An Update on DoD’s Struggling Background Check System

Defense Posture and Global ThreatsHouse Oversight and Government Reform Subcommittee on Government Operations · 2026-02-24 · 119th Congress
The House Oversight Subcommittee on Government Operations held this follow-up hearing to examine the Department of War's National Background Investigation Services (NBIS) system, which is meant to modernize federal security clearance processing but remains years behind schedule and billions over its original budget. Begins at 0:17:07
Transcript
Highlights

Title

DoD's NBIS background check system remains years late, billions over budget

Purpose

The House Oversight Subcommittee on Government Operations held this follow-up hearing to examine the Department of War's National Background Investigation Services (NBIS) system, which is meant to modernize federal security clearance processing but remains years behind schedule and billions over its original budget. Witnesses Justin Overbaugh, Acting Director of the Defense Counterintelligence and Security Agency (DCSA), and Alissa Czyz of GAO testified on program costs, scheduling failures, cybersecurity fixes, and the lack of a permanent DCSA director since July 2025. Begins at0:17:07

Who spoke

Chairman Pete Sessions (R-TX)0:17:07: Opened by noting NBIS is now more than eight years behind schedule, with completion pushed from 2019 to 20280:20:48, and pressed that DCSA has lacked a permanent director for over seven months since David Kettler's retirement0:24:45; later pushed both witnesses on whether delays stem from people or systems problems and demanded a prioritized list of critical systems needing fixes1:33:15.

Ranking Member Kweisi Mfume (D-MD)0:25:35: Said the government has spent about $2.4 billion on NBIS and legacy sustainment since 2017, with another $2.2 billion needed to finish0:27:43; demanded a named permanent director, a full cost profile, and quarterly briefings with five-day notice of any slipped milestones0:32:28; later cited the department's 7-8 straight failed audits and asked whether the Secretary has personally directed urgency down the chain, contrasting it with the Marine Corps' commandant-driven fix1:44:261:45:38.

Justin Overbaugh, Acting DCSA Director / Deputy Under Secretary of Defense for Intelligence and Security0:39:27: Testified that prior DCSA leadership's assessment of being "on track" was too optimistic and that the agency suffered an identity crisis lacking unified culture and mission focus0:40:27; said Under Secretary Hansell dismissed prior DCSA leadership because transformation "must be complete and total"0:41:35; committed to producing a business operationalization/synchronization schedule with critical paths and risks by March-April0:55:12; said he has no immediate plans to reduce DCSA's workforce1:01:31; acknowledged the current investigative backlog is about 100,000 cases, with a team goal of reducing it to about 70,0001:37:51.

Alissa Czyz, GAO Director, Defense Capabilities and Management0:47:12: Said it takes over 200 days to grant a Top Secret clearance, 80% longer than the government's goal0:47:37; said NBIS costs have risen to about $4.6 billion total, a 100% increase over prior projections0:50:27; testified DCSA's schedule remains unreliable because no risk analysis has been done0:49:26; noted 46% of Trusted Workforce 2.0 milestones tied to NBIS have slipped in the past nine months1:09:11; said progress is "recent" and "fragile" without sustained leadership1:21:50.

Rep. Virginia Foxx (R-NC)0:52:18: Pressed Overbaugh on how NBIS delays affect other federal agencies awaiting clearances0:53:13 and on what concrete steps are being taken given the added $2.2 billion cost and 2028 timeline0:54:16; asked Czyz whether DCSA's 2024 cybersecurity recommendations were implemented0:56:35.

Rep. James Walkinshaw (D-VA)0:58:25: Questioned whether Overbaugh has the bandwidth to manage NBIS while also overseeing DIA, NGA, NRO, and NSA duties0:58:51; asked about potential DCSA workforce reductions1:00:39 and requested an organizational chart1:02:02.

Rep. Tim Burchett (R-TN)1:12:37: Asked Czyz whether all 13 of GAO's 2024 cybersecurity recommendations were implemented, confirming they were within one year1:13:36; asked Overbaugh about steps taken to fix DCSA's culture1:16:02 and whether encryption can ever be fully secure1:17:16.

Key moments

Czyz testified NBIS has cost the government about $2.4 billion since 2017, with another $2.2 billion projected to finish it — bringing the total to roughly $4.6 billion, a 100% increase over prior estimates0:50:27.

Overbaugh directly contradicted prior DCSA testimony that the agency was "largely on track," calling that assessment "too optimistic" and describing an agency "in the midst of an identity crisis"0:40:27.

Czyz disclosed that GAO's recent analysis found 46% of Trusted Workforce 2.0 milestones tied to NBIS have slipped in the past nine months due to NBIS delays1:09:11.

Czyz revealed DCSA's statutory Requirements Board, meant to meet quarterly, had met only in June and then not again until "last Friday" — effectively once a year1:08:18.

Mfume noted DCSA has failed 7 or 8 straight audits and, citing GAO's cross-agency analysis, said the Marine Corps succeeded where other services failed because the Commandant issued a direct top-down order — asking whether Secretary Hegseth has issued a comparable directive on filling the DCSA director vacancy1:43:031:45:38.

Overbaugh acknowledged responsibility for pre-existing failures, telling Mfume "everything that this organization does or fails to do is now my responsibility... we own them"1:10:55.

Czyz said DCSA's cost estimate was previously "not accurate, not comprehensive, not credible, and not well documented" and could not be relied upon for planning, though it has since improved via an independent cost estimate1:06:51.

Sessions revealed the subcommittee never received a response to a letter it sent the Secretary, calling for professional acknowledgment of correspondence from Congress1:49:26.

Overbaugh disclosed DCSA has 163 different locations nationwide and admitted the agency lacks a way to "visualize the performance" of the whole organization "succinctly and clearly"1:24:46.

Czyz stated the current top-secret clearance timeline of over 200 days is 80% longer than the government's own goal, which Overbaugh acknowledged as a serious concern still being addressed1:37:261:37:51.

Metadata

CommitteeHouse Oversight and Government Reform Subcommittee on Government Operations
Chamber / CongressHouse · 119th Congress
Date2026-02-24
TypeHearing
Witnesses
The Honorable Justin Overbaugh — Deputy Under Secretary of Defense for Intelligence and Security / Acting Director, Defense Counterintelligence and Security Agency, U.S. Department of War
Ms. Alissa Czyz — Director, Defense Capabilities and Management, U.S. Government Accountability Office
Videoyoutube
Transcript220 caption blocks · 13,882 words · 1:51:48 runtime
EventCongress.gov 118987