Hill Republicans give federal data privacy another go
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House Republicans on Wednesday rolled out two data privacy bills to protect personal and financial data and override state laws.
Why it matters: Congress has been trying to pass a federal data privacy law for years, but fights over preempting state laws keep derailing efforts and are now spilling into AI policy debates.
Driving the news: The SECURE Data Act and the GUARD Financial Data Act "will provide the American people more control over their data and set clear rules," per memos from the House Energy and Commerce and Financial Services Committees.
Between the lines: The new effort is happening as personal data becomes even more valuable and potentially compromised in the AI era.
- House GOP aides told reporters Wednesday that they see privacy legislation and future AI legislation moving on their own tracks, but that data privacy legislation is "viewed as helpful to the overall AI discussions."
- An AI bill remains a top priority for Hill Republicans, the aides said.
The SECURE Data Act, which would limit enforcement to the Federal Trade Commission and state attorneys general, includes:
- Data minimization rules
- Data access and deletion rights for consumers
- A requirement for data collectors to obtain opt-in consent for sensitive data
- National standards that would override state laws
The GUARD Financial Data Act would update the existing Gramm-Leach-Bliley Act to "better protect consumer financial data in the digital age," per the memo.
Context: The new effort comes after a failed attempt last Congress to get a comprehensive federal privacy bill done.
- That attempt was bogged down in disagreements over pre-emption of state laws and the ability of individuals to sue for privacy violations.
What they're saying: The bills are viewed as a clean slate and restart to privacy negotiations, and are based on feedback from hundreds of groups, GOP House Energy and Commerce Committee staff told reporters in a briefing.
- Big Tech companies were not looped into drafting, the aides said, describing the bill as "small business and small startup-friendly."
- Aides also said the bills have the support of House leadership.
What's next: Committee aides said they hope to schedule a legislative hearing soon and they welcome "good-faith negotiations" from Democratic colleagues.
