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CMMC for AI? Defense Policy Law Imposes AI Security Framework and Requirements on Contractors

By Matthew Ferraro, Kate Growley, Michael G. Gruden, CIPP/G, Jacob Canter, Jacob Harrison & Vanessa A. Perumal on January 8, 2026
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In an important first, the yearly defense policy law, the National Defense Authorization Act (NDAA) for Fiscal Year 2026, directs the Department of Defense (DoD)  to develop and implement a framework addressing the cybersecurity and physical security of artificial intelligence and machine learning technologies (AI/ML) acquired by the Pentagon.

The NDAA (at Section 1513) also directs the DoD to incorporate this framework—once developed—into the Defense Federal Acquisition Regulation Supplement (DFARS) and the Cybersecurity Maturity Model Certification (CMMC) program to ensure that contractors developing, deploying, storing, or hosting AI/ML for DoD comply with the framework.  CMMC, a unified assessment model for defense contractors handling certain categories of regulated data, was finalized in the autumn of 2025 and is expected to apply to the entire defense industrial base.

Given the size and scope of DoD procurement, these contracting provisions will have a significant impact on the development of cybersecurity standards for AI/ML in the general market and may help establish de facto industry standards that extend beyond the national security sector.

AI/ML Security Framework:

  • The DoD framework will be designed to address AI/ML-specific security risks, including supply chain vulnerabilities, such as data poisoning (e.g., when attackers contaminate the datasets on which ML models train to misclassify information, generate biased output, or embed hidden vulnerabilities), adversarial tampering (e.g., when attackers deliberately compromise hardware, software, data, or processes), and unintentional data exposure (e.g., when sensitive data is accidently disclosed through mistakes in configuration, handling, access controls, or processes).
  • The framework will be informed by established cybersecurity standards, including the NIST Special Publication 800 series, that include guidelines, recommendations, technical specifications, and annual reports of NIST’s cybersecurity activities.
  • The framework must be implemented as “an extension or augmentation” of existing DoD cybersecurity frameworks, including CMMC.
  • The framework will focus on highly capable AI systems that may be of highest interest to cyber threat actors, applying stringent security requirements that align with protections for national security systems.
  • The framework will apply to “covered” AI/ML, defined as AI/ML acquired by DoD and all associated components, including source code, model weights, and the methods, algorithms, data, and software used to develop the AI/ML.

DFARS Security Requirements for Contractors:

  • The DFARS will be amended to mandate that DoD contractors implement the framework’s best practices.
  • The framework will guide the specific security measures that contractors must adopt, ensuring they are tailored to the particular AI/ML technologies and tasks that they handle.
  • In creating new DFARS regulations, the DoD must conduct a cost-benefit exercise weighing the benefits of imposing new security requirements against the costs of slowing down AI/ML development and deployment.
  • The security requirements will apply to “covered entit[ies],” defined as entities entering into contracts or agreements with the DoD for the development, deployment, storage, or hosting of covered AI/ML.

Section 1513 does not provide an implementation deadline for the framework or security requirements but instructs the DoD to create a plan establishing implementation timelines and milestones and to provide a status update to Congress by June 16, 2026.  Notably, CMMC began with a provision in the FY2020 NDAA and took years to finalize, only recently coming into effect.  Despite its slow burn, many contractors have found themselves unprepared for CMMC’s roll-out.  To avoid similar challenges here, contractors focused on developing AI/ML technologies should closely monitor the establishment and implementation of these requirements.

Photo of Matthew Ferraro Matthew Ferraro

Matthew F. Ferraro is a partner in Crowell & Moring’s Privacy and Cybersecurity Group, where he helps clients address complex regulatory matters at the intersection of advanced technology, national security, and crisis management. He advises leading organizations on high-impact matters related to artificial

…

Matthew F. Ferraro is a partner in Crowell & Moring’s Privacy and Cybersecurity Group, where he helps clients address complex regulatory matters at the intersection of advanced technology, national security, and crisis management. He advises leading organizations on high-impact matters related to artificial intelligence (AI) and other emerging technologies, cyberattacks, domestic and international privacy compliance, internal investigations, foreign direct investment reviews, and high-stakes crises.

Before joining the firm, Matthew served as the Senior Counselor for Cybersecurity and Emerging Technology to the Secretary of Homeland Security. As a principal advisor to the Secretary and a member of the U.S. Department of Homeland Security’s leadership team, he served at the heart of U.S. government policymaking around AI and cybersecurity. He assisted in the development and drafting of key AI, cyber, and technology policies and regulations; advised on the deployment of AI to fulfill the department’s missions; and counseled on cyber-incident responses and investigations. Matthew also helped establish and served as the Executive Director of the Artificial Intelligence Safety and Security Board, a flagship public-private advisory committee focused on AI’s use in critical infrastructure and chaired by the Secretary and composed of industry, nonprofit, and government luminaries.

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Photo of Kate Growley Kate Growley

Kate M. Growley (CIPP/US, CIPP/G) is a director with Crowell & Moring International and based in Hong Kong. Drawing from over a decade of experience as a practicing attorney in the United States, Kate helps her clients understand, navigate, and shape the policy…

Kate M. Growley (CIPP/US, CIPP/G) is a director with Crowell & Moring International and based in Hong Kong. Drawing from over a decade of experience as a practicing attorney in the United States, Kate helps her clients understand, navigate, and shape the policy and regulatory environment for some of the most complex data issues facing multinational companies, including cybersecurity, privacy, and digital transformation. Kate has worked with clients across every major sector, with particular experience in technology, health care, manufacturing, and aerospace and defense. Kate is a Certified Information Privacy Professional (CIPP) in both the U.S. private and government sectors by the International Association of Privacy Professionals (IAPP). She is also a Registered Practitioner with the U.S. Cybersecurity Maturity Model Certification (CMMC) Cyber Accreditation Body (AB).

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Photo of Michael G. Gruden, CIPP/G Michael G. Gruden, CIPP/G
Read more about Michael G. Gruden, CIPP/G
Photo of Jacob Canter Jacob Canter
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  • Posted in:
    Administrative, Corporate Compliance
  • Blog:
    Government Contracts Legal Forum
  • Organization:
    Crowell & Moring LLP
  • Article: View Original Source

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