National security secrecy costs now exceed $10 Billion

The rise in national security secrecy in the first year of the Obama Administration was matched by a sharp increase in the financial costs of the classification system, according to a new report to the President (pdf).

The estimated costs of the national security classification system grew by 15% last year to reach $10.17 billion, according to the Information Security Oversight Office (ISOO). It was the first time that annual secrecy costs in government were reported to exceed $10 billion.

An additional $1.25 billion was incurred within industry to protect classified information, for a grand total of $11.42 in classification-related costs, also a new record high.

The cost estimates, based on the classification-related activities of 41 executive branch agencies, were reported to the President by ISOO on April 29 and released yesterday. They include the estimated costs of personnel security (clearances), physical security, information systems security, as well as classification management and training — all of which increased last year.

Many factors contribute to the rise in secrecy costs, but one of them is widespread overclassification. Ironically, the new ISOO report provides a vivid illustration of the overclassification problem.

ISO 2010 Cost Report:
http://www.fas.org/sgp/isoo/2010costs.pdf
Link:
http://www.fas.org/blog/secrecy/2011/05/ten_billion.html