What does Preamble of Servicemember Payment Data Privacy and Security Act do?

This bill, formally titled 'To prohibit the Secretary of Defense from contracting with retailers who use covered payment processing equipment, systems, or services, and for other purposes,' aims to restrict the Secretary of Defense's ability to enter into contracts. The bill specifically targets retailers utilizing certain payment processing equipment, systems, or services. The bill was introduced in the House of Representatives on May 13, 2026, and referred to the Committee on Armed Services.

What does SHORT TITLE. of Servicemember Payment Data Privacy and Security Act do?

This bill is formally titled the Servicemember Payment Data Privacy and Security Act

What does ELIMINATION OF USE OF CERTAIN PAYMENT PROCESSING EQUIPMENT, of Servicemember Payment Data Privacy and Security Act do?

This section directs the Secretary of Defense to review retailers to determine if they use "covered equipment, systems, or services" in contracts with the Department of Defense. The Secretary of Defense must issue guidance prohibiting the use of covered equipment, systems, or services by retailers in Department of Defense contracts, potentially leading to contract modification or termination. Effective January 1, 2027, the Secretary of Defense is prohibited from entering into contracts for payment processing services with retailers using covered equipment. The Secretary of Defense must submit a report to the House and Senate Armed Services Committees on the implementation of these requirements. "Covered equipment, system, or service" is defined as equipment where the application processor, source code, or other components are linked to entities from countries of concern or under their control. "Country of concern" includes China, Russia, Iran, North Korea, and any other country designated by the Secretary of Defense. "Electronic fund transfer" is defined as any transfer of funds initiated electronically, excluding paper instruments. "Payment processing equipment, system, or service" includes means of accessing consumer accounts and electronic devices used to initiate electronic fund transfers.

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Servicemember Payment Data Privacy and Security Act

Last updated: 5/13/2026 · Introduced: 5/13/2026

Author: Ben Cline (R-VA)

TL;DR (AI)

This bill prohibits the Department of Defense from contracting with retailers that utilize payment processing equipment, systems, or services linked to entities from countries of concern like China, Russia, Iran, and North Korea.
The Secretary of Defense must review existing contracts and issue guidance to prevent the use of covered payment processing equipment, potentially modifying or terminating contracts.
The bill requires the Secretary of Defense to report to Congress on the implementation of these restrictions on payment processing equipment and services.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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