Servicemember Payment Data Privacy and Security Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8787 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 8787

 To prohibit the Secretary of Defense from contracting with retailers
who use covered payment processing equipment, systems, or services, and
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 2026

Mr. Cline (for himself, Mr. Moolenaar, Mr. Moore of Alabama, Mr. Crane,
Mr. Self, and Mr. Fitzgerald) introduced the following bill; which was
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL

 To prohibit the Secretary of Defense from contracting with retailers
who use covered payment processing equipment, systems, or services, and
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Servicemember Payment Data Privacy
and Security Act''.

SEC. 2. ELIMINATION OF USE OF CERTAIN PAYMENT PROCESSING EQUIPMENT,
              SYSTEMS, OR SERVICES.

    (a) Review.--Not later than 180 days after the date of the
enactment of this section, the Secretary of Defense shall complete a
review of all retailers to determine if such retailers use covered
equipment, systems, or services as a substantial or essential component
of the performance of a contract to provide payment processing
equipment, systems, or services for the Department of Defense.
    (b) Guidance.--Not later than 90 days after completing the review
required by subsection (a), the Secretary of Defense shall issue
guidance prohibiting the use of covered equipment, systems, or services
by a retailer in a contract with the Department of Defense. Such policy
and guidance shall direct the modification or termination of such a
contract unless the retailer for such contract ceases use of covered
equipment, systems, or services in a timely manner.
    (c) Prohibition.--Effective January 1, 2027, the Secretary of
Defense may not enter into a contract for payment processing equipment,
systems, or services with a retailer that uses covered equipment,
systems, or services as a substantial or essential component of the
performance of such contract.
    (d) Report.--Not later than one year after the date of the
enactment of this section, the Secretary of Defense shall submit to the
Committees on Armed Services of the House of Representatives and the
Senate a written report on the implementation on the requirements of
this section.
    (e) Definitions.--In this section:
            (1) Country of concern.--The term ``country of concern''
        means--
                    (A) China;
                    (B) Russia;
                    (C) the Islamic Republic of Iran;
                    (D) North Korea; and
                    (E) any other country designated by the Secretary
                of Defense, as posing a significant risk to the
                national security of the United States.
            (2) Covered equipment, system, or service.--The term
        ``covered equipment, system, or service''--
                    (A) means a payment processing equipment, system,
                or service for which the application processor, source
                code, secure processor, or secure firmware is directly
                or indirectly developed, manufactured, provided, owned,
                controlled, or operated by--
                            (i) an entity organized under the laws of a
                        country of concern;
                            (ii) an entity owned or controlled by the
                        government of a country of concern;
                            (iii) an entity subject to the direction,
                        jurisdiction, or control of the government,
                        military, or intelligence services of a country
                        of concern;
                            (iv) any subsidiary, affiliate, or
                        successor entity of an entity described in
                        clauses (i) through (iii); or
                            (v) an entity that the Secretary of Defense
                        reasonably believes to be an entity owned or
                        controlled by, or otherwise connected entity
                        owned or controlled by a country of concern;
                        and
                    (B) includes payment processing equipment, systems,
                or services substantially comprised of components,
                software, or technology supplied by an entity described
                in any of clauses (i) through (v) of subparagraph (A).
            (3) Electronic fund transfer.--The term ``electronic fund
        transfer''--
                    (A) means any transfer of funds, other than a
                transaction originated by check, draft, or similar
                paper instrument, which is initiated through an
                electronic terminal (as defined in section 903 of the
                Electronic Fund Transfer Act (15 U.S.C. 1693a)),
                telephone, or computer or magnetic tape so as to order,
                instruct, or authorize a financial institution to debit
                or credit an account; and
                    (B) includes point-of-sale transfers, automated
                teller machine transactions, and direct deposits or
                withdrawals of funds from an account.
            (4) Payment processing equipment, system, or service.--The
        term ``payment processing equipment, system, or service''
        means--
                    (A) a card, code, or other means of access to a
                consumer's account, or any combination thereof, that
                may be used by the consumer to initiate electronic fund
                transfers; or
                    (B) an electronic device, other than a telephone
                operated by a consumer, through which a consumer may
                initiate an electronic fund transfer.
            (5) Retailer.--The term ``retailer'' has the meaning given
        in section 4664 of title 10, United States Code.
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