Federal Contractor Cybersecurity Vulnerability Reduction Act: What Houston Businesses Need to Know

 Overview of the Proposed Legislation

The House of Representatives recently passed the Federal Contractor Cybersecurity Vulnerability Reduction Act of 2025, a bipartisan bill that would require federal contractors to establish vulnerability disclosure policies (VDPs). This legislation aims to create a standardized framework for identifying and addressing cybersecurity vulnerabilities in federal contractor systems.

 What the Bill Covers

The bill would:

• Require federal contractors to implement vulnerability disclosure policies consistent with National Institute of Standards and Technology (NIST) guidelines
• Mandate that the Office of Management and Budget (OMB) consult with CISA, NIST, and the Office of the National Cyber Director to develop appropriate requirements
• Direct the Department of Defense to update the Defense Federal Acquisition Regulation Supplement (DFARS) with similar requirements
• Apply to contractors whose contracts are at or above the simple acquisition threshold of $250,000
• Create a clear process for researchers and ethical hackers to safely report vulnerabilities in contractor systems

 Bill Sponsors and Status

The legislation was introduced by Representatives Nancy Mace (R-S.C.) and Shontel Brown (D-Ohio). Rep. Mace serves as Chairwoman of the Cybersecurity, Information Technology, and Government Innovation Subcommittee, while Rep. Brown is the Ranking Member of the subcommittee.

After passing in the House on March 3, 2025, the bill has moved to the Senate, where it has been referred to the Committee on Homeland Security and Governmental Affairs. A companion version was previously introduced in 2024 by Senators Mark Warner (D-Va.) and James Lankford (R-Okla.).

 Cybersecurity Expert Perspectives

Industry leaders have expressed strong support for the legislation:

Trey Ford, CISO at Bugcrowd: “Every company building or implementing technology and services needs a VDP, and this is a significant milestone in aligning contractors with industry best practices. Ultimately, the performance of a VDP is the best external proxy indicator for performance of a company’s security program.”

Casey Ellis, Founder at Bugcrowd: “This bill transforms VDPs and the reception of hacker feedback from a ‘nice-to-have’ into a mandatory FAR/DFAR procurement requirement… It lays the groundwork for deeper, more productive collaboration between the U.S. Government, its contractors and suppliers, and the ethical hacking community.”

Jim Richberg, Head of Cyber Policy at Fortinet: “This bill aims to harmonize and streamline the vulnerability disclosure practices of companies offering essential digital services to the federal government with the internal practices already adopted by federal agencies… As many of these companies also serve private sector customers, the bill is likely to improve cybersecurity across the broader market.”

Elad Luz, Head of Research at Oasis Security: “A VDP serves as an essential framework for fostering communication and building trust between security researchers and vendors… By providing a safe and structured process, VDPs contribute to a more secure digital ecosystem.”

Several major technology companies, including Microsoft, Tenable, Trend Micro, and Schneider Electric, have also formally endorsed the legislation.

 Impact on Houston Businesses

For Houston businesses that contract with the federal government, this legislation could introduce new compliance requirements around vulnerability disclosure. Companies would need to establish formal processes for receiving, evaluating, and addressing security vulnerability reports from researchers and ethical hackers.

 CinchOps Commitment

CinchOps continuously monitors state and federal legislation that may impact Houston businesses. Our team tracks cybersecurity policy developments to help our clients stay ahead of compliance requirements and security best practices. We will provide updates as this bill progresses through the Senate and potentially becomes law.

For more information on how to prepare your organization for these potential requirements, contact our cybersecurity compliance team.

Discover more about our enterprise-grade and business protecting cybersecurity services on our Cybersecurity page.

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