[Senate Hearing 117-517]
[From the U.S. Government Publishing Office]


                                                     S. Hrg. 117-517

                   NOMINATIONS OF WILLIAM J. VALDEZ,
                         DIMITRI KUSNEZOV, AND
                       HON. KENNETH L. WAINSTEIN

=======================================================================

                                HEARING

                               BEFORE THE
                               
                              COMMITTEE ON
               HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
                          UNITED STATES SENATE

                    ONE HUNDRED SEVENTEENTH CONGRESS


                             SECOND SESSION

                               __________

              NOMINATION OF WILLIAM J. VALDEZ TO BE UNDER
              SECRETARY FOR MANAGEMENT, U.S. DEPARTMENT OF
            HOMELAND SECURITY, DIMITRI KUSNEZOV TO BE UNDER
               SECRETARY FOR SCIENCE AND TECHNOLOGY, U.S.
                DEPARTMENT OF HOMELAND SECURITY, AND THE
               HONORABLE KENNETH L. WAINSTEIN TO BE UNDER
                 SECRETARY FOR INTELLIGENCE & ANALYSIS,
                  U.S. DEPARTMENT OF HOMELAND SECURITY

                               __________

                            FEBRUARY 3, 2022

        Available via the World Wide Web: http://www.govinfo.gov

                       Printed for the use of the
        Committee on Homeland Security and Governmental Affairs
        
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                   U.S. GOVERNMENT PUBLISHING OFFICE                    
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        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                   GARY C. PETERS, Michigan, Chairman
THOMAS R. CARPER, Delaware           ROB PORTMAN, Ohio
MAGGIE HASSAN, New Hampshire         RON JOHNSON, Wisconsin
KYRSTEN SINEMA, Arizona              RAND PAUL, Kentucky
JACKY ROSEN, Nevada                  JAMES LANKFORD, Oklahoma
ALEX PADILLA, California             MITT ROMNEY, Utah
JON OSSOFF, Georgia                  RICK SCOTT, Florida
                                     JOSH HAWLEY, Missouri

                   David M. Weinberg, Staff Director
                    Zachary I. Schram, Chief Counsel
         Christopher J. Mulkins, Director of Homeland Security
                      Claudine J. Brenner, Counsel
                Pamela Thiessen, Minority Staff Director
    Andrew Dockham, Minority Chief Counsel and Deputy Staff Director
       Kirsten D. Madison, Minority Director of Homeland Security
                  Andrew J. Hopkins, Minority Counsel
     Clyde E. Hicks, Jr., Minority Senior Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     Thomas J. Spino, Hearing Clerk

                            C O N T E N T S

                                 ------                                
Opening statements:
                                                                   Page
    Senator Peters...............................................     1
    Senator Portman..............................................     3
    Senator Hassan...............................................    10
    Senator Rosen................................................    18
Prepared statements:
    Senator Peters...............................................    25
    Senator Portman..............................................    27

                               WITNESSES
                       Thursday, February 3, 2022

William J. Valdez to be Under Secretary for Management, U.S 
  Department of Homeland Security
    Testimony....................................................     4
    Prepared statement...........................................    29
    Biographical and professional information....................    31
    Letter from U.S. Office of Government Ethics.................    50
    Responses to pre-hearing questions...........................    56
    Responses to post-hearing questions..........................    81
Dimitri Kusnezov to be Under Secretary for Science and 
  Technology, U.S Department of Homeland Security
    Testimony....................................................     6
    Prepared statement...........................................    96
    Biographical and professional information....................    98
    Letter from U.S. Office of Government Ethics.................   128
    Responses to pre-hearing questions...........................   132
    Responses to post-hearing questions..........................   157
Hon. Kenneth L. Wainstein to be Under Secretary for Intelligence 
  & Analysis, U.S Department of Homeland Security
    Testimony....................................................     7
    Prepared statement...........................................   168
    Biographical and professional information....................   170
    Responses to pre-hearing questions...........................   189
    Responses to post-hearing questions..........................   224

 
                   NOMINATIONS OF WILLIAM J. VALDEZ,
                         DIMITRI KUSNEZOV, AND
                       HON. KENNETH L. WAINSTEIN

                              ----------                              


                       THURSDAY, FEBRUARY 3, 2022

                                     U.S. Senate,  
                           Committee on Homeland Security  
                                  and Governmental Affairs,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:15 a.m., via 
Webex and in room 342, Dirksen Senate Office Building, Hon. 
Gary C. Peters, Chairman of the Committee, presiding.
    Present: Senators Peters, Carper, Hassan, Sinema, Rosen, 
Portman, Johnson, Lankford, Scott, and Hawley.

            OPENING STATEMENT OF CHAIRMAN PETERS\1\

    Chairman Peters. The Committee will come to order. Before I 
proceed with my opening remarks, I want Members and staff to 
know that we will be going until 11 a.m. and then we will 
recess during a classified hearing related to what is happening 
on a foreign relations issue. We will have that hearing, and 
then we will reconvene immediately after that. We will have a 
more precise time in the future, but we will go forward with 45 
minutes now and then come back after the classified hearing.
---------------------------------------------------------------------------
    \1\ The prepared statement of Senator Peters appear in the Appendix 
on page 25.
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    Today, we are considering three nominations to help lead 
the Department of Homeland Security (DHS): William Valdez to be 
the Under Secretary for Management, Kenneth Wainstein to be the 
Under Secretary for Intelligence and Analysis (I&A), and 
Dimitri Kusnezov to be the Under Secretary for Science and 
Technology (S&T).
    Welcome to each of you and congratulations on your 
nominations and certainly appreciate your willingness to take 
on these incredibly important new roles.
    The Department of Homeland Security is our nation's third 
largest agency, faced with the challenging task of coordinating 
efforts across the government to facilitate safe international 
travel and trade, manage disaster and pandemic response 
efforts, and safeguard our nation against a range of threats. 
However, in the 20 years since the Department was created in 
the wake of the horrific September 11, 2001 (9/11) terrorist 
attacks, new and very sophisticated threats to American 
communities have emerged. DHS needs qualified and steady 
leadership to help tackle these challenges, including 
persistent cyberattacks that threaten our national and economic 
security, vile acts of domestic terrorism that terrorize 
communities across our country, and continued threats of 
violence against public officials from local school boards to 
election workers.
    DHS's response to these threats is compounded by the 
ongoing Coronavirus Disease 2019 (COVID-19) pandemic, 
increasingly extreme weather events that damage homes and small 
businesses and endanger lives. To successfully combat these 
threats, DHS must have dedicated, experienced leadership that 
will continue to support 240,000 employees who work each and 
every day to fulfill this mission to keep all Americans safe. I 
look forward to more closely examining the qualifications and 
experience of the three nominees here before us today.
    Mr. Valdez, if confirmed, you will work to ensure that the 
dedicated workforce at DHS has the tools and the resources to 
defend American communities. Ensuring this multifaceted 
department is nimble enough to tackle today's threats will 
require a multifaceted and comprehensive management approach.
    Mr. Wainstein, there is no question that the Office of 
Intelligence and Analysis continues to face enormous 
challenges, including low employee morale, and it is absolutely 
essential that the Department's intelligence and analysis 
workforce has the strong and steady leadership it needs to 
serve the American people and not political interest. I&A must 
also improve its ability to address emerging threats, such as 
domestic terrorism, while respecting civil rights and 
liberties.
    Mr. Kusnezov, the DHS Office of Science and Technology must 
remain vigilant and responsive in conducting groundbreaking 
research to help our nation identify vulnerabilities in our 
homeland security so that we can close existing gaps and 
increase our capacity to address current and emerging threats.
    Thank you again, to each of you, for joining us here today, 
and I look forward to hearing more about how you intend to 
carry out the vital roles that you have been nominated for and 
how you work transparently with this Committee.
    The Ranking Member, I am sure, will be here shortly. He 
will be recognized for his opening comments when he arrives.
    It is the practice of Homeland Security and Governmental 
Affairs Committee (HSGAC) to swear in witnesses, so if you will 
each stand and raise your right hand, please. Do you swear the 
testimony you will give before this Committee will be the 
truth, the whole truth, and nothing but the truth, so help you, 
God?
    Mr. Valdez. I do.
    Mr. Kusnezov. I do.
    Mr. Wainstein. I do.
    Chairman Peters. You may be seated.
    Our first nominee is William Valdez, nominated to be Under 
Secretary for Management in DHS. But before I introduce Mr. 
Valdez and have you give your opening remarks, I would like to 
recognize Ranking Member Portman for his opening remarks.

            OPENING STATEMENT OF SENATOR PORTMAN\1\

    Senator Portman. Thank you, Mr. Chairman. I appreciate it. 
The prayer breakfast went a little long this morning, and I 
apologize for being a few minutes late.
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    \1\ The prepared statement of Senator Portman appears in the 
Appendix on page 27.
---------------------------------------------------------------------------
    But, welcome to our nominees--Mr. Valdez, Mr. Kusnezov, Mr. 
Wainstein--and thank you for your willingness to serve. Each of 
you have a significant background in public service already. 
You have been nominated for really important jobs at the 
Department of Homeland Security, and much of what you will do 
will provide other offices at the Department, should you be 
confirmed, with the tools they need to be successful in the 
critical mission that you have.
    Mr. Valdez, you are going to oversee human capital, the 
Chief Financial Officer (CFO), the Chief Procurement Officer 
(CPO), Chief Information Officer (CIO), Security, Readiness, 
Biometric Identity. Much of that, if not handled properly of 
course, would affect and undermine the mission of the 
Department.
    We have a lot of management challenges right now related to 
acquisition for border security assets and capabilities. We are 
concerned about the financial system modernization efforts. We 
have not seen an organizational structure that has been 
improved much since the creation of the Department, which I was 
strongly supportive of back in the day, but I think it needs to 
be updated. Based on your 20 years of experience working on 
management issues at the Department of Energy (DOE) and the 
private sector, we look forward to hearing what your plans are 
with regard to DHS.
    Mr. Kusnezov, you have been nominated for Under Secretary 
for Science and Technology. Nice to see a doctor, Kusnezov, a 
strong background in physics and artificial intelligence (AI), 
other issues. We are interested, obviously, in strengthening 
our position against emerging technology threats, like 
deepfakes, like artificial intelligence being misused. We have 
done some work on that here in this Committee, as you know, but 
we think the edge the S&T Directorate gives the Department is 
very important, and we want to talk about prioritizing the 
right investments.
    I know you talked about this in your interview, but we want 
to make sure that the research does not fall in the wrong 
hands, the research that you are funding, and we will talk more 
about that.
    Mr. Wainstein, the Office of Intelligence and Analysis is 
obviously very important right now. The threat landscape has 
evolved a lot since you last served. This recent terrorist 
attack in the synagogue in Texas is an example of that. Foreign 
and domestic, we face so many challenges, and we are also 
dealing with emerging cybersecurity and critical infrastructure 
threats as you know. And particularly what is going on in 
Ukraine today, a lot of us are concerned about that and the 
potential for that escalating and, of course, assorted threats 
in places like China. We look forward to hearing from you about 
those issues.
    I will say I was concerned to hear some of your previous 
work for the Chinese National Offshore Oil Corporation (CNOOC). 
I know you are prepared to talk about that today or you should 
be. I look forward to asking a question about that.
    Again, if you are confirmed, you have a difficult job ahead 
of you. The critical and timely information we need even here 
on the Hill we saw was lacking with regard to the January 6th 
attack. I&A has also faced challenges in recruiting qualified 
talent, as you know, and has had high rates of attrition, 
consistently ranked among the lowest for morale. We want to 
talk to you about that as well.
    I, again, appreciate all three of you, your willingness to 
step up and serve in really important roles at this point, and 
we look forward to your testimony today.
    Thank you, Mr. Chairman.
    Chairman Peters. Thank you, Senator Portman.
    Again, our first nominee is William Valdez, who is 
nominated to be Under Secretary for Management at DHS. Mr. 
Valdez has over 20 years of experience at the Department of 
Energy, where he served in numerous capacities as a career 
senior executive and oversaw a broad range of specialties, 
including business services, planning and analysis, economic 
impact and diversity, and workforce development. In addition to 
his service at DOE, Mr. Valdez brings a wealth of private 
sector experience, including founding his own consulting firm.
    Mr. Valdez, welcome to the Committee. You may proceed with 
your opening remarks.

   TESTIMONY OF WILLIAM J. VALDEZ,\1\ NOMINATED TO BE UNDER 
 SECRETARY FOR MANAGEMENT, U.S. DEPARTMENT OF HOMELAND SECURITY

    Mr. Valdez. Thank you, sir. Chairman Peters, Ranking Member 
Portman, and distinguished Members of the Committee, I am 
honored to appear before you today. I want to express my deep 
appreciation to President Biden and Secretary Mayorkas for 
their confidence in me. It would be the capstone and highest 
honor of my professional career if I am confirmed to return to 
public service as the Under Secretary for Management at the 
Department of Homeland Security.
---------------------------------------------------------------------------
    \1\ The prepared statement of Mr. Valdez appears in the Appendix on 
page 29.
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    I would like to acknowledge the contributions that my 
family, friends, and my many former colleagues in the Federal 
Government and the private sector have made to my career, 
including my mentors inside and outside of the government.
    With me here today is my lovely bride of 45 years, Marlana 
Valdez. We met on our first day of school at the University of 
Texas, and she has been instrumental in whatever success I have 
enjoyed, personally and professionally. Our three extraordinary 
daughters, Jayme, Sydney, and Maryn, are accomplished 
professionals in their own right. I am thankful that my 
daughter, Sydney, and son-in-law, Drew, can join me here as 
well today at this hearing. Jayme and Maryn are watching 
today's hearing along with my four grandchildren: River, Beck, 
JD, and Layla. They are very proud of their Papi and are 
cheering me on.
    I mentioned my mentors, and foremost among them were my 
late father and mother, Pete and Donna Valdez, who instilled a 
public service ethic in me, and my late father-in-law, James 
Ramey, who believed in me when few else did and encouraged me 
to pursue a career in public service, and a host of other 
Federal and private sector leaders too numerous to name and who 
I emulated and learned from during my career. I thank them all.
    For too long the Federal Government has been bogged down by 
inefficient business systems and processes that were out of 
date in the 20th century, much less the 21st century. I believe 
the DHS Management Directorate (DHS MGMT) is well positioned to 
be an exemplar for other government agencies and could be at 
the forefront of changes in the way the Federal Government 
operates. For example, financial systems are being improved, 
Government Accountability Office (GAO) recommendations are 
being implemented, and employee engagement and morale scores 
are rising across the Department.
    As part of my confirmation process, I have had the 
privilege to meet with senior officials within the Management 
Directorate and I can attest to their dedication, knowledge, 
and professionalism. I was deeply impressed with their passion 
for the DHS mission and their commitment to ensuring that our 
homeland is secure. I also know, and hold in high esteem, many 
of the senior career leaders at DHS from my past public 
service, and I very much look forward to working with them 
again if I am confirmed.
    My experience is that today's Civil Service is highly 
expert and is ready and eager to meet the challenges of the 
21st century. They can do this if they are afforded the 
opportunity to be creative and innovative. Accomplishing this 
will require a team effort, though--Congress, other parts of 
the administration, including the Office of Management and 
Budget (OMB), and good government groups like the National 
Academy of Public Administration (NAPA) and the Partnership for 
Public Service (PPS).
    Throughout my career, I have built a reputation as someone 
who engages with stakeholders to find solutions to tough 
problems. I am eager to undertake this challenge at DHS. My 
goal, if I have the privilege to be confirmed as the Under 
Secretary for Management, is to work with the Department and 
component leadership, Congress, and other key stakeholders, to 
make the Management Directorate a world-class operation that is 
at the forefront of new ways of doing business. I believe that 
the knowledge and experiences that I have acquired throughout 
my career have prepared me for this opportunity.
    The DHS Management Directorate is one of the most complex 
organizations of its kind in the Federal Government and has a 
large scope of authorities and responsibilities. Its work 
impacts every aspect of DHS operations. If I am confirmed, it 
will be my solemn obligation to do everything in my power to 
make the Management Directorate as successful and effective as 
possible to enable the Department and its operational 
components to undertake their vital missions.
    Thank you for considering my nomination, and I look forward 
to answering your questions.
    Chairman Peters. Thank you, Mr. Valdez.
    Our next nominee is Dimitri Kusnezov, nominated to be the 
Under Secretary for Science and Technology at DHS. Mr. Kusnezov 
currently serves as the Deputy Under Secretary for AI and 
Technology at the Department of Energy. In his role, he leads 
efforts on emerging technologies and AI innovations in the 
Department, including through the creation of a new AI Office.
    Prior to his leadership at DOE, Mr. Kusnezov served as 
Senior Advisor to the U.S. Secretary of Energy, Chief Scientist 
at the National Nuclear Security Administration (NNSA), where 
he led their high-performance computing program and was 
responsible for delivering the world's fastest supercomputers.
    Mr. Kusnezov, welcome to the Committee. You may proceed 
with your opening remarks.

TESTIMONY OF DIMITRI KUSNEZOV, PH.D.,\1\ NOMINATED TO BE UNDER 
   SECRETARY FOR SCIENCE AND TECHNOLOGY, U.S. DEPARTMENT OF 
                       HOMELAND SECURITY

    Mr. Kusnezov. Thank you very much. Chairman Peters, Ranking 
Member Portman, and distinguished Members of the Committee, 
thank you for the opportunity to appear before you today. I am 
deeply honored to be here as the President's nominee to serve 
as Under Secretary for Science and Technology for the 
Department of Homeland Security. I am grateful to the President 
and to Secretary Mayorkas for the trust they have placed in me 
and to you for your consideration of my nomination.
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    \1\ The prepared statement of Mr. Kusnezov appears in the Appendix 
on page 96.
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    DHS is responsible for some of the most significant and 
diverse challenges our nation faces. The opportunity to join in 
the service of our homeland and to contribute is very humbling. 
None of this would be possible without the patience, 
encouragement, support, and understanding of my family. My 
wife, Jacqueline, a daughter of Ohio, who is here today and 
sitting behind me, has been a partner in everything we have 
done from the start. My family that could not be here today 
includes: my son, Major Nick Kusnezov, an orthopedic surgeon 
serving at Ft. Campbell, Kentucky, and his wife Tasha and two 
daughters, Emily and Arabella; my daughter, Dr. Lara Marquez, 
an infectious disease epidemiologist, epidemic modeler, and 
cost effectiveness researcher at UC-San Diego; her husband, 
Jose, and their two sons, Cameron and Sutton. I am sure my 
mother is making every effort, Evelyne, to watch this online.
    Nothing I do would ever have been possible without them and 
many others who have helped along the way. I only hope that I 
can stand up to the expectations that they have for me.
    Science and technology have critical roles in safeguarding 
the homeland. As a scientist and senior leader, I understand 
that science and technology can be very distinct, non 
overlapping enterprises. One does not necessarily lead the 
other. Some technologies can even evade scientific 
understanding and still find great utility. Good science is its 
own critic, and it blossoms in fields that you tend. 
Technology, on the other hand, is evaluated on how effectively 
it can be used.
    Both science and technology are critical to DHS to identify 
scientific gaps that need attention and to find the means to 
draw the right technologies into practice. The near term and 
the long term must be balanced to ensure not only that the 
ecosystem is there when you need it but also that the 
operational components and first responders have what is needed 
not only for today's problems but also for tomorrow's.
    I have found that successful technologies require strong 
alignment with partners, especially the private sector, where 
risks can be shared in the early stages but more importantly 
for providing paths to sustainability and transitions to 
operational uses. I also believe that there is no silver bullet 
technology and the most important requirement is vigilance 
toward the ever changing landscape of risks, threats, and 
opportunities.
    We are in a time of remarkable technology change, of 
remarkable opportunity, of unimaginable innovation, of things 
we could not have dreamed of just a few years ago. At the same 
time, this makes the needs for securing the homeland even more 
pressing. I welcome these challenges and the opportunity to 
contribute to the best of my abilities.
    I have had the pleasure over the years of working with the 
DHS Science and Technology Directorate (DHS S&T), and I have 
seen firsthand the tremendous dedication, commitment, and skill 
set of its workforce and its contributions to the various 
mission sets of the Department. If confirmed, it would be a 
distinct honor to work with this team to help safeguard the 
American people, our homeland, and our values.
    Thank you for your consideration of my nomination. I look 
forward to answering your questions.
    Chairman Peters. Thank you, Mr. Kusnezov.
    Our final nominee is Kenneth Wainstein to be the Under 
Secretary for Intelligence and Analysis at DHS. Mr. Wainstein 
is a partner at Davis Polk & Wardwell, L.L.P., where he 
specializes in corporate internal investigations, and civil and 
criminal enforcement proceedings. In addition to his private 
sector work, Mr. Wainstein has decades of experience in several 
high-ranking roles in the Federal Government. His tenure 
includes serving for 19 years in the Department of Justice 
(DOJ), including as an Assistant U.S. Attorney in New York and 
in D.C., and serving as General Counsel (GC), then Chief of 
Staff to Robert Mueller at the Federal Bureau of Investigation.
    Welcome, Mr. Wainstein. You may proceed with your opening 
remarks.

 TESTIMONY OF THE HONORABLE KENNETH L. WAINSTEIN,\1\ NOMINATED 
   TO BE UNDER SECRETARY FOR INTELLIGENCE AND ANALYSIS, U.S. 
                DEPARTMENT OF HOMELAND SECURITY

    Mr. Wainstein. Thank you, sir. Chairman Peters, Ranking 
Member Portman, distinguished Members of the Committee, I am 
profoundly honored to appear before you today as the nominee 
for Under Secretary for Intelligence and Analysis at the 
Department of Homeland Security.
---------------------------------------------------------------------------
    \1\ The prepared statement of Mr. Wainstein appears in the Appendix 
on page 168.
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    I am joined here today by my wife, Elizabeth, and two of my 
daughters, Mackie and Cecily, as well as our dear friend, Kathy 
Keene. I also want to recognize my oldest daughter, Ellie, who 
is tuning in from law school out in California, as well as our 
youngest daughter, Natalie, who had a preexisting commitment at 
her sixth grade class this morning. It means a lot to me that 
they are here today with me and that they have been with me 
throughout my career.
    I am grateful to President Biden for giving me this 
opportunity to serve and the opportunity to work with this very 
strong national security team. I am also particularly grateful 
to him for looking beyond political optics and selecting 
someone who previously served in a Republican administration. 
In a small but important way, that is a reaffirmation of the 
nonpartisan approach to national security that has 
traditionally been, and must always remain, a bedrock principle 
of our government.
    That is the same nonpartisan approach I always took during 
my 21 years of government service. As the Chairman mentioned, I 
first served as a Federal prosecutor for about a dozen years, 
handling a range of homicide, gang conspiracy, and white collar 
criminal cases, and doing so without any consideration of 
politics and with a clear focus on protecting civil liberties 
and due process rights.
    I then pivoted after 9/11, after the 9/11 attacks to focus 
primarily on national security matters, helping the Federal 
Bureau of Investigations (FBI) reorient itself toward its 
intelligence mission after 9/11, establishing the new National 
Security Division at the Justice Department, running the 
Homeland Security Council as President Bush's Homeland Security 
Advisor, and once again, taking the same nonpartisan approach I 
had learned as a prosecutor and making every decision with full 
regard for its effect on civil liberties.
    During this government service, I worked closely with DHS 
and admired how the Department established itself under the 
exceptional leadership of Governor Tom Ridge and his successors 
and how it responded to a constant stream of natural and 
homeland security threats. I am clear-eyed, however, that those 
threats have multiplied in the years since, as both the 
Chairman and Ranking Member mentioned in their remarks, and 
that the DHS of today faces an increasingly complex threat 
environment from nation-state adversaries like China, Russia, 
and others who target our elections and steal our sensitive 
technology, and from cybercriminals and transnational 
organizations that victimize our communities.
    I&A is critical to the Department's ability to meet those 
threats. To use Secretary Mayorkas's words, DHS is 
fundamentally ``a department of partnerships.'' It is I&A's 
mission and job to make those partnerships effective by 
ensuring that relevant intelligence is fully circulated 
throughout the homeland security enterprise.
    I&A performs a range of functions to accomplish that 
mission. It manages the information and intelligence sharing 
with our State, local, tribal, territorial (SLTT), and private 
sector partners. It serves the intelligence needs of the DHS 
components and leadership. It leverages the information 
holdings of the DHS component agencies so as to identify and 
address threats to our national security. It coordinates all 
information sharing within the Department. If I am confirmed, I 
will work hard, very hard, to enhance I&A's ability to perform 
those tasks and accomplish its mission.
    First, I am going to focus on the workforce, as you both 
alluded to this morning. As I have seen, it is a very strong 
and impressive group of dedicated intelligence professionals. 
As a manager, I have always believed that my first duty is to 
support my personnel, and as a leader of an intelligence agency 
I will be particularly vigorous in defending their ability to 
deliver objective, unvarnished analysis that is completely free 
from political influence.
    I will also carefully review I&A's operational role in the 
homeland intelligence enterprise to identify and eliminate any 
unnecessary duplication and to focus I&A's role in those areas 
where it adds particular value.
    I will maintain a constant focus on the implications of 
I&A's activities on privacy and civil liberties and the need to 
strong safeguards, oversight, and transparency in our 
operations. As we all know, we can only be successful at 
safeguarding our people, our homeland, and our values if we 
maintain the trust of our fellow citizens.
    Importantly, I will work very closely and in close 
collaboration with Congress and with this Committee in 
particular. Throughout my public and my private sector career, 
I have always enjoyed a strong and very constructive 
relationship with the staff and members of this and the other 
oversight committees. If confirmed, you can count on my being a 
very willing and collaborative partner in our joint effort to 
make I&A as effective and impactful as it can be.
    Thank you again for the opportunity to appear before you 
today and for the honor of considering me for this position. I 
would be happy to answer any questions you might have. Thank 
you.
    Chairman Peters. Thank you.
    There are three questions the Committee asks of every 
nominee. I am going to ask each of you to respond briefly with 
just a ``yes'' or ``no.'' We will start with Mr. Valdez and 
work down the dais.
    First, is there anything you are aware of in your 
background that might present a conflict of interest with the 
duties of the office to which you have been nominated?
    Mr. Valdez. No, sir.
    Mr. Kusnezov. No.
    Mr. Wainstein. No, sir.
    Chairman Peters. Second, do you know of anything personal 
or otherwise that would in any way prevent you from fully and 
honorably discharging the responsibilities of the office to 
which you have been nominated?
    Mr. Valdez. No, sir.
    Mr. Kusnezov. No.
    Mr. Wainstein. No, sir.
    Chairman Peters. Last, do you agree without reservation to 
comply with any request or summons to appear and testify before 
any duly constituted committee of Congress, if you are 
confirmed?
    Mr. Valdez. Yes, sir.
    Mr. Kusnezov. Yes.
    Mr. Wainstein. Yes, sir.
    Chairman Peters. Very good. I will normally start off with 
questions. I am going to defer to Senator Hassan who I know has 
some immediate business to attend to.
    Senator Hassan, you will be recognized with my spot.

              OPENING STATEMENT OF SENATOR HASSAN

    Senator Hassan. Thank you very much, Mr. Chair, for that 
courtesy and to you and the Ranking Member for this hearing.
    To all of the nominees, thank you so much for your 
willingness to serve and our special thanks to your families, 
too. As all of you have acknowledged, nobody does this work 
alone and public service requires a whole family commitment. I 
am grateful to all of your families.
    I want to start with a question to you, Dr. Kusnezov. The 
Science and Technology Directorate plays an important role in 
researching, developing, and adapting new technologies that can 
help secure the U.S. border in coordination with the U.S. 
Customs and Border Protection (CBP) and other Department of 
Homeland Security components. This includes technologies to 
counter drones used for smuggling or attacks, or new detection 
systems that can screen people or vehicles before they actually 
reach the border. How will you ensure that the Science and 
Technology Directorate is prepared to support Customs and 
Border Protection and other border security agencies as they 
work to address new and growing threats?
    Mr. Kusnezov. Thank you, Senator. This is an important 
question because it talks about the balance needed in a complex 
portfolio, an eye toward the long-term investments to fill 
scientific gaps that you cannot easily get if you do not 
prepare for them, but at the same time understanding the 
emerging technology landscape, as you mentioned, drone 
technologies as well as new detection systems. Edge devices and 
sensors enabled by AI are really developing quickly. Managing 
not only the skill set you need but the balance of this 
portfolio is not a simple thing----
    Senator Hassan. Right.
    Mr. Kusnezov [continuing]. Because one can be drawn into 
tactical needs and focus too much there and sacrifice some of 
the long term needs which, in the end, do not serve the 
institution.
    Over my tenure at the Department of Energy, I have worked 
these types of issues, maintaining the long term view.
    Senator Hassan. Right.
    Mr. Kusnezov. Which takes some vigilance, I have to say, 
but while maintaining an ability to deliver tactically 
technologies that can be put into operational use. It takes, 
simply, a lot of attention to this entire landscape, but it is 
one of the important aspects of S&T that I recognize.
    Senator Hassan. Thank you for that recognition because I 
think it is really important to be able to balance the 
immediate tactical needs, making sure that our personnel are 
getting the technology they use, especially at the border, but 
also making sure that you have the resources you need to build 
toward long-term capabilities as well and modern ones.
    Mr. Wainstein, I want to expand on a topic that you touched 
on in your introductory comments. International terrorists and 
homegrown violent extremists (HVE) continue to pose a great 
threat to our homeland security. This includes the threat of 
terrorist organizations like al-Qaeda trying to reestablish 
operations from Afghanistan's Kunar Province or elsewhere. If 
confirmed, how will you ensure that the Office of Intelligence 
and Analysis has sufficient personnel and resources to assess 
and address all of the various terrorist threats to the 
homeland, including threats from international terrorist 
organizations?
    You touched on the importance of the workforce in your 
comments, and I could not agree more. But we have just an awful 
lot of different threats to keep track of. How do you envision 
making sure that you have a robust personnel to do that?
    Mr. Wainstein. Thank you, Senator. That is an excellent 
question and one that I am going to be spending a lot of time 
looking at and that question being the allocation of resources, 
focus, and attention on the different threats. There are so 
many threats as we all mentioned in our remarks. They have 
multiplied, and they have become more diverse. There are 
different mechanisms now with cyber now that we are in the 
digital age. It is not just the old-time kinetic threat.
    But to your point, we have to stand back and keep an eye on 
all those threats. In the first instance, obviously, we will 
follow what the DNI says about their prioritization of threats. 
Specifically, however, as to international terrorists, ISIS, 
al-Qaeda, they have not gone away.
    Senator Hassan. Yes.
    Mr. Wainstein. We kicked them out of Afghanistan in 2001, 
and they just regenerated. They started franchising around the 
world--ISIS, al-Qaeda in Iraq, et cetera. We have seen that 
they are--we cannot stamp them out. We have to remain vigilant.
    Now we have to be extra vigilant given that the Taliban are 
back in power in Afghanistan. We have to be very careful, use 
the over-the-horizon power that we have to prevent Afghanistan 
from once again becoming a safe haven for terrorists.
    I can assure you that within I&A we will be intently 
focused on that threat as well as domestic terrorism and the 
other threats that we are seeing today.
    Senator Hassan. Making sure you have a balance of expertise 
within the personnel to really be able to pursue all of those 
things.
    Mr. Wainstein. Absolutely.
    Senator Hassan. Let me ask you another question because I 
am also concerned about online radicalization, as I know you 
are, which can increase the speed and severity of violent acts 
before law enforcement can identify them and mobilize to 
address them. If you are confirmed, how will the Office of 
Intelligence and Analysis prioritize combating online 
radicalization?
    Mr. Wainstein. That is a tough nut to crack. It has been 
since 9/11. And you know, we saw people, just lone wolves, 
getting radicalized here in our communities in a basement 
without even talking to anybody, any like-minded terrorist, 
because they have access to the radicalizing material online.
    I&A, I know, now is focused on that. Have to do so very 
carefully because, obviously, looking at open-source 
information online raises serious constitutional concerns.
    Senator Hassan. Right.
    Mr. Wainstein. But I know they are doing that in terms of 
all types of radicalization, internationally radicalized 
terrorism or domestically radicalized terrorism. I expect when 
I get in I am going to take a look at how resources are 
deployed within I&A to do that and make sure they match the 
priorities.
    Senator Hassan. I look forward to working with you on that.
    A final question to Mr. Valdez. The Federal Government's 
reliance on outdated and obsolete technology not only harms our 
ability to deliver services and prevent cyberattacks, but it 
also leads to wasteful spending. If confirmed, what steps would 
you take to modernize information technology (IT) across the 
Department? How would you encourage and work with component 
agencies that continue to rely on aging and expensive IT 
systems that both fail to meet modern mission needs and are 
costly to maintain?
    Mr. Valdez. You are absolutely correct, Senator, that that 
is a problem and it is throughout government. During my career 
at the Department of Energy, I did work on IT modernization. I 
know the challenges that exist to do that and complexities of 
it. Similarly, in the private sector, in my consulting work, I 
consulted with major providers of IT solutions and Federal 
agencies to take on this challenge.
    I am aware of the work that is being done currently at DHS 
to replace legacy system and then also to modernize the systems 
that help integrate the work at the Department, and if 
confirmed, I would be very much involved in that effort.
    Senator Hassan. Thank you very much, and I look forward to 
working with you on that.
    Again, thank you, Mr. Chair, for the courtesy and thank you 
to all the nominees.
    Chairman Peters. Thank you, Senator Hassan.
    Before I recognize Ranking Member Portman for his 
questions, I just want to reiterate, due to a classified all 
Senator briefing, we will take a recess after Senator Portman 
has an opportunity to ask questions. We expect to reconvene at 
12:30. The briefing is expected to last an hour and a half, so 
at 12:30 we will reconvene.
    With that, Senator Portman, you are recognized for your 
questions.
    Senator Portman. Thank you, Mr. Chairman. I appreciate it.
    I appreciate the testimony from all three of you. You 
understand the seriousness and the challenges that you would 
face should you be confirmed.
    Mr. Wainstein, we know from a U.S. Trade Representative 
(USTR) report that a Chinese state-owned company called the 
National Offshore Oil Corporation submitted formal requests to 
Chinese intelligence services seeking information on several 
American oil and gas companies. In your questionnaire, you 
stated that as a lawyer in private practice you did work for 
this company, the Chinese National Offshore Oil Corporation, 
apparently in relationship to this issue. Can you tell us what 
was the nature of your work for this organization?
    Mr. Wainstein. Thank you, Ranking Member Portman. I got a 
number of questions about this in my U.S. Senate Select 
Committee on Intelligence (SSCI) hearing as well, and I think 
it is a very fair and appropriate area of inquiry. In early 
2018, a colleague of mine who does trade work called and asked 
for an associate in the White Collar Group--I am a partner in 
that Group--to write up a memo about whether any criminal laws 
might have been implicated by the conduct that you just talked 
about that was in that U.S. Trade Representative report. I 
asked an associate to do it. He wrote up a memo. I reviewed it, 
and I sent it on to my colleague who was doing the trade work 
and wanted to take the administrative implications and include 
them with the criminal implications in a memo.
    It was 2.8 hours of work. I never talked to the client, 
never advocated on behalf of the client, did not make any 
calls. It was literally just processing the memo.
    Nonetheless, I take your point. The concern about the 
Chinese Community Party and sort of its approach to economic 
competition. Economic, geopolitical, military competition with 
the United States. They are seeking supremacy over the United 
States in every way, and they are using whatever means are 
available, many of those means being completely inappropriate. 
I understand that State-owned enterprises are often being used 
as vehicles for those means and that people like myself need to 
take a hard look at those entities before doing any work for 
them.
    Just as I explained to Senator Rubio about this issue, I 
actually had harbored serious concerns about the Chinese 
Communist Party. Back when I was Assistant Attorney General 
(AAG) of the National Security Division, I started the export 
control initiative that was focused largely on China and was 
banging the drum about how China was eating our lunch in terms 
of stealing our technology, and that is an area that I have 
been quite vocal about both in government and outside of 
government.
    I can commit to you that if I go to I&A, I am going to keep 
an intense focus on that because, if anything, the approach by 
the Chinese Communist Party in competition with us has become 
more sharp-edged, not less sharp-edged over the years and the 
danger is even greater than before. I understand the concern 
about that matter that I worked on, and I will keep that 
concern close in mind as I conduct my duties in I&A.
    Senator Portman. I appreciate that answer. I would say at 
the time that you oversaw the work by the associate and billed 
some time to it yourself, as you indicate, I assume you were 
aware of the fact that years previous--it sounds like six years 
previously based on the USTR report--that this company had used 
Chinese intelligence services to investigate American 
companies. Is that correct?
    Mr. Wainstein. That is what the allegation in the report 
was, and I know that then a few years later the U.S. and 
Chinese governments reached an agreement saying that they 
explicitly would not do that in 2015. My understanding is that 
that agreement has now been breached. But back in 2012, 
according to the report--and I have no reason to doubt the 
allegations--that was in fact the case.
    Senator Portman. During your time at DOJ in the National 
Security Division, you indicate you did observe an uptick in 
Chinese nationals trying to steal American technology. Is that 
true?
    Mr. Wainstein. Absolutely. Not only Chinese nationals. It 
was more just orchestrated activity orchestrated by the Chinese 
Communist Party, focusing on industry by industry, trying to 
hoover up as much technology and sensitive data as possible so 
that they could then sort of accelerate their development of 
technology over there. It was quite brash, and that was the 
area that was becoming very evident we needed to do----
    Senator Portman. That is a good segue to my next question 
for one of your colleagues on the panel, but let me ask you 
quickly for a quick answer to this. What do you think the role 
of I&A is in all this, in addressing this economic threat from 
China?
    Mr. Wainstein. I know they are doing it now. I got briefed 
on it. They actually have an operation focusing on exactly 
that. I expect to maintain that, if not accelerate it.
    Senator Portman. OK. Dr. Kusnezov, along these same lines, 
there is recent data indicating that the Science and Technology 
Directorate is going to provide around $15 million in grants to 
colleges and universities each year. Should you be confirmed--
bipartisan work that we did here in this Committee, an 
investigation, a report--I was the Chair, Senator Carper was 
the Co-Chair--made it very clear that the Chinese intelligence 
program was doing exactly what we just heard with regard to 
taking U.S. Government-sponsored research back to China, using 
it for the rise of their own military and their own economic 
growth.
    We proposed the Safeguarding American Innovation Act 
(SAIA). It came out of this Committee. It is an opportunity to 
get our Federal house in order, to be able to secure some of 
this grant funding, again some of which will come from DHS, 
$150 billion total, by the way.
    What are your thoughts on this? Do you agree that it is 
important to secure DHS science and technology (S&T) grants 
against Chinese espionage?
    Mr. Kusnezov. Thank you for that question. That is an 
important and pressing question, Senator. The challenges we 
face in dealing with science is that it thrives by being 
global, being international. That is how innovation is done. At 
the same time, we recognized that there are countries like 
China that are using some of our facilities, for example, to 
conduct work that fills knowledge gaps, that help advance their 
goals. There are issues about data, about Internet Protocol 
(IP) theft, and about the general technology side that we worry 
about.
    I have been at the Department of Energy working some of 
these issues. I have to say the way we have approached it has 
been a fusion of activities that started with our intelligence 
and counterintelligence functions. It is our researchers. It is 
the fact that we have intelligence elements at our 
laboratories. We come together, and we review the work. The 
Energy Department, has the advantage of having all of this 
under one roof, and it is also a rich funder of science and 
technology. So we can take a broad view. We have enough data to 
understand the nature of threats as we see them.
    I believe at DHS, if confirmed, this would be an important 
problem as well to look into. I would be very happy to work 
with my colleagues here, if confirmed as well, with I&A, to 
help understand this.
    But I believe interagency is also important. There are 
pieces of research that are being funded by other parts of the 
government, and you could not do it alone in a single 
department without richer conversations across funding agencies 
of science and technology. I would take a broader approach to 
this, if confirmed. I do think it is important, but it will 
take some teamwork.
    Senator Portman. Have you looked at the Safeguarding 
American Innovation Act?
    Mr. Kusnezov. No, sir, I have not yet.
    Senator Portman. OK. We are going to have some follow up 
questions. I would love for you to take a look at that and get 
your view on it. We are trying to get it passed right now as 
part of this so-called United States Innovation and Competition 
Act of 2021 (USICA) legislation, competitiveness legislation, 
that has passed the Senate with the Safeguarding American 
Innovation Act in it and trying to ensure it is in the final 
product.
    Let me ask you a question. Have you ever worked directly 
with Chinese entities yourself? Have you ever had a grant from 
the Chinese government or any other compensation?
    Mr. Kusnezov. No.
    Senator Portman. But you have been exposed to the issue, it 
sounds like, in your research over the years. So you understand 
the necessity for us to protect our research.
    Mr. Kusnezov. Yes, absolutely.
    Senator Portman. My time is expiring. Just quickly, Mr. 
Valdez, as you know, the Under Secretary for Management is 
responsible for all these major acquisitions. We are behind on 
a bunch of them. We are behind schedule on the biometric entry 
exit program for land travelers. I was just down at the Port of 
Entry (POE) in Nogales, Texas, seeing the strong need for that. 
They want it. The cross border tunnel threat surveillance 
program and the integrated surveillance towers (ISTs).
    This is all happening in what I believe is the worst border 
crisis--I think the numbers bear that out--in our nation's 
history when you add the narcotics issues with the illegal 
migration issues.
    If confirmed, what will you do to ensure these critical 
acquisition programs are delivered sooner to enable Customs and 
Border Protection and the Border Patrol to do their work?
    Mr. Valdez. That is an excellent question, Senator, and I 
have experience in this area, managing major acquisitions and 
overseeing that they do not fall out of scope and cost. I think 
the key is rigorous oversight of these kinds of projects.
    My understanding is that when you have projects that fall 
particularly out of scope it is usually caused by three things. 
Either the technical requirements have changed, there is 
mission creep, or conditions in the field have changed. There 
are ways to manage that. If confirmed, I would do a root cause 
analysis of the existing projects, see what the causes are for 
them falling behind on scope, and then work to remedy that.
    Senator Portman. I think conditions on the ground have 
gotten worse. That is for sure. So to the extent that is one of 
the considerations, I would hope you would want to expedite 
those kinds of projects should you be confirmed.
    I have a lot more questions. Thank you, Mr. Chairman, for 
your indulgence this morning.
    I will submit then those questions for the record. 
Appreciate your prompt response and full response and again 
thank all three of your for your willingness to step up and 
serve.
    Mr. Valdez. Thank you, Senator.
    Chairman Peters. Thank you, Ranking Member Portman.
    As I mentioned, we will now take a brief recess to attend 
an all-Senator classified briefing. We will reconvene this 
hearing at 12:30.
    [Recess.]
    The Committee will come back to order. It is good to see 
all of our nominees ready to go. Apologize for that recess, but 
it was an important briefing. We are in a vote series right 
now. So we are in one of those days where Members are coming 
and going and we are trying to conduct our business. Thank you 
for indulging us, but again, congratulations on your 
nominations. Good to have you here before us.
    My question for Mr. Valdez: The Department of Homeland 
Security has certainly struggled with low employee morale since 
its creation 20 years ago. A priority of, I think, every Member 
on this Committee is to ensure that the career workforce at DHS 
has the support that they need to keep the country safe each 
and every day.
    My question for you is a significant responsibility of the 
management director is human resources (HR) and personnel as 
you know. Can you highlight three ideas or concepts that you 
would like to institute to engage and empower the DHS 
workforce, if confirmed?
    Mr. Valdez. Thank you for the question, and I think you 
have touched upon one of the most critical issues at DHS and 
completely agree on that. I think the approach that I would 
take when dealing with morale issues at the Department is to 
first try to understand the root causes of the morale issues, 
and I think at DHS they have some unique challenges that they 
face to understand what the morale issues originate from.
    From my observations, from an outside observer, I think the 
root causes are probably the fact that so much of the workforce 
is forward-facing. They are in very high-stress jobs, such as 
Transportation Security Administration (TSA) and CBP. I would 
first seek to understand what the root causes are.
    Then the second thing I would do is ensure that there is 
management leadership attention to this. What I have learned 
over my career is that leadership commitment to solving this 
problem and being engaged in the problem is absolutely vital. 
If confirmed, I look forward to working with the Secretary and 
Deputy Secretary and other senior leadership to demonstrate 
that commitment in tangible ways.
    Then third, I think the most important aspect of low morale 
in general is a lack of engagement with the workforce in the 
actual business and the mission fulfillment of an agency. I 
would seek to find ways to engage the workforce more actively 
in the mission and also in the decisionmaking processes at the 
Department to make them feel that they are part of the mission.
    Chairman Peters. Very good. Mr. Wainstein, more than a 
dozen civil rights and immigrants' rights organizations sent a 
letter to the Committee raising questions about your role in 
what they call the Bush Administration's--and this is going to 
be a quote from their letter--``failed policies that singled 
out Americans and immigrants, particularly of Muslim, Arab, and 
South Asian backgrounds, as part of the government's post-9/11 
dragnet investigations.''
    I certainly appreciated our conversation that we had 
earlier this week about your involvement in the program, a 
program that targeted young men from Muslim majority countries 
for law enforcement interviews out in the community, which is 
of particular concern of that community, as well as other 
surveillance activities that they have experienced over the 
years.
    So my question to you is: Can you talk about your role in 
these programs and share for the Committee what you learned 
from the criticisms of these programs that you would bring to 
the I&A if you are indeed confirmed?
    Mr. Wainstein. Thank you, Chairman. I want to say I 
appreciate the meetings that I had with you and your staff 
about this issue. I also actually appreciate the letter. The 
letter did what this process should do, which is look back at 
episodes in a nominee's past and ask the tough questions about 
what role they played in those episodes and what their 
intentions were.
    I also appreciate that the two advocates that coordinated 
the letter, actually met with me, Hammad Alam and Chris Habiby. 
We had a lengthy meeting yesterday, and I very much appreciated 
them taking the time, and I appreciated their approach. The 
approach they took is not what people expect of D.C., the sort 
of confrontational, agenda-driven type kind of approach. 
Rather, it was the approach that I have received, throughout my 
career dealing with civil liberties groups who are questioning 
government operations, which is a very thoughtful discussion 
about the intersection of civil liberties and national security 
and their concerns about how things were calibrated in relation 
to the various policies that you just talked about.
    We had, a very frank discussion about their concerns. Their 
main concern, frankly, was the one that you alluded to, that 
immigrant communities, minority communities after 9/11, 
especially those of Muslim faith, felt like they were being 
singled out and stigmatized by some of these programs that took 
place in the aftermath of 9/11. In this case, it was 9/11 and 
then the Muslim communities. Today, it is COVID and the Asian 
communities feeling the reaction to that national crisis. In my 
parents' generation, it was World War II and Japanese American 
communities and racism and internment. So it is an ongoing 
issue in our society.
    We talked about that, and we also talked about it 
specifically in relation to the interview program that you 
talked about. It was called the Interview Project. Without 
getting into all the details, it specifically was a project 
directed by the Attorney General in which 5,000 or so young men 
were identified from countries where al-Qaeda had a presence, 
who had come over to the United States, and the effort was to 
go out and have them interviewed to see if they had 
intelligence about al-Qaeda operations or op plans that might 
help to find out about and neutralize a second-wave attack that 
everybody thought was going to happen.
    I was able to explain to them my role in that, and 
essentially it was that the Attorney General sent down the 
lists that United States Immigration and Naturalization Service 
(INS) had compiled of these people and asked us to send them 
out to U.S. attorneys' offices. I was the head of the Executive 
Office (EO) for U.S. Attorneys at the time in main Justice. And 
my colleague, whom I was working with at the time, and I 
realized that this would raise the profiling concerns, the 
singling out concerns if this list just went out to the field 
for interviews. So we compiled very lengthy, in-depth guidance 
about how these interviews should be conducted, with dignity 
and courtesy, and these people should only be treated as 
witnesses and their cooperation should be voluntarily.
    I was able to explain that, my role in that project and 
perspective. However, I think the important thing for me, 
frankly, was I was able to explain how, all that guidance was 
all well and good. But no matter how much guidance you put on 
something like this, if you have a project that, or an issue 
that, singles out a particular nationality, they are still 
going to feel the sting of that, the affected communities.
    That is exactly what happened to those communities. They 
felt the sting of it. They felt like they were singled out no 
matter, courteous the interviewers were. They explained that to 
me. I explained how I had come to realize that that is true and 
that there is really no way around that.
    And so we talked about, obviously, going forward and my 
understanding of that concern and my commitment that if I end 
up in I&A and there is ever an issue like that that is being 
considered, that has identified subjects based nationality or 
religion or any other criteria of that type, that I would look 
at it with a skeptical eye, I would make sure to apply the I&A 
guidelines that prohibit any collection based on nationality or 
religion, and that I would reach out to the affected 
communities.
    I think, just to wind up my point here, I think that is a 
very important point, that it is critical that whenever you are 
dealing with any sort of investigative project or effort 
relating to a particular community you engage that community. 
You do not just act upon them; you act with them. That was a 
failing in that in respect to that project, and that is the 
approach I have taken as a U.S. Attorney in D.C., dealing with 
the community in D.C., that was affected by our law enforcement 
operations. That is absolutely vital to the integrity and 
perceived integrity of any operations going forward in I&A.
    They have my commitment, and you have my commitment in the 
future, I will keep that lesson in mind and I will engage. I 
expect that yesterday's meeting was the first of many such 
meetings in the future.
    Chairman Peters. I appreciate that.
    Senator Rosen, you are recognized for your questions.

               OPENING STATEMENT OF SENATOR ROSEN

    Senator Rosen. Thank you, Chair Peters.
    Thank you all for being here today and accommodating us 
over the break for our classified briefing, and thank you for 
your willingness to serve.
    I want to get right into it and talk about U.S.-Israel 
cyber cooperation because as cyber threats become increasingly 
sophisticated allied cyber interventions can play a critical 
role in providing the United States with cybersecurity 
solutions that enhance our homeland security. With China, we 
know they are set to overtake the United States in research and 
development (R&D) spending. We should leverage allied 
innovation advantages to maintain our technological edge.
    To address this challenge, last year I introduced 
bipartisan legislation to establish a $30 million grant program 
within DHS Science and Technology Directorate to support the 
joint U.S.-Israel cybersecurity R&D initiatives. In December, 
that legislation became law as part of fiscal year 2022 
National Defense Authorization Act (NDAA).
    Mr. Kusnezov, if confirmed, can you commit to working with 
me and my team on the implementation of this legislation, and 
more broadly, how would you partner with other allies and these 
allies to enhance the U.S. technological competitiveness?
    Mr. Kusnezov. Thank you, Senator. You bring up an important 
point about the role of allies in some of these key areas, 
notably, cybersecurity. With Israel, I have worked with the 
Israelis on a number of issues in recent years, including 
cybersecurity as well as other areas of science and technology 
cooperation.
    The Israelis have a unique way of cultivating their 
workforce. From the age of 18, they find the best and 
brightest, and they pull them into a 5-year commitment for real 
life work in cybersecurity. They come out at the age of 23, and 
they are well funded by remarkable funding from private capital 
and the Israeli Innovation Authority for startups. If you look 
at where cyber innovation is worldwide, Israel is at the top of 
the list in terms of startups and companies that are really 
making a difference.
    There is this rich diversity, as you point out, of ideas 
that have been generated. I agree with you on your point that 
there is opportunity to be had there because they are well 
funded, they are innovative solutions.
    Some of this is finding the right means to partner. I do 
like working internationally. I think there are opportunities 
to work with allied countries in key areas of science and 
technology, where the more voices you have, the more 
partnerships, the more innovation you can generate that 
hopefully helps solve a lot of our common problems. I would 
welcome the opportunity to discuss how to move forward with 
partnerships with Israel and with others as well in areas like 
cybersecurity.
    Senator Rosen. I am very focused on cybersecurity and 
particularly our workforce. I recently introduced the Cyber 
Ready Workforce Act and many others because we know that 
cyberattacks on this country they are so vast now, and they are 
only going to increase in nature and scope and power all across 
our Nation.
    I want to kind of keep on that subject. Mr. Valdez, every 
two years, the Government Accountability Office (GAO) releases 
a high-risk report identifying areas of government at high risk 
of fraud, waste, and abuse. The most recent report, released in 
March of last year, listed strengthening DHS management 
functions as a high-risk area. The report noted that additional 
progress is needed in the area of IT management, citing an 
Inspector General finding that DHS did not have an effective 
strategy to manage its risks for all systems and that it did 
not timely apply security patches and updates to mitigate 
security vulnerabilities on some IT systems. We have had many 
hearings on this. This is a critical component to our national 
security and safety.
    Mr. Valdez, I know in your current position you focused on 
using technology to improve acquisition, human capital, 
financial management, and other processes. What are your plans 
to do this at DHS to protect is?
    Mr. Valdez. Thank you, Senator Rosen, for that excellent 
question. Before I answer it, just on a personal note, my 
mother's maiden name was Rosen, and I do wonder if we are 
separated ancestors.
    Senator Rosen. Probably with my husband. It is my married 
name. We can check that out after the hearing.
    Mr. Valdez. I will go to www.ancestry.com.
    Senator Rosen. OK.
    Mr. Valdez. But in answer to your question, I think the 
SolarWinds attack and the other cyberattacks that have occurred 
made it clear that Federal agencies in general were vulnerable 
to cyberattacks. In my experience, both as a Federal, former 
Federal executive, but also in the consulting work I have done, 
this has been an area where I have done some work. If 
confirmed, I would commit to doing a top to bottom review of 
the current state of cyber preparedness at DHS.
    My understanding is that the Management Directorate has 
responsibility for the internal systems, which is the subject 
of your question and----
    Senator Rosen. Yes.
    Mr. Valdez. But they work cooperatively with Cybersecurity 
and Infrastructure Security Agency (CISA) to ensure that the 
patches, the remedies are taken care of. My first commitment 
would be to understand the work that is already done, and then 
if confirmed, I would be delighted to come back and have a 
conversation with you and your staff about what I have observed 
and what the possible remedies are.
    Senator Rosen. Yes, I think we need to have a coordinated 
approach that is standardized across all platforms because we 
know, particularly in critical infrastructure that DHS is 
protecting, we want to be sure that we close those 
vulnerabilities off as quickly and as smoothly as we can.
    I am going to move quickly. Can I finish my last question? 
Thank you. I am the only one here. Thank you, Mr. Chair.
    Domestic terrorism intelligence. Mr. Wainstein, as you 
know, Secretary Mayorkas announced last year the creation of 
the Intelligence and Analysis domestic terrorism branch. I am 
glad that he did that. And so thinking about reporting, how we 
use our computer systems, how we are doing all of this, if 
confirmed, how will you ensure that everyone has the 
authorities and the resources your new office has to produce 
timely and, I would say even more importantly, actionable 
information sharing on the threat posed by domestic terrorists?
    We see this over and over again, domestic violent extremism 
in the form of anti-Semitism, one of the No. 1 crimes here in 
the United States, hate crimes all across this country. It is 
important that we act upon this in a timely fashion. How are 
you planning to structure that communication so that 
communities can best protect themselves?
    Mr. Wainstein. Thank you. That is a vitally important 
question, and I think you really get to the essence of what I&A 
was designed to do. I&A sort of is at the crossroads or the 
bridge between the intelligence community, DHS, and State, 
local, territorial, tribal, and private sector partners.
    The whole idea of I&A, as I understand it, is as to all the 
threats that are within the homeland security sort of Band-Aid 
and portfolio, is to make sure that the intelligence that is 
derived from intelligence community operations and derived from 
DHS components, the various components that develop 
intelligence that is useful as to each of these threats. That 
is all integrated with the wealth of intelligence that our 
partners out in the States have, State and local, territorial, 
tribal, and also the private sector, in particular as it 
relates to cybersecurity, ransomware attacks and that kind of 
thing. That is the general idea behind I&A.
    The question, as you have laid it out very appropriately 
and clearly, is: What are the processes? What are the 
procedures? What are sort of the mechanisms that are in place 
to make sure that happens, in particular as to domestic 
terrorism? That is just one of the issues, right? It could be 
any of them but just taking domestic terrorism.
    You can see all those parties I just listed would have some 
important piece of information that relates to any particular 
domestic terrorism threat, no matter what its motivation is, 
where it is on the political spectrum and what its motivation 
is. Whether it is intelligence community getting information 
maybe overseas or the State and locals or seeing things on the 
street, that all needs to be integrated. I know I&A is very 
focused on doing that generally, very focused on staffing and 
supporting the fusion centers around the country. I know there 
are 80 or so fusion centers.
    Senator Rosen. We have one in southern Nevada.
    Mr. Wainstein. OK, there we go. What city is it in?
    Senator Rosen. Las Vegas.
    Mr. Wainstein. Is it in Vegas? OK. They are a crucial 
mechanism for that sharing. I know that just recently the 
Department has committed to staffing up the last of the 80 or 
so fusion centers, the last six or seven that do not have an 
I&A person there. I am going to be very focused on that effort 
as it relates to all the threats but particularly addressed to 
terrorism.
    Senator Rosen. Thank you. I think it is just important that 
information is not siloed. Something happens in city A or State 
A. It is shared with State B, all the other States, so in case 
there are coordinated efforts across different communities. 
That would be a really important piece for you to bring 
together.
    Thank you for your indulgence, Mr. Chair, and thank you 
all.
    Mr. Wainstein. Thank you, Senator.
    Chairman Peters. Thank you, Senator Rosen.
    Dr. Kusnezov, the Science and Technology Directorate is 
tasked with the research and development of technologies across 
a broad range of issues to assess DHS components and first 
responders across the country, and this includes everything 
from climate change resiliency, border security, transportation 
security, and the list goes on. But the Science and Technology 
Directorate has, at times, struggled to meet requirements of 
DHS components. How do you believe the research and development 
efforts should be structured to ensure that they are actually 
delivering what they need to, to the clients that they serve?
    Mr. Kusnezov. Thank you, Mr. Chairman. That is an important 
question. I am not at S&T. I do not have a lot of insight into 
how effectively things are being done today, but I can comment 
on experience I have in parallel efforts that I have done at 
the National Nuclear Security Administration.
    The challenges are in trying to ensure you meet the 
expectation of those that own the risk. In this case, DHS would 
be the first responders and operational components. There has 
to be a place in the conversation and the development of 
technologies where they are partners in setting the 
requirements, defining the measures and the environments that 
they want to use technologies. But the partnership then has to 
include the deep bench at S&T that understands more about 
technologies, not only today but where they are going, and also 
about potential scientific issues.
    You mentioned climate change. There are many interesting 
near-term and long-term factors there that come to mind. In 
trying to meet today's challenges for technologies, you want to 
make sure that you are also ready for tomorrow.
    So you know, take first responders for example. As I have 
looked at it from the outside with fires, for example, fires 
today out West burn hotter and they are larger. The frequency 
of lightning strikes has greatly increased. Consequently, there 
are more fires. The ground is drier. Our understanding of 
spread is changing. And so relying on how we understood things 
to have happened in the past may not be scalable to how things 
should be in the future. The same is true for flooding and for 
other types of natural events.
    You would think that data acquisition devices, technologies 
that are pushed into the field should have a sense of where the 
future might be going so they are prepared and flexible to 
unexpected occurrences, unexpected outcomes.
    I would envision an S&T enterprise that would be closely 
coupled to the requirement side of operational components and 
first responders, clear metrics for what needs to be delivered 
and for what purpose, measures on what that delivery looks 
like, tests and evaluation that are as robust as possible to 
capture operational environments, stressing them to ensure that 
they actually will do what you think they do, and this kind of 
end-to-end view of delivering to, again, those that will own 
the risk.
    Chairman Peters. Great. Thank you.
    I want to thank each of you for being here today and also 
congratulate each of you for your nominations to these very 
important positions. We look forward to continuing to work with 
you in the months and years ahead, if confirmed, and again 
thank you.
    It's great to see your families and others supporters 
either here in person or tuning in online. I know they were all 
here with you in spirit.
    The nominees have made financial disclosures and provided 
the required responses to biographical and pre-hearing 
questions\1\ submitted by this Committee. Without objection, 
this information will be made part of the hearing record\1\ 
with the exception of the financial data, which is on file and 
available for public inspection in the Committee offices.\2\
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    \1\ The information of Mr. Valdez appear in the Appendix on page 
31.
    \1\ The information of Mr. Kusnezov appear in the Appendix on page 
98.
    \2\ The information of Mr. Wainstein appear in the Appendix on page 
170.
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    The hearing record will remain open until 12 p.m. tomorrow, 
February 4th, for the submission of statements and questions 
for the record.
    This hearing is now adjourned.
    [Whereupon, at 1:04 p.m., the Committee was adjourned.]

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