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SBA Commends U.S. Department of War’s Suspension of CMMC Phase II for Small Defense Contractors

The department will keep Level 1 and Level 2 self-assessments in place while it reviews complaints that audit costs are driving suppliers away.

  • On Monday, the Pentagon suspended the Phase 2 rollout of the Cybersecurity Maturity Model Certification program, originally scheduled for November 10, 2026, and launched a 60-day review of the certification regime.
  • Defense Department Chief Information Officer Kirsten Davies initiated the pause after research suggested CMMC compliance forces innovative firms out of the Defense Industrial Base ; a newly formed CMMC Reform Task Force will deliver recommendations within 60 days.
  • Small Business Administration data indicates compliance costs could exceed $7 billion annually, while more than 100,000 DIB companies would need assessments supported by only about 100 approved assessors. This mismatch created unsustainable barriers.
  • During this suspension, the Defense Department will enforce cybersecurity compliance using NIST Special Publication 800-171 standards through self-assessments and government-led audits; officials did not rule out canceling the program entirely after the review concludes.
  • Aligning with Defense Secretary Pete Hegseth's Acquisition Transformation System , the suspension prioritizes speed and reduces regulatory burdens on nontraditional companies. The review aims to replace prohibitive third-party models with scalable, realistic security measures.
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insidedefense.com broke the news on Monday, July 13, 2026.
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