<p>A government watchdog has urged Homeland Security Secretary Markwayne Mullin to review the Department of Homeland Security's contracts with Microsoft. This request follows comments made by former FBI official Nikki Floris, who stated she was "basically running a shadow government across the FBI."</p>
<p>Democracy Restored, a nonpartisan watchdog organization, sent a letter to Mullin on September 22, 2026, requesting an examination of Microsoft's existing and pending contracts and an assessment of Floris's role in relation to DHS work. The letter was obtained by the Washington Examiner.</p>
<figure class="wp-block-image size-large"><img alt="Nikki Floris." class="wp-image-4654180" height="683" src="https://www.washingtonexaminer.com/wp-content/uploads/2026/07/AP19295604299744.jpg?w=696" width="1024" /><figcaption class="wp-element-caption">Nikki Floris, former Deputy Assistant Director for Counterterrorism at the FBI, testifying before the House Judiciary Committee on October 22, 2019. (AP Photo/Susan Walsh)</figcaption></figure>
<p>Floris gained attention in July 2026 after President Donald Trump referenced a former FBI official who claimed to be running a "shadow government" to keep intelligence about alleged Chinese election interference from becoming public. Although Trump did not name Floris during his speech, her identity was revealed in a records release from the White House following the speech.</p>
<p>The letter from Democracy Restored raises concerns about the FBI's handling of a 2020 intelligence report that included unverified allegations of Chinese officials producing fraudulent U.S. driver's licenses for a mail-in ballot scheme. Senator Chuck Grassley (R-IA) disclosed last year that the FBI headquarters recalled the report shortly after it was disseminated and identified Floris as one of the officials involved in the recall.</p>
<p>The committee noted that FBI officials expressed concerns that the report could contradict then-FBI Director Christopher Wray's congressional testimony, in which he stated he would investigate any allegations of a "coordinated national voter fraud effort." </p>
<p>Floris, who previously served as the FBI's election-security lead, is now Microsoft's director of insider risk. Democracy Restored has raised concerns that her position may pose a risk to national security information.</p>
<p>Democracy Restored Director Houston Keene stated, "National security includes data security, full stop. Given Ms. Floris’ alleged withholding of critical election information from the President of the United States and claim of running a ‘shadow government,’ as well as Microsoft’s recent issues using China-based engineers to work on Pentagon data, serious scrutiny needs to be given to Microsoft’s contracts with the federal government."</p>
<p>In July 2025, Microsoft announced it would cease using China-based engineering teams for Defense Department cloud services following reports of the arrangement under U.S.-based supervision.</p>
<p>The letter requests that DHS determine the nature and sensitivity of systems, data, and facilities involved in the department’s contracts with Microsoft, assess Floris’s role in any DHS-related work, and consider terminating or suspending relevant contracts if security concerns are identified.</p>
<p>The letter concludes by stating, "An official who allegedly withheld China-related election intelligence from the president of the United States now occupies a role charged with judging insider threats at a federal government vendor."</p>
<p>DHS and Microsoft did not respond to requests for comment. Floris could not be reached for comment.</p>