Phillip Swagel, the director of the nonpartisan Congressional Budget Office, addressed lawmakers at an oversight hearing before the House Budget Committee on Tuesday, stating that the sophisticated cyberattack against his agency two weeks ago has been contained and that there is currently no further evidence of unauthorized access to CBO email systems.
This marks the first time Swagel has spoken publicly about the breach, which has raised concerns about the cybersecurity of federal agencies. The CBO director emphasized that the investigation into the breach is both extensive and ongoing, with the agency receiving assistance from both federal security partners and private sector cybersecurity specialists. He stressed the importance of gathering more information about the nature of the attack, including the activities of the threat actor and potential measures to strengthen the CBO’s systems, which will be shared in a closed-door setting with lawmakers.
Swag, who is a former Treasury official, also warned that sharing some of the findings during a public hearing might hinder the remediation or investigation process, although he assured that the CBO is currently operating as normal without any interruptions. House Budget Committee Chair Jodey Arrington, a Texas Republican, praised the CBO’s handling of the incident, stating that the agency had notified all relevant parties promptly and taken swift action to address and remediate the breach. Arrington noted that he believed the CBO had handled the situation responsibly and that the team demonstrated a strong sense of urgency and concern, which is what he would expect from any federal agency facing a cybersecurity threat.
While the breach has not resulted in the disclosure of sensitive information, the incident underscores the growing threat of cyberattacks against government agencies. Security experts have warned that such breaches could lead to the exposure of classified data, compromise national security, and damage public trust in government institutions. The CBO’s response has been commendable, but the incident has also raised questions about the broader cybersecurity strategy of the federal government and the need for enhanced protection measures against evolving cyber threats.
As the investigation continues, Swagel has assured lawmakers that the CBO will keep them informed of any developments, particularly in a private setting to ensure that the investigation is not compromised. This approach reflects a delicate balance between transparency and security, a challenge often faced by government agencies dealing with sensitive cyber incidents. For now, the agency maintains that operations are normal and that the threat has been contained, although the incident serves as a sobering reminder of the increasing sophistication and threat posed by cyber intrusions.