United States HR 8787: Servicemember Payment Data Privacy and Security Act

Bill Text

I 
119THCONGRESS 
2
DSESSION 
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  
MAY13, 2026 
Mr.  C
LINE(for  himself,  Mr.  MOOLENAAR,  Mr.  MOOREof  Alabama,  Mr.  
C
RANE,  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  Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This  Act  may  be  cited  as  the  ‘‘Servicemember  Pay-4
ment Data Privacy and Security Act’’. 5
SEC. 2. ELIMINATION OF USE OF CERTAIN PAYMENT PROC-6
ESSING  EQUIPMENT,  SYSTEMS,  OR  SERVICES.  7
(a) R
EVIEW.—Not later than 180 days after the date 8
of  the  enactment  of  this  section,  the  Secretary  of  Defense  9
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•HR  8787  IH
shall complete a review of all retailers to determine if such 1
retailers  use  covered  equipment,  systems,  or  services  as  2
a  substantial  or  essential  component  of  the  performance  3
of  a  contract  to  provide  payment  processing  equipment,  4
systems, or services for the Department of Defense. 5
(b)  G
UIDANCE.—Not  later  than  90  days  after  com-6
pleting  the  review  required  by  subsection  (a),  the  Sec-7
retary  of  Defense  shall  issue  guidance  prohibiting  the  use  8
of  covered  equipment,  systems,  or  services  by  a  retailer  9
in a contract with the Department of Defense. Such policy 10
and  guidance  shall  direct  the  modification  or  termination  11
of  such  a  contract  unless  the  retailer  for  such  contract  12
ceases  use  of  covered  equipment,  systems,  or  services  in  13
a timely manner. 14
(c)  P
ROHIBITION.—Effective  January  1,  2027,  the  15
Secretary  of  Defense  may  not  enter  into  a  contract  for  16
payment  processing  equipment,  systems,  or  services  with  17
a  retailer  that  uses  covered  equipment,  systems,  or  serv-18
ices  as  a  substantial  or  essential  component  of  the  per-19
formance of such contract. 20
(d) R
EPORT.—Not later than one year after the date 21
of  the  enactment  of  this  section,  the  Secretary  of  Defense  22
shall  submit  to  the  Committees  on  Armed  Services  of  the  23
House of Representatives and the Senate a written report 24
on the implementation on the requirements of this section. 25
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•HR  8787  IH
(e) DEFINITIONS.—In this section: 1
(1)  C
OUNTRY  OF  CONCERN.—The  term  ‘‘coun-2
try of concern’’ means— 3
(A) China; 4
(B) Russia; 5
(C) the Islamic Republic of Iran; 6
(D) North Korea; and 7
(E)  any  other  country  designated  by  the  8
Secretary  of  Defense,  as  posing  a  significant  9
risk   to   the   national   security   of   the   United   10
States. 11
(2)  C
OVERED   EQUIPMENT, SYSTEM, OR   SERV-12
ICE.—The   term   ‘‘covered   equipment,   system,   or   13
service’’— 14
(A)   means   a   payment   processing   equip-15
ment,  system,  or  service  for  which  the  applica-16
tion  processor,  source  code,  secure  processor,  or  17
secure  firmware  is  directly  or  indirectly  devel-18
oped,    manufactured,    provided,    owned,    con-19
trolled, or operated by— 20
(i)  an  entity  organized  under  the  laws  21
of a country of concern; 22
(ii)  an  entity  owned  or  controlled  by  23
the government of a country of concern; 24
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(iii)  an  entity  subject  to  the  direction,  1
jurisdiction,  or  control  of  the  government,  2
military,  or  intelligence  services  of  a  coun-3
try of concern; 4
(iv)  any  subsidiary,  affiliate,  or  suc-5
cessor   entity   of   an   entity   described   in   6
clauses (i) through (iii); or 7
(v)  an  entity  that  the  Secretary  of  De-8
fense  reasonably  believes  to  be  an  entity  9
owned  or  controlled  by,  or  otherwise  con-10
nected   entity   owned   or   controlled   by   a   11
country of concern; and 12
(B)   includes   payment   processing   equip-13
ment,  systems,  or  services  substantially  com-14
prised  of  components,  software,  or  technology  15
supplied   by   an   entity   described   in   any   of