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Pentagon Reportedly Plans Deep-Cover Spy Initiative; Officials Deny Effort as Oversight Continues

United States

Anna Moneymaker/Getty Images/Getty

Anna Moneymaker/Getty Images/Getty

What Happened

Deputy Defense Secretary Steve Feinberg signed an April 14 memorandum creating a classified Technology Support Office to consolidate two programs and plan capabilities to disrupt foreign military technology. Sources say TSO was set up in April 2026 and remains in a planning phase; the Pentagon denied the reports.

What Happened

Deputy Defense Secretary Steve Feinberg signed an April 14 memorandum creating a classified Technology Support Office to consolidate two programs and plan capabilities to disrupt foreign military technology. Sources say TSO was set up in April 2026 and remains in a planning phase; the Pentagon denied the reports.

Where Sources Agree

  • arrows_inputPentagon Rejects Spy Claims: Most reporting highlights that Pentagon officials have rejected recent accounts of a secret deep-cover spy initiative, describing the claims as inaccurate and misleading, according to Deputy Pentagon Press Secretary Jacob Bliss.
  • arrows_inputTSO Establishment Confirmed: Predominant reporting shows the Pentagon established the Technology Support Office in April under Steve Feinberg’s leadership; the office consolidates two previously separate classified programs, according to internal Defense Department records.
  • arrows_inputInternal Command Objections: Reporting largely establishes that both U.S. Special Operations Command and U.S. Cyber Command raised budgetary objections during the formation of the Technology Support Office, according to national security officials.

Where Sources Disagree

  • arrows_outputPentagon Initiative's Primary Mission: Some outlets report the Pentagon established a classified 'Technology Support Office' to conduct cyber sabotage and disrupt foreign weapons programs. In contrast, other reports characterize the initiative as a new, deep-cover spy program deploying nonofficial cover officers to wage economic warfare against foreign competitors.
  • arrows_outputInitiative Budget Estimates: Reports vary regarding the initiative's financial scale. Some sources estimate the classified contracting budget for the new Technology Support Office could exceed $1.5 billion, while other reporting highlights hundreds of millions of dollars in public investments tied to the separate Economic Defense Unit.

Timeline

October 22, 2026

Denials, Oversight Concerns, Details Emerge: Pentagon spokespeople including deputy press secretary Jacob Bliss rejected the accounts as inaccurate, even as reporting and officials raised oversight, budget and interagency concerns — including an unofficial estimate that related classified contracts could top $1.5 billion — and noted limited congressional briefings. Additional reporting detailed the TSO's remit (technology‑disruption tools, supply‑chain interference and deception), named leaders and described constraints on the office's authority and public disclosure.

October 21, 2026

Pentagon NOC Initiative Reported: Reporting disclosed that the Pentagon is planning a new deep‑cover NOC spying program, overseen by Tom Rakusan, intended to place operatives undercover as private‑sector businesspeople to advance an economic‑warfare campaign targeting competitors like China; sources said the effort was still in the planning phase and not operational. The initiative was described as either a stand‑alone unit or an expansion of existing clandestine Pentagon capabilities.

October 21, 2026

Deep‑cover NOCs Dwindle: A covid‑era CIA report and former officials said roughly three‑quarters of deep‑cover nonofficial cover officers (NOCs) became eligible for retirement by the mid‑2020s, leaving few veteran NOCs in the field amid broader U.S. emphasis on economic warfare and intelligence. Pentagon economic initiatives, including an Economic Defense Unit created earlier in the year, reflect that strategic shift.

Perspectives and Debates

Summary by Ground AI

Sources

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A varied selection of sources chosen by Ground to reflect the diversity of this story’s coverage.

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