Costs of Federal Security Classification Increases

The total security classification cost estimate within the Federal government for Fiscal Year (FY) 2009 is $8.81 billion. This figure represents estimates provided by 41 executive branch agencies, including the Department of Defense (DoD). The total security classification costs for Executive branch agencies increased $176.65 million in FY 2009, an increase of 2 percent from FY 2008.

These findings were released in the Report on Cost Estimates for Security Classification Activities for Fiscal Year 2009 issued by the Information Security Oversight Office (ISOO) of the National Archives and Records Administration (NARA).

It does not include the cost estimates of the Central Intelligence Agency, the Defense Intelligence Agency, the Office of the Director of National Intelligence, the National Geospatial-Intelligence Agency, the National Reconnaissance Office, and the National Security Agency. The cost estimates of these agencies are classified in accordance with Intelligence Community classification guidance.

For FY 2009, agencies reported $1.21 billion in estimated costs associated with Personnel Security, an increase of $116.75 million, or 11 percent. This was mainly due to an increased number of background investigations for new personnel, as well as periodic reinvestigations for current employees.

Estimated costs associated with Physical Security were $1.28 billion, a decrease of $8.23 million, or 1 percent decrease, from FY 2008. Most decreases in costs were due to completion of projects begun in FY 2008.

Estimated costs associated with Information Security were $4.77 billion. Information Security continues to be the main driver of all the costs, representing 54 percent of the total security classification costs for FY 2009.

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FY 2009 estimated costs for Professional Education, Training, and Awareness were $226.11 million, a $17.32 million, or 7 percent decrease in costs from FY 2008.

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