← Back to Bills
H.R. 8787House119th Congress (2025-2027)In Committee

Servicemember Payment Data Privacy and Security Act

Sponsored by Ben ClineRep. Ben Cline (R-VA)
Introduced May 13, 2026

AI-Generated Summary

Updated May 27, 2026 at 9:06 AM UTC

The Servicemember Payment Data Privacy and Security Act would stop the Department of Defense from signing contracts with retailers whose payment‑processing hardware, software or services are tied to entities in countries that pose a national‑security risk (such as China, Russia, Iran, North Korea, or any other designated country). The goal is to protect the payment data of service members by ensuring the DoD only uses payment systems that are not linked to foreign adversaries.

Key Provisions

  • Within 180 days of the law’s enactment, the Defense Secretary must review all retailers that provide payment‑processing equipment or services to the DoD to see if they use any “covered” foreign components.
  • Within 90 days after that review, the Secretary must issue guidance that bans retailers using covered equipment, requiring contracts to be modified or ended unless the retailer stops using those components.
  • Starting Jan. 1, 2027, the DoD may not enter new contracts for payment‑processing equipment, systems, or services with any retailer that relies on covered foreign equipment or services.
  • A written report on how the requirements have been implemented must be submitted to the Armed Services committees within one year of the law’s enactment.
  • The bill defines “countries of concern,” “covered equipment, system, or service,” and related terms to identify foreign‑linked payment‑processing technology.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Armed Services.

Armed Services Committee

May 13, 2026

View full timeline
HouseIntro Referral

Introduced in House

May 13, 2026

HouseIntro Referral

Referred to the House Committee on Armed Services.

Armed Services Committee

May 13, 2026

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in HouseIssued May 13, 2026

I

119th CONGRESS

2d Session

H. R. 8787

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.

1.

Short title

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

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.