the pressure right now. They see more defense contractor opportunities coming from the DoD budget increase, but they are unsure if they qualify. Some believe CMMC audits are still far away. Others assume they can address compliance later, once a contract is awarded.
This approach is risky.
CMMC 2 enforcement is no longer theoretical. CMMC language is appearing in contracts today, and eligibility is increasingly tied to cybersecurity readiness. Contractors that are not CMMC-ready may be blocked from bidding on DoD contracts tied directly to the FY2026 budget.
The consequences can be costly. Missing CMMC requirements can lead to lost bids, delayed awards, and reduced trust with government buyers. In some cases, companies only discover compliance gaps after investing time and money into proposals. By then, it is often too late.
And the pressure is not stopping with FY2026.
While the FY2027 DoD budget has not been finalized, early proposals point to a possible increase that could push defense spending even higher. These discussions signal one clear trend. Defense spending is accelerating, and cybersecurity oversight across the supply chain will continue to tighten.
More money means more attention. More attention means more audits, more requirements, and less tolerance for unprepared contractors.
The good news is that contractors who act now can turn this into an advantage.
Companies that address CMMC compliance early position themselves as trusted, low-risk partners. They are easier to award, easier to onboard, and better aligned with DoD expectations. Instead of scrambling to fix gaps, they can focus on growth and pursuing new work tied to rising defense budgets.
CMMC compliance is no longer just about avoiding penalties. It is about staying eligible as DoD spending grows in both FY2026 and beyond.
If your organization handles CUI and plans to pursue future defense contracts, now is the time to understand where you stand.
To help you prepare, we created a CMMC Level 2 Audit Checklist. This checklist shows what auditors look for, what evidence is required, and where contractors commonly fall short. It gives you a clear starting point before compliance becomes a barrier to winning work.
Download the CMMC Level 2 Audit Checklist today and make sure your business is ready to compete as DoD spending continues to rise.
