I have mixed feeling about this, but in general think it is a good idea:

President Bush signed a directive this month that expands the intelligence community’s role in monitoring Internet traffic to protect against a rising number of attacks on federal agencies’ computer systems.

The directive, whose content is classified, authorizes the intelligence agencies, in particular the National Security Agency, to monitor the computer networks of all federal agencies — including ones they have not previously monitored.

[…]

The classified joint directive, signed Jan. 8 and called the National Security Presidential Directive 54/Homeland Security Presidential Directive 23, has not been previously disclosed. Plans to expand the NSA’s role in cyber-security were reported in the Baltimore Sun in September.

According to congressional aides and former White House officials with knowledge of the program, the directive outlines measures collectively referred to as the “cyber initiative,” aimed at securing the government’s computer systems against attacks by foreign adversaries and other intruders. It will cost billions of dollars, which the White House is expected to request in its fiscal 2009 budget.

[…]

Under the initiative, the NSA, CIA and the FBI’s Cyber Division will investigate intrusions by monitoring Internet activity and, in some cases, capturing data for analysis, sources said.

The Pentagon can plan attacks on adversaries’ networks if, for example, the NSA determines that a particular server in a foreign country needs to be taken down to disrupt an attack on an information system critical to the U.S. government. That could include responding to an attack against a private-sector network, such as the telecom industry’s, sources said.

Also, as part of its attempt to defend government computer systems, the Department of Homeland Security will collect and monitor data on intrusions, deploy technologies for preventing attacks and encrypt data. It will also oversee the effort to reduce Internet portals across government to 50 from 2,000, to make it easier to detect attacks.