Security measures against cyber threats are insufficient throughout both government and the private sector. To counter the cyber threats of the future, the United States must develop a comprehensive response policy for thwarting all attacks on national infrastructures and assets -- be they within or outside of U.S. borders. For this to happen, government must not only lead by example. It must also provide specific incentives that will encourage the private sector to better protect its own systems. This report illuminates the problem and lays out the first, essential, steps for defending the homeland against this new reality.