Rogers Joseph O'Donnell | JD || LinkedIn "Top Voice" || 2024 Lawdragon 500 Cyber || Federal 100 Winner || Board Member || Expert Witness || Cyber, Supply Chain and National Security Specialist
Just learned that Rep. Gary Palmer (R.-AL) has introduced a resolution, H.J. Res. 221, under the Congressional Review Act, to invalidate the 32 CFR CMMC "Program Rule." "If a joint resolution of disapproval is submitted within the CRA-specified deadline, passed by Congress, and signed by the President, the CRA states that the disapproved rule “shall not take effect (or continue).” The rule would be deemed not to have had any effect at any time, and even provisions that had become effective would be retroactively negated." (From the CRS Report https://lnkd.in/gcZP3Qn7 (2021). "In order to be enacted, a bill or joint resolution has to pass the House and Senate with identical text in both chambers and be signed by the President, enacted over his veto, or become law without his signature." (Same CRS Report.) "The CRA has been used to overturn a total of 20 rules: one in the 107th Congress (2001-2002), 16 in the 115th Congress (2017-2018), and three in the 117th Congress (2021-2022)." CRS Brief Overview on CRA (2024) https://lnkd.in/g6B9tyAc). My initial reaction: I'm not surprised a disapproval resolution has been introduced. There is a large number of companies who express concern about their ability to satisfy the CMMC security demands. Getting the disapproval passed by both House and Senate happens relatively rarely. This rule relates back to the previous Trump Administration when the CMMC program was introduced. There are very strong national security reasons to proceed with the rule, IMO, and my read of the new Administration is that it is unlikely to accommodate insufficient cyber security on the part of DIB companies in the face of continuing cyber espionage and exfiltration threats, especially from the P.R.C. I appreciate that this Administration has much hesitation about excesses of federal rulemaking, and CMMC is a demanding rule. However, as the GAO has already indicated, the CMMC rule followed the required procedural steps. https://lnkd.in/gve_vtJ4 DoD wisely has a rollout program that proceeds over four years and begins only when the companion Part 48 CMMC "Contract Rule" is finalized, which won't occur before mid-2025. Finally, there is interest in Congress in tax legislation that would assist very small businesses by extending a tax credit to cover some of the "unique" costs of compliance with the CMMC rule, i.e., the cost of assessment and of closing POA&Ms (gaps) that surface during assessments. We could see activity on this tax credit early next year when the House Ways & Means Committee takes up various tax measures that are said to be important to the new Administration. Personal opinion. https://lnkd.in/gksp7sW8