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Regulatory Update

The FAR's New CUI Rule: What Changed in the June 2026 Overhaul Version

A-Frame Solutions July 2026 6 min read

The short answer: Buried in the FAR Overhaul's June 23, 2026 proposed rules (91 FR 37550) is a full rewrite of the government-wide Controlled Unclassified Information (CUI) rule. It supersedes the January 2025 standalone proposal, relocates CUI protection into the expanded FAR Part 40, raises the security baseline to NIST SP 800-171 Rev. 3, extends incident reporting from 8 hours to 72 hours, and introduces new clauses 52.240-6 and 52.240-7. Comments are due July 23, 2026.

Most of the coverage of the Revolutionary FAR Overhaul's first proposed-rule batch has focused on the big structural story — 20 FAR parts reorganized, plain-language rewrites, the five-year sunset mechanism for non-statutory requirements. (We covered that batch, and how to comment, here.)

But for contractors — especially civilian-agency contractors who have never lived under DFARS cybersecurity clauses — the most consequential piece of the batch may be the one getting the least attention: the FAR Council used the overhaul to reissue the government-wide CUI rule, and it changed in ways that matter.

A Quick Refresher: Why a FAR CUI Rule At All

Controlled Unclassified Information is the broad category of sensitive-but-not-classified information the government creates or shares — think procurement-sensitive data, certain personnel and health information, controlled technical information. DoD contractors have safeguarded CUI for years under DFARS 252.204-7012, which requires NIST SP 800-171 protections and 72-hour cyber incident reporting.

Civilian agencies never had an equivalent government-wide clause — each agency improvised. The FAR CUI rule, first proposed in January 2025, was written to close that gap: one uniform framework, applicable across the federal enterprise. The June 2026 version keeps that mission but re-architects the rule.

What Changed From the January 2025 Version

  • New home: FAR Part 40. The January 2025 proposal lived in FAR Part 4 (administrative matters). The rewrite moves CUI into the expanded Part 40 — Information Security and Supply Chain Security — alongside the other security prohibitions, which is where the overhaul consolidates security policy generally.
  • Higher baseline: NIST SP 800-171 Rev. 3. The earlier proposal pointed at Rev. 2 — the same baseline DFARS uses today. The new version requires Rev. 3, the current edition of the standard. That is a real compliance delta, not a citation update: Rev. 3 restructures control families and adds organization-defined parameters.
  • Longer reporting window: 72 hours. The January version's 8-hour incident-reporting requirement drew heavy criticism as unworkable. The rewrite extends it to 72 hours — consistent with the DFARS timeline defense contractors already know.
  • Dropped provisions. The proposed clause addressing unidentified CUI (the January draft's 52.204-YY) is gone, and so is the express financial-liability language that had contractors worried about open-ended damages exposure.
  • New implementing clauses. The rule is carried by new FAR clauses 52.240-6 and 52.240-7, plus a standard form (designated "SF XXX" in the proposal) that tells the contractor exactly what CUI the contract involves and which protections apply — putting the identification burden on the government, not the contractor.
  • Flow-down. Safeguarding requirements flow down to subcontractors at every tier that will access covered CUI.

Who Should Care Most

Civilian-agency contractors. If you sell to GSA, VA, DHS, HHS, or any other non-DoD agency and your work touches CUI, this rule would bring you NIST SP 800-171-class obligations for the first time. The lead time to implement Rev. 3 controls — assessment, remediation, documentation — is measured in months, not weeks. Waiting for the final rule to start is how contractors end up non-compliant on day one.

DoD contractors get a different message: convergence. A uniform FAR framework, a 72-hour clock that matches the DFARS one, and a common NIST baseline mean the civilian and defense regimes are being pulled toward each other. If you already comply with DFARS 252.204-7012 and are tracking CMMC, you are most of the way there — but note the Rev. 2 → Rev. 3 gap applies to you too as the standards converge.

Contracting officers should watch the clause mechanics: once finalized, the Part 40 clauses (52.240-6, 52.240-7) and the CUI form become new mandatory members of the clause matrix for covered acquisitions — one more thing the solicitation has to get right, in both the legacy-FAR and overhaul regimes now running in parallel (we walked through that two-regime problem here).

Separately from this proposed rule, the FAR overhaul has already restructured contract security clauses by class deviation. New Part 40 clauses 52.240-90, 52.240-91, 52.240-92 and 52.240-93 took effect at adopting agencies on 3 November 2025 and consolidate twelve former Part 4 and Part 25 clauses, including 52.204-21, which is now removed and reserved. If you are mapping your current obligations rather than the proposed ones, start with which Part 40 security clause applies to your contract.

What to Do Before July 23

One caution in the other direction: this is a proposed rule. Clause numbers, the form, and the details can and probably will shift before finalization. Prepare, but don't hard-code.

Frequently asked questions

What is the new FAR CUI rule?

A proposed FAR rule, published June 23, 2026 (91 FR 37550) as part of the Revolutionary FAR Overhaul, creating a government-wide framework for safeguarding Controlled Unclassified Information. It supersedes the January 2025 standalone proposal, moves the requirements into FAR Part 40, and extends NIST SP 800-171-based obligations to civilian-agency contractors — not just DoD.

What changed from the January 2025 CUI proposed rule?

Four big shifts: relocation from Part 4 to the expanded Part 40; a higher security baseline (NIST SP 800-171 Rev. 3 instead of Rev. 2); incident reporting extended from 8 hours to 72 hours; and the removal of the unidentified-CUI clause and express financial-liability language.

Is the rule final? When do contractors have to comply?

No — it's proposed. Comments are due July 23, 2026, and obligations only attach once a final rule issues and the clauses appear in your contracts. But NIST 800-171 Rev. 3 compliance takes months of lead time, so contractors handling CUI should start gap assessments now.

Does it apply to non-DoD contractors?

Yes — that's the point. DoD contractors already safeguard CUI under DFARS 252.204-7012; this rule extends a uniform framework to civilian-agency contracts, bringing 800-171-class obligations to contractors at GSA, VA, DHS, and beyond for the first time.

Which clauses implement it?

New FAR clauses 52.240-6 and 52.240-7, plus a standard CUI form (designated SF XXX in the proposal) identifying the CUI in each contract. Once finalized, these Part 40 clauses will start appearing in clause matrices for covered acquisitions — ArcClause will pick them up as they land.

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