Sponsors (2)
The bill would strengthen protections and oversight to prevent VA contractors from selling veterans' sensitive data—improving privacy and trust—but it could raise contractor and taxpayer costs, add VA administrative burden, and complicate legitimate data-sharing unless carefully implemented.
Veterans' sensitive VA-held personal and medical information would be barred from being sold or monetized by VA contractors, reducing risk of identity theft and privacy breaches.
Veterans (and those who get care through the VA) may have increased trust in VA data handling, which could encourage greater use of VA health services and improve continuity of care.
The bill restricts contractors' commercial use of VA data and pushes stronger procurement protections, oversight, and contractor compliance practices across the VA.
Contractors may refuse work, demand higher prices, or incur new compliance costs to avoid monetizing data, which could raise VA procurement costs and ultimately increase taxpayer expense.
Enforcing, auditing, and updating contracts to meet the new restrictions — plus producing required reports — will create administrative burdens for the VA that could divert staff time and resources from other services.
A categorical ban on selling or disclosing data for consideration could complicate legitimate data-sharing needed for research, public health, and interoperability unless the bill includes clear, narrow exceptions.
Based on analysis of 3 sections of legislative text.
Prohibits VA contracts from allowing contractors to sell or otherwise monetize covered veterans' personal information and requires VA to add prohibition clauses and guidance within one year.
Prohibits the Department of Veterans Affairs from entering into contracts that allow contractors to sell or otherwise monetize veterans' sensitive personal information. Requires the VA to add a non‑monetization clause to all existing and new VA contracts that handle covered information, issue guidance to identify and prevent misuse, and report the clause, guidance, and compliance actions to congressional veterans committees within one year.
Official title: To amend title 38, United States Code, to prohibit the Secretary of Veterans Affairs from entering into a contract pursuant to which the contractor may sell sensitive personal information maintained by the Secretary and to ensure the protection of personal information in certain contracts of the Department.
Introduced January 27, 2026 by Nikki Budzinski · Last progress January 27, 2026