Servicemember Payment Data Privacy and Security Act

Ben Cline

Republican · VA · Representative

Source: Congress.gov · FEC

• Barry Moore (R-AL-1)Original· 2026-05-13
• Elijah Crane (R-AZ-2)Original· 2026-05-13
• John R. Moolenaar (R-MI-2)Original· 2026-05-13
• Keith Self (R-TX-3)Original· 2026-05-13
• Scott Fitzgerald (R-WI-5)Original· 2026-05-13
• Michael Cloud (R-TX-27)· 2026-05-14
• Paul A. Gosar (R-AZ-9)· 2026-05-14
• Clay Fuller (R-GA-14)· 2026-05-22
• Barry Loudermilk (R-GA-11)· 2026-05-26
• Neal P. Dunn (R-FL-2)· 2026-06-03
• Warren Davidson (R-OH-8)· 2026-06-09

Referred to the House Committee on Armed Services.

2026-05-13

Source: Congress.gov

The Department of Defense would be banned from doing business with retail companies that use certain types of payment processing equipment, systems, or services. This restriction would affect defense contractors and suppliers who sell to the military, potentially limiting where the Pentagon can purchase goods and services. The goal appears to be controlling which payment technologies the military indirectly supports through its spending.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

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

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