Data Security Program (DSP): DOJ Compliance Roadmap & 90-Day Plan

The US Department of Justice’s new Data Security Program (DSP) requires organizations to treat large collections of U.S.-person and government-related data as matters of national security. 

In this post, you’ll learn:

• What “bulk sensitive personal data” covers and why it matters
  
• Why traditional data protection methods may no longer suffice
  
• A practical compliance framework your team can follow
  
• How readiness delivers ROI and avoids major risks
  
• Common missteps and a clear roadmap to get moving
  

How the DSP redefines the perimeter of data risk

In February 2024, Executive Order 14117 established that foreign states’ access to Americans’ “bulk sensitive personal data” or related government datasets poses an “unusual and extraordinary threat” to U.S. national security. Department of Justice

What this means in practice: if your organization handles substantial data (think biometric identifiers, health information, precise geolocation) and that data could be accessed by entities in designated “countries of concern,” the stakes go beyond compliance. They touch national defense.

The challenge is two-fold:

1. Many teams still believe that strong encryption, standard privacy programs, or basic breach prevention are enough. Under the DSP, they are not.
   
2. The rule doesn’t just apply to defence contractors. It extends to any company with significant sensitive U.S.-person or government-related data, or with vendor/investor links abroad. Foley Hoag
   

Consider this: data types you thought were safe, both anonymized or encrypted, can still fall under these rules if they meet the volume thresholds. The policy shift is clear: it’s no longer just about what you protect, but who might access it and how broadly it spreads.

Real risks, real exposure

To illustrate what’s driving this shift, here are some key facts:

These facts change the game: scope (bulk datasets), actors (vendors, investors, third-parties), consequences (national-security risk, not just privacy enforcement). That means your compliance strategy needs to evolve.

Understanding the DSP framework

We view the DSP as built around three foundational pillars. When mastered, they help you move from reactive protection to proactive defense.

The aim: transform your organisation from seeing data merely as an operational asset to recognizing it as a strategic defense corridor to national security. 

How to build your DSP compliance program

1. Form a DSP Task Force.
   Bring together Legal, Security, Marketing, Data Governance, Vendor Management, and Finance. Clarify who classifies data, who vets vendors, who tracks exposure abroad, and who certifies audits.
   
2. Inventory and classify data.
   Identify datasets that may fall under “bulk sensitive personal data” or “government-related data”. Map where each dataset moves – collection, storage, processing, transfer, resale. Leverage automated tagging tools to reveal hidden flows.
   
3. Identify and prioritise covered transactions.
   Review vendor contracts, investment or joint-venture agreements, and data-broker relationships. Screen for “countries of concern” (China, Russia, Iran, North Korea, Cuba, Venezuela) and assess which partners could expose data to them. White & Case
   
4. Update policies, contracts & training.
   Embed contractual language aligned to the DSP; include audit rights, transparency obligations, termination rights, and cross-border transfer controls. Train vendor, procurement, and legal teams to recognise high-risk transactions.
   
5. Implement monitoring and audit systems
   Deploy continuous monitoring of data flows and vendor exposures, especially parent-ownership links or covered-person status. Establish audit logs, policies and records that demonstrate good-faith efforts. Venable
   
6. Communicate, train & report.
   Inform executive leadership and the board about DSP risks and program status. Train data teams, legal teams, and vendor partners. Monitor guidance updates from DOJ and related agencies. Faegre Drinker
   

This sequence turns a daunting regulation into a structured roadmap your team can execute with confidence.

Why DSP readiness pays off

Being DSP-ready builds operational resilience and market trust.

From a purely business lens, civil penalties can exceed hundreds of thousands of dollars and criminal risk may apply. Department of Justice Moreover, demonstrating DSP readiness signals to customers, investors, and partners that your organization protects more than privacy but also extends protection to cover national interest.

Common pitfalls to avoid

• Assuming anonymized/encrypted data is exempt. It isn’t once thresholds apply. BakerHostetler
  
• Focusing solely on internal systems. Vendor, broker, investment and joint-venture risk may matter more.
  
• Thinking this is only for large enterprises. The rule applies to any entity handling U.S.-person or government-related data in a relevant transaction.
  
• Delaying vendor reviews and contract updates. When a transaction is flagged as prohibited, mitigation becomes more costly and complex.
  
• Ignoring audit and reporting timelines. The full compliance obligations (audit, certification, reporting) become effective after initial prohibitions. Privacy Matters

Skipping or delaying these areas doesn’t just increase regulatory risk; it also leaves your business vulnerable to strategic disruption and reputational harm.

Your 90-Day DSP Playbook

After Day 90, your focus shifts to continuous monitoring, vendor lifecycle reviews, and preparation for full audit readiness ahead of the broader obligations in the months and years to come. 

Frequently Asked Questions