growth[intelligence]

AI Security Governance — The Federal CISO Council has established a new working group on AI security governance, acting Federal CISO Michael Duffy announced last week at the ACT-IAC Cybersecurity Summit. The group will develop governance frameworks to help agency CISOs use AI to make faster, better-informed security decisions, laying the groundwork for an eventual move toward machine-to-machine decision making. The working group is part of the Council’s broader priorities, which include replacing outdated edge devices to reduce agencies’ exposure to cyber threats, holding a second government-wide CISO tabletop exercise to strengthen incident response, and integrating AI into cybersecurity tools.

Russia Sanctions Waiver — President Trump signed an executive order on October 16 waiving the Russia-related sanctions and tariffs required under the Graham Act, which he signed into law last month, two days before key provisions were set to take effect. The order waives the law’s major Russia provisions, including tariffs of up to 500% on Russian goods, tariffs on the largest buyers of Russian oil and gas, and sanctions on foreign banks doing significant business with Russian state-owned banks. It also waives a provision requiring the sanctions to stay in place, giving the President room to act on them without Congress.

Secretary of State Marco Rubio said the President wants 60 days to analyze the sanctions’ economic impact, and the move drew bipartisan criticism from lawmakers. Sanctions imposed under earlier executive orders remain in effect, and the waiver comes as the EU is expanding its own Russia sanctions.

GAO Strategic Plan — The Government Accountability Office released its new 2027–2032 Strategic Plan last week, making oversight of AI and other emerging technologies key priorities. The plan calls for greater scrutiny of federal AI deployment and governance, cybersecurity protections, technology acquisition practices, and national security risks associated with adversarial AI and autonomous systems. Companies providing AI and other advanced technologies to federal agencies should anticipate increased scrutiny of how their solutions are acquired, tested, secured, and governed.

Provided by Senior Partner for Global Risk Management Mirriam-Grace MacIntyre 

Starlink Sabotage — Poland has blamed Russian intelligence services for a September 23 arson attack on a Starlink satellite ground station south of Warsaw, and two Turkish citizens were arrested October 19 in connection with the fire. Polish officials say Russian intelligence is increasingly recruiting intermediaries, including people with criminal ties, to carry out sabotage operations, making those operations harder to detect and attribute.

Companies should expand insider-risk and physical-security reviews beyond cyber networks to include contractors, temporary workers, logistics facilities and communications infrastructure.

EU Defense Sanctions — On October 12, the European Union sanctioned 826 Russian companies and 743 of their chief executives tied to Russia’s military-industrial complex, the largest single set of listings the EU has ever adopted. The EU followed with sanctions on three individuals and nine entities in Russia, Turkey, the UAE, India and the Seychelles on October 15 for circumventing existing sanctions. The listings focus on mid-level suppliers of components for Russian missiles, drones and aircraft, showing that Europe is now targeting the broader production ecosystem behind Russia’s military capabilities.

Companies should conduct deeper supplier and beneficial-ownership screening, especially for electronics, industrial equipment, dual-use technologies and intermediaries operating across multiple jurisdictions.

Yttrium Supply Squeeze — Japan has warned that its supplies of yttrium, a rare-earth element used in jet engines, semiconductors and defense manufacturing, could run short within months. China has sharply restricted yttrium and other rare-earth exports to Japan since Prime Minister Sanae Takaichi’s comments on Taiwan last November, and alternative suppliers have not yet made up the difference.

Companies should identify strategic materials and components for which China controls processing or export access, confirm actual inventory coverage and develop alternative sourcing before restrictions interrupt production.

NATO Hybrid Threats — NATO convened allies, EU representatives and industry participants at its Annual Hybrid Symposium in Bucharest on October 15–16 to coordinate responses to Russian sabotage, drone incidents and cyberattacks. Protecting energy infrastructure and expanding cooperation with private companies were explicit priorities, reflecting NATO’s view of hybrid threats as a broader infrastructure-defense challenge.

Companies should test scenarios involving simultaneous cyber disruption, physical sabotage and loss of essential infrastructure, and establish contact points with government and sector-specific security partners.

Provided by growth[period]’s Canadian affiliate, GW Group

China Seafood Access — Fisheries Minister Joanne Thompson will travel to China later this month to push for improved market access for Canadian fish and seafood ahead of the December 31 expiry of China’s suspension of 25% tariffs on Canadian lobster and crab. China is Canada’s second-largest seafood export market, and the government has called predictable access essential to the industry’s future.

Ukrainian Drone Protection — Ottawa-based Dominion Dynamics and Ukraine’s Tencore signed a preliminary agreement last week to build Tencore’s TerMIT ground drones in Canada as early as 2027, using Dominion’s software. The tracked vehicles have been used on Ukraine’s front lines for resupply and mine-laying missions. The partnership follows the joint declaration on defence production signed by Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy in September.

Modi Visit — Indian Prime Minister Narendra Modi is expected to visit Toronto and Ottawa on December 11–12 as Canada and India work to rebuild relations and advance trade negotiations. International Trade Minister Maninder Sidhu led a trade mission to India last week, and both countries aim to finalize a trade pact by year-end and double bilateral trade to $70 billion annually by 2030. Relations deteriorated in 2023 and worsened in 2024, when Canadian authorities accused Indian officials of links to criminal activity in Canada and both countries expelled diplomats. India has denied the allegations.

War – At the Association of the US Army (AUSA) annual meeting last week, Secretary Hegseth said the department will fund its new Autonomous Warfare Command (AUTOWARCOM) through Republicans’ proposed reconciliation bill, seeking at least $350 billion for defense, including more than $50 billion for autonomy and robotics. The Army also redesignated its Futures and Concepts Command as the new Army Futures and Autonomous Systems Command (FASCOM), a three-star command that will consolidate several of the Army’s research and modernization organizations to develop autonomous capabilities.

Army leaders said Army Contracting Command executed a record of more than 100,000 contracts this year. On October 23, the Army will launch Project Gatekeeper, a platform where vendors can submit software for AI-assisted security review and accreditation, even without an existing Army contract.

DHS – DHS has ordered federal civilian agencies to remove AI products and services developed by Chinese AI company DeepSeek, including third-party products built using DeepSeek, and to stop any future purchases. The order, signed in July under the Federal Acquisition Supply Chain Security Act and made public this week, gave agencies 60 days to remove the covered technology. It excludes the Defense Department, the intelligence community and national security systems, and CISA will oversee implementation.

VA – The top Democrats on the House and Senate Veterans’ Affairs committees pressed VA last week to explain its decision to raise the ceiling on its Oracle Health electronic health record modernization contract by $17 billion, to nearly $27 billion. VA says it notified Congress of the total cost last year. VA has deployed the new EHR at 11 medical facilities so far in 2026 and plans two more deployments, in Alaska and Ohio, before year-end.

GSA – GSA’s class deviation updating the GSA Acquisition Regulation (GSAR) under the Revolutionary FAR Overhaul took effect October 19. It adds a new clause on safeguarding data within large language model AI systems. GSA plans to incorporate the clause into Multiple Award Schedule contracts through Refresh 34, scheduled for November 6.

USDA – A federal judge last week indefinitely blocked USDA from relocating about 2,600 employees under its reorganization plan, ruling that the moves likely violate restrictions in the fiscal 2026 appropriations law. The judge noted the relief may be short-lived, since those restrictions are set to expire December 11 with the current continuing resolution. Separately, USDA has officially restructured its Food and Nutrition Service, now rebranded as the Food and Nutrition Administration, though employee relocations at the agency remain on hold.

President Trump announced an $8 billion Harvest Fuel Relief Program to help US farmers offset rising diesel costs during the fall harvest. Administered through the US Department of Agriculture’s Farm Service Agency, the program would provide one-time payments to agricultural producers facing elevated fuel expenses. The initiative comes amid continued pressure on energy prices and agricultural operating costs, underscoring broader concerns about fuel affordability, supply chain resilience, and federal spending priorities.

Events — Thank you to everyone who joined us last week for An Evening of National Security, the latest event in growth[period]’s dinner series. We are grateful to the Flag Officers and General Officers who hosted our tables and shared their perspective on how new forms of warfare are redefining the technologies we build and buy. All hosts were growth[period] Senior Partners or Strategic Client Advisors. It was an honor to recognize their service alongside senior leaders from the public and private sectors and current and former military leaders. If you are interested in attending future events in our dinner series, please contact Talia Frey at tfrey@growthprd.com or call 703-556-0111