I’m convinced that the government doesn’t believe citizens are any more loyal or hard to bribe than other people, but insisting on citizenship would make it easier to charge us with particular crimes if the need arose.
The same cannot be said of foreign citizens (even ones who are permanent residents); to the government's eyes, they're "opaque"—and even background checks run on them would only turn up what their homeland wants the US to turn up. (A background check that could turn up more, wouldn't really be a "background check" any more, but rather espionage, since they'd need to bypass the "public API" of the other government.)
All they need to know for a plain-old no-clearance public-servant position is that you're not beholden to a foreign power (e.g. part of a foreign gang, or in debt to a major foreign corporation.)
There's an easy (though imperfect) heuristic for determining whether you're potentially beholden to a foreign power, from the data they already have: the addresses you've lived at, your job history, and your arrest record. Just join that set to the set of organizations they're tracking as catspaws for foreign powers [and their active locations], count the joined rows, and you have a log-probability that you've ever had the opportunity to interact with someone who might have had cause to convince you to work for a foreign power.
But it was the federal government that insisted that we be US citizens. As far as I know, they didn’t require us to pass any special background check. And they didn’t require us to have any special training. But we absolutely had to be citizens (not just “legally able to work in the country”).
Hm.. I definitely feel it's easier to mitigate some risk by using US citizens. One of the goals is to limit possibility of foreign interference via these citizens. By using your own people, you can track their interactions with foreign entities via their trips outside of the US and their self documented contacts with foreign nationals. It'd be a lot harder to track these things when you hire someone from a different country because you're not going to have as meticulous records and all their friends and family are liable to be foreign nationals.
Seriously? While they have to plan for an inside threat, do you really think that they don't view their own citizens as being more reliable than foreign nationals?
Obviously, there are exceptions to this. The US has a much better chance of getting Assange than Snowden right now. But I believe, in general, the requirement isn’t about avoiding a security breach, but instead about punishing the culprits after the breach is discovered.
It is not always about the security side. There are certain requirements to employ US citizens based on the funding source. The charitable reasoning is ensuring the program can continue to run even if are at war.
Does it prevent espionage by Americans? No. But it does make espionage by foreign adversaries at least a bit harder.
See https://en.m.wikipedia.org/wiki/Sensitive_Compartmented_Info...