Will contractor security clearances continue to decline? Since 2011, the United States Intelligence Authorization Act has required the President to report to Congress on the number of federal government contractors holding security clearances as of October 1 each year. Acting for the President, the Office of the Director of National Intelligence (ODNI) issues an annual report on contractor security clearances. For the past four years, and with government defense and intelligence budgets in flux, the total number of contractor security clearances (measured by eligibility) has fallen. Industrial security managers, including Facility Security Officers (FSOs), should consider this reality when managing cleared populations and assessing new clearance candidates. From the ODNI’s most recent report: