
Asleep at the cyber wheel
With help from Maggie Miller and John Sakellariadis
Driving the day
— Amid increased threats from Iranian hackers, lawmakers worry the Trump administration's cuts to federal cyber agencies have left critical infrastructure vulnerable.
HAPPY MONDAY, and welcome to MORNING CYBERSECURITY! To properly decompress from a long week, I like to turn to home-decorating shows. I recently discovered 'Decorating Cents,' a home improvement show from the '90s where host Joan and her co-conspirator of the week take a boring room and somehow make it worse. I can't recommend it enough.
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Happening This Week
On Wednesday… The Election Assistance Commission holds a virtual meeting of the U.S. Election Assistance Commission technical development committee to discuss the draft of the Voluntary Voting System Guidelines 2.1 and the executive order to protect the integrity of American elections. 1 p.m.
On The Hill
DEEP CUT — Cyber experts and industry groups have been warning about the increased cybersecurity risks to U.S. networks since tensions erupted between Iran and Israel earlier this month. These concerns were heightened after the U.S. waded into the conflict by striking Iranian nuclear facilities directly last weekend.
While a shaky U.S.-mediated ceasefire persists between Israel and Iran for now, lawmakers and former U.S. cyber officials are worried that U.S. networks remain vulnerable to threats from Iran due to the Trump administration's massive cuts to federal cyber agencies — particularly CISA, which was set up to protect U.S. critical infrastructure.
'Iranian cyber actors threaten critical infrastructure like water systems, power grids and hospitals — essential services that keep our communities running,' said Sen. Gary Peters (Mich.), the top Democrat on the Senate Homeland Security Committee, in a statement to MC. 'At a time when cybersecurity threats are only continuing to grow, the Trump administration's decision to cut staff at our lead cybersecurity agency puts us further at risk.'
— What's the plan?: Frustrations are mounting on Capitol Hill over the Trump administration's role in the conflict with Iran and the inadequate protections to U.S. critical systems.
The Trump administration briefed the House and Senate late last week on the latest intel related to Iran. A House staffer, granted anonymity to discuss the details of the classified briefing, told MC that cyber threats were not discussed during the briefing.
Rep. Bennie Thompson (D-Miss.), ranking member of the House Homeland Security Committee, noted in a statement on Friday after the briefing that the DHS, the FBI and ODNI were 'noticeably absent' from the briefing. DHS warned last week of increased threats of 'low-level cyber attacks against US networks' by pro-Iranian hackers, while the FBI has reportedly reallocated resources from immigration enforcement to counter terrorism and cybersecurity in the aftermath of the strike.
'We are sensitive to any type of cyber activity that would impact our critical infrastructure, and right now we are certainly on heightened alert,' Sen. Mike Rounds (R-S.D.), the chair of the Senate Armed Services Committee's cyber panel, said in a statement to MC last week.
— Missing leaders: These concerns are amplified by the lack of leadership at U.S. cyber agencies reeling from cuts to personnel and programs.
Both CISA and the Office of the National Cyber Director remain without a Senate-confirmed leader at the helm.
Rep. Eric Swalwell (D-Calif.), ranking member of the House Homeland Security Committee's cyber subcommittee, said at an Axios event in Washington on Thursday that the cyber threats from Iran 'should be a shield's up moment for CISA to project out to the cyber community.'
'We haven't seen that,' he said. 'I don't know if that's an intentional decision, or if it's because there is a lack of resources or a lack of Senate-confirmed individuals across our cybersecurity resources. That doesn't mean that Iran is any less capable or willing to hit us.'
CISA — alongside the FBI, NSA and the Pentagon's Cyber Crime Center — finally released an updated fact sheet Sunday afternoon about the cyber threats to U.S. networks posed by Iranian-linked hackers.
'Over the past several months, Iranian-aligned hacktivists have increasingly conducted website defacements and leaks of sensitive information exfiltrated from victims,' the advisory said. 'These hacktivists are likely to significantly increase distributed denial of service campaigns against U.S. and Israeli websites due to recent events.'
— Filling the gap: The cybersecurity community has stepped up to monitor and protect critical networks from harm, while federal outreach has lagged.
Maggie reported that operators of critical infrastructure entities have turned to information sharing and analysis centers and other cyber firms and organizations for threat intelligence.
As the private sector continues to fill the void, lawmakers are calling on the federal government to step up while the threats continue to grow.
'The current conflict with Iran might be taking place overseas, but that doesn't stop adversaries from working to target Americans in cyberspace,' said Rep. Mark Green (R-Tenn.), chair of the House Homeland Security Committee, in a statement last week. 'The federal government must ensure private owners and operators are prepared to combat nation-state threats, because industry can't counter these threats alone.'
On The Hill
POSTHUMOUS POSTING — The accounts for recently deceased lawmakers continue to post on social media, highlighting a gap in policy on how to keep tabs on who has access to the accounts.
POLITICO's Giselle Ewing reported on Saturday that people on former Rep. Gerry Connolly's (D-Va.) mailing list reportedly continued receiving emails from his campaign encouraging Virginians to vote in a special election — though Connolly died last month.
— Recordkeeping nightmare: There is no official process for handing off control of lawmakers' social media accounts if they die while in office, according to Zack Brown, the communications director for Rep. Don Young (R-Alaska) when he died in office in March 2022.
While the process of physically closing down Young's office was 'meticulous,' with everything from the lawmaker's office requiring logging, the 'digital aspect of it was completely ignored,' he said.
Brown cautioned that a lack of procedure for how to handle a dead official's social media accounts poses security risks that would normally be unthinking for physical recordkeeping.
'I can't walk into the National Archives right now and just go behind closed doors and take whatever files from Congressman Young that I want,' he said. 'Why does somebody who has social media access have that power to do that with tweets?'
Industry Intel
AIRLINE AIMS — Scattered Spider, the prolific hacking group linked to recent cyberattacks on U.K. retailers, is now targeting the aviation industry, according to law enforcement and the cybersecurity sector.
On Friday evening, the FBI said in a post on X that the cybercriminal group is expanding its scope to the airline sector. 'They target large corporations and their third-party IT providers, which means anyone in the airline ecosystem, including trusted vendors and contractors, could be at risk,' the agency added.
The warnings come as at least two North American airlines have reported cyber incidents this month. Hawaiian Airlines said last week that it was working to secure its systems following a 'cybersecurity event.' WestJet — Canada's second-largest airline — also reported a cyberattack earlier this month, and it remains unresolved.
— What firms say: Maggie reported on Friday that cyber companies have also flagged the new activity. Charles Carmakal, the chief technology officer at Google's Mandiant, told your host in a statement that Mandiant 'is aware of multiple incidents in the airline and transportation sector which resemble the operations' of Scattered Spider.
Palo Alto Networks' security research division, Unit 42, also said it observed the hacking group targeting aviation.
People on the Move
Cory Wilson will serve as deputy assistant secretary for the Office of Cybersecurity and Critical Infrastructure Protection (OCCIP).
Wilson recently served as the assistant special agent in charge of critical systems protection at the U.S. Secret Service, where he led teams responsible for mitigating cyber threats to networks and infrastructure linked to the president and vice president. Prior to that, he served as the director of cybersecurity planning and operations at the Office of the National Cyber Director and has also held previous leadership roles at Treasury, Interpol, DHS and the Senate.
Quick Bytes
'THE LOCKNET' — A yearlong investigation from ChinaFile's Jessica Batke and Northeastern University's Laura Edelson found that China's online censorship is getting harder to evade.
COURT SLOP — Dozens of YouTube channels are using AI-generated images and videos with false claims about Sean 'Diddy' Combs' trial to pull in tens of millions of views, reports Craig Silverman for The Guardian.
CARTEL HACKER — A hacker working on behalf of the Sinaloa drug cartel infiltrated cameras and phones to track an FBI official investigating the drug lord El Chapo. They then used the data from that surveillance to kill and intimidate potential sources or cooperating witnesses, according to a Justice Department watchdog report.
Also Happening Today
The Atlantic Council holds a virtual discussion on 'Bolstering the Transatlantic Partnership at a Global Inflection Point.' 7:45 a.m.
The Federal Communications Bar Association holds a virtual forum on 'Protecting the Digital Infrastructure that Powers A.I.' 12 p.m.
The Center for Strategic and International Studies holds a virtual discussion on 'What Do Strikes on Iran Mean for China, Russia and North Korea?' 3 p.m.
Chat soon.
Stay in touch with the whole team: Rosie Perper (rperper@politico.com); John Sakellariadis (jsakellariadis@politico.com); Maggie Miller (mmiller@politico.com), and Dana Nickel (dnickel@politico.com).
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Time Magazine
17 minutes ago
- Time Magazine
What to Know About Medicaid
Medicaid, the health insurance program for low-income Americans that provides coverage for more than 70 million people, faces its biggest overhaul in decades under President Donald Trump's 'One, Big, Beautiful Bill,' a massive tax and spending package now being considered by the Senate that would slash its funding. Both the House and Senate versions of the bill, which is still undergoing changes as the upper chamber votes on amendments, would reduce funding for the program by hundreds of billions of dollars, according to the nonpartisan Congressional Budget Office (CBO). Nearly 12 million adults could lose health insurance because of the proposed cuts in the Senate's revised bill over the next decade, the CBO estimated in a Saturday report. Much of the cuts are expected to come through imposing new administrative requirements on enrollees, or risk losing their coverage. The White House has rejected the CBO's findings, insisting that the cuts to the program will only reduce fraud and waste. 'President Trump pledged to protect and preserve Medicaid, and that's exactly what The One, Big, Beautiful accomplishes by kicking illegal immigrants off the program, implementing commonsense work requirements, and enforcing basic eligibility verification to combat fraud,' White House spokesman Kush Desai wrote to TIME. The House narrowly passed the bill in May, and lawmakers are now working in an effort to pass the proposed legislation by a July 4 deadline imposed by Trump. The proposed Medicaid cuts have been contentious among Republicans, some of whom have been wary of their potential impact. Senator Thom Tillis, a Republican of North Carolina, has vowed to vote against the bill unless his concerns over the cuts are addressed. Here's what to know about Medicaid. What is Medicaid? Medicaid was created following the passage of the 1965 Social Security Amendments under President Lyndon B. Johnson, according to the National Archives. The law established both Medicare, which generally provides health insurance coverage for Americans aged 65 and older, and Medicaid, which serves low-income people. Medicaid is financed jointly by state and federal governments and accounts for about a sixth of health care spending in the U.S. It's a hugely popular program among Americans: More than 80% have a positive view of Medicaid, according to a survey conducted earlier this month by nonpartisan research organization KFF. The Affordable Care Act enabled states to expand Medicaid eligibility to include non-elderly adults whose income was up to 138 percent of the federal poverty level—a national median of $44,367 for a family of four this year. Forty states and Washington, D.C., have so far adopted the expansion, 90% of which is funded by the federal government. 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The figure was notably higher in recent years: Roughly 100 million people were enrolled in Medicaid at some point in 2023, according to a December 2024 report by The Medicaid and CHIP Payment and Access Commission. The numbers have declined following the end of continuous enrollment, however, as states have resumed disenrolling people from the program. The proportion of people enrolled in the program varies significantly between states. More than 30% of residents in Louisiana and New Mexico are covered by Medicaid, according to KFF, compared to just 12% in Wyoming and North Dakota. Who is eligible for Medicaid? The federal government sets broad eligibility requirements for Medicaid. It requires states to cover some groups when they fall below certain income levels, including pregnant women, families with children, disabled people, and most children in foster care. But since the program is state-administered, Medicaid qualifications vary on a state-by-state basis. 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A federal judge blocked similar requirements in Kentucky from taking effect the previous year, and Governor Andy Beshear halted efforts to impose them in 2019 shortly after taking office. Idaho, Kentucky, and Indiana have adopted legislation to impose work requirements this year, according to KFF. Other states are weighing imposing similar measures. And potential work requirements are being considered on a federal level in Trump's 'One, Big, Beautiful Bill.' The package would require Medicaid recipients from ages 19 to 64 to verify that they work at least 80 hours a month, or are training for a new job, studying, or volunteering. People's work status would be checked twice a year. Most working-age adults on Medicaid are employed, or have a disability or caregiving responsibilities, according to KFF.

Associated Press
19 minutes ago
- Associated Press
What's in the latest version of Trump's big bill moving through the Senate
WASHINGTON (AP) — Republicans are inching closer to getting their tax and spending cut bill through Congress with a final Senate vote likely late Monday or early Tuesday. At some 940-pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations. President Donald Trump has admonished Republicans, who hold majority power in the House and Senate, to skip their holiday vacations and deliver the bill by the Fourth of July. Democrats are united against the legislation and were offering scores of amendments to alter it Monday as the Senate slogged through what is known as a vote-a-rama. Senators can offer an unlimited number of amendments, with each receiving a vote. Once the bill clears the Senate, it would have to pass the House before Trump can sign it into law. Here's the latest on what's in the bill. There could be changes as GOP lawmakers continue to negotiate. Tax cuts are the priority Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump's first term expire. The legislation contains about $4.5 trillion in tax cuts. The existing tax rates and brackets would become permanent under the bill. It temporarily would add new tax breaks that Trump campaigned on: no taxes on tips, overtime pay, the ability to deduct interest payments for some automotive loans, along with a $6,000 deduction for older adults who earn no more than $75,000 a year. It would boost the $2,000 child tax credit to $2,200. Millions of families at lower income levels would not get the full credit. A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years. It's a provision important to New York and other high tax states, though the House wanted it to last for 10 years. There are scores of business-related tax cuts, including allowing businesses to immediately write off 100% of the cost of equipment and research. The wealthiest households would see a $12,000 increase from the legislation, which would cost the poorest people $1,600 a year, according to the nonpartisan Congressional Budget Office analysis of the House's version. Middle-income taxpayers would see a tax break of $500 to $1,500, the CBO said. Money for deportations, a border wall and the Golden Dome The bill would provide some $350 billion for Trump's border and national security agenda, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in U.S. history. Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 signing bonuses and a surge of Border Patrol officers, as well. The goal is to deport some 1 million people per year. The homeland security secretary would have a new $10 billion fund for grants for states that help with federal immigration enforcement and deportation actions. To help pay for it, immigrants would face various new fees, including when seeking asylum protections. For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security. How to pay for it? Cuts to Medicaid and other programs To help partly offset the lost tax revenue and new spending, Republicans aim to cut back on Medicaid and food assistance for the poor. Republicans argue they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse. The package includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older people up to age 65. Parents of children 14 and older would have to meet the program's work requirements. There's also a proposed new $35 co-payment that can be charged to patients using Medicaid services. More than 71 million people rely on Medicaid, which expanded under Obama's Affordable Care Act, and 40 million use the Supplemental Nutritional Assistance Program. Most already work, according to analysts. The Congressional Budget Office estimates that 11.8 million more Americans would become uninsured by 2034 if the bill became law and 3 million more would not qualify for food stamps. The Senate proposes a $25 billion Rural Hospital Transformation Program to help offset reduced Medicaid dollars. It's a new addition, intended to win over holdout GOP senators and a coalition of House Republicans warning that the proposed Medicaid provider tax cuts would hurt rural hospitals. A 'death sentence' for clean energy? Republicans are proposing to dramatically roll back tax breaks designed to boost clean energy projects fueled by renewable sources such as energy and wind. The tax breaks were a central component of President Joe Biden's 2022 landmark bill focused on addressing climate change and lowering healthcare costs. Democratic Oregon Sen. Ron Wyden went so far as to call the GOP provisions a 'death sentence for America's wind and solar industries and an inevitable hike in utility bills.' Under the bill, a tax credit that subsidizes the production of electricity would be eliminated for any wind and solar plant not plugged into the grid by the end of 2027. But Republicans aren't just looking to roll back the tax breaks Biden put into place: they're also looking to add a tax for new wind and solar projects that use a certain percentage of components from China. A tax break for people who buy new or used electric vehicles would expire on Sept. 30 of this year, instead of at the end of 2032 under current law. Meanwhile, a tax credit for the production of critical materials will be expanded to include metallurgical coal used in steelmaking. Trump savings accounts and so, so much more A number of extra provisions reflect other GOP priorities. The House and Senate both have a new children's savings program, called Trump Accounts, with a potential $1,000 deposit from the Treasury. The Senate provided $40 million to establish Trump's long-sought 'National Garden of American Heroes.' There's a new excise tax on university endowments. A $200 tax on gun silencers and short-barreled rifles and shotguns was eliminated. One provision bars money to family planning providers, namely Planned Parenthood, while $88 million is earmarked for a pandemic response accountability committee. Another section expands the Radiation Exposure Compensation Act, a hard-fought provision from GOP Sen. Josh Hawley of Missouri, for those impacted by nuclear development and testing. Billions would go for the Artemis moon mission and for exploration to Mars. The bill would deter states from regulating artificial intelligence by linking certain federal AI infrastructure money to maintaining a freeze. Seventeen Republican governors have asked GOP leaders to drop the provision. Additionally, a provision would increase the nation's debt limit, by $5 trillion, to allow continued borrowing to pay already accrued bills. What's the final cost? Altogether, the Congressional Budget Office projects that the bill would increase federal deficits over the next 10 years by nearly $3.3 trillion from 2025 to 2034. Or not, depending on how one does the math. Senate Republicans are proposing a unique strategy of not counting the existing tax breaks as a new cost because those breaks are already 'current policy.' Republican senators say the Senate Budget Committee chairman has the authority to set the baseline for the preferred approach. Under the alternative Senate GOP view, the bill would reduce deficits by almost a half-trillion dollars over the coming decade, the CBO said. Democrats say this is 'magic math' that obscures the true costs of the tax breaks. Some nonpartisan groups worried about the country's fiscal trajectory are siding with Democrats in that take. The Committee for a Responsible Federal Budget says Senate Republicans are employing an 'accounting gimmick that would make Enron executives blush.'


Politico
22 minutes ago
- Politico
Litigation tax nixed by Senate parliamentarian
The Senate's 'big, beautiful' vote-a-rama starts in just two hours — and nobody knows how it's going to end. Senate Majority Leader John Thune can only lose one more vote with Sens. Rand Paul (R-Ky.) and Thom Tillis (R-N.C.) already opposed. As Senate GOP leaders scramble to strike deals to keep the bill on track, House Republicans are drawing red lines, with fiscal hawks threatening to tank the bill over the Senate's budget framework and moderates balking at the provider-tax crackdown. Here are the big fights we're watching when amendment votes kick off at 9 a.m., leading to a final vote on passage late Monday or early Tuesday: Medicaid: GOP Sen. Rick Scott's proposal to curb a key Medicaid funding mechanism after 2030 has Thune's support as part of a deal struck to get the Florida senator and a handful of other holdouts to advance the megabill to debate. If it fails, it could cost leadership some fiscal hawks, though Sens. Scott and Ron Johnson (R-Wis.) refused to go there Sunday night. If it passes, it could alienate so-called Medicaid moderates. One of them, Sen. Susan Collins of Maine, filed an amendment that would double the stabilization fund for rural hospitals to $50 billion, and pay for it by adding a 39.6-percent bracket on earners making over $25 million. Medicaid moderates could also try to further water down the bill's cut to the provider tax. Keep an eye on Tillis, now unburdened by a reelection bid, who slammed the Medicaid cuts in a fiery floor speech Sunday and might jump in again. Another key player to watch is Sen. Lisa Murkowski and whether her support slips after the parliamentarian derailed Medicaid-payment provisions aimed at winning over the Alaskan. The parliamentarian also, as of early this morning, had yet to rule on food-aid waivers for Alaska that could affect Murkowski's vote. Green credits: Moderates including Tillis and Sen. John Curtis (R-Utah) could offer amendments to soften the bill's deep cuts against wind and solar energy, including its crackdown on IRA credits and a new excise tax. That could provoke a fight with House conservatives and the White House, which have pushed for aggressive rollbacks. AI: Commerce Chair Sen. Ted Cruz (R-Texas) and Sen. Marsha Blackburn (R-Tenn.) are pitching a plan to cut the megabill's 10-year moratorium on state enforcement of AI laws in half and make accommodations for internet protections. The grand finale could be a manager's amendment that House GOP leaders are pushing for to further resolve differences between the chambers and speed the bill to Trump by Friday. The House is scheduled to vote as soon as Wednesday at 9 a.m. What else we're watching: — Farm bill fight: Dozens of agriculture groups are urging senators to oppose an amendment from Sen. Chuck Grassley (R-Iowa) that would limit income thresholds of farmers who can receive federal aid. A host of farm-state GOP senators also oppose Grassley's push, according to three people granted anonymity. Some are concerned that liberal senators could join with conservative fiscal hawks to pass the amendment. — Solar and wind tax backlash: The U.S. Chamber of Commerce and the Solar Energy Industry Association are slamming a new addition to the megabill that would tax solar and wind projects that have components from foreign sources, including China. 'Taxing energy production is never good policy, whether oil & gas or, in this case, renewables,' Chamber executive vice president and chief policy officer Neil Bradley wrote on X. — Campaign announcements: Rep. Don Bacon is expected to announce his retirement Monday, according to two people familiar with his plans. The centrist Republican's Nebraska seat is a prime pickup opportunity for Democrats; it's one of only three GOP-held districts Kamala Harris won in 2024. Meanwhile GOP Rep. Dusty Johnson is expected to announce a bid for South Dakota governor on Monday, according to two people familiar with his planning. He'll be the eighth House Republican to run for higher office in 2026. Jordain Carney, Meredith Lee Hill, Mohar Chatterjee and Josh Siegel contributed to this report.