This Act may be cited as the “Federal Information Security Modernization Act of 2022”.

The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

In this Act, unless otherwise specified:

(1) ADDITIONAL CYBERSECURITY PROCEDURE.—The term “additional cybersecurity procedure” has the meaning given the term in section 3552(b) of title 44, United States Code, as amended by this Act.

(2) AGENCY.—The term “agency” has the meaning given the term in section 3502 of title 44, United States Code.

(3) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term “appropriate congressional committees” means—

(A) the Committee on Homeland Security and Governmental Affairs of the Senate;

(B) the Committee on Oversight and Reform of the House of Representatives; and

(C) the Committee on Homeland Security of the House of Representatives.

(4) DIRECTOR.—The term “Director” means the Director of the Office of Management and Budget.

(5) INCIDENT.—The term “incident” has the meaning given the term in section 3552(b) of title 44, United States Code.

(6) NATIONAL SECURITY SYSTEM.—The term “national security system” has the meaning given the term in section 3552(b) of title 44, United States Code.

(7) PENETRATION TEST.—The term “penetration test” has the meaning given the term in section 3552(b) of title 44, United States Code, as amended by this Act.

(8) THREAT HUNTING.—The term “threat hunting” means iteratively searching systems for threats that evade detection by automated threat detection systems.

(9) ZERO TRUST ARCHITECTURE.—The term “zero trust architecture” means a security model, a set of system design principles, and a coordinated cybersecurity and system management strategy that employs continuous monitoring, risk-based access controls, or system security automation techniques to address the cybersecurity principle that threats exist both inside and outside traditional network boundaries with an assumption that a breach is inevitable or has likely already occurred, and therefore employs least-privileged access for network or system users while monitoring for anomalous or malicious activity.

(a) Subchapter I amendments.—Subchapter I of chapter 35 of title 44, United States Code, is amended—

(1) in subsection (a)(1)(B) of section 3504—

(A) by striking clause (v) and inserting the following:

“(v) confidentiality, privacy, disclosure, and sharing of information;”;

(B) by redesignating clause (vi) as clause (vii); and

(C) by inserting after clause (v) the following:

“(vi) in consultation with the National Cyber Director, confidentiality and security of information; and”;

(2) in section 3505—

(A) in paragraph (2) of the first subsection designated as subsection (c) by adding “discovery of internet-accessible information systems and assets, as well as” after “an inventory under this subsection shall include”;

(B) in paragraph (3) of the first subsection designated as subsection (c)—

(i) in subparagraph (B)—

(I) by inserting “the Secretary of Homeland Security acting through the Director of the Cybersecurity and Infrastructure Security Agency, the National Cyber Director, and” before “the Comptroller General”; and

(II) by striking “and” at the end;

(ii) in subparagraph (C)(v), by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(D) maintained on a continual basis through the use of automation, machine-readable data, and scanning wherever practicable.”; and

(C) by striking the second subsection designated as subsection (c);

(3) in section 3506—

(A) in subsection (a)(3), by inserting “In carrying out these duties, the Chief Information Officer shall coordinate, as appropriate, with the Chief Data Officer in accordance with the designated functions under section 3520(c).” after “reduction of information collection burdens on the public.”; and

(B) in subsection (b)(1)(C), by inserting “, availability” after “integrity”; and

(4) in section 3513—

(A) by redesignating subsection (c) as subsection (d); and

(B) by inserting after subsection (b) the following:

“(c) Each agency providing a written plan under subsection (b) shall provide any portion of the written plan addressing information security to the National Cyber Director.”.

(b) Subchapter II definitions.—

(1) IN GENERAL.—Section 3552(b) of title 44, United States Code, is amended—

(A) by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as paragraphs (2), (4), (5), (6), (7), (9), and (11), respectively;

(B) by inserting before paragraph (2), as so redesignated, the following:

“(1) The term ‘additional cybersecurity procedure’ means a process, procedure, or other activity that is established in excess of the information security standards promulgated under section 11331(b) of title 40 to increase the security and reduce the cybersecurity risk of agency systems.”;

(C) by inserting after paragraph (2), as so redesignated, the following:

“(3) The term ‘high value asset’ means information or an information system that the head of an agency determines, using policies, principles, standards, or guidelines issued by the Director under section 3553(a), to be so critical to the agency that the loss or corruption of the information or the loss of access to the information system would have a serious impact on the ability of the agency to perform the mission of the agency or conduct business.”;

(D) by inserting after paragraph (7), as so redesignated, the following:

“(8) The term ‘major incident’ has the meaning given the term in guidance issued by the Director under section 3598(a).”;

(E) by inserting after paragraph (9), as so redesignated, the following:

“(10) The term ‘penetration test’ has the meaning given the term in guidance issued by the Director.”; and

(F) by inserting after paragraph (11), as so redesignated, the following:

“(12) The term ‘shared service’ means a centralized business or mission capability that is provided to multiple organizations within an agency or to multiple agencies.”.

(2) CONFORMING AMENDMENTS.—

(A) HOMELAND SECURITY ACT OF 2002.—Section 1001(c)(1)(A) of the Homeland Security Act of 2002 (6 U.S.C. 511(1)(A)) is amended by striking “section 3552(b)(5)” and inserting “section 3552(b)”.

(B) TITLE 10.—

(i) SECTION 2222.—Section 2222(i)(8) of title 10, United States Code, is amended by striking “section 3552(b)(6)(A)” and inserting “section 3552(b)(9)(A)”.

(ii) SECTION 2223.—Section 2223(c)(3) of title 10, United States Code, is amended by striking “section 3552(b)(6)” and inserting “section 3552(b)”.

(iii) SECTION 2315.—Section 2315 of title 10, United States Code, is amended by striking “section 3552(b)(6)” and inserting “section 3552(b)”.

(iv) SECTION 2339A.—Section 2339a(e)(5) of title 10, United States Code, is amended by striking “section 3552(b)(6)” and inserting “section 3552(b)”.

(C) HIGH-PERFORMANCE COMPUTING ACT OF 1991.—Section 207(a) of the High-Performance Computing Act of 1991 (15 U.S.C. 5527(a)) is amended by striking “section 3552(b)(6)(A)(i)” and inserting “section 3552(b)(9)(A)(i)”.

(D) INTERNET OF THINGS CYBERSECURITY IMPROVEMENT ACT OF 2020.—Section 3(5) of the Internet of Things Cybersecurity Improvement Act of 2020 (15 U.S.C. 278g–3a) is amended by striking “section 3552(b)(6)” and inserting “section 3552(b)”.

(E) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2013.—Section 933(e)(1)(B) of the National Defense Authorization Act for Fiscal Year 2013 (10 U.S.C. 2224 note) is amended by striking “section 3542(b)(2)” and inserting “section 3552(b)”.

(F) IKE SKELTON NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2011.—The Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111–383) is amended—

(i) in section 806(e)(5) (10 U.S.C. 2304 note), by striking “section 3542(b)” and inserting “section 3552(b)”;

(ii) in section 931(b)(3) (10 U.S.C. 2223 note), by striking “section 3542(b)(2)” and inserting “section 3552(b)”; and

(iii) in section 932(b)(2) (10 U.S.C. 2224 note), by striking “section 3542(b)(2)” and inserting “section 3552(b)”.

(G) E-GOVERNMENT ACT OF 2002.—Section 301(c)(1)(A) of the E–Government Act of 2002 (44 U.S.C. 3501 note) is amended by striking “section 3542(b)(2)” and inserting “section 3552(b)”.

(H) NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY ACT.—Section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g–3) is amended—

(i) in subsection (a)(2), by striking “section 3552(b)(5)” and inserting “section 3552(b)”; and

(ii) in subsection (f)—

(I) in paragraph (3), by striking “section 3532(1)” and inserting “section 3552(b)”; and

(II) in paragraph (5), by striking “section 3532(b)(2)” and inserting “section 3552(b)”.

(c) Subchapter II amendments.—Subchapter II of chapter 35 of title 44, United States Code, is amended—

(1) in section 3551—

(A) in paragraph (4), by striking “diagnose and improve” and inserting “integrate, deliver, diagnose, and improve”;

(B) in paragraph (5), by striking “and” at the end;

(C) in paragraph (6), by striking the period at the end and inserting a semicolon; and

(D) by adding at the end the following:

“(7) recognize that each agency has specific mission requirements and, at times, unique cybersecurity requirements to meet the mission of the agency;

“(8) recognize that each agency does not have the same resources to secure agency systems, and an agency should not be expected to have the capability to secure the systems of the agency from advanced adversaries alone; and

“(9) recognize that a holistic Federal cybersecurity model is necessary to account for differences between the missions and capabilities of agencies.”;

(2) in section 3553—

(A) in subsection (a)—

(i) in paragraph (5), by striking “and” at the end;

(ii) in paragraph (6), by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(7) promoting, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency, the National Cyber Director, and the Director of the National Institute of Standards and Technology—

“(A) the use of automation to improve Federal cybersecurity and visibility with respect to the implementation of Federal cybersecurity; and

“(B) the use of zero trust architecture to improve resiliency and timely response actions to incidents on Federal systems.”;

(B) in subsection (b)—

(i) in the matter preceding paragraph (1), by striking “The Secretary, in consultation with the Director” and inserting “The Secretary of Homeland Security, acting through the Director of the Cybersecurity and Infrastructure Security Agency and in consultation with the Director and the National Cyber Director”;

(ii) in paragraph (2)(A), by inserting “and reporting requirements under subchapter IV of this chapter” after “section 3556”;

(iii) redesignate paragraphs (8) and (9) as paragraphs (9) and (10); and

(iv) insert a new paragraph (8):

“(8) expeditiously seek opportunities to reduce costs, administrative burdens, and other barriers to information technology security and modernization for Federal agencies, including through—

“(A) central shared services contracts for cybersecurity capabilities identified as optimal by the Director, in coordination with the Secretary acting through the Director of the Cybersecurity and Infrastructure Security Agency and other agencies as appropriate; and

“(B) offering technical assistance and expertise to agencies on the selection and successful engagement of highly adaptive cybersecurity service contracts and other relevant contracts provided by the U.S. General Services Administration.”;

(C) in subsection (c)—

(i) in the matter preceding paragraph (1), by striking “each year” and inserting “each year during which agencies are required to submit reports under section 3554(c)” and by striking “preceding year” and inserting “preceding two years”;

(ii) by striking paragraph (1);

(iii) by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively;

(iv) in paragraph (3), as so redesignated, by striking “and” at the end; and

(v) by inserting after paragraph (3), as so redesignated, the following:

“(4) a summary of each assessment of Federal risk posture performed under subsection (i); and”;

(D) by redesignating subsections (i), (j), (k), and (l) as subsections (j), (k), (l), and (m) respectively;

(E) in subsection (h)—

(i) in paragraph (2), subparagraph (A) adding “and the National Cyber Director” after “in coordination with the Director”;

(ii) in paragraph (2), subparagraph (D) adding “, the National Cyber Director,” after “notify the Director”; and

(iii) in paragraph (3), subparagraph (A), clause (iv) adding “, the National Cyber Director,” after “the Secretary provides prior notice to the Director”;

(F) by inserting after subsection (h) the following:

“(i) Federal risk assessments.—On an ongoing and continuous basis, the Director of the Cybersecurity and Infrastructure Security Agency shall perform assessments using any available information on the cybersecurity posture of agencies, and brief the Director and National Cyber Director on the findings of those assessments including—

“(1) the status of agency cybersecurity remedial actions described in section 3554(b)(7);

“(2) any vulnerability information relating to the systems of an agency that is known by the agency;

“(3) analysis of incident information under section 3597;

“(4) evaluation of penetration testing performed under section 3559A;

“(5) evaluation of vulnerability disclosure program information under section 3559B;

“(6) evaluation of agency threat hunting results;

“(7) evaluation of Federal and non-Federal cyber threat intelligence;

“(8) data on agency compliance with standards issued under section 11331 of title 40;

“(9) agency system risk assessments performed under section 3554(a)(1)(A); and

“(10) any other information the Director of the Cybersecurity and Infrastructure Security Agency determines relevant.”;

(G) in subsection (j), as so redesignated—

(i) by striking “Not later than” and inserting:

“(1) IN GENERAL.—Not later than”;

(ii) by striking “regarding the specific” and inserting “that includes a summary of—

“(A) the specific”;

(iii) in paragraph (1), as so designated, by striking the period at the end and inserting “; and”; and

(iv) by adding at the end the following:

“(B) the trends identified in the Federal risk assessments performed under subsection (i).

“(2) FORM.—The report required under paragraph (1) shall be unclassified but may include a classified annex.”; and

(H) by adding at the end the following:

“(n) Binding operational directives.—If the Director of the Cybersecurity and Infrastructure Security Agency issues a binding operational directive or an emergency directive under this section, not later than 7 days after the date on which the binding operational directive requires an agency to take an action, the Director of the Cybersecurity and Infrastructure Security Agency shall provide to the Director and National Cyber Director the status of the implementation of the binding operational directive at the agency.”;

(3) in section 3554—

(A) in subsection (a)—

(i) in paragraph (1)—

(I) by redesignating subparagraphs (A), (B), and (C) as subparagraphs (B), (C), and (D), respectively;

(II) by inserting before subparagraph (B), as so redesignated, the following:

“(A) on an ongoing and continuous basis, performing an agency system risk assessment that—

“(i) identifies and documents the high value assets of the agency using guidance from the Director;

“(ii) evaluates the data assets inventoried under section 3511 for sensitivity to compromises in confidentiality, integrity, and availability;

“(iii) identifies agency systems that have access to or hold the data assets inventoried under section 3511;

“(iv) evaluates the threats facing agency systems and data, including high value assets, based on Federal and non-Federal cyber threat intelligence products, where available;

“(v) evaluates the vulnerability of agency systems and data, including high value assets, including by analyzing—

“(I) the results of penetration testing performed by the Department of Homeland Security under section 3553(b)(9);

“(II) the results of penetration testing performed under section 3559A;

“(III) information provided to the agency through the vulnerability disclosure program of the agency under section 3559B;

“(IV) incidents; and

“(V) any other vulnerability information relating to agency systems that is known to the agency;

“(vi) assesses the impacts of potential agency incidents to agency systems, data, and operations based on the evaluations described in clauses (ii) and (iv) and the agency systems identified under clause (iii); and

“(vii) assesses the consequences of potential incidents occurring on agency systems that would impact systems at other agencies, including due to interconnectivity between different agency systems or operational reliance on the operations of the system or data in the system;”;

(III) in subparagraph (B), as so redesignated, in the matter preceding clause (i), by striking “providing information” and inserting “using information from the assessment conducted under subparagraph (A), providing information”;

(IV) in subparagraph (C), as so redesignated—

(aa) in clause (ii) by inserting “binding” before “operational”; and

(bb) in clause (vi), by striking “and” at the end; and

(V) by adding at the end the following:

“(E) providing an update on the ongoing and continuous assessment performed under subparagraph (A)—

“(i) upon request, to the inspector general of the agency or the Comptroller General of the United States; and

“(ii) on a periodic basis, as determined by guidance issued by the Director but not less frequently than every 2 years, to—

“(I) the Director;

“(II) the Director of the Cybersecurity and Infrastructure Security Agency; and

“(III) the National Cyber Director;

“(F) in consultation with the Director of the Cybersecurity and Infrastructure Security Agency and not less frequently than once every 3 years, performing an evaluation of whether additional cybersecurity procedures are appropriate for securing a system of, or under the supervision of, the agency, which shall—

“(i) be completed considering the agency system risk assessment performed under subparagraph (A); and

“(ii) include a specific evaluation for high value assets;

“(G) not later than 30 days after completing the evaluation performed under subparagraph (F), providing the evaluation and an implementation plan, if applicable, for using additional cybersecurity procedures determined to be appropriate to—

“(i) the Director of the Cybersecurity and Infrastructure Security Agency;

“(ii) the Director; and

“(iii) the National Cyber Director; and

“(H) if the head of the agency determines there is need for additional cybersecurity procedures, ensuring that those additional cybersecurity procedures are reflected in the budget request of the agency;”; and

(ii) in paragraph (2)—

(I) in subparagraph (A), by inserting “in accordance with the agency system risk assessment performed under paragraph (1)(A)” after “information systems”;

(II) in subparagraph (B)—

(aa) by striking “in accordance with standards” and inserting “in accordance with—

“(i) standards”; and

(bb) by adding at the end the following:

“(ii) the evaluation performed under paragraph (1)(F); and

“(iii) the implementation plan described in paragraph (1)(G);”; and

(III) in subparagraph (D), by inserting “, through the use of penetration testing, the vulnerability disclosure program established under section 3559B, and other means,” after “periodically”;

(B) in subsection (b)—

(i) by striking paragraph (1) and inserting the following:

“(1) pursuant to subsection (a)(1)(A), performing ongoing and continuous agency system risk assessment, which may include using automated tools consistent with standards and guidelines promulgated under section 11331 of title 40, as applicable;”;

(ii) in paragraph (2)(D)—

(I) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively;

(II) by inserting after clause (ii) the following:

“(iii) binding operational directives and emergency directives promulgated by the Director of the Cybersecurity and Infrastructure Security Agency under section 3553;”; and

(III) in clause (iv), as so redesignated, by striking “as determined by the agency; and” and inserting “as determined by the agency, considering the agency risk assessment performed under subsection (a)(1)(A).”;

(iii) in paragraph (5)(A), by inserting “, including penetration testing, as appropriate,” after “shall include testing”;

(iv) by redesignating paragraphs (7) and (8) as paragraphs (8) and (9), respectively;

(v) by inserting after paragraph (6) the following:

“(7) a process for providing the status of every remedial action, as well as unremediated identified system vulnerabilities, to the Director and the Director of the Cybersecurity and Infrastructure Security Agency, using automation and machine-readable data to the greatest extent practicable;”; and

(vi) in paragraph (8)(C), as so redesignated—

(I) by striking clause (ii) and inserting the following:

“(ii) notifying and consulting with the Federal information security incident center established under section 3556 pursuant to the requirements of section 3594;”;

(II) by redesignating clause (iii) as clause (iv);

(III) by inserting after clause (ii) the following:

“(iii) performing the notifications and other activities required under subchapter IV of this chapter; and”; and

(IV) in clause (iv), as so redesignated—

(aa) in subclause (II), by adding “and” at the end;

(bb) by striking subclause (III); and

(cc) by redesignating subclause (IV) as subclause (III); and

(C) in subsection (c)—

(i) by redesignating paragraph (2) as paragraph (5);

(ii) by striking paragraph (1) and inserting the following:

“(1) BIANNUAL REPORT.—Not later than 2 years after the date of the enactment of the Federal Information Security Modernization Act of 2022 and not less frequently than once every 2 years thereafter, using the continuous and ongoing agency system risk assessment under subsection (a)(1)(A), the head of each agency shall submit to the Director, the Director of the Cybersecurity and Infrastructure Security Agency, the majority and minority leaders of the Senate, the Speaker and minority leader of the House of Representatives, the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Reform of the House of Representatives, the Committee on Homeland Security of the House of Representatives, the Committee on Commerce, Science, and Transportation of the Senate, the Committee on Science, Space, and Technology of the House of Representatives, the appropriate authorization and appropriations committees of Congress, the National Cyber Director, and the Comptroller General of the United States a report that—

“(A) summarizes the agency system risk assessment performed under subsection (a)(1)(A);

“(B) evaluates the adequacy and effectiveness of information security policies, procedures, and practices of the agency to address the risks identified in the agency system risk assessment performed under subsection (a)(1)(A), including an analysis of the agency’s cybersecurity and incident response capabilities using the metrics established under section 224(c) of the Cybersecurity Act of 2015 (6 U.S.C. 1522(c));

“(C) summarizes the evaluation and implementation plans described in subparagraphs (F) and (G) of subsection (a)(1) and whether those evaluation and implementation plans call for the use of additional cybersecurity procedures determined to be appropriate by the agency; and

“(D) summarizes the status of remedial actions identified by inspector general of the agency, the Comptroller General of the United States, and any other source determined appropriate by the head of the agency.

“(2) UNCLASSIFIED REPORTS.—Each report submitted under paragraph (1)—

“(A) shall be, to the greatest extent practicable, in an unclassified and otherwise uncontrolled form; and

“(B) may include a classified annex.

“(3) ACCESS TO INFORMATION.—The head of an agency shall ensure that, to the greatest extent practicable, information is included in the unclassified form of the report submitted by the agency under paragraph (2)(A).

“(4) BRIEFINGS.—During each year during which a report is not required to be submitted under paragraph (1), the Director shall provide to the congressional committees described in paragraph (1) a briefing summarizing current cybersecurity posture of agencies.”; and

(iii) in paragraph (5), as so redesignated, by inserting “, including the reporting procedures established under section 11315(d) of title 40 and subsection (a)(3)(A)(v) of this section,” after “policies, procedures, and practices”; and

(4) in section 3555—

(A) in the section heading, by striking “Annual independent” and inserting “Independent”;

(B) in subsection (a)—

(i) in paragraph (1), by inserting “during which a report is required to be submitted under section 3553(c),” after “Each year”;

(ii) in paragraph (2)(A), by inserting “, including by penetration testing and analyzing the vulnerability disclosure program of the agency” after “information systems”; and

(iii) by adding at the end the following:

“(3) An evaluation under this section may include recommendations for improving the cybersecurity posture of the agency.”;

(C) in subsection (b)(1), by striking “annual”;

(D) in subsection (e)(1), by inserting “during which a report is required to be submitted under section 3553(c)” after “Each year”;

(E) by striking subsection (f) and inserting the following:

“(f) Protection of information.— (1) Agencies, evaluators, and other recipients of information that, if disclosed, may cause grave harm to the efforts of Federal information security officers, shall take appropriate steps to ensure the protection of that information, including safeguarding the information from public disclosure.

“(2) The protections required under paragraph (1) shall be commensurate with the risk and comply with all applicable laws and regulations.

“(3) With respect to information that is not related to national security systems, agencies and evaluators shall make a summary of the information unclassified and publicly available, including information that does not identify—

“(A) specific information system incidents; or

“(B) specific information system vulnerabilities.”;

(F) in subsection (g)(2)—

(i) by striking “this subsection shall” and inserting “this subsection—

“(A) shall”;

(ii) in subparagraph (A), as so designated, by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(B) identify any entity that performs an independent evaluation under subsection (b).”; and

(G) striking subsection (j); and

(5) in section 3556(a)(4) by striking “3554(b)” and inserting “3554(a)(1)(A)”.

(d) Conforming amendments.—

(1) TABLE OF SECTIONS.—The table of sections for chapter 35 of title 44, United States Code, is amended—

(A) by striking the item relating to section 3553 and inserting the following:

“3553. Authority and functions of the Director and the Director of the Cybersecurity and Infrastructure Security Agency.”;

and

(B) by striking the item relating to section 3555 and inserting the following:

“3555. Independent evaluation.”.

(2) OMB REPORTS.—Section 226(c) of the Cybersecurity Act of 2015 (6 U.S.C. 1524(c)) is amended—

(A) in paragraph (1)(B), in the matter preceding clause (i), by striking “annually thereafter” and inserting “thereafter during the years during which a report is required to be submitted under section 3553(c) of title 44, United States Code”; and

(B) in paragraph (2)(B), in the matter preceding clause (i)—

(i) by striking “annually thereafter” and inserting “thereafter during the years during which a report is required to be submitted under section 3553(c) of title 44, United States Code”; and

(ii) by striking “the report required under section 3553(c) of title 44, United States Code” and inserting “that report”.

(3) NIST RESPONSIBILITIES.—Section 20(d)(3)(B) of the National Institute of Standards and Technology Act (15 U.S.C. 278g–3(d)(3)(B)) is amended by striking “annual”.

(e) Federal system incident response.—

(1) IN GENERAL.—Chapter 35 of title 44, United States Code, is amended by adding at the end the following:

(2) CLERICAL AMENDMENT.—The table of sections for chapter 35 of title 44, United States Code, is amended by adding at the end the following:

(a) Modernizing government technology.—Subtitle G of title X of Division A of the National Defense Authorization Act for Fiscal Year 2018 (Public Law 115–91; 40 U.S.C. 11301 note) is amended in section 1078—

(1) by striking subsection (a) and inserting the following:

“(a) Definitions.—In this section:

“(1) AGENCY.—The term ‘agency’ has the meaning given the term in section 551 of title 5, United States Code.

“(2) HIGH VALUE ASSET.—The term ‘high value asset’ has the meaning given the term in section 3552 of title 44, United States Code.”; and

(2) in subsection (c)—

(A) in paragraph (2)(A)(i), by inserting “, including a consideration of the impact on high value assets” after “operational risks”;

(B) in paragraph (5)—

(i) in subparagraph (A), by striking “and” at the end;

(ii) in subparagraph (B), by striking the period at the end and inserting “and”; and

(iii) by adding at the end the following:

“(C) a senior official from the Cybersecurity and Infrastructure Security Agency of the Department of Homeland Security, appointed by the Director.”; and

(C) in paragraph (6)(A), by striking “shall be—” and all that follows through “4 employees” and inserting “shall be 4 employees”.

(b) Subchapter I.—Subchapter I of chapter 113 of subtitle III of title 40, United States Code, is amended—

(1) in section 11302—

(A) in subsection (b), by striking “use, security, and disposal of” and inserting “use, and disposal of, and, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency and the National Cyber Director, promote and improve the security of,”;

(B) in subsection (c)(3)(B), by adding at the end the following:

“(iii) The Director may make available, upon request, to the National Cyber Director any cybersecurity funding information provided to the Director under clause (ii) of this subparagraph.”;

(C) in subsection (f), by striking “The Director shall” and inserting “The Director shall—

“(1) encourage the heads of the executive agencies to develop and use the best practices in the acquisition of information technology, including supply chain risk management standards, guidelines, and practices developed by the National Institute of Standards and Technology; and

“(2) consult with the Federal Chief Information Security Officer appointed by the President under section 3607 of title 44, for the development and use of risk management standards, guidelines, and practices developed by the National Institute of Standards and Technology.”; and

(D) in subsection (h), by inserting “, including cybersecurity performances,” after “the performances”; and

(2) in section 11303(b), in paragraph (2)(B)—

(A) in clause (i), by striking “or” at the end;

(B) in clause (ii), by adding “or” at the end; and

(C) by adding at the end the following:

“(iii) whether the function should be performed by a shared service offered by another executive agency.”.

(c) Subchapter II.—Subchapter II of chapter 113 of subtitle III of title 40, United States Code, is amended—

(1) in section 11312(a), by inserting “, including security risks” after “managing the risks”;

(2) in section 11313(1), by striking “efficiency and effectiveness” and inserting “efficiency, security, and effectiveness”;

(3) in section 11315, by adding at the end the following:

“(d) Component agency chief information officers.—The Chief Information Officer or an equivalent official of a component agency shall report to—

“(1) the Chief Information Officer designated under section 3506(a)(2) of title 44 or an equivalent official of the agency of which the component agency is a component; and

“(2) the head of the component agency.”;

(4) in section 11317, by inserting “security,” before “or schedule”; and

(5) in section 11319(b)(1), in the paragraph heading, by striking “CIOS” and inserting “Chief Information Officers”.

(d) Subchapter III.—Section 11331 of title 40, United States Code, is amended—

(1) in subsection (a), by striking “section 3532(b)(1)” and inserting “section 3552(b)”;

(2) in subsection (b)(1)(A), by striking “the Secretary of Homeland Security” and inserting “the Director of the Cybersecurity and Infrastructure Security Agency”; and

(3) by adding at the end the following:

“(e) Review of office of management and budget guidance and policy.—

“(1) CONDUCT OF REVIEW.—

“(A) IN GENERAL.—Not less frequently than once every 3 years, the Director of the Office of Management and Budget, in consultation with, as available, the Chief Information Officers Council, the Director of the Cybersecurity and Infrastructure Security Agency, the National Cyber Director, the Comptroller General of the United States, and the Council of the Inspectors General on Integrity and Efficiency, shall review the efficacy of the guidance and policy promulgated by the Director in reducing cybersecurity risks, including an assessment of the requirements for agencies to report information to the Director, and determine whether any changes to that guidance or policy is appropriate.

“(B) FEDERAL RISK ASSESSMENTS.—In conducting the review described in subparagraph (A), the Director shall consider the Federal risk assessments performed under section 3553(i) of title 44.

“(C) REQUIREMENTS BURDEN REDUCTION AND CLARITY.—In conducting the review described in subparagraph (A), the Director shall consider the cumulative reporting and compliance burden to agencies as well as the clarity of the requirements and deadlines contained in guidance and policy documents.

“(2) UPDATED GUIDANCE.—Not later than 90 days after the date on which a review is completed under paragraph (1), the Director of the Office of Management and Budget shall issue updated guidance or policy to agencies determined appropriate by the Director, based on the results of the review.

“(3) CONGRESSIONAL BRIEFING.—Not later than 60 days after the date on which a review is completed under paragraph (1), the Director is expected to provide to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Reform of the House of Representatives a briefing on the review and any newly issued guidance or policy, which shall include—

“(A) an overview of the guidance and policy promulgated under this section that is currently in effect;

“(B) the cybersecurity risk mitigation, or other cybersecurity benefit, offered by each guidance or policy document described in subparagraph (A); and

“(C) a summary of the guidance or policy to which changes were determined appropriate during the review and what the changes include.

“(f) Automated standard implementation verification.—When the Director of the National Institute of Standards and Technology issues a proposed standard pursuant to paragraphs (2) and (3) of section 20(a) of the National Institute of Standards and Technology Act (15 U.S.C. 278g–3(a)), the Director of the National Institute of Standards and Technology shall consider developing and, if appropriate and practical, develop, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency, specifications to enable the automated verification of the implementation of controls.”.

(a) Responsibilities of the cybersecurity and infrastructure security agency.—

(1) IN GENERAL.—Not later than 180 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall—

(A) develop a plan for the development of the analysis required under section 3597(a) of title 44, United States Code, as added by this Act, and the report required under subsection (b) of that section that includes—

(i) a description of any challenges the Director anticipates encountering; and

(ii) the use of automation and machine-readable formats for collecting, compiling, monitoring, and analyzing data; and

(B) provide to the appropriate congressional committees a briefing on the plan developed under subparagraph (A).

(2) BRIEFING.—Not later than 1 year after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall provide to the appropriate congressional committees a briefing on—

(A) the execution of the plan required under paragraph (1)(A); and

(B) the development of the report required under section 3597(b) of title 44, United States Code, as added by this Act.

(b) Responsibilities of the director of the office of management and budget.—

(1) FISMA.—Section 2 of the Federal Information Security Modernization Act of 2014 (Public Law 113–283; 44 U.S.C. 3554 note) is amended—

(A) by striking subsection (b); and

(B) by redesignating subsections (c) through (f) as subsections (b) through (e), respectively.

(2) IN GENERAL.—The Director shall develop guidance, to be updated not less frequently than once every 2 years, on the content, timeliness, and format of the information provided by agencies under section 3594(a) of title 44, United States Code, as added by this Act.

(3) GUIDANCE ON RESPONDING TO INFORMATION REQUESTS.—Not later than 1 year after the date of the enactment of this Act, the Director shall develop guidance for agencies to implement the requirement under section 3594(c) of title 44, United States Code, as added by this Act, to provide information to other agencies experiencing incidents.

(4) STANDARD GUIDANCE AND TEMPLATES.—Not later than 1 year after the date of the enactment of this Act, the Director, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency, shall develop guidance and templates, to be reviewed and, if necessary, updated not less frequently than once every 2 years, for use by Federal agencies in the activities required under sections 3592, 3593, and 3596 of title 44, United States Code, as added by this Act.

(5) CONTRACTOR AND AWARDEE GUIDANCE.—

(A) IN GENERAL.—Not later than 1 year after the date of the enactment of this Act, the Director, in coordination with the Secretary of Homeland Security, the Secretary of Defense, the Administrator of General Services, and the heads of other agencies determined appropriate by the Director, shall issue guidance to Federal agencies on how to deconflict, to the greatest extent practicable, existing regulations, policies, and procedures relating to the responsibilities of contractors and awardees established under section 3595 of title 44, United States Code, as added by this Act.

(B) EXISTING PROCESSES.—To the greatest extent practicable, the guidance issued under subparagraph (A) shall allow contractors and awardees to use existing processes for notifying Federal agencies of incidents involving information of the Federal Government.

(6) UPDATED BRIEFINGS.—Not less frequently than once every 2 years, the Director shall provide to the appropriate congressional committees an update on the guidance and templates developed under paragraphs (2) through (4).

(c) Update to the privacy act of 1974.—Section 552a(b) of title 5, United States Code (commonly known as the “Privacy Act of 1974”) is amended—

(1) in paragraph (11), by striking “or” at the end;

(2) in paragraph (12), by striking the period at the end and inserting “; or”; and

(3) by adding at the end the following:

“(13) to another agency in furtherance of a response to an incident (as defined in section 3552 of title 44) and pursuant to the information sharing requirements in section 3594 of title 44, if the head of the requesting agency has made a written request to the agency that maintains the record specifying the particular portion desired and the activity for which the record is sought.”.

Not later than 1 year after the date of the enactment of this Act, the Director shall issue guidance for agencies on—

(1) performing the ongoing and continuous agency system risk assessment required under section 3554(a)(1)(A) of title 44, United States Code, as amended by this Act;

(2) implementing additional cybersecurity procedures, which shall include resources for shared services;

(3) establishing a process for providing the status of each remedial action under section 3554(b)(7) of title 44, United States Code, as amended by this Act, to the Director and the Director of the Cybersecurity and Infrastructure Security Agency using automation and machine-readable data, as practicable, which shall include—

(A) specific guidance for the use of automation and machine-readable data; and

(B) templates for providing the status of the remedial action;

(4) interpreting the definition of “high value asset” under section 3552 of title 44, United States Code, as amended by this Act; and

(5) a requirement to coordinate with inspectors general of agencies to ensure consistent understanding and application of agency policies for the purpose of evaluations by inspectors general.

(a) Definitions.—In this section:

(1) REPORTING ENTITY.—The term “reporting entity” means private organization or governmental unit that is required by statute or regulation to submit sensitive information to an agency.

(2) SENSITIVE INFORMATION.—The term “sensitive information” has the meaning given the term by the Director in guidance issued under subsection (b).

(b) Guidance on notification of reporting entities.—Not later than 180 days after the date of the enactment of this Act, the Director shall issue guidance requiring the head of each agency to notify a reporting entity of an incident that is likely to substantially affect—

(1) the confidentiality or integrity of sensitive information submitted by the reporting entity to the agency pursuant to a statutory or regulatory requirement; or

(2) the agency information system or systems used in the transmission or storage of the sensitive information described in paragraph (1).

(a) In general.—Not later than 1 year after the date of the enactment of this Act, the Director shall—

(1) evaluate mobile application security guidance promulgated by the Director; and

(2) issue guidance to secure mobile devices, including for mobile applications, for every agency.

(b) Contents.—The guidance issued under subsection (a)(2) shall include—

(1) a requirement, pursuant to section 3506(b)(4) of title 44, United States Code, for every agency to maintain a continuous inventory of every—

(A) mobile device operated by or on behalf of the agency; and

(B) vulnerability identified by the agency associated with a mobile device; and

(2) a requirement for every agency to perform continuous evaluation of the vulnerabilities described in paragraph (1)(B) and other risks associated with the use of applications on mobile devices.

(c) Information sharing.—The Director, in coordination with the Director of the Cybersecurity and Infrastructure Security Agency, shall issue guidance to agencies for sharing the inventory of the agency required under subsection (b)(1) with the Director of the Cybersecurity and Infrastructure Security Agency, using automation and machine-readable data to the greatest extent practicable.

(d) Briefing.—Not later than 60 days after the date on which the Director issues guidance under subsection (a)(2), the Director, in coordination with the Director of the Cybersecurity and Infrastructure Security Agency, shall provide to the appropriate congressional committees a briefing on the guidance.

(a) Recommendations.—Not later than 2 years after the date of the enactment of this Act, and not less frequently than every 2 years thereafter, the Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Attorney General, shall submit to the Director recommendations on requirements for logging events on agency systems and retaining other relevant data within the systems and networks of an agency.

(b) Contents.—The recommendations provided under subsection (a) shall include—

(1) the types of logs to be maintained;

(2) the duration that logs and other relevant data should be retained;

(3) the time periods for agency implementation of recommended logging and security requirements;

(4) how to ensure the confidentiality, integrity, and availability of logs;

(5) requirements to ensure that, upon request, in a manner that excludes or otherwise reasonably protects personally identifiable information, and to the extent permitted by applicable law (including privacy and statistical laws), agencies provide logs to—

(A) the Director of the Cybersecurity and Infrastructure Security Agency for a cybersecurity purpose; and

(B) the Director of the Federal Bureau of Investigation, or the appropriate Federal law enforcement agency, to investigate potential criminal activity; and

(6) requirements to ensure that, subject to compliance with statistical laws and other relevant data protection requirements, the highest level security operations center of each agency has visibility into all agency logs.

(c) Guidance.—Not later than 90 days after receiving the recommendations submitted under subsection (a), the Director, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency and the Attorney General, shall, as determined to be appropriate by the Director, update guidance to agencies regarding requirements for logging, log retention, log management, sharing of log data with other appropriate agencies, or any other logging activity determined to be appropriate by the Director.

(d) Sunset.—This section will cease to be in effect on the date that is 10 years after the date of the enactment of this Act.

(a) In general.—Subchapter II of chapter 35 of title 44, United States Code, is amended by adding at the end the following:

(b) Deadline for guidance.—Not later than 180 days after the date of the enactment of this Act, the Director shall issue the guidance required under section 3559A(a) of title 44, United States Code, as added by subsection (a).

(c) Sunset.—This section shall sunset on the date that is 10 years after the date of the enactment of this Act.

(d) Clerical amendment.—The table of sections for chapter 35 of title 44, United States Code, is amended by adding after the item relating to section 3559 the following:

“3559A. Federal penetration testing.”.

(e) Penetration testing by the secretary of homeland security.—Section 3553(b) of title 44, United States Code, as amended by section 5121, is further amended—

(1) in paragraph (8)(B), by striking “and” at the end;

(2) by redesignating paragraph (9) as paragraph (10); and

(3) by inserting after paragraph (8) the following:

“(9) performing penetration testing to identify vulnerabilities within Federal information systems; and”.

(a) Threat hunting program.—

(1) IN GENERAL.—Not later than 540 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall, in accordance with the authorities granted the Secretary under sections 3553(b)(7)–(8) and 3553(m) of title 44, United States Code (as redesignated by this Act), establish a program to provide ongoing, hypothesis-driven threat-hunting services on the network of each agency.

(2) PLAN.—Not later than 180 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall develop a plan to establish the program required under paragraph (1) that describes how the Director of the Cybersecurity and Infrastructure Security Agency plans to—

(A) determine the method for collecting, storing, accessing, analyzing, and safeguarding appropriate agency data;

(B) provide on-premises support to agencies;

(C) staff threat hunting services;

(D) allocate available human and financial resources to implement the plan; and

(E) provide input to the heads of agencies on the use of—

(i) more stringent standards under section 11331(c)(1) of title 40, United States Code; and

(ii) additional cybersecurity procedures under section 3554 of title 44, United States Code.

(b) Reports.—The Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director, shall submit to the appropriate congressional committees—

(1) not later than 30 days after the date on which the Director of the Cybersecurity and Infrastructure Security Agency completes the plan required under subsection (a)(2), a report on the plan to provide threat hunting services to agencies;

(2) not less than 30 days before the date on which the Director of the Cybersecurity and Infrastructure Security Agency begins providing threat hunting services under the program under subsection (a)(1), a report providing any updates to the plan developed under subsection (a)(2); and

(3) not later than 1 year after the date on which the Director of the Cybersecurity and Infrastructure Security Agency begins providing threat hunting services to agencies other than the Cybersecurity and Infrastructure Security Agency, a report describing lessons learned from providing those services.

(a) In general.—Subchapter II of Chapter 35 of title 44, United States Code, is amended by inserting after section 3559A, as added by section 204, the following:

(b) Sunset.—This section shall sunset on the date that is 10 years after the date of the enactment of this Act.

(c) Clerical amendment.—The table of sections for chapter 35 of title 44, United States Code, is amended by adding after the item relating to section 3559A, as added by this Act, the following:

“3559B. Federal vulnerability disclosure programs.”.

(a) Guidance.—The Director shall maintain guidance on the adoption of zero trust architecture and not later than 2 years after the date of the enactment of this Act, provide an update to the appropriate congressional committees on progress in increasing the internal defenses of agency systems through such adoption across the government, including—

(1) shifting away from “trusted networks” to implement security controls based on a presumption of compromise;

(2) implementing principles of least privilege in administering information security programs;

(3) limiting the ability of entities that cause incidents to move laterally through or between agency systems;

(4) identifying incidents quickly;

(5) isolating and removing unauthorized entities from agency systems as quickly as practicable, accounting for intelligence or law enforcement purposes;

(6) otherwise increasing the resource costs for entities that cause incidents to be successful; and

(7) a summary of the agency progress reports required under subsection (b).

(b) Agency progress reports.—Not later than 270 days after the date of the enactment of this Act, the head of each agency shall submit to the Director a progress report on implementing an information security program based on a zero trust architecture, which shall include—

(1) a description of any steps the agency has completed, including progress toward achieving any requirements issued by the Director, including the adoption of any models or reference architecture;

(2) an identification of activities that have not yet been completed and that would have the most immediate security impact; and

(3) a schedule to implement any planned activities.

Not later than 2 years after the date of the enactment of this Act, the Comptroller General of the United States shall perform a study on the use of automation and machine-readable data across the Federal Government for cybersecurity purposes, including the automated updating of cybersecurity tools, sensors, or processes employed by agencies under paragraphs (1), (5)(C), and (8)(B) of section 3554(b) of title 44, United States Code.

(a) Extension.—Section 1328 of title 41, United States Code, is amended by striking “the date that” and all that follows and inserting “December 31, 2026”.

(b) Designation.—Section 1322(c)(1) of title 41, United States Code, is amended by striking “Not later than” and all that follows through the end of the paragraph and inserting the following: “The Director of OMB shall designate the Federal Chief Information Security Officer appointed by the President under section 3607 of title 44, or an equivalent senior-level official from the Office of Management and Budget if the position is vacant, to serve as the Chairperson of the Council.”.

(c) Requirement.—Subsection 1326(b) of title 41, United States Code, is amended—

(1) in paragraph (5), by striking “; and” and inserting a semicolon;

(2) by redesignating paragraph (6) as paragraph (7); and

(3) by inserting after paragraph (5) the following new paragraph:

“(6) maintaining an up-to-date and accurate inventory of software in use by the agency and, when available, the components of such software, including any available Software Bills of Materials, as applicable, that can be communicated when requested to the Federal Acquisition Security Council, the National Cybersecurity Director, or the Secretary of Homeland Security acting through the Director of Cybersecurity and Infrastructure Security Agency.”.

(a) Amendment.—Chapter 36 of title 44, United States Code, is amended by inserting at the end:

(b) Deputy National Cyber Director.—Section 1752 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (6 U.S.C. 1500; 134 Stat. 4144) is amended by adding at the end the following new subsection:

“(d) Deputy Director.—There shall be a Deputy National Cyber Director for Agency Strategy, Capabilities, and Budget, who shall be the Federal Chief Information Security Officer appointed by the President under section 3607 of title 44, United States Code, and shall report to the Director and assist the office in carrying out the following duties as it applies to the protection of Federal information systems by the agencies—

“(1) the preparation and oversight over the implementation of national cyber policy and strategy under subsection (c)(1)(C)(i);

“(2) the formation and issuance of recommendations to agencies on resource allocations and policies under subsection (c)(1)(C)(ii);

“(3) reviewing annual budget proposals and making related recommendations under subsection (c)(1)(C)(iii);

“(4) the functions, as determined necessary, of the National Cyber Director under subchapter II of chapter 35 of title 44, United States Code; and

“(5) other initiatives determined by the Director, or to be necessary to coordinate with the Office by the Federal Chief Information Officer.”.

(c) Clerical amendment.—The table of sections for chapter 36 of title 44, United States Code, is amended by adding after the item relating to section 3606 the following:

“3607. Federal chief information security officer.”.

Section 2520A(e)(2) of title 44, United States Code, is amended by striking “upon the expiration of the 2-year period that begins on the date the Comptroller General submits the report under paragraph (1) to Congress” and inserting “January 31, 2030”.

Section 11(e)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) is amended—

(1) in subparagraph (A), by striking “and” at the end;

(2) by redesignating subparagraph (B) as subparagraph (C); and

(3) by inserting after subparagraph (A) the following:

“(B) that shall include a dashboard of open information security recommendations identified in the independent evaluations required by section 3555(a) of title 44, United States Code; and”.

(a) Definition of covered metrics.—In this section, the term “covered metrics” means the metrics established, reviewed, and updated under section 224(c) of the Cybersecurity Act of 2015 (6 U.S.C. 1522(c)).

(b) Updating and establishing metrics.—Not later than 1 year after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency, in coordination with the Director and consulting with the Director of the National Institute of Standards and Technology, shall—

(1) evaluate any covered metrics established as of the date of the enactment of this Act; and

(2) as appropriate and pursuant to section 224(c) of the Cybersecurity Act of 2015 (6 U.S.C. 1522(c))—

(A) update the covered metrics; and

(B) establish new covered metrics.

(c) Implementation.—

(1) IN GENERAL.—Not later than 540 days after the date of the enactment of this Act, the Director, in coordination with the Director of the Cybersecurity and Infrastructure Security Agency, shall promulgate guidance that requires each agency to use covered metrics to track trends in the cybersecurity and incident response capabilities of the agency.

(2) PERFORMANCE DEMONSTRATION.—The guidance issued under paragraph (1) and any subsequent guidance shall require agencies to share with the Director of the Cybersecurity and Infrastructure Security Agency data demonstrating the performance of the agency using the covered metrics included in the guidance.

(3) PENETRATION TESTS.—On not less than 2 occasions during the 2-year period following the date on which guidance is promulgated under paragraph (1), the Director shall ensure that not less than 3 agencies are subjected to substantially similar penetration tests, as determined by the Director, in coordination with the Director of the Cybersecurity and Infrastructure Security Agency, in order to validate the utility of the covered metrics.

(4) ANALYSIS CAPACITY.—The Director of the Cybersecurity and Infrastructure Security Agency shall develop a capability that allows for the analysis of the covered metrics, including cross-agency performance of agency cybersecurity and incident response capability trends.

(d) Congressional reports.—

(1) UTILITY OF METRICS.—Not later than 1 year after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency, in coordination with the Director, shall submit to the appropriate congressional committees a report on the utility of the covered metrics.

(2) USE OF METRICS.—Not later than 180 days after the date on which the Director promulgates guidance under subsection (c)(1), the Director shall submit to the appropriate congressional committees a report on the results of the use of the covered metrics by agencies.

(e) Federal Cybersecurity Enhancement Act of 2015 updates.—The Federal Cybersecurity Enhancement Act of 2015 (6 U.S.C. 1521 et seq.) is amended—

(1) in section 222(3)(B), by inserting “and the Committee on Oversight and Reform” before “of the House of Representatives”; and

(2) in section 224—

(A) by amending subsection (c) to read as follows:

“(c) Improved metrics.—The Director of the Cybersecurity and Infrastructure Security Agency, in coordination with the Director, shall establish, review, and update metrics to measure the cybersecurity and incident response capabilities of agencies in accordance with the responsibilities of agencies under section 3554 of title 44, United States Code.”;

(B) by striking subsection (e); and

(C) by redesignating subsection (f) as subsection (e).

(a) Definitions.—In this section:

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term “appropriate congressional committees” means—

(A) the Committee on Homeland Security and Governmental Affairs and the Committee on Appropriations of the Senate; and

(B) the Committee on Homeland Security, the Committee on Oversight and Reform, and the Committee on Appropriations of the House of Representatives.

(2) INFORMATION TECHNOLOGY.—The term “information technology”—

(A) has the meaning given the term in section 11101 of title 40, United States Code; and

(B) includes the hardware and software systems of a Federal agency that monitor and control physical equipment and processes of the Federal agency.

(3) RISK-BASED BUDGET.—The term “risk-based budget” means a budget—

(A) developed by identifying and prioritizing cybersecurity risks and vulnerabilities, including impact on agency operations in the case of a cyber attack, through analysis of cyber threat intelligence, incident data, and tactics, techniques, procedures, and capabilities of cyber threats; and

(B) that allocates resources based on the risks identified and prioritized under subparagraph (A).

(b) Establishment of risk-Based budget pilot.—

(1) IN GENERAL.—

(A) MODEL.—Not later than 1 year after the first publication of the budget submitted by the President under section 1105 of title 31, United States Code, following the date of the enactment of this Act, the Director, in consultation with the Director of the Cybersecurity and Infrastructure Security Agency and the National Cyber Director and in coordination with the Director of the National Institute of Standards and Technology, shall conduct a pilot for creating a risk-based budget for cybersecurity spending.

(B) CONTENTS OF PILOT.—The pilot required to be developed under this paragraph shall—

(i) consider Federal and non-Federal cyber threat intelligence products, where available, to identify threats, vulnerabilities, and risks;

(ii) consider the impact on agency operations of incidents, including the interconnectivity to other agency systems and the operations of other agencies;

(iii) indicate where resources should be allocated to have the greatest impact on mitigating current and future threats and current and future cybersecurity capabilities;

(iv) be used to inform acquisition and sustainment of—

(I) information technology and cybersecurity tools;

(II) information technology and cybersecurity architectures;

(III) information technology and cybersecurity personnel; and

(IV) cybersecurity and information technology concepts of operations; and

(v) be used to evaluate and inform government-wide cybersecurity programs of the Department of Homeland Security.

(2) REPORTS.—Not later than 2 years after the first publication of the budget submitted by the President under section 1105 of title 31, United States Code, following the date of the enactment of this Act, the Director shall submit a report to Congress on the implementation of the pilot for risk-based budgeting for cybersecurity spending, an assessment of agency implementation, and an evaluation of whether the risk-based budget helps to mitigate cybersecurity vulnerabilities.

(3) GAO REPORT.—Not later than 3 years after the date on which the first budget of the President is submitted to Congress containing the validation required under section 1105(a)(35)(A)(i)(V) of title 31, United States Code, as amended by subsection (c), the Comptroller General of the United States shall submit to the appropriate congressional committees a report that includes—

(A) an evaluation of the success of pilot agencies in implementing risk-based budgets;

(B) an evaluation of whether the risk-based budgets developed by pilot agencies are effective at informing Federal Government-wide cybersecurity programs; and

(C) any other information relating to risk-based budgets the Comptroller General determines appropriate.

(a) Definition.—In this section, the term “active defense technique” has the meaning given in guidance issued by the Director, in coordination with the Attorney General.

(b) Study.—Not later than 180 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency, in coordination with the Director and the National Cyber Director, shall perform a study on the use of active defense techniques to enhance the security of agencies, which shall include—

(1) a review of legal restrictions on the use of different active cyber defense techniques in Federal environments, in consultation with the Attorney General;

(2) an evaluation of—

(A) the efficacy of a selection of active defense techniques determined by the Director of the Cybersecurity and Infrastructure Security Agency; and

(B) factors that impact the efficacy of the active defense techniques evaluated under subparagraph (A);

(3) recommendations on safeguards and procedures that shall be established to require that active defense techniques are adequately coordinated to ensure that active defense techniques do not impede agency operations and mission delivery, threat response efforts, criminal investigations, and national security activities, including intelligence collection; and

(4) the development of a framework for the use of different active defense techniques by agencies.

(a) Purpose.—The purpose of this section is for the Director of the Cybersecurity and Infrastructure Security Agency to run a security operation center on behalf of the head of another agency, alleviating the need to duplicate this function at every agency, and empowering a greater centralized cybersecurity capability.

(b) Plan.—Not later than 1 year after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall develop a plan to establish a centralized Federal security operations center shared service offering within the Cybersecurity and Infrastructure Security Agency.

(c) Contents.—The plan required under subsection (b) shall include considerations for—

(1) collecting, organizing, and analyzing agency information system data in real time;

(2) staffing and resources; and

(3) appropriate interagency agreements, concepts of operations, and governance plans.

(d) Pilot program.—

(1) IN GENERAL.—Not later than 180 days after the date on which the plan required under subsection (b) is developed, the Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director of the Office of Management and Budget, shall enter into a 1-year agreement with not less than 2 agencies to offer a security operations center as a shared service.

(2) ADDITIONAL AGREEMENTS.—After the date on which the briefing required under subsection (e)(1) is provided, the Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director of the Office of Management and Budget, may enter into additional 1-year agreements described in paragraph (1) with agencies.

(e) Briefing and report.—

(1) BRIEFING.—Not later than 270 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall provide to appropriate congressional committees a briefing on the parameters of any 1-year agreements entered into under subsection (d)(1).

(2) REPORT.—Not later than 90 days after the date on which the first 1-year agreement entered into under subsection (d) expires, the Director of the Cybersecurity and Infrastructure Security Agency shall submit to appropriate congressional committees a report on—

(A) the agreement; and

(B) any additional agreements entered into with agencies under subsection (d).

(a) Purpose.—The Cybersecurity and Infrastructure Security Agency is directed to establish and conduct a pilot to determine the feasibility, value, and efficacy of providing endpoint detection and response capabilities as a shared service to Federal agencies to reduce costs, enhance interoperability, and continuously detect and mitigate threat activity on Federal networks.

(b) Plan.—Not later than 90 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall develop a plan to establish a centralized endpoint detection and response shared service offering within the Cybersecurity and Infrastructure Security Agency.

(c) Contents.—The plan required under subsection (b) shall include considerations for—

(1) understanding and assessing the full extent of endpoints across the Federal civilian environment;

(2) maximizing the value of existing agency investments in endpoint detection and response tools and services;

(3) aggregating the available contract vehicles and options that provide agencies with appropriate capability for their environment and architecture;

(4) equipping all endpoints and services of pilot agencies with endpoint detection and response programs;

(5) aggregating network, cloud, and endpoint data from both within the agency and across agencies to provide enterprise-wide monitoring of the network to detect abnormal network behavior and automate defensive capabilities; and

(6) appropriate interagency agreements, concepts of operations, and governance plans.

(d) Pilot program.—

(1) IN GENERAL.—Not later than 180 days after the date on which the plan required under subsection (b) is developed, the Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director, shall enter into a 1-year agreement with not less than 2 agencies to offer endpoint detection and response as a shared service.

(2) ADDITIONAL AGREEMENTS.—After the date on which the briefing required under subsection (e)(1) is provided, the Director of the Cybersecurity and Infrastructure Security Agency, in consultation with the Director, may enter into additional 1-year agreements described in paragraph (1) with agencies.

(e) Briefing and report.—

(1) BRIEFING.—Not later than 270 days after the date of the enactment of this Act, the Director of the Cybersecurity and Infrastructure Security Agency shall provide to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Homeland Security and the Committee on Oversight and Reform of the House of Representatives a briefing on the parameters of any 1-year agreements entered into under subsection (d)(1).

(2) REPORT.—Not later than 90 days after the date on which the first 1-year agreement entered into under subsection (d) expires, the Director of the Cybersecurity and Infrastructure Security Agency shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Homeland Security and the Committee on Oversight and Reform of the House of Representatives a report on—

(A) the agreement; and

(B) any additional agreements entered into with agencies under subsection (d).