Not What it Seems: The June 2023 DHS Final Rule on Safeguarding Controlled Unclassified Information

The Department of Homeland Security (DHS) has issued a final rule, “Safeguarding of Controlled Unclassified Information” (CUI), which amends the Homeland Security Acquisition Regulation (HSAR) and introduces new contract clauses to address CUI protection. The rule aims to protect CUI and improve incident response in light of high-profile breaches of Federal information. While the rule primarily applies to contractors operating Federal information systems on behalf of DHS, it differs from the DoD’s CUI protection rules in terms of standards, definitions, assessment requirements, and incident reporting obligations. The DHS final rule takes effect on July 21, 2023, and contractors should carefully review it to determine its applicability and plan for compliance.

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