I believe the CIA entered into settlement negotiations. Since this hasnt been in the news for a couple of years Id guess they were successful. If you review some of the articles on the Ciralsky case (do a search, you'll find plenty) you will find that the real issue was not dual-citizenship, but that he was an observant Jew. Among the criticisms noted in his file, buying Israeli bonds, donations to the United Jewish Appeal, attending an Orthodox synagogue having a rich Jewish daddy and "rich Jewish friends", wearing a yarmulke to work, a minor in college in Judaic studies, travel to Israel, and an apparently bogus polygraph test (his case has often been cited in reference to the unreliability of polygraphs). In general, the information used to strip him of his clearance was, according to George Tenet, "insensitive, unprofessional and highly inappropriate,".
Ironically, the clearance he was denied was necessitated by a transfer to the Clinton White House.
Do you know how many intelligence officials this affects anyway? How many Jewish Americans with dual citizenship or naturalized citizens are in the CIA/FBI/Senior military? Are we talking a lot of people?