India pushed back against President TrumpDonald John TrumpChelsea Clinton announces birth of third child Ukrainian officials and Giuliani are sharing back-channel campaign information: report Trump attacks ‘the Squad’ as ‘racist group of troublemakers’ MORE‘s offer to mediate the dispute in Kashmir on Monday.

“We have seen @POTUS‘s remarks to the press that he is ready to mediate, if requested by India & Pakistan, on Kashmir issue. No such request has been made by PM @narendramodi to US President,” Indian Ministry of External Affairs spokesperson Raveesh Kumar tweeted, referring to Prime Minister Narendra Modi.

“It has been India’s consistent position that all outstanding issues with Pakistan are discussed only bilaterally. Any engagement with Pakistan would require an end to cross border terrorism. The Shimla Agreement & the Lahore Declaration provide the basis to resolve all issues between India & Pakistan bilaterally,” Kumar continued.

Trump told reporters in the Oval Office during a meeting with Pakistani Prime Minister Imran Khan that Modi had asked him to mediate the decades-long Kashmir dispute. 

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“This has been going on for many, many years. … If I can help, I would love to be a mediator,” Trump said. “It’s impossible to believe two incredible countries that are very, very smart with very smart leadership can’t solve a problem like that.”

The White House did not immediately respond to a request for comment on India’s denial of any such request.

Conflict over the Kashmir region, which both India and Pakistan claim in its entirety but control only partially, has been simmering for years but escalated earlier this year when the nations claimed to have shot down each other’s planes after deadly skirmishes.

The countries have committed to seeking bilateral solutions to disputes in the region.

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The United Kingdom announced Monday that it will increase its military presence in the Persian Gulf amid escalating tensions with Iran.

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“It is with a heavy heart that we are announcing this increased international presence in the Gulf because the focus of our diplomacy has been on de-escalating tensions, in the hope that such changes would not be necessary,” British Foreign Secretary Jeremy Hunt told Parliament.

“We do not seek confrontation with Iran; we have taken every available opportunity to reduce misunderstanding whilst standing by our rock-solid commitment to the international rule of law which is the foundation of global peace and prosperity,” added Hunt, one of two Conservative Party candidates seeking to be the next U.K. prime minister.

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He outlined a new European-led maritime protection mission to ensure safe passages of vessels through the Strait of Hormuz, where a U.K.-flagged oil tanker was seized by Iran on Friday.

“I therefore urge Iran to release the Stena Impero and her crew and observe the rules that safeguard commercial shipping and benefit Iran as much as any other country,” Hunt said.

The seizure came after Britain had earlier seized an Iranian ship in the Mediterranean on suspicion of transporting oil to Syria, a violation of European Union trade law.

“But there is simply no comparison between Iran’s illegal seizure of a vessel inside a recognised shipping lane — where the Stena Impero had every right to be — and the enforcement of EU sanctions against a tanker that had freely navigated into the waters of a British Overseas Territory,” Hunt told Parliament.

To kickstart the freedom of navigation effort, the U.K. is deploying a naval destroyer, the HMS Duncan, to the region.

Hunt emphasized that Europe’s effort is separate from the U.S.’s “maximum pressure policy” on Tehran because European nations “remain committed to preserving” the 2015 Iran nuclear deal that President TrumpDonald John TrumpChelsea Clinton announces birth of third child Ukrainian officials and Giuliani are sharing back-channel campaign information: report Trump attacks ‘the Squad’ as ‘racist group of troublemakers’ MORE exited last year.

Happy Monday and welcome to Overnight Defense. I’m Rebecca Kheel, and here’s your nightly guide to the latest developments at the Pentagon, on Capitol Hill and beyond. CLICK HERE to subscribe to the newsletter.

 

THE TOPLINE: Iran claimed to bust a CIA spy ring Monday, kicking already high U.S.-Iran tensions up a notch.

Regional experts said Monday that it’s hard to gauge the credibility of Iran’s announcement.

Regardless, they added, Iran’s flexing of its security apparatus represents the latest in a back-and-forth of escalating U.S.-Iran tensions, coming on the heels of Iran’s seizure of a British-flagged oil tanker.

Iran’s claims: On Monday, the Iranian Intelligence Ministry announced the arrests of 17 Iranian citizens, alleging they had been recruited by the CIA to collect information on the facilities where they worked in exchange for U.S. visas or jobs in America.

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Iranian officials said some of the 17 have already been sentenced to death, without specifying exactly how many. Others, they said, have flipped and are now working with Iran against America.

US response: U.S. officials dismissed Iran’s announcement as a lie. On Twitter, Trump called Iran’s allegation “totally false,” adding that it was “just more lies and propaganda” from a country that is “a total mess!”

In an interview on Fox News, Secretary of State Mike PompeoMichael (Mike) Richard PompeoTrump calls Iran claim that it arrested CIA spies ‘totally false’ The Hill’s Morning Report — Mueller Time: Dems, GOP ready questions for high-stakes testimony Pompeo: There’s ‘no indication’ Iran will change direction MORE declined to discuss specifics of the situation, but similarly called out Iran’s “long history of lying.”

“It’s part of the nature of the ayatollah to lie to the world,” Pompeo said on “Fox and Friends.” “I would take with a significant grain of salt any Iranian assertion about actions that they’ve taken.”

Later Monday, Trump also indicated his window for talks is narrowing.

“If they want to make a deal, frankly it’s getting harder for me to want to make a deal with Iran because they’ve behaved very badly,” Trump told reporters Monday afternoon at the White House. “They’re saying bad things, and I’ll tell you it could go either way, very easily. Very easily. And I’m okay either way it goes.”

The tanker: Fitting into the continuum of the months-long U.S.-Iran faceoff is also Iran’s Friday seizure of a British-flagged oil tanker.

Iran is detaining the Stena Impero, which the Islamic Revolutionary Guard Corps boarded while it was transiting the Strait of Hormuz.

Asked Monday about the U.S. role in securing the Impero’s release, Pompeo said it “falls to the United Kingdom to take care of their ships.”

Britain announced its own plan Monday to form a European-led maritime security initiative.

In an address to Parliament, U.K. Foreign Secretary Jeremy Hunt said the effort would “complement” the U.S. plan, but that “it will not be part of the U.S. maximum pressure policy on Iran because we remain committed to preserving the Iran nuclear agreement.”

“If Iran continues on this dangerous path, they must accept the price will be a larger Western military presence in the waters along their coastline, not because we wish to increase tensions but simply because freedom of navigation is a principle which Britain and its allies will always defend,” Hunt added.

 

BUDGET DEAL REACHED: Congress and the White House have reached a two-year budget deal after days of furious negotiating.

Trump announced the agreement Monday with a tweet backing the deal.

“I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellThe Hill’s Morning Report — Mueller Time: Dems, GOP ready questions for high-stakes testimony Election security to take back seat at Mueller hearing McConnell challenger faces tougher path after rocky launch MORE, Senate Minority Leader Chuck SchumerCharles (Chuck) Ellis SchumerTrump says he will meet with Schumer ‘ASAP’ after border visit Dem senator describes ‘overcrowded quarters,’ ‘harsh odor’ at border facilities Top Democrats demand security assessment of Trump properties MORE, Speaker of the House Nancy PelosiNancy PelosiPelosi, Mnuchin reach ‘near-final agreement’ on budget, debt ceiling Wendy Davis launches bid for Congress in Texas Steyer calls on Pelosi to cancel ‘six-week vacation’ for Congress MORE, and House Minority Leader Kevin McCarthyKevin Owen McCarthyThe Hill’s Morning Report: Trump walks back from ‘send her back’ chants History in the House: Congress weathers unprecedented week EU official in Canada says he feels ‘at home’ there because no one was shouting ‘send him back’ MORE – on a two-year Budget and Debt Ceiling, with no poison pills,” Trump tweeted Monday evening.

The agreement, spearheaded by House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinPelosi, Mnuchin reach ‘near-final agreement’ on budget, debt ceiling Don’t let budget talks threaten Medicare Part D The Hill’s Morning Report — Mueller Time: Dems, GOP ready questions for high-stakes testimony MORE, sets the top-line numbers for overall defense and non-defense spending for the 2020 and 2021 fiscal years. It would also suspend the debt ceiling through July 2021.

It also includes enough sweeteners for both sides to cherry pick what they’ll claim victory on, including a bump in defense spending, considered a top priority for Republicans, and domestic priorities touted by Democrats.

How much for defense?: Trump didn’t offer any details in his tweets on what the spending levels would be for the next two fiscal years.

Trump had requested $750 billion in defense spending and $567 billion in non-defense. But the agreement is expected to be significantly different, with defense spending closer to $735 billion and non-defense spending significantly higher.

Background: Across-the-board cuts known as sequestration wouldn’t kick in for another few months. But Congress was still under pressure to reach a budget agreement before leaving town for the August recess in order to have a package on which attach the debt ceiling.

The debt limit was exceeded earlier this year, but the Treasury Department has been taking steps known as “extraordinary measures” to prevent the government from going over its borrowing limit.

Mnuchin, though, warned Congress earlier this month that Treasury could run out of cash in early September before Congress returns from recess.

 

TRUMP’S AFGHAN WAR CLAIM: Trump said Monday he could end the war in Afghanistan “in a week,” but that doing so would cause millions of deaths.

“I could win that war in a week. I just don’t want to kill 10 million people,” Trump said during a White House meeting with Pakistani Prime Minister Imran Khan.

The president added that Afghanistan would be “wiped off the face of the earth” in 10 days if he chose to bring a quick end to the nation’s longest war, which he called “ridiculous” and said has helped turn the U.S. into the world’s “policemen.”

“I don’t want to go that route,” Trump said.

Pakistan’s role: Trump also said Pakistan could help play a role in stabilizing Afghanistan after a possible U.S. pullout and suggested he could restore hundreds of millions of dollars in military aid to Pakistan “depending on what we work out.”

“I think Pakistan is going to help us out,” the president said. “Basically we’re policemen right now and we don’t want to be policemen.”

Trump cut off military aid to Pakistan last year after the U.S. accused the South Asian country of not doing enough to combat terrorist groups.

A senior administration official said the aid would be restored “on certain items if Pakistan meets our security concerns,” both by fighting extremist groups in Afghanistan as well as within its own borders.

 

ON TAP FOR TOMORROW

The Senate Armed Services Committee will hold a business meeting to consider pending nominations at 9:30 a.m. https://bit.ly/2Mm2Qjg

 

ICYMI

— The Hill: Pentagon funding request reveals classified Black Hawk mission over DC

— The Hill: India pushes back against Trump offer to mediate Kashmir dispute

— The Hill: Five things to know about Turkey’s rift with Trump

— The Hill: Venezuelan jet ‘aggressively shadowed’ Navy aircraft: Pentagon

— The Hill: Opinion: High stakes for Trump and Pakistan’s Khan: Afghanistan, India, nukes and money

— The Hill: Opinion: Human rights: Trump’s trump card against China and North Korea

— The Washington Post: Hundreds of Islamic State militants are slipping back into Iraq. Their fight isn’t over.

— Reuters: Ships urged to alert navies before sailing through Strait of Hormuz

— The Wall Street Journal: Deal for naval outpost in Cambodia furthers China’s quest for military network 

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President TrumpDonald John TrumpCould Donald Trump and Boris Johnson be this generation’s Reagan-Thatcher? Merkel backs Democratic congresswomen over Trump How China’s currency manipulation cheats America on trade MORE on Friday accused the Federal Reserve of having a “faulty thought process,” arguing that the central bank should lower interest rates to match foreign competitors.

In follow-up tweets, Trump again blamed the Fed for slowing economic growth by raising interest rates. He appeared to reference comments from New York Federal Reserve President John Williams a day earlier in which Williams said central bankers must “act quickly” as growth slows.

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CNBC reported that markets took Williams’s comments to indicate a coming rate cut, but a Fed spokesperson later clarified that Williams was speaking historically and not about potential policy actions.

“I like New York Fed President John Williams first statement much better than his second,” Trump tweeted. “His first statement is 100% correct in that the Fed ‘raised’ far too fast & too early.”

The president has been fiercely critical of Fed Chairman Jerome Powell’s leadership, accusing him of hindering economic growth through rate hikes. His constant critiques have roiled observers of the Fed, which is meant to be nonpartisan.

The Fed has hiked interest rates nine times since 2015 and seven times since 2017, including four under Powell, who took over as chairman in 2018 after being nominated by Trump.

Trump has said he intends to nominate former campaign adviser Judy Shelton and Christopher Waller, executive vice president at the Federal Reserve Bank of St. Louis, to two open spots on the Fed board of governors.

Shelton in particular has echoed Trump’s views that interest rates should be slashed.

Trump has yet to formally nominate either individual, both of whom will require Senate confirmation.

Updated at 10:23 a.m.

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Democrats are pressing federal investigators on whether an internal Department of Justice policy played any role in their decision not to indict President TrumpDonald John TrumpCould Donald Trump and Boris Johnson be this generation’s Reagan-Thatcher? Merkel backs Democratic congresswomen over Trump How China’s currency manipulation cheats America on trade MORE following a probe into payments made to women alleging affairs with Trump.

House Oversight and Reform Committee Chairman Elijah CummingsElijah Eugene CummingsDHS chief to Pelosi: Emergency border funding ‘has already had an impact’ Cummings tears into DHS chief for conditions at migrant border facilities EXCLUSIVE: Career officials rebut claims of White House interference in security clearance process MORE (D-Md.) in a Friday letter to the U.S. Attorney’s Office for Southern District of New York asked whether the Office of Legal Counsel (OLC) opinion “played any role in your office’s decision not to indict President Trump for these hush money crimes.”

“If prosecutors identified evidence of criminal conduct by Donald Trump while serving as President—and did not bring charges as they would have for any other individual—this would be the second time the President has not been held accountable for his actions due to his position,” Cummings wrote. “The Office of the President should not be used as a shield for criminal conduct.”

The OLC opinion argues that a sitting president cannot be indicted or be the subject of criminal prosecution because doing so would “undermine the capacity of the executive branch to perform its constitutionally assigned functions.”

The request from Cummings comes shortly after U.S. District Judge William Pauley III ordered prosecutors to file case-related documents in largely unredacted form, while noting that investigators had completed their probe into the campaign finance violations tied to the hush money payments.

Michael CohenMichael Dean CohenJudiciary chair demands Hope Hicks clarify closed-door testimony Court filings show Trump, Cohen contacts amid hush money payments Judge says probe tied to Trump hush-money payments is over MORE, the president’s former personal attorney, has publicly testified that Trump directed him to arrange payments to women alleging affairs with Trump ahead of the 2016 election.

The court documents unsealed on Thursday reveal that Cohen was in contact with Trump multiple times as he arranged the payments. Cohen was also in touch with other Trump campaign officials, like then-campaign press secretary Hope HicksHope Charlotte HicksJudiciary chair demands Hope Hicks clarify closed-door testimony Court filings show Trump, Cohen contacts amid hush money payments Press: Acosta, latest to walk the plank MORE, according to the documents.

Cummings is asking the Southern District of New York to turn over “all evidence collected about the role of any other individual in connection with the campaign finance charges against Cohen,” including the president, by Aug. 2. He is also seeking information as to whether the office granted any immunity deals or non-prosecution agreements, formal or informal.

Cohen, who is serving a three-year prison sentence for campaign finance violations and other offenses, blasted the news that the investigation was concluding without bringing charges against the president or others.

“The conclusion of the investigation exonerating The Trump Organization’s role should be of great concern to the American people and investigated by Congress and The Department of Justice,” Cohen said in a joint statement with his attorney Lanny Davis on Thursday.

Cohen made the payments to two women — adult-film star Stormy Daniels and former Playboy model Karen McDougal — both of whom have alleged extramarital affairs with Trump from before he was president. Trump has denied the allegations.

The president, who initially denied knowledge of the payments, has denied any wrongdoing as it relates to possible violations of campaign finance laws. He has also questioned Cohen’s credibility.

Cohen pleaded guilty to lying to Congress about discussions to build a Trump Tower in Moscow during the 2016 election as part of a deal to cooperate with now-former special counsel Robert MuellerRobert (Bob) Swan MuellerTop Republican considered Mueller subpoena to box in Democrats Kamala Harris says her Justice Dept would have ‘no choice’ but to prosecute Trump for obstruction Dem committees win new powers to investigate Trump MORE.

Republicans on the House Oversight and Reform Committee blasted Cummings for using Cohen’s accounts of the payments to go after the president.

“Everyone knows that convicted felon Michael Cohen is a habitual liar. But still Chairman Cummings continues to use Cohen—the Chairman’s first announced witness this Congress —to attack the President for political gain,” a GOP spokesperson for Oversight said in a statement. “Democrats in Congress should be solving real problems instead of indulging their obsession with impeaching the President.”

Cummings drew parallels between the OLC opinion playing a role both in the hush money case and the special counsel’s Russia report, in which Mueller said the investigation did not make a determination either way about whether Trump obstructed justice.

Cummings noted that he is reaching out directly to the U.S. attorney’s office because Democrats feel Attorney General William BarrWilliam Pelham BarrHouse gears up for Mueller testimony History in the House: Congress weathers unprecedented week Court filings show Trump, Cohen contacts amid hush money payments MORE fumbled the release of the Mueller report by relaying information to Congress and the public in a way that “fundamentally mischaracterized the findings of the report.” 

Mueller is slated to testify publicly on Wednesday in what is expected to be a historic event on Capitol Hill. Democrats are eager to press the former special counsel on the episodes of possible obstruction by Trump as laid out in his report, as well as how much weight he gave to the OLC opinion. Republicans are expected to ask Mueller about the origins of the Russia investigation.

Welcome to Hillicon Valley, The Hill’s newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley. If you don’t already, be sure to sign up for our newsletter with this LINK.

Welcome! Follow the cyber team, Olivia Beavers (@olivia_beavers) and Maggie Miller (@magmill95), and the tech team, Harper Neidig (@hneidig) and Emily Birnbaum (@birnbaum_e).

 

BYE, BEZOS: President Trump said Thursday he’ll ask the Department of Defense to look “very closely” at the Pentagon’s cloud computing contract that is expected to be awarded to Amazon.

“I’m getting tremendous complaints about the contract with the Pentagon and with Amazon,” Trump told reporters in the Oval Office. “They’re saying it wasn’t competitively bid.

“Some of the greatest companies in the world are complaining about it, having to do with Amazon and the Department of Defense,” Trump continued. “And I will be asking them to look at it very closely to see what’s going on because I have had very few things where there’s been such complaining.”

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Bloomberg first reported on Wednesday that Trump has asked for more information on the $10 billion deal, which the Pentagon is expected to award next month. Amazon is considered the favorite to land the contract, though Microsoft is also in the running.

It’s unclear whether Trump would go as far as canceling the contract or directly intervene, but he has long been critical of Amazon and its owner, Jeff BezosJeffrey (Jeff) Preston BezosBill Gates drops lower on list of world’s richest people Norah O’Donnell’s debut as ‘CBS Evening News’ anchor met with slight ratings dip Labor unions back strikes, boycotts targeting Amazon ‘Prime Day’ MORE.

Read more here.

 

NEW KIDS’ PRIVACY RULES?: The Federal Trade Commission (FTC) is looking to update its rules on internet privacy for children after renewed concerns about how tech companies are catering to, and collecting data on, young internet users.

The five FTC commissioners voted unanimously to seek public input on updating its regulations on the Children’s Online Privacy Protection Act (COPPA), which went into effect nearly 20 years ago.

“In light of rapid technological changes that impact the online children’s marketplace, we must ensure COPPA remains effective,” FTC Chairman Joseph Simons said in a statement on Wednesday. “We’re committed to strong COPPA enforcement, as well as industry outreach and a COPPA business hotline to foster a high level of COPPA compliance. But we also need to regularly revisit and, if warranted, update the Rule.”

The agency usually reviews its regulations every 10 years, and the last time it looked into the children’s privacy law was in 2013. In a draft notice to be published in the Federal Register, the FTC said it was launching a review early “because of questions that have arisen about the Rule’s application to the educational technology sector, to voice-enabled connected devices, and to general audience platforms that host third-party child-directed content.”

Under COPPA, websites must obtain parental consent before collecting data on children under 13.

“COPPA is the constitution for children’s privacy online, and as its author I have consistently advocated for thoughtful updates to the existing COPPA regime to keep pace with technological changes and emerging threats to kids,” Sen. Ed MarkeyEdward (Ed) John MarkeyDemocrats warm to idea of studying reparations Hillicon Valley: Senators unload on Facebook cryptocurrency plan | Trump vows to ‘take a look’ at Google’s ties to China | Google denies working with China’s military | Tech execs on defensive at antitrust hearing | Bill would bar business with Huawei Senators press FTC over ‘woefully inadequate’ Facebook settlement MORE (D-Mass.) said in a statement Thursday. “But if the Commission is truly serious about protecting young people online, it will enforce existing protections, hold violators accountable no matter how powerful they are, and act as a forceful check against the ever-increasing appetite for children’s data.”

Read more on the law here.

 

SENATE PASSES ELECTION SECURITY BILL: The Senate passed legislation on Wednesday night that would make it a federal crime to hack into any voting systems used in a federal election. 

The bill, known as the Defending the Integrity of Voting Systems Act, passed the chamber on Wednesday night by unanimous consent, which requires the sign off of every senator.  

It would allow the Justice Department to pursue federal charges against anyone who hacks voting systems used in federal elections under the Computer Fraud and Abuse Act. 

Sens. Sheldon WhitehouseSheldon WhitehouseSenate passes bill making hacking voting systems a federal crime Overnight Energy: Scientists flee USDA as research agencies move to Kansas City area | Watchdog finds EPA skirted rules to put industry reps on boards | New rule to limit ability to appeal pollution permits Dem senators demand GOP judicial group discloses donors MORE (D-R.I.), Richard Blumenthal (D-Conn.) and Lindsey GrahamLindsey Olin GrahamSenate passes bill making hacking voting systems a federal crime Graham: Trump’s attacks on minority congresswomen more ‘narcissism’ than racism Meghan McCain promotes July 17 as #GBMday to raise awareness of father’s cancer MORE (R-S.C.) introduced the legislation earlier this year and it cleared the Judiciary Committee in May. 

“Our legislation to protect voting machines will better equip the Department of Justice to fight back against hackers that intend to interfere with our election,” Blumenthal said when the bill was introduced.

Read more here. 

 

FACEAPP FALLOUT: Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerTop Democrats demand security assessment of Trump properties Lawmakers pay tribute to late Justice Stevens Trump administration denies temporary immigrant status to Venezuelans in US MORE (D-N.Y.) is asking the FBI and Federal Trade Commission to investigate FaceApp, a viral photo-aging tool that is sparking privacy concerns. 

Schumer sent a letter on Wednesday to FBI Director Christopher Wray and FTC Chairman Joseph Simons saying he was concerned that the app, which is headquartered in Russia, “could pose national security and privacy risks for millions of U.S. citizens.” 

“In the age of facial recognition technology as both a surveillance and security use, it is essential that users have the information they need to ensure their personal and biometric data remains secure, including from hostile foreign governments,” Schumer wrote. 

Schumer is asking the FTC to determine if there are “adequate safeguards” in place to prevent Americans’ privacy from being compromised and, if not, to publicly disclose that. 

He separately wants the FBI to find out if data being uploaded to FaceApp by Americans is “finding its way into the hands” of Russia’s government or companies with ties to the government. 

Read more here. 

 

MORE MONEY PLEASE: States are in need of further funding from the federal government to fully secure elections, a report published Thursday found, citing six states as examples.

The report was compiled by the Brennan Center for Justice, the R Street Institute, the University of Pittsburgh’s Institute for Cyber Law, Policy and Security, and the Alliance for Securing Democracy. It spotlights Alabama, Arizona, Illinois, Louisiana, Oklahoma and Pennsylvania.

“Elections are the pillar of American democracy, and, as we saw in 2016 and 2018, foreign governments will continue to target them,” the authors wrote in the report. “States cannot counter these adversaries alone, nor should they have to. But at a time when free and fair elections are increasingly under attack, they can, with additional federal funding, safeguard them.”

Four of the states reported that future federal funds are needed to replace “legacy” or older voting equipment that have cyber vulnerabilities, while several other states cited the need for funding to train election officials in cybersecurity. 

Pennsylvania specifically reported the need for regular county cybersecurity assessments of election systems, while in Oklahoma, the authors pointed to the need for funding to conduct post-election audits, which ensure that the voting tally is correct. 

The report noted that “it is clear that the other 44 states and the District of Columbia have similar unfunded needs.”

Read more here. 

 

NEW CYBER BILL: A bipartisan group of senators on Thursday introduced legislation to increase cybersecurity training for U.S. high school students involved in the Junior Reserve Officers’ Training Corps (JROTC) in an effort to increase overall cyber defense training.

The JROTC Cyber Training Act would direct the secretary of Defense to create a program to enhance the preparation of JROTC high school students for military or civilian careers in cybersecurity and computer science, including internship or research opportunities and funding for training.

The bill is sponsored by Sens. Jacky RosenJacklyn (Jacky) Sheryl RosenSenators introduce legislation to boost cyber defense training in high school Key endorsements: A who’s who in early states Female senators hatch plan to ‘shame’ Senate into voting faster MORE (D-Nev.), Marsha BlackburnMarsha BlackburnSocial media summit highlights partisan approaches on tech Trump announces, endorses ambassador to Japan’s Tennessee Senate bid Hillicon Valley: Trump rails against ‘terrible bias’ at White House social media summit | Twitter hit by hour-long outage | Google admits workers listen to smart device recordings MORE (R-Tenn.), John CornynJohn CornynDemocratic Houston councilwoman announces Senate bid Trump angry more Republicans haven’t defended his tweets: report White House, Congress inch toward debt, budget deal MORE (R-Texas) and Gary PetersGary Charles PetersSenators introduce legislation to boost cyber defense training in high school Alarm sounds over census cybersecurity concerns Trump’s pick to lead Pentagon glides through confirmation hearing MORE (D-Mich.).

According to Rosen’s office, the bill has the potential to bring computer science and cybersecurity training to 500,000 students nationwide at 3,400 schools with JROTC programs.

Read more here. 

 

ANOTHER ZUCKERBERG HEARING?: Rep. Maxine WatersMaxine Moore WatersHere are the 95 Democrats who voted to support impeachment Maxine Waters says her committee will call in Zuckerberg to testify about Libra Hillicon Valley: Lawmakers struggle to understand Facebook’s Libra project | EU hits Amazon with antitrust probe | New cybersecurity concerns over census | Robocall, election security bills head to House floor | Privacy questions over FaceApp MORE (D-Calif.) is planning to call in Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergMaxine Waters says her committee will call in Zuckerberg to testify about Libra Hillicon Valley: Lawmakers struggle to understand Facebook’s Libra project | EU hits Amazon with antitrust probe | New cybersecurity concerns over census | Robocall, election security bills head to House floor | Privacy questions over FaceApp House asks Facebook: ‘What is Libra?’ MORE to testify about his company’s new digital currency project Libra, Waters told The Hill on Wednesday. 

Waters had floated the idea during a House Financial Services Committee hearing earlier in the day and later confirmed it is something the Democrats on the committee plan to pursue.

“We’ll have hearings, we’re going to continue to have investigations, we’re going to get Zuckerberg here,” Waters said.

She added that her staff has not made the formal request with Facebook yet, but they plan to do so.

“The absolute public request was made today by Mr. Sherman,” she said, referring to Rep. Brad ShermanBradley (Brad) James ShermanHere are the 95 Democrats who voted to support impeachment Maxine Waters says her committee will call in Zuckerberg to testify about Libra Hillicon Valley: Lawmakers struggle to understand Facebook’s Libra project | EU hits Amazon with antitrust probe | New cybersecurity concerns over census | Robocall, election security bills head to House floor | Privacy questions over FaceApp MORE (D-Calif.), who was the first lawmaker on the committee to call for Zuckerberg’s appearance. “I’m taking that up.”

David Marcus, the head of Facebook subsidiary Calibra, testified before the House Financial Services Committee – which Waters chairs – during a marathon hearing on Wednesday. He fielded tough and sometimes aggressive questions from lawmakers over how the new digital currency could be abused by criminals.

“This is an attempt to transfer enormous power from America to Facebook and a number of its allies,” Sherman said. “We need Zuckerberg here.”

The ranking member of the House Financial Service Committee, Rep. Patrick McHenryPatrick Timothy McHenryMaxine Waters says her committee will call in Zuckerberg to testify about Libra House asks Facebook: ‘What is Libra?’ Hillicon Valley: Critics push FTC to get tough on YouTube | Analysts expect regulatory trouble for Facebook’s cryptocurrency | Senators to get election security briefing | FBI, ICE reportedly using driver’s license photos for facial recognition MORE (R-N.C.), told The Hill he would not get behind that effort.

“I don’t think it’s necessary,” he said. “Bringing in the CEO of a company about one of their projects is not the best use of our time.”

“Let’s not make this about one company with one project or one highly polarizing figure of corporate America,” he said. “I don’t think it’s additive to the conversation, nor do I think it’s gonna bring deeper understanding about the project.”

Facebook had no comment.

Read more here.

 

AN OP-ED TO CHEW ON: Law enforcement must recognize pitfalls of facial recognition technology 

 

A LIGHTER CLICK: Why the Area 51 meme is good. 

 

NOTABLE LINKS FROM AROUND THE WEB: 

AI has a bias problem and that can be a big challenge in cybersecurity. (CNBC)

G7 finance chiefs pour cold water on Facebook’s digital coin plans. (Reuters)

U.S. Cyber Command simulated a seaport cybersecurity attack to test digital readiness (CyberScoop)

Here’s what we know about the Russian company behind FaceApp. (The Washington Post)

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George Nader, a key witness in former special counsel Robert MuellerRobert (Bob) Swan MuellerTop Republican considered Mueller subpoena to box in Democrats Kamala Harris says her Justice Dept would have ‘no choice’ but to prosecute Trump for obstruction Dem committees win new powers to investigate Trump MORE’s Russia investigation with links to associates of President TrumpDonald John TrumpCould Donald Trump and Boris Johnson be this generation’s Reagan-Thatcher? Merkel backs Democratic congresswomen over Trump How China’s currency manipulation cheats America on trade MORE, has been indicted on sex trafficking charges, according to multiple reports.

The three-count indictment, unsealed on Friday in the Eastern District of Virginia, accuses the Lebanese American businessman of transporting a 14-year-old boy from Europe for sexual activity, The Washington Post reports.

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Nader, 60, has pleaded not guilty and is set to stand trial Sept. 30, the Post reported.

Prosecutors allege that Nader brought the boy to the U.S. through Dulles International Airport and to his Washington home for sexual activity, the Post reported.

He was denied bail by U.S. District Judge Leonie Brinkema, who cited “the nature of the charges and [his] extensive overseas connections,” according to the newspaper.

In initial charges filed earlier this year, authorities accused Nader of possessing child pornography when he arrived at John F. Kennedy Airport from Dubai in January 2018. The Justice Department said at the time that Nader pleaded guilty in 1991 to the same charge of transporting explicit images of minors.

Nader’s attorney told the Post in a statement that “none of the text messages surrounding the videos at issue (all but two of which were allegedly sent to the iPhone in question) indicate that Mr. Nader in any way solicited this content.” They added that the new charge of transporting a child is “factually unfounded” and outside the statute of limitations.

Nader was a key figure in Mueller’s investigation into Russian interference in the 2016 election, sitting for multiple interviews, including one that was conducted under a “proffer agreement” — a potential signal that he believed he could be charged with crimes and spoke to prosecutors on the condition his statements wouldn’t be used against him.

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Negotiations between the Trump administration and Speaker Nancy PelosiNancy PelosiDHS chief to Pelosi: Emergency border funding ‘has already had an impact’ The Hill’s Morning Report: Trump walks back from ‘send her back’ chants Trump faces new hit on deficit MORE (D-Calif.) on a two-year budget and debt ceiling deal are spilling over into the weekend amid growing signs of alarm from conservatives. 

The talks are down to discussions over the amount of cuts, or offsets, that will be included to help pay for the agreement to increase total defense and nondefense spending over the next two years. 

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The administration is pushing for at least $150 billion in cuts to be included in the agreement. The White House reportedly sent a list of $574 billion in potential cuts to congressional leaders. 

A Democratic source close to talks characterized the list as an opening salvo from the administration as the two sides haggle.

“This is the White House’s starting point for negotiations on this aspect. They understand these levels are non-starters for us. Talks will continue,” the source said. 

But the back-and-forth comes as negotiators have little time to finalize a deal by Pelosi’s deadline of Friday night. The House is set to leave on June 26 until after Labor Day. Pelosi had seen Friday night as a necessary deadline to ensure the House could conclude work on the deal before leaving town at the end of next week.  

Pelosi and Mnuchin spoke on Friday for approximately 15 minutes, a Pelosi aide said early Friday evening, adding that “conversations will continue.”

Democratic leadership and Treasury Secretary Steven MnuchinSteven Terner MnuchinHow China’s currency manipulation cheats America on trade The Hill’s Morning Report: Trump walks back from ‘send her back’ chants Trump faces new hit on deficit MORE indicated on Thursday that they were close to a final deal after they reached an agreement on top-line defense and nondefense spending numbers for fiscal 2020 and 2021. The agreement would also raise the debt ceiling past the 2020 election. 

Schumer told reporters Thursday afternoon that offsets were the “major outstanding issue.” 

“That’s what we’re discussing. We’re close. And I think there’s a desire to come to an agreement from all of us. My worry here [is] …  if Mulvaney tries to be too hard on the offset side that we wouldn’t come to an agreement,” Schumer said, referring to acting White House chief of staff Mick MulvaneyJohn (Mick) Michael MulvaneyThe Hill’s Morning Report: Trump walks back from ‘send her back’ chants Trump faces new hit on deficit GOP wants commitment that Trump will sign budget deal MORE. 

There are signs of a rift within the Trump administration over the looming agreement.  

After Pelosi told reporters she wanted a deal by Friday night, a senior administration official hit back at the Speaker, accusing her of “happy talk” and stating that there was still “a way to go” in the negotiations.

Conservative lawmakers and outside groups also began raising red flags about a potential budget and debt ceiling deal on Friday, underscoring the pushback Trump could face is he signs on to the agreement. Conservatives tried, unsuccessfully, to kill a 2018 budget deal. 

“Republican negotiators from Congress and the White House cannot allow such a deal to proceed, particularly when the end result will be a Democratic-led crusade to use poison-pill spending riders to undercut the White House’s deregulatory agenda, homeland safeguards and pro-life policies,” Republican Study Committee (RSC) Chairman Sen. Mike JohnsonJames (Mike) Michael JohnsonHouse gears up for Mueller testimony New Zealand launches gun buyback program in response to mosque shootings Stacey Abrams urges lawmakers to restore Voting Rights Act MORE (R-La.) and RSC Budget and Spending Task Force Chairman Rep. Jim Banks (R-Ind.) said in a joint statement.

They added that “House conservatives are deeply concerned about the latest reports regarding the status of a budget caps deal” and that based on reports it would be a “far cry from the fiscally responsible path represented by President TrumpDonald John TrumpCould Donald Trump and Boris Johnson be this generation’s Reagan-Thatcher? Merkel backs Democratic congresswomen over Trump How China’s currency manipulation cheats America on trade MORE’s budget request.”

The Club for Growth is taking issue with the deal because it would add to the debt, saying “congressional Leadership continues to aggressively pursue spending agreements that propel our country toward bankruptcy and fiscal crisis.” 

The Committee for Responsible Federal Budget, a budget watchdog group, said in a statement Friday that any budget deal shouldn’t add to the debt.

Meanwhile, the Heritage Foundation argued that Congress should reject a budget caps deal and “instead focus on constitutional priorities, such as national defense, within the current cap levels.” 

“However, if Congress does pursue an agreement to raise discretionary spending, it must ensure that any new spending is fully offset by immediate mandatory spending reforms,” the group added.

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The intelligence community has crafted a position to oversee threats to election security, officials announced Friday, the latest effort to shore up security heading into the 2020 presidential elections.

Director of National Intelligence (DNI) Daniel Coats has appointed Shelby Pierson to serve as the first “election threats executive” (ETE), tasking her to be the intelligence community’s “principal advisor” on election security threats.

Pierson served as the crisis manager for election security for the Office of the Director of National Intelligence during the 2018 midterm elections, and has worked in the intelligence community for more than 20 years.

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Coats praised Pierson and said her “knowledge and experience make her the right person to lead this critical mission.”

The DNI noted in a statement that “Election security is an enduring challenge and a top priority for the IC [intelligence community]. In order to build on our successful approach to the 2018 elections, the IC must properly align its resources to bring the strongest level of support to this critical issue.”

Along with establishing the new position, Coats also directed all intelligence agencies that have a role in securing elections to designate a lead executive to work with the ETE to help coordinate election security efforts for the administration.

Additionally, Coats announced that Pierson will chair the newly formed IC Election Executive and Leadership Board, which will serve as the primary lead for coordinating election security programs on behalf of the intelligence community. The board will be made up of senior executives from the intelligence sector and from all relevant U.S. government organizations.

The decision comes months after Coats testified before the Senate Intelligence Committee that “our adversaries and strategic competitors probably already are looking to the 2020 US elections as an opportunity to advance their interests,” specifically pointing to threats to elections from Russia, China and Iran.

The move also comes amid reports last week that President TrumpDonald John TrumpCould Donald Trump and Boris Johnson be this generation’s Reagan-Thatcher? Merkel backs Democratic congresswomen over Trump How China’s currency manipulation cheats America on trade MORE has considered removing Coats as his intelligence chief, though it was reportedly unclear if the president would actually take action to remove him.

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