The United States and allied governments are “buying time for our systems to become more secure” as artificial intelligence advances and spreads, National Cyber Director Sean Cairncross said Thursday.

“That is a big deal to be ahead of this, to be ahead of this race, and because it’s an exponential  equation,” he said at the Billington CyberSecurity Summit. “Once you fall behind, it is much more difficult to make it up, and so that is the context in which all this is taking place. We are trying to balance the innovation side of running at speed with securing our systems and handling this technology responsibly, which is to say, not letting it fall into the hands of people who would do us harm, our adversaries.”

Earlier this week, U.S. security agencies accused Chinese AI companies of trying to illegally distill U.S. frontier AI models. Also this week, Anthropic disclosed a fourth AI hacking incident where one of its models broke into third-party systems.

“We all face the same threat picture, and it’s vital that we’re working closely together to secure those systems before that technological cycle catches up on the back end,” Cairncross said.

AI has further exposed long-standing cybersecurity problems that have gone unaddressed, he said.

“In AI development, particularly on the vulnerability discovery side and the coding side, it hasn’t created a new set of problems,” Cairncross said. “What it’s done is it’s dragged to the surface problems that have been latent in this space for decades. There’s been under-resourcing and deprioritization of basic cyber hygiene and cybersecurity.”

Cairncross’s messages echoed those of other Trump administration cyber officials speaking this week at the summit.

A top FBI official, Jason Bilnoski, said the solutions to the difficulties AI poses aren’t new; basic cyber hygiene is key.

And the director of the Cybersecurity and Infrastructure Security Agency, Nick Andersen, said historical neglect of cybersecurity fundamentals poses a serious threat that requires a speedy answer.

“We know the worst that can happen, and if we don’t make some very serious, very significant changes in quick succession … you all are going to have to go home and look your family, look your friends in the eye and explain to them how you knew the worst that could happen and why we didn’t do enough,” he said.

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Industry groups who spoke at town halls hosted by the Cybersecurity and Infrastructure Security Agency about a pending cyber incident notification regulation had a few consistent messages:

We want this to apply to fewer of us. We don’t want to report to you on as many incidents. We want to give you less information when we do. 

CISA last week published transcripts from the town halls, where the agency sought feedback on the delayed rule for the 2022 Cyber Incident Reporting for Critical Infrastructure Act — perhaps the most significant cyber legislation Congress has ever passed. That law required critical infrastructure owners to report major cyberattacks to the federal government within 72 hours, and ransomware payments within 24 hours.

The law was designed to let the feds share information about significant incidents more widely to prepare other would-be victims. CISA published a proposed rule on the law in 2024 to define terms like “covered cyber incident” and more, and industry groups have persistently registered their objections since then.

CISA missed the October 2025 deadline for finalizing the rule, then missed a May reset target date, and now the administration says the rule will be completed in September.

Some industry sources told CyberScoop they consider that unlikely. Most also haven’t received any indications from CISA about how much of the town hall feedback it intends to embrace, they said.

Companies, incidents, information 

Those town hall comments over the course of four June dates were often very direct.

“The rule includes too many companies,” said Grant MacIntyre, director of regulatory affairs and senior attorney at the Auto Care Association. CISA estimated that more than 300,000 entities will be subject to its requirements.

Some industries advocated for their removal entirely, such as two different groups representing elements of the insurance sector. Some sought to reduce the number affected within their sector, such as the Nuclear Energy Institute wanting the list cut down to those already subject to Nuclear Regulatory Commission cybersecurity reporting requirements.

While CISA wrote the regulation with the intention to avoid overburdening small businesses, some feared it wouldn’t work that way in practice.

“The current approach where an entity qualifies either by size or by sector effectively negates the intended limitation on small businesses,” said Douglas Leigh, vice president of legislative affairs for the Alliance for Chemical Distribution. “In chemical distribution, even small entities could be swept in under multiple cyber categories.”

Where the rule specifies what kind of data organizations should report in a major incident, CISA should “seek to collect the least amount of information possible in the easiest to report fashion to facilitate information accuracy and reporting speed,” said Samantha Burch, vice president of technology public policy at government affairs at AHIP, a health insurance industry trade association.

Many, for instance, argued the report should not include information on the affected entities’ security measures.

Others worried about what kind of incidents would trigger reporting requirements.

“My big concern is that you’re going to be asking us to report incidents on every time some foreign entity tickles our firewall, whether they do anything or not, if they just do a ping or a search,” said Tim Pospisil, chief security officer for Nebraska Public Power District. “And that could be extremely burdensome.”

Industry Expectations

One industry representative told CyberScoop that CISA’s willingness to hold town halls, combined with the Trump administration strategy emphasizing “common sense regulation,” was a good sign about where the rule might be heading.

‘They are not picking up on the Biden administration’s approach and tweaking it. They’re thinking, ‘What are the specific pieces of information we need during a cyber incident to help critical infrastructure companies respond?’” said Henry Young, senior director of policy for the Business Software Alliance. “In general, industry is optimistic that what we’ll end up with are a few of the most important pieces of information, so that in the emergency, companies can act quickly and actually respond to an incident rather than completing lots of paperwork.”

But multiple industry sources said they haven’t gotten many indications about CISA’s intentions. Nor are they optimistic CISA can meet the September target date in the Unified Agenda of Regulatory and Deregulatory Actions.

“It could slip,” one said. “But I think they’re going to try.”

That industry source said they’d like to see a proposal from CISA before it cements anything forever.

Another industry source said it’s hard to trust the September date given past CISA delays, some of which aren’t CISA’s fault, such as dealing with multiple government shutdowns. Some of the delays trace to the Trump administration, given the massive cuts to CISA’s personnel.

Congress is also getting impatient.

The House Appropriations Committee “is concerned about delays in publishing the final CIRCIA rule and urges CISA to finalize it promptly following stakeholder review and feedback,” the panel wrote in the committee report for its fiscal 2027 Department of Homeland Security spending bill.

It’s a much different world than when CISA began writing the rule, something the agency also has to take into account now.

“AI has fundamentally changed the playing field,” the source said. “When this was set up, we didn’t even have the first generation of ChatGPT. We’re now in a mythos class environment.” That’s changed “how quickly we can identify threats, mitigate them, the level of human intervention, potential machine engagement.”

While CISA might have good intentions, past interactions give cause for skepticism about how capable it is of working collaboratively with industry, the source said.

Another industry source said conversations with CISA suggest the agency will look to simplify the regulation to keep it smaller and narrower, then potentially build upon it later.

From CISA’s mouth

Nick Andersen, the acting director of CISA, talked about his overarching intentions with CIRCIA at the town halls.

“CISA does not view CIRCIA as simply a check-the-box compliance exercise,” Andersen said at one. “CIRCIA will enhance visibility into the cyberthreat landscape to enable a robust national early warning capability for critical infrastructure. By quickly reporting covered cyber incidents and ransom payments to CISA, we will be able to provide timely and actionable defensive and eviction measures to your network defenders.”

Asked by CyberScoop about next steps for CIRCIA, and how it might incorporate the industry feedback, a spokesperson provided a statement.

“CISA recognizes the importance of CIRCIA, however, multiple funding lapses impacted CISA’s ability to conduct rulemaking activity for CIRCIA. CISA continues to work on the final rule,” the spokesperson said, adding that 1,200 critical infrastructure stakeholders attended the town halls.  “CISA will continue to communicate updates on the CIRCIA rulemaking process and timeline through CISA.gov/CIRCIA and the Office of Information and Regulatory Affairs’ Unified Agenda of Regulatory and Deregulatory Actions.”

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Trump administration budget chief Russell Vought told lawmakers Tuesday that he’s willing to work with Department of Homeland Security Secretary Markwayne Mullin on re-staffing up the Cybersecurity and Infrastructure Security Agency, following deep personnel cuts and further proposed reductions in the fiscal 2027 budget blueprint.

Mullin said last week at a House Appropriations Subcommittee on Homeland Security hearing that he would like to hire 600 more people at CISA, similar to remarks he made earlier this month at another House hearing. President Donald Trump has cut or lost more than 1,000 from an agency that stood around 3,400-strong at the end of the Biden administration — cuts criticized by lawmakers in both parties.

At a House Appropriations Subcommittee on Financial Services and General Government   hearing Tuesday, Rep. Mark Amodei, R-Nev., asked Vought about Mullin’s CISA remarks.

“You don’t just flip a light switch on, and you got 600 folks over in CISA now. What’s the plan for getting CISA fully operational?” Amodei, who chairs the panel’s Subcommittee on Homeland Security, asked. “How do we make sure we have a robust, effective, cost-effective CISA force? Because I don’t think anybody thinks we have it now.”

Vought, director of the Office of Management and Budget, said he hasn’t received a formal request from Mullin to increase CISA’s number of full-time employees, but knows that hiring isn’t instantaneous.

“He was not here when we developed this budget, so if he feels the need to have additional resources, we will work through that internally, and at the appropriate time, come up and brief you,” he answered Amodei. “I do think he’s in the process still of getting his arms wrapped around the department,” he said. Mullen became DHS secretary in late March.

“This is probably one of those things, particularly in the cyber world, you now have a year and a half of a new administration,” Vought continued, and referred to conservative complaints about how CISA handled election security and disinformation under Biden. “We saw this agency had major concerns with it in our four years outside of government and with new management, I think it’s now an agency, or could be an agency, that plays a very valuable part for DHS’s portfolio.”

Bringing hundreds of new CISA personnel on board could prove challenging for reasons beyond the usual bureaucratic hurdles and security clearance processes that slow any federal hires in the national security space. Past CISA employees and agency observers have said the way the Trump administration has purged personnel and treated those who have stayed could prove a further disincentive to future hires.

Acting CISA director Nick Andersen recently said that the agency has begun the process of hiring new CISA staffers, and expected to have nearly 200 job offers out by the end of this month.

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