Lawmakers seek to override state data privacy laws with new bill
Pair of bills would create a national standard and prevent individuals from suing companies.
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Chairman Brett Guthrie, R-Ky., arrives for the House Energy and Commerce markup of the FY2025 budget resolution in Rayburn building on Tuesday, May 13, 2025.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Two data privacy bills set to be introduced Wednesday and shared first with CNBC would preempt nearly two dozen state laws to create a national standard limiting how tech and finance companies handle user data.
The bills — the SECURE Data Act, which focuses on technology companies and the GUARD Financial Data Act that focuses on financial services businesses – are designed to work together to form a single national standard. House Energy and Commerce Chair Brett Guthrie, R-Ky., and House Financial Services Chair French Hill, R-Ark., are throwing their support behind the bills, likely giving them momentum for first votes to take place next month.
Guthrie said in a statement to CNBC that the SECURE Act would "put an end to the confusing state-by-state patchwork of laws that fail consumers and small businesses alike." He added the measure would be similar to certain bills already passed by states like Kentucky.
In addition to preempting state law, the bills would allow people to access, correct or delete their personal data, as well as opt out of targeted ads and the sale of their data, according to bill text first seen by CNBC.
Neither bill would allow people to sue companies over data privacy violations, something Democratic lawmakers have pushed for in the past in previous data privacy bills.
Congress tried repeatedly over the last few years to strike the right balance on data privacy protections. Besides differences between Republicans and Democrats, intra-party splits have meant past efforts struggled to get widespread support. Two years ago, a planned Energy and Commerce Committee vote on a data privacy bill was scraped at the 11th hour after numerous Republicans blocked it.
Guthrie is attempting to avoid that this time. Last year, he formed a task force to build support from Republican members and hear input. The strategy is to first ensure Republicans have enough votes to advance the measure though committee, and then work on getting Democratic support, according to committee staff. The House Financial Services Committee is taking a similar tactic.
