Strengthen Cyber Defense and Data Sovereignty

Homeland Security
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America’s digital infrastructure faces constant threats from foreign hackers, criminal organizations, and hostile nations, as evidenced by the most recent hacks of US based telecommunications networks by China. This policy creates a unified national defense system to protect our networks, data, and critical systems. This isn’t just about preventing attacks – it’s about protecting our national security, economic strength, and personal privacy in the digital age. Therefore, I wrote the National Cybersecurity and Digital Sovereignty Act (NCDSA) .

National Cybersecurity and Digital Sovereignty Act (NCDSA)

Purpose

To protect U.S. digital infrastructure, defend against foreign and domestic cyber threats, and maintain sovereignty over American data through robust cybersecurity measures, resilient systems, and clear accountability frameworks across government and industry.

Core Provisions

1. National Defense Structure

1.1 Cyber Command Enhancement

  • Expanded Authority for Cyber Operations: Authorizes the United States Cyber Command (USCYBERCOM) to conduct both offensive and defensive cyber operations with congressional oversight.
  • Real-Time Threat Detection: Establishes continuous threat monitoring and analysis capabilities, integrating intelligence sources to detect intrusions or attacks in real time.
  • Intelligence Integration: Mandates close collaboration between USCYBERCOM, the National Security Agency (NSA), the Cybersecurity and Infrastructure Security Agency (CISA), and other intelligence entities for coordinated data-sharing and threat analysis.
  • Rapid Response Teams: Creates specialized units capable of rapidly deploying to protect critical national infrastructure and mitigate emerging cyber threats.
  • Proactive Threat Hunting: Expands advanced persistent threat (APT) hunting programs that proactively search for indicators of compromise within federal systems.

1.2 Critical Infrastructure Protection

  • Mandatory Security Standards: Requires all operators of vital sectors (e.g., energy, finance, telecommunications, transportation) to adopt minimum cybersecurity measures, validated by regular audits and federal certifications.
  • Real-Time Monitoring: Implements continuous monitoring systems for critical infrastructure networks, flagging anomalies and vulnerabilities in near real time.
  • Incident Response Protocols: Standardizes best practices for detecting, reporting, and containing breaches, ensuring a coordinated, multi-agency response.
  • Recovery and Continuity Planning: Mandates that critical infrastructure operators develop and maintain updated recovery plans, including failover mechanisms, backup processes, and business continuity strategies.
  • Periodic Penetration Testing: Requires scheduled red-team/blue-team exercises to test and harden the resilience of essential systems.

1.3 Federal Network Security

  • Zero-Trust Architecture: Adopts a zero-trust security model for all federal agencies, verifying each user’s and device’s identity at every network juncture.
  • Encryption Standards: Establishes robust encryption requirements for sensitive data at rest and in transit, adhering to or exceeding National Institute of Standards and Technology (NIST) guidelines.
  • Access Control Protocols: Stipulates role-based authentication, multi-factor sign-on, and least-privilege access to limit internal and external threats.
  • Continuous Monitoring: Implements 24/7 automated scanning of federal systems, detecting unauthorized activity and swiftly isolating compromised nodes.
  • Regular Security Assessments: Mandates independent security reviews, including code audits, vulnerability scans, and external compliance checks.

2. Private Sector Requirements

2.1 Security Standards

  • Industry-Specific Regulations: Collaborates with relevant agencies (e.g., Department of Energy, Department of Health and Human Services, Securities and Exchange Commission) to define tailored cybersecurity requirements for each sector.
  • Periodic Security Audits: Requires organizations above a specified revenue or user threshold to undergo regular third-party audits, reporting findings to CISA.
  • Incident Reporting: Establishes mandatory reporting of significant cyber incidents or breaches within a fixed timeframe (e.g., 72 hours), with potential penalties for non-compliance.
  • Data Protection Protocols: Obligates companies to adopt best practices for data handling, encryption, and retention, based on established international and federal standards.
  • Employee Training: Encourages ongoing cybersecurity training programs for all employees, with specialized curricula for high-access or high-risk positions.

2.2 Incentive Programs

  • Tax Credits: Offers incremental tax credits to organizations investing in approved cybersecurity software, hardware, or workforce development.
  • Insurance Premium Reductions: Collaborates with the insurance industry to provide lower cyber liability insurance premiums to companies meeting rigorous security benchmarks.
  • Contract Preferences: Grants priority in federal procurement to contractors certified under recognized cybersecurity frameworks (e.g., FedRAMP, CMMC).
  • Technical Assistance: Funds public-private cybersecurity centers of excellence where experts from academia, government, and industry share best practices, guidance, and technologies.
  • R&D Grants: Provides federal grants for research in emerging areas like quantum-resistant encryption, secure AI systems, and advanced threat analytics.

2.3 Information Sharing

  • Threat Intelligence Platforms: Establishes secure, real-time data exchanges where private firms and government agencies can voluntarily share indicators of compromise, emerging threats, and best practices.
  • Public-Private Partnerships: Encourages sector-specific collaboration, creating security collectives that facilitate resource pooling and joint incident response drills.
  • Early Warning Systems: Develops an automated alert system to quickly broadcast new vulnerabilities or high-severity threats to relevant stakeholders.
  • Vulnerability Disclosure Programs: Standardizes policies allowing ethical hackers to report system flaws and potential exploits, offering legal safe harbors to responsible researchers.
  • Joint Response Coordination: Creates standing committees for rapid response in large-scale cyber emergencies, uniting government, industry, and law enforcement.

3. Foreign Actor Accountability

3.1 Response Framework

  • Economic Sanctions: Authorizes swift imposition of targeted sanctions against state and non-state actors who orchestrate or sponsor cyberattacks.
  • Asset Freezes: Permits the freezing of assets belonging to entities and individuals implicated in malicious cyber operations against the United States.
  • Travel Bans: Bars known cybercriminals from entering the United States and restricts their international travel in coordination with allied nations.
  • Trade Restrictions: Implements import/export controls or tariffs on products and technologies from nations proven to repeatedly engage in cyber aggression.
  • International Cooperation: Fosters bilateral and multilateral agreements enhancing intelligence sharing, legal assistance, and joint enforcement actions against cybercriminal networks.

3.2 Attribution Capabilities

  • Advanced Forensic Tools: Invests in cutting-edge cyber forensics, including machine learning algorithms that can swiftly trace digital footprints and attribute attacks.
  • Global Monitoring Networks: Collaborates with allied security agencies worldwide to pool intelligence, track threat actors, and share case data.
  • Evidence Collection: Sets standardized procedures for collecting and preserving digital evidence that meet international legal standards for prosecution or sanctions.
  • Verification Processes: Creates an interagency body to confirm or dispute attributions prior to public disclosure, preventing misidentification of threat actors.
  • Public Disclosure: Allows for transparent, timely announcements of foreign actors’ involvement once attribution is determined, balancing investigative integrity with the public’s right to know.

3.3 Deterrence Measures

  • Escalation Levels: Defines a tiered approach to responding to cyber incidents, ranging from diplomatic demarches to targeted kinetic operations if warranted by law.
  • Automatic Countermeasures: Permits rapid, short-term cyber defenses that neutralize active attacks and degrade an adversary’s offensive capabilities.
  • Strategic Alliances: Deepens ties with treaty partners, leveraging defense pacts that treat certain cyberattacks as triggers for collective response.
  • Diplomatic Consequences: Empowers the State Department to downgrade diplomatic relations or expel foreign officials linked to hacking campaigns.
  • Military Response Options: Affirms that cyber aggression can, under specified circumstances, be treated comparably to armed attacks, permitting defensive actions consistent with national and international law.

4. Data Sovereignty Protection

4.1 Data Localization

  • Critical Data Storage: Requires that personally identifiable information (PII), national security data, and other designated “critical data” be stored on servers physically located within the United States.
  • Processing Restrictions: Prohibits the processing of critical data on offshore servers without explicit approval and ongoing oversight from relevant agencies.
  • Data Transfer Controls: Mandates licensing requirements and threat assessments for cross-border data transfers, particularly when transfers involve nations deemed high-risk.
  • Backup Systems: Establishes secondary, domestically hosted backups for all critical data, ensuring resilience against external disruptions.
  • Residency Verification: Implements checks to confirm the physical location of data centers and compliance with localization mandates.

4.2 Foreign Access Prevention

  • Network Monitoring: Requires real-time network monitoring tools to block or isolate suspicious traffic originating from foreign IP addresses linked to malicious actors.
  • Tightened Access Controls: Mandates additional layers of identity verification and encryption for users accessing critical databases from outside U.S. territory.
  • Encryption Protocols: Maintains a consistently updated set of encryption standards to thwart eavesdropping or data exfiltration efforts by hostile entities.
  • Foreign Ownership Limitations: Restricts or caps the degree of foreign ownership or investment in sectors handling highly sensitive data or managing critical systems.
  • Technology Transfer Oversight: Enforces export controls to prevent critical cybersecurity or encryption technologies from being transferred to adversarial nations.

5. Enforcement Mechanisms

5.1 Oversight Structure

  • National Cyber Director: Establishes a Senate-confirmed position within the Executive Office of the President to oversee national cyber policy, coordinate interagency efforts, and report annually to Congress.
  • Interagency Coordination: Requires regular, structured meetings between agencies (Department of Defense, DHS/CISA, Department of Justice, etc.) for cohesive policy implementation.
  • Congressional Reporting: Mandates quarterly and annual updates to relevant congressional committees, detailing current threat landscapes, response efforts, and enforcement actions taken.
  • Public Accountability: Ensures key statistics, such as the number of thwarted attacks and resolved investigations, are publicly reported while preserving classified details.
  • Independent Review Board: Creates a civilian-led panel of cybersecurity experts, academics, and industry leaders to evaluate and audit national cyber programs, offering policy recommendations.

5.2 Penalties

  • Civil and Criminal Liabilities: Establishes penalties for both organizations and individuals who knowingly fail to comply with cybersecurity standards or hide breaches.
  • Contract Debarment: Bars non-compliant entities from receiving federal contracts until they achieve remediation and meet specified cybersecurity baselines.
  • License Revocation: Authorizes regulators to revoke operating or export licenses of businesses that repeatedly neglect cybersecurity obligations.
  • Mandatory Remediation: Orders corrective measures for entities found to be in violation, including system overhauls, additional training, and continuous compliance audits.
  • Compliance Monitoring: Subjects high-risk or previously non-compliant organizations to ongoing federal oversight, including unannounced audits and network inspections.

6. Emergency Response

6.1 Incident Management

  • Rapid Response Protocols: Outlines immediate steps for detecting, isolating, and mitigating cyberattacks, including mobilizing specialized federal teams.
  • Cross-Sector Coordination: Unites key federal agencies, state governments, and private sector representatives through a centralized crisis management hub.
  • Resource Allocation: Establishes procedures for swiftly reallocating federal funds, technical expertise, and tools to assist in cyber emergency containment.
  • Communication Channels: Mandates the creation of secure lines of communication—both classified and unclassified—for coordination among stakeholders.
  • Recovery Procedures: Prioritizes restoring critical government services and key private sector functions, supplemented by post-incident analyses and lessons-learned reports.

6.2 Crisis Operations

  • Emergency Powers: Defines the limited circumstances under which the President or National Cyber Director can invoke special cyber-defense measures or require private sector assistance.
  • Military Assistance: Permits the U.S. Armed Forces to provide logistical or technical support to civil authorities in large-scale cybersecurity crises, subject to existing legal frameworks.
  • Service Continuity: Ensures essential public utilities—power, water, communications—have priority access to government resources and protection strategies during major incidents.
  • Public Communication: Requires timely, accurate updates to the public in the event of large-scale disruptions, mitigating panic and misinformation.
  • Global Cooperation: Encourages reciprocal emergency collaboration with key allies, simplifying mutual aid during transnational cyber emergencies.

Sector-Specific Requirements

1. Financial Services

  • Enhanced Security Protocols: Enforces multi-factor authentication, intrusion detection systems, and encryption for all financial transactions.
  • Real-Time Monitoring: Requires banks and financial institutions to use automated systems for round-the-clock surveillance of digital assets and suspicious account activities.
  • Robust Backup Systems: Mandates daily or more frequent backups of customer records and transaction logs, stored securely and geographically dispersed.
  • Consumer Protections: Establishes stricter notification timelines for customers whose data or funds may be at risk, including mandatory fraud alerts.
  • Incident Recovery: Requires thorough recovery drills and contingency plans to restore financial operations rapidly after a breach.

2. Healthcare

  • Patient Data Protection: Reinforces Health Insurance Portability and Accountability Act (HIPAA) and related regulations with stricter encryption and zero-trust network requirements.
  • System Security: Orders healthcare providers to verify all connected medical devices and networks, preventing unauthorized access or tampering.
  • Access Controls: Limits staff and contractor privileges based on job function, employing biometric or multi-factor authentication for sensitive data.
  • Backup Requirements: Enforces redundancy for electronic health record systems to ensure patient services and records remain accessible during outages.
  • Privacy Safeguards: Prohibits unauthorized sharing of patient data with third parties, imposing stiff penalties for non-compliance.

3. Energy

  • Infrastructure Protection: Secures energy grids, pipelines, and facilities through reinforced physical and digital perimeter defenses.
  • Control System Security: Requires advanced intrusion detection and prevention software for Supervisory Control and Data Acquisition (SCADA) networks.
  • Redundancy Measures: Stipulates layered backup power sources and failover sites to maintain continuity of the power grid under duress.
  • Emergency Protocols: Integrates threat simulations and tabletop exercises to prepare for potential disruptions.
  • Recovery Roadmaps: Each utility must have a documented, regularly tested procedure for restoring operations within defined timeframes.

4. Communications

  • Network Security: Demands robust, end-to-end encryption, secure routing protocols, and ongoing vulnerability patching in telecom networks.
  • Data Protection: Requires transparent policies governing how user data is stored, shared, and anonymized to minimize privacy risks.
  • Service Continuity: Operators must maintain backup infrastructure, such as satellite or redundancy links, ensuring minimal downtime.
  • Emergency Protocols: Incorporates crisis communication solutions so that emergency services and government alerts can function even amid widespread network failures.
  • Recovery Procedures: Mandates scheduled drills and scenario planning to reestablish telecommunications services after large-scale incidents.

Reporting Requirements

  • Incident Notifications: Federal agencies and critical private entities must notify relevant authorities (CISA, FBI, local regulators) about significant cyber incidents within mandatory timeframes.
  • Regular Security Assessments: All covered entities submit periodic cybersecurity reports confirming compliance with the Act’s standards, including audit results and updated threat assessments.
  • Compliance Verification: Creates a centralized repository where entities upload proof of adherence, subject to spot checks and random validations by the National Cyber Director’s office.
  • Threat Intelligence Updates: Requires frequent bulletins detailing newly discovered vulnerabilities, active campaigns, and sector-specific advisories.
  • Performance Metrics: Mandates publication of annual progress metrics, including average incident response times, rate of successful threat mitigations, and status of cross-sector partnerships.

International Cooperation

  • Intelligence Sharing: Strengthens ties with allied nations to share cyber threat intelligence, coordinate sanctions, and align defensive strategies.
  • Joint Response Protocols: Encourages multinational rapid response teams for large-scale global incidents, pre-establishing communication and authority channels.
  • Mutual Assistance: Creates a legal framework for allied nations to request help from one another during critical emergencies, including resource allocation and expertise deployment.
  • Evidence Sharing: Streamlines processes for gathering and exchanging digital evidence in cross-border cybercrime investigations, respecting sovereign legal frameworks.
  • Coordinated Sanctions: Encourages unified sanctions or export controls against aggressor states and cybercriminal organizations, amplifying deterrent effects.

Effective Date

This Act takes effect immediately upon passage. All federal agencies and regulated entities must begin adopting the necessary cybersecurity and data sovereignty measures without delay, with enforcement provisions fully operational once relevant systems, oversight bodies, and reporting infrastructures are in place.

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