This article was updated to reflect 2026 policy changes and national security developments.

Obtaining a security clearance is required for any federal employees or contractors who work with classified information. The clearance process is rigorous, with applicants facing scrutiny over a wide variety of personal and professional factors. Unfortunately, security clearance applications are sometimes denied, and applicants can be left wondering why.

First, clearance holders and applicants bear the burden of proving they are security-safe; the federal government’s burden in bringing security concerns against them is tiny. So, one has to lead one’s life in a manner that is constantly collecting evidence and witnesses capable of clearing your name if you are flagged for review.

There are many common reasons for security clearance denials, including financial, personal, and legal concerns, and each factor may impact your eligibility. If you face a denied clearance, educating yourself on possible reasons for the denial can help you understand your options.

Understanding Security Clearances

A security clearance grants individuals eligibility for access to classified information, which is required for roles involving any level of national security. The local agency or command grants the actual access, called “need to know.”  These are two very different decision-making processes.

The federal government follows strict adjudicative guidelines when assessing applicants, focusing on factors like allegiance to the United States, financial responsibility, and overall character. The “whole-person” concept is applied during evaluations, meaning no single issue automatically disqualifies an applicant; however, a pattern of problematic behavior can lead to denial.

Applicants and holders often over emphasize the “whole-personal analysis.”  It is simply a grant of high discretion to adjudicators to consider all the evidence, not just what is presented.

Here are seven common reasons security clearances may be denied:

1. Financial Issues and Debt

Financial difficulty is a common reason for security clearance denial. The government views financial problems as high risk, fearing that an individual with significant debt or poor financial history may be vulnerable to bribery or coercion. Holders and applicants are cautioned to keep their short-term debt below $12,000 and to not be past due on their accounts.  Many clearance holders have no short-term debt on their credit cards. Examples of financial concerns include:

• high levels of debt;
• bankruptcy;
• unpaid taxes; or
• gambling issues that lead to financial instability.

If financial issues appear on your record, demonstrating efforts to improve, such as creating a repayment plan or working with a financial advisor, can help mitigate concerns. Clear communication and evidence of financial responsibility are the best steps you can take to address these issues.

Your credit history can impact your national security eligibility. We walk through how security clearance adjudicators view circumstances like bankruptcy, tax debt, and poor credit in our article: The Bottom Line of Guideline F: Your Personal Finances Impact Your Security Clearance Eligibility.

Mobile sports betting has caused trouble for an increasing number of security clearance holders and applicants, as we discuss here: Yes, Even Legal Sports Betting Could Affect Your Security Clearance: Finances and Personal Conduct.

2. Criminal History and Legal Troubles

Criminal conduct is a significant factor in security clearance denials. Even minor legal troubles or misdemeanors can be enough to raise doubts about an applicant’s reliability and integrity. The government typically looks for a history of repeated infractions, but even a single instance of criminal conduct can be problematic, especially if it suggests poor judgment or disregard for the law.

Applicants with a criminal history should be transparent and honest about past issues and present evidence of rehabilitation, including character references and legal resolutions, to demonstrate their commitment to responsible behavior. With criminal conduct, as with the other potential grounds for denial, transparency and truthfulness are very important aspects of the application process. It is better to report even a minor legal infraction as opposed to the investigator finding the legal issue on their own.

3. Substance Abuse Problems

Drug use and substance abuse issues are common grounds for clearance denial, with the federal government adhering to a strict zero-tolerance policy. Substance abuse concerns extend beyond illegal drug use to include alcohol- and other substance-related incidents that suggest a lack of self-control or poor judgment. Marijuana use, even where legal at the state level, is not permitted. Federal law has classified cannabis as a Schedule 1, illegal substance for decades; whether marijuana was legal at the time you used it is significant to security. Schedule 3 marijuana is not fair game either. Drug reclassification does not necessarily change Security Executive Agent policy, nor policies for Federal employees, military service members, Federal contractors, or individual employers and agencies. 

To mitigate this, individuals can show evidence of substance abuse treatment, abstention, and character references attesting to their reliability and judgment. In general, drug use within a year of application is likely to deny a clearance, though there are exceptions to this.

We cover the false assumptions some security clearance holders and applicants have about marijuana rescheduling in our article here: Schedule III Cannabis Won’t Change Much for Security Clearance Holders.

4. Foreign Influence and Connections

Maintaining allegiance to the United States is a fundamental requirement for security clearance. Foreign influence or preference can lead to a denial if it suggests a risk of divided loyalties. This category includes factors like:

• close connections with foreign nationals;
• holding dual citizenship; or
• possessing significant assets abroad.

Mitigating foreign influence often involves renouncing foreign citizenship, minimizing foreign financial interests, and demonstrating a commitment to U.S. loyalty. The federal government expects your undivided attention to be on your role as an American. It is fine to have cultural or historical ties to a foreign jurisdiction, but beyond that you are supplying evidence to deny you a clearance.

We discuss dual citizenship concerns in more depth on our Dual Citizenship page. This page covers  the security concerns related to foreign citizenship, how adjudicators view and evaluate these risks, and the multilayered context informing any given foreign influence or foreign preference security concern.

For those specifically concerned with Canadian – American dual citizenship, our article on Bill C-3 Canadian Citizenship addresses security clearance holders’ and applicants’ questions about Canadian dual citizenship.

5. Psychological Conditions and Mental Health

While mental health issues alone are not disqualifying, certain psychological conditions may raise concerns if they could affect an individual’s judgment or reliability. The government may deny clearance if there’s evidence of irresponsible or unstable behavior tied to mental health.

Applicants in this category can address these concerns by providing evidence of treatment, stability, and any support they’re receiving to maintain their mental health. The critical need for all applicants or holders with a psychological condition is to know your diagnosis, know the treatment prescribed, and be able to prove you are following that treatment.

6. Failure to Provide Accurate Information

Lack of candor or honesty is a major red flag in the security clearance process. Applicants are required to provide accurate and complete information on forms, like the SF-86. Omissions, exaggerations, or intentional misrepresentations can indicate a lack of reliability, trustworthiness, and integrity.

To avoid issues, applicants should approach the process transparently and be prepared to clarify or correct any discrepancies. If you’re unsure how to respond to certain questions, it’s wise to consult a security clearance attorney before submitting your application.

It is important to remember that if you even misstate on a form, you are revealing to security that you are sloppy. The clearance process is not unlike a job interview.  If you present a profile that is poor, it will affect the adjudicators opinion of you. Inaccuracy is a security liability; show yourself inaccurate and you have shown yourself to the door.

7. Inadequate Background Checks

Another reason for security clearance denials is an incomplete or inadequate background check. Sometimes, the information provided is difficult to verify or is insufficient to establish a complete record. For example, an applicant might have lived in foreign countries, making background verification challenging.

In such cases, gathering thorough documentation and reference materials can help present a complete and trustworthy background for security clearance reviewers. An experienced security clearance attorney can guide you through this process. Our article on the role of a security clearance attorney may help you decide whether consulting an attorney is the best option for you.

Speak With a Security Clearance Attorney

A denial of security clearance can be disheartening, especially when it jeopardizes your career in federal employment. Thankfully, you have the right to appeal, and a skilled attorney understands how security clearance adjudicators approach the concerns cited in your denial or revocation. An attorney can help you compile mitigating evidence, prepare a formal response, and represent you throughout the appeals process.

Tully Rinckey attorneys understand that issues involving security clearances can be challenging, and they will handle your matter with the attention and tact it deserves. If you have additional questions about security clearances, our team of attorneys is available to assist you today. Please call 8885294543 to schedule a consultation or schedule a consultation online.

Dan Meyer, Esq. is a Partner at Tully Rinckey PLLC’s Washington, D.C. office and has dedicated more than 25 years of service to the field of Federal Employment and National Security law as both a practicing attorney and federal investigator and senior executive. He is a lead in advocating for service members, Federal civilian employees, and contractors as they fight to retain their credentialing, suitability and security clearances.

Lachlan McKinion, Esq. is an Associate in Tully Rinckey’s Washington, D.C., office, where he focuses on National Security and Security Clearance law. Lachlan’s practice includes appellate litigation before the Merit Systems Protection Board, guiding Intelligence Community and Defense clients through the security adjudication process, and representing whistleblowers before the Office of Special Counsel and various Intelligence and Defense Inspectors General.