Sponsors (3)
The bill strengthens veterans' privacy by banning VA contractors from selling sensitive data and improving oversight, at the cost of higher contractor compliance and procurement costs, reduced market competition, and potential friction for legitimate research and data-sharing.
Veterans: VA contractors would be prohibited from selling veterans' sensitive personal data (medical, financial, identity), directly preventing contractor monetization of that information.
Veterans: Reduced risk of privacy harms (identity theft, targeted marketing, data breaches) and greater confidence in sharing information with VA providers because contractors cannot monetize sensitive VA-held data.
VA staff, contractors, and Congress: Clearer guidance, detection tools, and a mandated report increase oversight, accountability, and transparency about contractor compliance with VA data protections.
Taxpayers and VA users: Contractors may face higher compliance costs or exit the market (fewer bidders), which could raise VA procurement costs and reduce competition and innovation in service delivery.
Hospitals, researchers, and some patients: Tighter restrictions could complicate or slow legitimate data-sharing arrangements used for research, analytics, or public-health coordination, potentially delaying beneficial projects that rely on deidentified or shared data.
VA staff and administrators: New reporting, compliance steps, and potentially unclear contract language add administrative burden during implementation and could slow service delivery while contracts and processes are revised.
Based on analysis of 3 sections of legislative text.
Bars VA contracts that allow contractors to sell or monetize veterans' protected health information/PII, requires anti‑monetization clauses, guidance, and a report within 1 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 30, 2026 by Nikki Budzinski · Last progress January 30, 2026
Prohibits the Department of Veterans Affairs from contracting to allow contractors to sell or otherwise disclose veterans' sensitive personal information for pay, and requires VA contracts and policies to bar monetization or misuse of protected health information and personally identifiable information. The VA must insert a required contract clause into covered contracts, issue guidance to employees and contractors for identifying misuse, and report the clause, guidance, and compliance actions to the House and Senate Veterans’ Affairs Committees within one year of enactment.