[Congressional Record Volume 167, Number 126 (Monday, July 19, 2021)]
[Extensions of Remarks]
[Pages E776-E777]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    COST ESTIMATE FOR H.R. 3138, THE STATE AND LOCAL CYBERSECURITY 
                            IMPROVEMENT ACT

                                 ______
                                 

                        HON. BENNIE G. THOMPSON

                             of mississippi

                    in the house of representatives

                         Monday, July 19, 2021

  Mr. THOMPSON of Mississippi. Madam Speaker, I include in the Record 
the cost estimate prepared by the Congressional Budget Office for H.R. 
3138, the State and Local Cybersecurity Improvement Act. The cost 
estimate was not available at the time of the Committee report filing.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                     Washington, DC, June 8, 2021.
     Hon. Bennie G. Thompson,
     Chairman, Committee on Homeland Security,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 3138, the State 
     and Local Cybersecurity Improvement Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Aldo 
     Prosperi.
           Sincerely,
                                                Phillip L. Swagel,
                                                         Director.
       Enclosure.

 H.R. 3138, State and Local Cybersecurity Improvement Act--June 1, 2021

------------------------------------------------------------------------
                                               By fiscal year, millions
                                                     of dollars--
                                             ---------------------------
                                                        2021-     2021-
                                               2021     2026      2031
------------------------------------------------------------------------
Direct Spending (Outlays)...................      0         0         0
Revenues....................................      0         0         0
Increase or Decrease (-) in the Deficit.....      0         0         0
Spending Subject to Appropriation (Outlays).      *     1,087        **
------------------------------------------------------------------------
* = between zero and $500,000.
** = not estimated.

       Statutory pay-as-you-go procedures apply? No.
       Increases on-budget deficits in any of the four consecutive 
     10-year periods beginning in 2032? No.
       Mandate Effects:
       Contains intergovernmental mandate? No.
       Contains private-sector mandate? No.
       H.R. 3138 would establish a cybersecurity grant program in 
     the Department of Homeland Security (DHS). State and local 
     governments would use the grants to address cybersecurity 
     threats and risks to their information systems. The bill also 
     would establish a process for assessing grant applications, 
     reviewing cybersecurity plans, and monitoring the performance 
     of grant recipients. CBO estimates that implementing H.R. 
     3138 would cost about $1.1 billion over the 2021-2026 period 
     (detailed in Table 1). Such spending would be subject to the 
     appropriations of the specified and estimated amounts.
       H.R. 3138 would authorize appropriations of $500 million 
     annually over the 2022-2026 period and such sums as may be 
     necessary for subsequent years. Those amounts would be 
     distributed as grants to state, local, and tribal 
     governments. Using historical spendout rates for similar 
     grant programs, CBO estimates that providing those grants 
     would cost $1.1 billion over that period.
       CBO estimates that reviewing grant applications and 
     cybersecurity plans, disbursing grants, communicating with 
     state and local governments, and completing other oversight 
     and administrative functions required

[[Page E777]]

     by the bill would cost $17 million over the 2021-2026 period. 
     That estimate is based on a comparison with the Federal 
     Emergency Management Agency's costs to manage the State and 
     Local Preparedness Grant Program. That agency spends 
     approximately $25 million (or 0.8 percent of total program 
     funding) per year to manage $3 billion grants. Using that 
     rate as a basis, CBO estimates that administering the 
     cybersecurity grant program authorized under H.,R. 3138 would 
     cost $4 million each year and total $17 million over the 
     2021-2026, after accounting for the time to establish the 
     program.
       The bill also would establish an independent committee to 
     provide recommendations and guidance on the operation of the 
     grant program. Using information from DHS about the costs of 
     similar committees, CBO estimates that staff salaries, travel 
     expenses, and facilities would cost $1 million annually and 
     total $5 million over the 2021-2026 period.
       For the estimate, CBO assumes that the bill will be enacted 
     in fiscal year 2021. Under the assumption, DHS could incur 
     some costs in 2021, but CBO expects that most of the costs 
     would be incurred in 2022 and later.

               TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3138
----------------------------------------------------------------------------------------------------------------
                                                        By fiscal year, millions of dollars--
                                    ----------------------------------------------------------------------------
                                        2021       2022       2023       2024       2025       2026    2021-2026
----------------------------------------------------------------------------------------------------------------
Cybersecurity Grants:
    Authorization..................          0        500        500        500        500        500      2,500
    Estimated Outlays..............          0         15        105        205        320        420      1,065
Administrative Costs:
    Estimated Authorization........          *          2          3          4          4          4         17
    Estimated Outlays..............          *          2          3          4          4          4         17
Advisory Committee:
    Estimated Authorization........          *          1          1          1          1          1          5
    Estimated Outlays..............          *          1          1          1          1          1          5
    Total Changes:.................
        Estimated Authorization....          *        503        504        505        505        505      2,522
        Estimated Outlays..........          *         18        109        210        325        425      1,087
----------------------------------------------------------------------------------------------------------------
* = between zero and $500,000.

       The CBO staff contact for this estimate is Aldo Prosperi. 
     The estimate was reviewed by Leo Lex, Deputy Director of 
     Budget Analysis.

                          ____________________