Cybersecurity Compliance
CIRCIA Compliance: Preparing for New Cyber Incident Reporting Rules
Why CIRCIA Requirements Are Important
The Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) introduces mandatory reporting requirements for substantial cyber incidents and ransomware payments. Organizations operating in critical infrastructure sectors must prepare now to ensure compliance before the rules take effect. Failure to report incidents on time could result in penalties and regulatory action.
Overview of CIRCIA Reporting Requirements
The Cybersecurity and Infrastructure Security Agency (CISA) is finalizing the regulations for CIRCIA, which will require covered entities to report substantial cyber incidents within 72 hours and ransomware payments within 24 hours. The proposed rule, expected to be finalized in late 2025, will apply to over 300,000 organizations across 16 critical infrastructure sectors, including healthcare, IT, financial services, and energy. In the very near future, organizations of all sizes must have people, processes, and technologies in place to detect, investigate, and report on cybersecurity incidents and data breaches.
The regulation emphasizes swift incident reporting to foster transparency and information sharing which in turn enhances national cybersecurity resilience. Covered entities will need to track and retain specific details of incidents, including a timeline, technical indicators, and any information that could help identify the attackers. CISA has committed to protecting submitted information from public disclosure while imposing penalties for noncompliance, including potential imprisonment for false reporting.
What CIRCIA Requirements Contain
CIRCIA introduces stringent incident response and reporting mandates for organizations classified as critical infrastructure. The proposed rule outlines several key requirements:
- Who is Covered? Organizations that exceed 500 employees or $7.5 million in revenue, as well as businesses operating in one of the 16 designated critical sectors.
- What Must Be Reported? Any cyber incident that leads to substantial loss of confidentiality, operational disruption, or unauthorized access via third parties or supply chain compromises.
- How Quickly? Covered entities must report cyber incidents within 72 hours and ransomware payments within 24 hours.
- What are the Consequences for Noncompliance? Organizations that fail to report incidents accurately and on time could face significant fines, legal liabilities, and criminal penalties, including up to eight years in prison for fraudulent reporting.
Organizations must start preparing now by aligning their cybersecurity incident response plans with CIRCIA’s forthcoming requirements, integrating reporting mechanisms, and ensuring compliance with data retention guidelines.
The Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) represents a major shift in cybersecurity governance. While this framework aims to enhance national security, the recent Executive Order by the Trump Administration and the June 28, 2024, Supreme Court ruling striking down the Chevron Doctrine pose significant uncertainty regarding the role Cybersecurity and Infrastructure Security Agency (CISA) will play in the Trump Administration and how CISA’s enforcement authority will ultimately function in the days ahead.
January 20, 2025 Executive Order: Regulatory Freeze Pending Review
The recent Executive Order by the Trump administration to Freeze Pending Review has significant implications for the CIRCIA legislation. This executive order, signed on January 20, 2025, mandates a freeze on all agencies and executive departments to review pending regulations. Since the CIRCIA rule has not yet been finalized, this freeze could delay the implementation of the mandatory reporting requirements for substantial cyber incidents and ransomware payments. In a February 28, 2025 letter, a collection of banking industry groups argued that the current proposed rule goes beyond the scope of Congressional intent and poses an unnecessary risk to victim companies by forcing them to devote resources to filing government reports rather than focusing on responding to cyberattacks. Although the delay could provide additional time for organizations to align their incident response plans with the forthcoming requirements, opposition from lobbying groups and the Administration’s desire for increased scrutiny, could result in revised regulations from CISA under the Trump Administration.
Supreme Court Decision
Additionally, the Supreme Court's decision on June 28, 2024, to strike down the Chevron Doctrine further complicates the regulatory landscape. The Chevron Doctrine previously allowed agencies like CISA to interpret ambiguous statutory language. With this doctrine no longer in place, the responsibility to interpret such language shifts to the courts. This change could impact CISA's ability to enforce CIRCIA effectively, as the agency may face legal challenges and delays in interpreting and implementing the regulations. In the midst of significant uncertainty, organizations must be prepared for potential shifts in regulatory interpretations and ensure their compliance strategies are adaptable to evolving legal standards.
Data Privacy Tip
Evolving cybersecurity and compliance requirements demand a structured and automated approach to incident response and regulatory reporting. Organizations must proactively establish a CIRCIA-aligned incident response playbook, ensuring robust data retention policies, efficient reporting procedures, and seamless collaboration with third parties before enforcement begins in 2026.
Prepare now to stay ahead of compliance challenges—download this guide to Cyber Incident Response and learn how to strengthen your breach response strategy.