United States Obtains Final Judgment and Permanent Injunction Against Edward Snowden

On Sept. 29, 2020, the U.S. District Court for the Eastern District of Virginia entered a final judgment and permanent injunction against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA).

In September 2019, the United States filed a lawsuit against Snowden, who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA. The lawsuit alleged that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.

The United States’ lawsuit did not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government sought to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.

In December 2019, the U.S. District Court for the Eastern District of Virginia, found in favor of the United States in the suit against Snowden on the issue of liability and held that Snowden breached his contractual and fiduciary obligations to the CIA and NSA by publishing Permanent Record and giving prepared remarks within the scope of his pre-publication review obligations, but reserved judgment on the scope of these violations or the remedies due to the government.  On Tuesday, the court entered judgment in the government’s favor in an amount exceeding $5.2 million and imposed a constructive trust for the benefit of the United States over those sums and any further monies, royalties, or other financial advantages derived by Snowden from Permanent Record and 56 specific speeches. 

“Edward Snowden violated his legal obligations to the United States, and therefore, his unlawful financial gains must be relinquished to the government,” said Deputy Attorney General Jeffrey A. Rosen.  “As this case demonstrates, the Department of Justice will not overlook the wrongful actions of those who seek to betray the trust reposed in them and to personally profit from their access to classified national security information.”

“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This judgment will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”

“We will pursue those who take advantage of sensitive positions in government to profit from the classified information learned during their government service,” said Jeffrey Bossert Clark, Acting Assistant Attorney General of the Civil Division.

This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.

This matter is being handled by the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division.

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    The 12 million wage-earning adults (ages 19 to 64) enrolled in Medicaid—a joint federal-state program that finances health care for low-income individuals—and the 9 million wage-earning adults in households receiving food assistance from the federal Supplemental Nutrition Assistance Program (SNAP) shared a range of common labor characteristics. For example, approximately 70 percent of adult wage earners in both programs worked full-time hours (i.e., 35 hours or more) on a weekly basis and about one-half of them worked full-time hours annually (see figure). In addition, 90 percent of wage-earning adults participating in each program worked in the private sector (compared to 81 percent of nonparticipants) and 72 percent worked in one of five industries, according to GAO’s analysis of program participation data included in the Census Bureau’s 2019 Current Population Survey. When compared to adult wage earners not participating in the programs, wage-earning adult Medicaid enrollees and SNAP recipients in the private sector were more likely to work in the leisure and hospitality industry and in food service and food preparation occupations. Estimated Percentage of Wage-Earning Adult Medicaid Enrollees and Supplemental Nutrition Assistance Program (SNAP) Recipients Working at Least 35 Hours per Week, by Number of Weeks Worked in 2018 GAO’s analysis of February 2020 program data from 15 agencies—six Medicaid agencies and nine SNAP agencies—across 11 states shows that a majority of working adult Medicaid enrollees and SNAP recipients in these states worked for private sector employers. GAO’s analysis also shows that the percentage of working adult Medicaid enrollees and SNAP recipients working for any one employer did not exceed 4 percent in any state that provided data. Most working adults in the programs worked for private sector employers concentrated in certain industries, including restaurants, department stores, and grocery stores. Smaller percentages of working adults in each program in these states worked outside the private sector. For example, less than 10 percent worked for public sector employers, such as state governments, the U.S. Postal Service, or public universities; others worked for nonprofit organizations, such as charities, hospitals, and health care networks, or were self-employed. In October 2020, GAO issued a report entitled Federal Social Safety Net Programs Millions of Full-Time Workers Rely on Federal Health Care and Food Assistance Programs (GAO-20-45.) This testimony summarizes the findings of that report, which examined (1) what is known about the labor characteristics of wage-earning adult Medicaid enrollees and SNAP recipients, and (2) what is known about where wage-earning adult Medicaid enrollees and SNAP recipients work. To answer these questions, GAO analyzed recent Census Bureau data on the labor characteristics of working adults in the two programs. GAO also analyzed recent (Feb. 2020) non-generalizable data on the employers of working adult Medicaid enrollees and SNAP recipients obtained from 15 state agencies across 11 states. GAO selected state agencies that (1) collected, verified, and updated the names of Medicaid enrollees’ and SNAP recipients’ employers; and (2) could extract reliable data. GAO made no recommendations. For more information, contact Cindy S. Brown Barnes at (202) 512-7215 or brownbarnesc@gao.gov.  
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    In U.S GAO News
    The Department of Defense (DOD) has not routinely assessed climate-related risks faced by its contractors as part of its acquisition and supply processes, through which DOD obtains contracted goods and services. DOD's acquisition process includes long-term planning activities such as life-cycle sustainment planning. Its supply chain process includes steps to identify and assess potential disruptions, such as severe storms affecting transportation or energy systems, in order to mitigate risk. However, these processes in general do not systematically identify and consider climate-related risks to materiel acquisition and supply or the acquisition of weapon systems, according to Office of the Secretary of Defense (OSD) and military department officials. DOD's climate change adaptation directive indicates that OSD and the military departments should include climate considerations in acquisition and supply and integrate those considerations into relevant policy and guidance. However, GAO's review of DOD and military department guidance on acquisition and supply found that the guidance did not implement DOD's climate change directive by including consideration of climate change or extreme weather. Until DOD and the military departments include these considerations in their guidance on acquisition and supply chain processes, they risk continuing to develop acquisition strategies and managing supply chains without building climate resilience into these processes and potentially jeopardizing their missions. DOD guidance requires consideration of climate-related risks as part of the mission assurance process, when appropriate. However, GAO found that the department has not assessed risks—including those associated with climate change or extreme weather—to commercially owned facilities, which can support DOD installations as well as weapon systems, as part of this process. Assessing risks to commercial facilities has been a longstanding challenge for DOD, with the department noting in 2012 that it had paid inadequate attention to challenges outside of DOD-owned facilities and citing a limited understanding of supply chain risks as a pervasive problem. DOD's mission assurance guidance includes minimum requirements for assessments of certain non-DOD-owned facilities, such as completion of an all-hazards threat assessment. However, DOD officials stated that they had not conducted such assessments. The officials noted that DOD is limited in its ability to conduct such assessments, as it does not have the same access to commercial facilities as it does to its own facilities. While DOD officials stated that they are exploring alternative ways of assessing risks to commercial facilities, they noted that these efforts are in the early stages. Without determining what approaches may be feasible for assessing risks to commercial facilities as part of the mission assurance process and issuing or updating guidance accordingly, DOD may not fully evaluate the risks to critical commercial facilities as part of the mission assurance process, leaving gaps in its knowledge of potential risks—to include climate and weather-related risks—to its ability to fulfill key missions dependent on such facilities. Since 2010, DOD has identified climate change as a threat to its operations and installations. The department relies on contracted goods and services for its mission and installations. Climate change is projected to have broad effects that could affect DOD's supply chains, and any associated risks to contractors can have an impact on DOD. One way DOD assesses risk to its missions is through mission assurance, which is a process to protect or ensure the function of capabilities and assets critical to its missions. GAO was asked to review potential threats to national security from the effects of climate change on defense contractors. GAO examined the extent to which DOD assesses the potential effects on its operations from climate change and extreme weather risks faced by its contractors through the department's (1) acquisition and supply processes, and (2) mission assurance process. GAO reviewed DOD acquisition, supply, and mission assurance documents and interviewed relevant DOD officials and contractor representatives. GAO is making six recommendations, including that DOD incorporate climate adaptation into its acquisition and supply guidance and issue or update guidance on mission assurance-related assessments for commercial facilities. DOD concurred with three recommendations and partially concurred with three. GAO continues to believe that DOD should fully implement its recommendations. For more information, contact Elizabeth A. Field at (202) 512-2775 or fielde1@gao.gov.
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    The Navy's schedule for constructing the first submarine of the new Columbia class is threatened by continuing challenges with the computer-aided software tool that Electric Boat, the lead shipbuilder, is using to design the submarine. These challenges will likely impede construction because the shipbuilder is late in completing design products used for building the submarine. To ensure construction begins on schedule, the Navy modified its design contract with Electric Boat to include an option for constructing the first two submarines and requested sufficient authority from Congress for fiscal year 2021 to exercise it. Navy officials stated, however, that the Navy's budget request is lower than its current cost estimate, and it is not informed by an independent cost assessment. As a result, the program will likely need more funding to reflect the increased estimate. Quality problems with supplier materials caused delays during early construction. These quality problems included missile tubes (depicted below) with defective welds. As the shipbuilders expand outsourcing to suppliers, quality assurance oversight at supplier facilities will be critical for avoiding further delays. Quad Pack of Four Submarine Missile Tubes However, the Navy has not comprehensively reassessed when to seek additional inspections at supplier facilities that could better position it to identify quality problems early enough to limit delays. The Navy plans to invest about $128 billion in 12 Columbia class nuclear-powered ballistic missile submarines. The shipbuilders will construct the Columbia class at the same time as the Virginia class attack submarines. They plan to rely on materials produced by a supplier base that is roughly 70 percent smaller than in previous shipbuilding booms. Congress included a provision in statute for GAO to examine the program's status. This report assesses the Navy's efforts to complete the design for the lead Columbia class submarine and actions the shipbuilders and the Navy have taken to prepare for construction and ensure the lead submarine is delivered according to schedule and quality expectations. GAO assessed Navy and shipbuilder design progress against cost and schedule estimates, reviewed documents, and interviewed officials about supplier readiness and quality assurance. This is a public version of a sensitive report that GAO issued in November 2020. Information that the Department of Defense (DOD) deemed sensitive has been omitted. GAO recommends that the Navy (1) provide Congress with updated cost information, (2) include information on supplier readiness in its annual report to Congress, and (3) reassess when to seek additional inspections at supplier facilities. DOD concurred with the recommendations but disagreed with some of the report's details. GAO incorporated DOD's comments as appropriate and maintains the validity of the findings, as discussed in the report. For more information, contact Shelby S. Oakley at (202) 512-4841 or oakleys@gao.gov.
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  • Nuclear Weapons: NNSA Plans to Modernize Critical Depleted Uranium Capabilities and Improve Program Management
    In U.S GAO News
    The Department of Energy's (DOE) National Nuclear Security Administration (NNSA) is taking steps to establish a new supply of high-purity depleted uranium (DU) to modernize the nuclear weapons stockpile. DU for fabrication of weapons components must be in high-purity metal form. Producing DU metal generally involves first converting a byproduct of uranium enrichment, known as “tails,” into a salt “feedstock,” which is then converted into metal. (See figure.) To reestablish a supply of feedstock, NNSA plans to install conversion equipment in an existing facility at DOE's Portsmouth site in Ohio. DOE initially estimated costs of $12 million to $18 million to design and install the equipment, with operations beginning in fiscal year 2022. However, in March 2020, NNSA requested an increase in conversion capacity, and an updated proposal in July 2020 estimated costs of $38 million to $48 million and a slight delay to the start of operations. NNSA plans to convert the feedstock into DU metal using a commercial vendor at a cost of about $27 million annually. Conversion of a Byproduct of Uranium Enrichment into Metal NNSA is also taking steps to reestablish and modernize DU component manufacturing capabilities, but it risks delays that could affect the timelines of nuclear stockpile modernization programs, according to officials. NNSA has reestablished processes for manufacturing some DU components but not for components made with a DU-niobium alloy, a material for which NNSA has no alternative. Thus, restarting the alloying process—a complicated, resource-intensive process that has not been done in over a decade—is NNSA's top priority for DU and presents a very high risk to timely supply of components for certain nuclear stockpile modernization programs, according to NNSA documents and officials. NNSA is also developing more efficient manufacturing technologies, in part because the current alloyed component process wastes a very high percentage of the materials and NNSA cannot recycle the waste. For its DU activities, NNSA has requested an increase in funding from about $61 million in fiscal year 2020 to about $131 million in fiscal year 2021. Until recently, NNSA had not managed DU activities as a coherent program in a manner fully consistent with NNSA program management policies. Since October 2019, however, NNSA has taken actions to improve program management. For example, NNSA has consolidated management and funding sources for DU activities under a new office and DU Modernization program with the goal of better coordinating across the nuclear security enterprise. Further, NNSA appointed two dedicated Federal Program Managers to gather and organize information for required program management and planning documents. High-purity DU is an important strategic material for ongoing and planned modernizations of the nation's nuclear weapons stockpile. However, according to NNSA estimates, NNSA has a very limited supply of DU feedstock, and its current supply of DU metal will be exhausted in the late 2020s. NNSA also does not have the full range of capabilities needed to manufacture DU into weapon components needed for modernizing the stockpile. GAO has previously reported that NNSA has experienced challenges in restarting some technical manufacturing processes. A Senate committee report accompanying a bill for the National Defense Authorization Act for Fiscal Year 2017 included a provision for GAO to examine NNSA's management of DU for nuclear stockpile modernization. GAO's report examines (1) the status of NNSA's efforts to obtain the necessary quantities of DU to meet stockpile modernization requirements; (2) the status of NNSA efforts to develop DU component manufacturing capabilities to meet stockpile modernization requirements; and (3) the extent to which NNSA is managing DU activities as a program, consistent with agency policy. GAO reviewed relevant agency documents; interviewed NNSA officials and contractor representatives; and conducted site visits at headquarters and at research, development, and production locations. For more information, contact Allison Bawden at (202) 512-3841 or bawdena@gao.gov.
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    Federal agencies are undertaking information technology (IT) acquisitions that are essential to their missions. GAO identified 16 of these acquisitions as particularly critical to missions ranging from national security, to public health, to the economy (see table). GAO has previously reported on these acquisitions and the programs they support, and has made numerous recommendations to agencies for improvement. The amount agencies expect to spend on the selected acquisitions vary greatly depending on their scope and complexity, as well as the extent of transformation and modernization that agencies envision once the acquisitions are fully deployed. For example, the Department of Defense plans to spend $10.21 billion over 21 years on its health care modernization initiative, while the Department of Homeland Security intends to spend $3.19 billion over 30 years on its system supporting immigration benefits processing. Agencies reported potential cost savings associated with 13 of the 16 mission-critical acquisitions after deployment due to factors such as shutting down legacy systems, eliminating physical paper processing, and improving security, monitoring, and management. Eleven of the 16 selected acquisitions were rebaselined during their development, meaning that the project's cost, schedule, or performance goals were modified to reflect new circumstances. Agencies reported a number of reasons as to why their acquisitions were rebaselined, including delays in defining the cost, schedule, and scope; budget cuts and hiring freezes; technical challenges; and changes in development approach. As shown below, ten of the acquisitions relate to an additional programmatic area that GAO has designated high risk. Federal Agency Mission-Critical Information Technology Acquisitions Department of Agriculture Modernize and Innovate the Delivery of Agricultural Systems Department of Commerce 2020 Decennial Census* Department of Defense Defense Healthcare Management System Modernization* Global Combat Support System-Army* Department of Homeland Security Student and Exchange Visitor Information System Modernization* U.S. Citizenship and Immigration Services Transformation* Department of the Interior Automated Fluid Minerals Support System II* Department of Justice Next Generation Identification System Terrorist Screening System Department of State Consular System Modernization Department of Transportation Automatic Dependent Surveillance-Broadcast Department of the Treasury Customer Account Data Engine 2* Integrated Enterprise Portal* Department of Veterans Affairs Electronic Health Record Modernization* Small Business Administration Application Standard Investment Social Security Administration Disability Case Processing System 2* Legend: *= Acquisition relates to a programmatic area that GAO has previously designated as being high risk. Source: GAO analysis of agency data. | GAO-20-249SP The acquisition of IT systems has presented challenges to federal agencies. Accordingly, in 2015 GAO identified the management of IT acquisitions and operations as a high-risk area, a designation it retains today. GAO was asked to report on federal IT acquisitions. GAO's specific objective was to identify essential mission-critical IT acquisitions across the federal government and determine their key attributes. To identify acquisitions for the review, GAO administered a questionnaire to the 24 agencies covered by the Chief Financial Officers Act of 1990 asking them to identify their five most important mission-critical IT acquisitions. From a total of 101 acquisitions that were identified, GAO selected 16 mission-critical IT acquisitions to profile in this report. The selection was based on various factors, including the acquisition's criticality to providing service to the nation, its total life cycle costs, and its applicability to the President's Management Agenda. For each of the 16 selected acquisitions, GAO obtained and analyzed documents on cost, schedule, risks, governance, and related information; and interviewed cognizant agency officials. GAO requested comments from the 12 agencies with acquisitions profiled in its draft report and the Office of Management and Budget. In response, one agency (the Social Security Administration) provided comments that discussed the planned use of its system. For more information, contact Carol C. Harris at (202) 512-4456 or harriscc@gao.gov.
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    More than a year after the U.S. declared COVID-19 a public health emergency, the pandemic continues to result in catastrophic loss of life and substantial damage to the economy. It also continues to lay bare the fragmented nature of our public health sector, the fragility of the nation's medical supply chain, and longstanding disparities in health care access, treatment, and outcomes. GAO has made 44 recommendations to federal agencies. Of these recommendations, 16 relate to the following public health topics: COVID-19 Testing. GAO has made two recommendations to date to improve the federal government's efforts in diagnostic testing for COVID-19, critical to controlling the spread of the virus. In January 2021, GAO recommended that the Department of Health and Human Services (HHS) develop and make publicly available a comprehensive national COVID-19 testing strategy. Vaccines and Therapeutics. GAO has made two recommendations to improve transparency, communication, and coordination around the government's efforts to develop, manufacture, and distribute vaccines and therapeutics to prevent and treat COVID-19. For example, in September 2020, GAO recommended that HHS establish a time frame for a national vaccine distribution and administration plan that follows best practices, with federal and nonfederal coordination. Medical Supply Chain. GAO has made seven recommendations for the federal government to respond to vulnerabilities highlighted by the pandemic in the nation's medical supply chain, including limitations in personal protective equipment and other supplies necessary to treat individuals with COVID-19. In January 2021, GAO recommended that HHS establish a process for regularly engaging with Congress and nonfederal stakeholders as the agency refines and implements its supply chain strategy for pandemic preparedness, to include the role of the Strategic National Stockpile. COVID-19 Health Disparities. GAO has made three recommendations to improve COVID-19 data by race and ethnicity, as available data show communities of color bear a disproportionate burden of COVID-19 positive tests, cases, hospitalizations, and deaths. In September 2020, GAO recommended that the Centers for Disease Control and Prevention involve key stakeholders to help ensure the complete and consistent collection of demographic data. COVID-19 Data. GAO has made two recommendations to improve the collection of data needed to respond to COVID-19 and prepare for future pandemics. GAO recommended in January 2021 that HHS establish an expert committee to help systematically define and ensure the collection of standardized data across the relevant federal agencies and related stakeholders; the absence of such data hinders the ability of the government to respond to COVID-19, communicate the status of the pandemic with citizens, or prepare for future pandemics.  Although the responsible agencies generally agreed with the majority of the 16 recommendations, only one has been fully implemented. GAO maintains that implementing these recommendations will improve the federal government's public health response and ability to recover as a nation. As of February 17, 2021, the U.S. had about 27 million cumulative reported cases of COVID-19 and more than 486,000 reported deaths, according to the Centers for Disease Control and Prevention. The country also continues to experience serious economic repercussions. Five relief laws, including the CARES Act, have appropriated $3.1 trillion to address the public health and economic threats posed by COVID-19. The CARES Act also includes a provision for GAO to report on its ongoing monitoring and oversight efforts related to COVID-19. This testimony summarizes GAO's insights from its oversight of the federal government's pandemic response in a series of comprehensive reports issued from June 2020 through January 2021. In particular, the statement focuses on the public health response, including testing, vaccines and therapeutics, medical supply chain, health disparities, and health data. GAO reviewed data, documents, and guidance from federal agencies about their activities and interviewed federal and state officials and stakeholders for the series of reports on which this testimony is based. See https://www.gao.gov/coronavirus/. GAO has made 44 recommendations for agencies and four matters for congressional consideration in its comprehensive series of bimonthly reports on the federal response to COVID-19 over the last year. GAO will issue its next report in this series in March 2021. For more information, contact A. Nicole Clowers at (202) 512-7114 or clowersa@gao.gov.
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