Servicemember Payment Data Privacy and Security Act
- Bill Number
- H.R. 8787
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-05-13: Referred to the House Committee on Armed Services.
- Last Updated
- 2026-07-06T22:06:15Z
AI-Generated Summary
Summary of H.R. 8787: Servicemember Payment Data Privacy and Security Act
Purpose
The legislation aims to protect the payment data of U.S. servicemembers by preventing the Department of Defense from using retailers that rely on payment processing equipment, systems, or services linked to countries of concern. It focuses on reducing national security risks from foreign entities in payment transactions.
Key Provisions
- Review requirement: The Secretary of Defense must complete a review within 180 days of enactment to identify retailers using covered payment processing equipment, systems, or services as a key part of their DoD contracts.
- Guidance issuance: Within 90 days after the review, the Secretary must issue guidance prohibiting such use. This includes directions to modify or end contracts unless the retailer stops using the covered items promptly.
- Prohibition: Starting January 1, 2027, the Secretary may not enter into contracts for payment processing with retailers that use covered equipment, systems, or services as a substantial or essential component.
- Reporting: The Secretary must submit a report on implementation to the House and Senate Armed Services Committees within one year of enactment.
- Definitions:
- "Country of concern" includes China, Russia, Iran, North Korea, and any other nation designated by the Secretary as a national security risk.
- "Covered equipment, system, or service" refers to payment processing items where key components (such as application processors or source code) are developed, manufactured, or controlled by entities from countries of concern or their affiliates.
- "Payment processing equipment, system, or service" covers cards, codes, or electronic devices used for electronic fund transfers, including point-of-sale and ATM transactions.
- "Retailer" aligns with the definition in 10 U.S.C. § 4664, typically referring to entities involved in military resale activities.
Significant Changes to Existing Law
This bill introduces new restrictions on DoD contracting practices for payment processing. It does not amend existing statutes directly but adds a forward-looking prohibition effective in 2027, along with mandatory review and reporting processes not previously required for these specific foreign-linked payment systems.
Potential Impacts
- On government agencies: The Department of Defense would need to conduct reviews, issue new guidance, modify contracts, and report to Congress, potentially increasing administrative workload and requiring adjustments to existing payment systems.
- On citizens: Servicemembers and their families could see changes in payment options at military retail outlets, with possible shifts toward domestic or non-covered providers to maintain privacy and security of transaction data.
- On international relations: The measure may affect business ties with entities from listed countries of concern, potentially leading to reduced use of their technology in U.S. military payments and signaling stronger U.S. focus on supply chain security.
Main Stakeholders Affected
- The Department of Defense and its contracting offices.
- Retailers providing payment processing services to DoD, such as military exchange systems.
- U.S. servicemembers and their families who use these payment services.
- Entities from countries of concern involved in payment technology.
Notable Legal, Constitutional, or Political Implications
The bill emphasizes national security by restricting foreign-linked technology in sensitive payment systems, raising potential questions about contract modifications and due process for affected retailers. It operates within Congress's authority over defense appropriations and contracting but could face implementation challenges related to identifying "covered" components and ensuring compliance without disrupting essential services. No direct constitutional issues are addressed in the text itself.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (12)
Rep. Moolenaar, John R. [R-MI-2], Rep. Moore, Barry [R-AL-1], Rep. Crane, Elijah [R-AZ-2], Rep. Self, Keith [R-TX-3], Rep. Fitzgerald, Scott [R-WI-5], Rep. Cloud, Michael [R-TX-27], Rep. Gosar, Paul A. [R-AZ-9], Rep. Fuller, Clay [R-GA-14], Rep. Loudermilk, Barry [R-GA-11], Rep. Dunn, Neal P. [R-FL-2], Rep. Davidson, Warren [R-OH-8], Rep. Harrigan, Pat [R-NC-10]
Recent Actions
- 2026-05-13: Referred to the House Committee on Armed Services.
- 2026-05-13: Introduced in House
- 2026-05-13: Introduced in House
Bill Versions
- Servicemember Payment Data Privacy and Security Act — issued 2026-05-13 — PDF (5 pages)