CQ's Niels Lesniewski reports Senate Homeland Security chairman Joe Lieberman said Tuesday he has met with his friend, Armed Services Ranking Member John McCain, R-Ariz., to discuss their disagreement over cybersecurity legislation. The Connecticut Independent said he and McCain had directed their staffs to work on a compromise, but he didn't indicate the likelihood of an agreement on what he termed "the fundamental question" of whether the federal government has the right to set cybersecurity standards for telecom providers, in order to protect the nation's communications infrastructure in the event of a catastrophic attack. Lieberman expressed hope Majority Leader Harry Reid, D-Nev., would take the cybersecurity measure to the Senate floor after the two-week Easter recess.

"This is probably the number one national security vulnerability we have now," Lieberman said. "The lack of the adequate defense of American cyberspace."

"I'd be glad to have an open amendment process. Let the Senate Republicans put the alternate bill into our bipartisan bill, submit it and let's see who's got the votes," he added.

Lieberman's bill (S 2105) would give the Department of Homeland Security oversight of cybersecurity at both civilian federal agencies as well as the private networks deemed most crucial to national security. Under the bill, DHS would develop the security standards with industry input, and be responsible for deciding which sectors and firms would be covered. Cybersecurity experts argue any bill that doesn't address critical infrastructure won't do enough to protect systems from the threat of a major attack, but they are also concerned the Lieberman bill has enough loopholes to allow most firms to escape the new standards.

McCain has consistently opposed handing oversight of cybersecurity to DHS in recent years, arguing the agency has failed to demonstrate it is up to the task. His alternate legislation (S 2151) omits any new regulations and gives the intelligence community a larger role in monitoring threats to U.S. networks. Security experts have noted the telecom sector is already heavily regulated and also the only sector with the expertise and incentive to take cybersecurity seriously. Both the Senate and House Armed Services Committees have cybersecurity budget hearings scheduled for this afternoon featuring representatives from the Pentagon and National Security Agency; stay tuned for full coverage in tomorrow's Morning Take.