Title: Risk-Informed Spending for Cybersecurity Act
Policy area: Economics and Public Finance

Summary:
Risk-Informed Spending for Cybersecurity Act
This bill requires the Office of Management and Budget, in coordination with the Cybersecurity and Infrastructure Security Agency, to develop a standard model for creating a risk-based budget for cybersecurity spending.
The risk-based budget must (1) be developed by identifying and prioritizing cybersecurity risks and vulnerabilities through analysis of threat intelligence, incident data, and tactics, techniques, procedures, and capabilities of cyber threats; and (2) allocate resources based on the risks identified and prioritized.
Within two years of the development of the model, federal agencies must begin using the model to develop annual cybersecurity and information technology budget requests.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4785 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4785

   To require the Director of the Office of Management and Budget to 
   develop a model for risk-based budgeting, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 1, 2020

Mr. Portman (for himself and Mr. Peters) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
   To require the Director of the Office of Management and Budget to 
   develop a model for risk-based budgeting, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Risk-Informed Spending for 
Cybersecurity Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (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 and the 
                Committee on Appropriations of the House of 
                Representatives.
            (2) Covered agency.--The term ``covered agency'' has the 
        meaning given the term ``executive agency'' in section 133 of 
        title 41, United States Code.
            (3) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (4) 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.
            (5) 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 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).

SEC. 3. ESTABLISHMENT OF RISK-BASED BUDGET MODEL.

    (a) In General.--
            (1) 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 enactment of this Act, the Director, in coordination 
        with the Director of the Cybersecurity and Infrastructure 
        Security Agency and in consultation with the Director of the 
        National Institute of Standards and Technology, shall develop a 
        standard model for creating a risk-based budget for 
        cybersecurity spending.
            (2) Responsibility of director.--Section 3553(a) of title 
        44, United States Code, is amended--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) developing a standard risk-based budget model to 
        inform Federal agency cybersecurity budget development.''.
            (3) Contents of model.--The model required to be developed 
        under paragraph (1) shall--
                    (A) consider Federal and non-Federal cyber threat 
                intelligence products, where available, to identify 
                threats, vulnerabilities, and risks;
                    (B) consider the impact of agency operations of 
                compromise of systems, including the interconnectivity 
                to other agency systems and the operations of other 
                agencies;
                    (C) indicate where resources should be allocated to 
                have the greatest impact on mitigating current and 
                future threats and current and future cybersecurity 
                capabilities;
                    (D) 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
                    (E) be used to evaluate and inform government-wide 
                cybersecurity programs of the Department of Homeland 
                Security.
            (4) Required updates.--Not less frequently than once every 
        3 years, the Director shall review, and update as necessary, 
        the model required to be developed under this subsection.
            (5) Publication.--The Director shall publish the model 
        required to be developed under this subsection, and any updates 
        necessary under paragraph (4), on the public website of the 
        Office of Management and Budget.
            (6) Reports.--Not later than 1 year after the date of 
        enactment of this Act, and annually thereafter for each of the 
        2 following fiscal years or until the date on which the model 
        required to be developed under this subsection is completed, 
        whichever is sooner, the Director shall submit a report to 
        Congress on the development of the model.
    (b) Required Use of Risk-Based Budget Model.--
            (1) In general.--Not later than 2 years after the date on 
        which the model developed under subsection (a) is published, 
        the head of each covered agency shall use the model to develop 
        the annual cybersecurity and information technology budget 
        requests of the agency.
            (2) Agency performance plans.--Section 3554(d)(2) of title 
        44, United States Code, is amended by inserting ``and the risk-
        based budget model required under section 3553(a)(7)'' after 
        ``paragraph (1)''.
    (c) Verification.--
            (1) In general.--Section 1105(a)(35)(A)(i) of title 31, 
        United States Code, is amended--
                    (A) in the matter preceding subclause (I), by 
                striking ``by agency, and by initiative area (as 
                determined by the administration)'' and inserting ``and 
                by agency'';
                    (B) in subclause (III), by striking ``and'' at the 
                end;
                    (C) in subclause (IV), by adding ``and'' at the 
                end; and
                    (D) by adding at the end the following:
                                    ``(V) a validation that the budgets 
                                submitted were developed using a risk-
                                based methodology;''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date that is 2 years after the date on 
        which the model developed under subsection (a) is published.
    (d) Annual Reports.--
            (1) Annual independent evaluation.--Section 3555(a)(2) of 
        title 44, United States Code, is amended--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) an assessment of how the agency implemented 
                the risk-based budget model required under section 
                3553(a)(7) and an evaluation of whether the model 
                mitigates agency cyber vulnerabilities.''.
            (2) Assessment.--Section 3553(c) of title 44, United States 
        Code, is amended--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) an assessment of--
                    ``(A) Federal agency implementation of the model 
                required under subsection (a)(7);
                    ``(B) how cyber vulnerabilities of Federal agencies 
                changed from the previous year; and
                    ``(C) whether the model mitigates the cyber 
                vulnerabilities of the Federal Government.''.
    (e) 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--
            (1) an evaluation of the success of covered agencies in 
        developing risk-based budgets;
            (2) an evaluation of the success of covered agencies in 
        implementing risk-based budgets;
            (3) an evaluation of whether the risk-based budgets 
        developed by covered agencies mitigate cyber vulnerability, 
        including the extent to which the risk-based budgets inform 
        Federal Government-wide cybersecurity programs; and
            (4) any other information relating to risk-based budgets 
        the Comptroller General determines appropriate.
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