H.R. 8787

[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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