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A new amendment to the fiscal 2022 National Defense Authorization Act would require the Department of Defense to give Congress an estimate of how much new cybersecurity regulations are expected to cost small businesses. The amendment was proposed by Representative Dean Phillips (D-MN), chair of the House Small Business Committee’s Oversight, Investigations, and Regulations Subcommittee, who warned that “the CMMC initiative has the potential of driving many small businesses out of the defense industrial base.” The CMMC will require each contractor to pay for a third-party assessment of their cybersecurity, which would likely be easier for larger businesses to absorb.

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