Security Clearance Reform Act of 2014 - Directs the President to submit a strategic plan to the House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs and the intelligence committees of Congress (appropriate congressional committees) to improve security clearance and background investigation activities. Sets forth the required contents of such plan, including the development of a continuous evaluation or monitoring system of information used for security clearances, improvement of information sharing procedures between agencies, and the reduction or elimination of databases and information sources that cannot be accessed and processed electronically.
Prohibits the Director of the Office of Personnel Management (OPM) from awarding a contract to any entity for investigative support services or background investigation fieldwork services if such entity has another contract in effect with the federal government to provide such services.
Requires the OPM Director to report to the appropriate congressional committees listing any state or local entity covered by the definition of "criminal justice agency" that has failed to cooperate with three or more criminal history record information requests of the Director. Reduces criminal justice grant funding to state and local entities that fail to substantially comply with such requests.