Shaping the Future of Cyber Diplomacy: Review for State Department Reauthorization

Defense Posture and Global ThreatsHouse Foreign Affairs Subcommittee on Europe · April 29, 2025 · 119th Congress
The House Foreign Affairs Subcommittee on Europe held this hearing to review the Bureau of Cyberspace and Digital Policy (CDP), created in 2022, ahead of State Department reauthorization and amid Secretary Rubio's proposed reorganization that would split CDP's economic and security functions. Begins at ▶ 0:00:00
Transcript
Highlights

Title

State Department cyber bureau's role and proposed reorganization

Purpose

The House Foreign Affairs Subcommittee on Europe held this hearing to review the Bureau of Cyberspace and Digital Policy (CDP), created in 2022, ahead of State Department reauthorization and amid Secretary Rubio's proposed reorganization that would split CDP's economic and security functions. Witnesses from GAO, the Foundation for Defense of Democracies, and Verific AI testified on CDP's coordination with other agencies, foreign assistance programs, workforce challenges, and threats from China, Russia, Iran, and North Korea. Begins at▶ 0:00:00

Who spoke

• Chairman Self▶ 0:00:00: Opened by describing cyber threats from China, Russia, Iran, and North Korea▶ 0:00:00, cited CDP's role in responding to a Costa Rica ransomware attack▶ 0:00:54 and subcable projects in the Pacific Islands▶ 0:01:16; later questioned witnesses on the Spain/Portugal/France power outage's possible link to a cyber attack▶ 0:25:11, salary competitiveness▶ 0:53:49, and reorganization recommendations▶ 0:55:04.

• Ranking Member Keating (D-MA)▶ 0:02:36: Noted CDP was authorized into statute by the 2022 State Department Authorization Act▶ 0:03:06 and cited CDP's support to Costa Rica▶ 0:03:57 and Ukraine▶ 0:04:22; criticized Rubio's reorganization plan as splitting CDP and creating duplication▶ 0:05:18, and said USAID cuts and workforce politicization harm capacity building▶ 0:06:13; later raised concerns about staff siloing under reorganization▶ 0:34:38 and objected to the chairman's manner of introducing a colleague▶ 0:46:03.

• Annie Fixler, FDD▶ 0:09:35: Said China has prepositioned destructive cyber capabilities against US infrastructure▶ 0:10:43 and described an FDD Taiwan tabletop exercise showing resilience deters Chinese aggression▶ 0:12:58; discussed undersea cable vulnerability▶ 0:52:56 and the CHIPS Act funding for securing communications infrastructure▶ 0:13:29.

• Latesha Love-Grayer, GAO▶ 0:14:32: Summarized GAO findings that CDP was not initially coordinating with other agencies or using data to justify its structure▶ 0:17:05, later resolved after recommendations▶ 0:17:54; described CDP's 11 interagency agreements▶ 0:28:42 and said GAO has not yet assessed the impact of foreign assistance cuts on CDP but plans to▶ 0:51:01.

• Theodore Nemeroff, Verific AI▶ 0:19:46: Recommended CDP adopt a "full stack" approach to cyber and digital diplomacy▶ 0:21:02, highlighted the Falcon rapid-response capability▶ 0:22:35, and posed four questions for evaluating the reorganization▶ 0:23:53; discussed AI competition with China and outbound investment screening▶ 0:38:03.

• Rep. Davidson (R)▶ 0:35:08: Questioned Fixler on USAID cuts' effect on cyber assistance▶ 0:35:37 and undersea cable investment strategy▶ 0:36:52; pressed Nemeroff on outbound AI investment restrictions▶ 0:37:15 and free-speech concerns tied to CISA's misinformation work▶ 0:39:01.

• Rep. Amo (D)▶ 0:40:15: Argued Rubio's reorganization undermines CDP's coordinating mission and risks harming collaboration with CISA amid CISA's own budget cuts▶ 0:41:00▶ 0:42:47; asked Love-Grayer about CDP-CISA coordination▶ 0:42:47 and raised workforce firing concerns▶ 0:45:04.

• Rep. McBride (D-DE)▶ 0:47:22: Asked Nemeroff how CDP can stay ahead on emerging technology▶ 0:48:20 and Love-Grayer about the effect of USAID cuts on CDP outreach▶ 0:49:35; emphasized protecting the federal cyber workforce▶ 0:51:01.

• Rep. Kim (R)▶ 1:00:12: Asked how private-sector expertise, including from firms like Verific AI, can strengthen allied cyber resilience▶ 1:00:33; questioned witnesses on public-private partnerships▶ 1:01:29 and asked Love-Grayer about overlapping cyber responsibilities among State bureaus▶ 1:03:19▶ 1:04:53.

Key moments

• Fixler said an FDD tabletop exercise found Beijing's greatest deterrent concern was not US countermeasures but whether Taiwan's infrastructure could withstand an attack▶ 0:12:58.

• Chairman Self read a Siemens security advisory suggesting a recent European blackout possibly originated from a sophisticated cyber attack on a Basque-region substation exploiting a known Siemens vulnerability▶ 0:25:42.

• Keating and Amo both said Secretary Rubio's reorganization would split CDP's economic functions from its security functions into a new "emerging threats" bureau, calling it duplicative and undermining CDP's original integration mandate▶ 0:05:18▶ 0:41:27.

• Love-Grayer said GAO's review found CDP has 11 formal interagency agreements (with DoD, Commerce, FCC, DHS, USAID, and others) but still faces unresolved overlap with the Bureau of Democracy, Human Rights and Labor and the Bureau of International Narcotics and Law Enforcement▶ 0:28:42▶ 1:04:02.

• Fixler cited FDD reporting that a $1.2 billion Intel investment in Costa Rica followed CDP-driven changes to the country's cyber norms and policies▶ 1:02:37.

• Fixler said State Department cyber staff are paid on the standard GS-15 scale with no special cyber pay, while private-sector salaries reach "hundreds of thousands of dollars"▶ 0:54:14▶ 0:55:04.

• Love-Grayer said the CDP ambassador reported directly to the Deputy Secretary, giving the bureau outsized "gravitas" and resource-garnering power that could diminish under reorganization▶ 0:44:10.

• A tense exchange between Keating and Chairman Self over the chairman's manner of introducing Rep. McBride prompted Keating to formally object on the floor▶ 0:46:03.

• Nemeroff described CDP's newly piloted "Falcon" capability, which rapidly deploys private-sector incident responders to countries facing cyber attacks▶ 0:22:58.

• Love-Grayer said DOD's "Hunt Forward" operations identify partner countries' cyber vulnerabilities, which CDP then follows up on with technical assistance and capacity building▶ 0:28:12.

Metadata

CommitteeHouse Foreign Affairs Subcommittee on Europe
Chamber / CongressHouse · 119th Congress
DateApril 29, 2025
TypeHearing
Witnesses
Ms. Latesha Love-Grayer — Director, International Affairs and Trade, U.S. Government Accountability Office
Ms. Annie Fixler — Director, Center on Cyber and Technology, Foundation for Defense of Democracies
Mr. Theodore Nemeroff — Co-Founder and Vice President for Data and Compliance, Verific AI
Videoyoutube
Transcript155 caption blocks · 10,654 words · 1:06:24 runtime
EventCongress.gov 118161