Taxpayer Data Protection Act
- Bill Number
- H.R. 1101
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-02-11: Sponsor introductory remarks on measure. (CR H625-626)
- Last Updated
- 2026-06-11T05:06:22Z
AI-Generated Summary
Purpose of the Legislation
The Taxpayer Data Protection Act (H.R. 1101) aims to safeguard the U.S. Department of the Treasury's public money receipt and payment systems, including those managed by the Bureau of the Fiscal Service (or its successor). It seeks to prevent unauthorized or improper access to these systems and related data, thereby protecting taxpayer information, financial transactions, and national security from risks like privacy breaches or conflicts of interest.
Key Provisions
- Access Restrictions: The Secretary of the Treasury cannot permit individuals to use, control, or access Treasury payment systems or data unless they meet strict criteria:
- Treasury Personnel: Officers, employees, or contractors must be eligible for access, have a recent performance rating of "fully successful" or better, and have at least one year of service with the Department (for employees) or under a contract (for contractors).
- Other Individuals: Non-Treasury personnel (e.g., from other government branches) must hold an appropriate security clearance (issued under national security procedures), have at least one year of continuous civil service, complete required training on privacy, cybersecurity, and ethics, sign a written ethics agreement with the Treasury or the Office of Government Ethics, and ensure their access does not violate federal conflict-of-interest laws (18 U.S.C. § 208). They cannot be "special government employees" (temporary appointees with limited roles).
- Conflict-of-Interest Treatment: Anyone outside the executive branch accessing these systems is treated as an executive branch employee for conflict-of-interest purposes. Actions like stopping, canceling, or altering payments are deemed "personal and substantial participation" in government matters, triggering ethics rules.
- Investigations and Reporting: The Treasury's Inspector General must investigate any unauthorized access or use and report to Congress within 30 days. Reports must detail the incident, assess risks to privacy, security, or system integrity, and describe any halted payments.
Significant Changes to Existing Law
This bill amends Section 321 of Title 31, U.S. Code (which governs the Treasury's authority over public funds), by adding a new subsection (e). Previously, this section outlined the Secretary's general powers over fiscal operations but did not specify detailed access controls, ethics requirements, or mandatory investigations for payment systems. The changes introduce explicit eligibility barriers, equate certain external access to executive branch duties for ethics enforcement, and mandate rapid congressional oversight of breaches—none of which were previously required in this statute.
Potential Impacts
- On Government Agencies: The Treasury Department and Bureau of the Fiscal Service will face stricter internal controls, potentially slowing operations or hiring but enhancing system security. Other agencies or political appointees may find it harder to intervene in payments, reducing risks of misuse. The Inspector General's office will handle more investigations, increasing administrative workload.
- On Citizens: Taxpayers and benefit recipients benefit from stronger protections against data leaks, fraud, or politically motivated payment disruptions, preserving the integrity of federal payments (e.g., Social Security, tax refunds).
- On International Relations: Minimal direct impact, though fortified cybersecurity could indirectly bolster U.S. financial stability in global transactions, deterring foreign interference in Treasury systems.
Main Stakeholders Affected
- U.S. Department of the Treasury: Directly responsible for implementation, including access management and ethics compliance.
- Federal Employees and Contractors: Treasury staff and external personnel (e.g., from other agencies) must meet new qualifications, affecting job eligibility and performance evaluations.
- Congress: Receives mandatory reports on breaches, gaining enhanced oversight of fiscal operations.
- Taxpayers and the Public: Indirect beneficiaries through protected financial data and payments; vulnerable groups (e.g., Social Security recipients) may see reduced risks of errors or manipulations.
- Office of Government Ethics and Inspectors General: Involved in ethics agreements and investigations, with expanded roles.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces federal ethics laws (e.g., 18 U.S.C. § 208 on conflicts of interest) by expanding their application to non-executive actors, potentially leading to more enforcement actions. It aligns with broader cybersecurity mandates but could invite challenges if access restrictions are seen as overly burdensome on inter-agency cooperation.
- Constitutional: Supports Article I's congressional power over appropriations by ensuring fiscal systems remain insulated from undue influence, upholding separation of powers without directly conflicting with executive authority.
- Political: Limits potential for short-term or politically connected individuals (e.g., appointees without long service) to influence payments, which could curb partisan interference in fiscal matters. As a bipartisan bill with numerous cosponsors, it signals consensus on protecting neutral government functions amid concerns over data security and trust in institutions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Stevens, Haley M. [D-MI-11]
Cosponsors (205)
Rep. Casten, Sean [D-IL-6], Rep. Whitesides, George [D-CA-27], Rep. Velázquez, Nydia M. [D-NY-7], Rep. Sherrill, Mikie [D-NJ-11], Rep. Moulton, Seth [D-MA-6], Rep. Jacobs, Sara [D-CA-51], Rep. Sánchez, Linda T. [D-CA-38], Rep. Adams, Alma S. [D-NC-12], Rep. Pallone, Frank [D-NJ-6], Rep. Frost, Maxwell [D-FL-10], Rep. Dean, Madeleine [D-PA-4], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Larson, John B. [D-CT-1], Rep. Subramanyam, Suhas [D-VA-10], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Auchincloss, Jake [D-MA-4], Rep. Titus, Dina [D-NV-1], Rep. Meeks, Gregory W. [D-NY-5], Rep. Garcia, Robert [D-CA-42], Rep. McCollum, Betty [D-MN-4], Rep. Amo, Gabe [D-RI-1], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Jayapal, Pramila [D-WA-7], Rep. Bishop, Sanford D. [D-GA-2], Rep. Turner, Sylvester [D-TX-18], Rep. Courtney, Joe [D-CT-2], Rep. Kelly, Robin L. [D-IL-2], Rep. Cleaver, Emanuel [D-MO-5], Rep. Landsman, Greg [D-OH-1], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Thompson, Bennie G. [D-MS-2], Rep. Moskowitz, Jared [D-FL-23], Rep. Soto, Darren [D-FL-9], Rep. Connolly, Gerald E. [D-VA-11], Rep. Huffman, Jared [D-CA-2], Rep. Davis, Danny K. [D-IL-7], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Castor, Kathy [D-FL-14], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Panetta, Jimmy [D-CA-19], Rep. Thanedar, Shri [D-MI-13], Rep. Peters, Scott H. [D-CA-50], Rep. Lieu, Ted [D-CA-36], Rep. McClain Delaney, April [D-MD-6], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Norcross, Donald [D-NJ-1], Rep. Keating, William R. [D-MA-9], Rep. Cherfilus-McCormick, Sheila [D-FL-20], Rep. Jeffries, Hakeem S. [D-NY-8] and 155 more
Recent Actions
- 2025-02-11: Sponsor introductory remarks on measure. (CR H625-626)
- 2025-02-06: Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-06: Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-02-06: Introduced in House
- 2025-02-06: Sponsor introductory remarks on measure. (CR H536)
- 2025-02-06: Introduced in House
Bill Versions
- Taxpayer Data Protection Act — issued 2025-02-06 — PDF (6 pages)