Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Federal Government Looks To Strengthen Data Security

Author: Scarinci Hollenbeck, LLC

Date: February 16, 2016

Key Contacts

Back

President Obama Proposes to Strengthen Data Security For The Federal Government – What would that really mean?

After a series of high-profile breaches of federal government systems, President Barak Obama’s recently proposed federal budget for fiscal 2017 includes $19 billion allocation for a broad cybersecurity initiative to strengthen data security. The budget proposal for cybersecurity-related activities represents a more than 35 percent increase from last year’s funding request.

President Obama Proposes to Strengthen Data Security For The Federal Government – What would that really mean?

High-Profile Federal Data Breaches

Federal government databases hold a treasure trove of information for hackers, whether they seek to conduct cyberwarfare or simply commit identity fraud. Earlier this month, the names, titles, phone numbers and email addresses of approximately 30,000 employees of the Department of Homeland Security and Federal Bureau of Protection were posted online. According to the hackers, they obtained the data by breaking into a Department of Justice database. Other high-profile cyberattacks on the federal government include a data intrusion at the Office of Personnel Management that compromised the information of 20 million current and federal employees and contractors.

Proposed Cybersecurity Initiative

As a means to deter future data breaches, the Obama Administration is seeking to modernize the federal government’s aging technical infrastructure. In addition to devoting $3.1 billion to the IT overhaul, the President’s Cybersecurity National Action Plan also calls for a new Federal Chief Information Security Officer who will coordinate the retirement and replacement of legacy IT across the government. Federal agencies will also be required to “identify and prioritize their highest value and most at-risk IT assets” and then implement additional security measures.

“This is not ideological issue. It doesn’t matter if there’s a Democratic president or a Republican president. If you’ve got broken, old systems — computers, mainframes, software — that doesn’t work anymore, then you can keep on putting a bunch of patch on it but it’s not going to make it safe,” President Obama said.

Pursuant to the President’s Executive Order on cybersecurity, the federal government also plans to speed up the adoption of multi-factor authentication and identity proofing for digital services offered to the public. It will also launch public service campaigns regarding the importance of using multi-factor authentication when logging into other online accounts, such as social media and email accounts.

The Obama Administration’s Cybersecurity National Action Plan (CNAP) also includes cybersecurity proposals related to businesses and the private sector. Most notably, the President plans to establish the Commission on Enhancing National Cybersecurity, which would be comprised of “top strategic, business, and technical thinkers from outside of Government.” The Commission would be tasked with recommending “actions that can be taken over the next decade to enhance cybersecurity awareness and protections throughout the private sector and at all levels of Government, to protect privacy, to maintain public safety and economic and national security, and to empower Americans to take better control of their digital security.”

Of course, many of the proposed cybersecurity measures will require Congress to sign off. While President Obama has had difficulty pushing many budget proposals through the House of Representatives, the White House stated that President Obama has already had positive discussions with the newly elected Speaker of the House, Rep. Paul Ryan.

Time will tell if this budget will confront opposition, but time is certainly of the essence when it comes to confronting cyber security.

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Scarinci Hollenbeck, LLC, LLC

    Related Posts

    See all
    When Are New Jersey Business Owners Personally Liable for Corporate Debt? post image

    When Are New Jersey Business Owners Personally Liable for Corporate Debt?

    New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]

    Author: Charles H. Friedrich

    Link to post with title - "When Are New Jersey Business Owners Personally Liable for Corporate Debt?"
    Commercial Real Estate Trends to Watch in 2026 post image

    Commercial Real Estate Trends to Watch in 2026

    Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]

    Author: Michael J. Willner

    Link to post with title - "Commercial Real Estate Trends to Watch in 2026"
    One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know post image

    One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know

    Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]

    Author: Scott H. Novak

    Link to post with title - "One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know"
    One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know post image

    One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know

    Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]

    Author: Scott H. Novak

    Link to post with title - "One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know"
    New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business post image

    New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business

    In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]

    Author: Dan Brecher

    Link to post with title - "New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business"
    How to Reduce Legal Risk as Your New Jersey Business Grows in 2026 post image

    How to Reduce Legal Risk as Your New Jersey Business Grows in 2026

    For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]

    Author: Ken Hollenbeck

    Link to post with title - "How to Reduce Legal Risk as Your New Jersey Business Grows in 2026"

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Sign up to get the latest from our attorneys!

    Explore What Matters Most to You.

    Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

    Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

    Let`s get in touch!

    * The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

    Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!