Lawmakers seek to override state data privacy laws with new bill
Chairman Brett Guthrie, R-Ky., arrives for the Energy and Commerce House markdown of the Fiscal Year 2025 budget resolution at the Rayburn building on Tuesday, May 13, 2025.
Tom Williams | CQ-Roll Call, Inc. | Getty Images
Two data privacy bills introduced Wednesday and shared first with CNBC would override nearly two dozen state laws to create a national standard limiting how tech and financial companies handle user data.
The bills, consisting of the SECURE Data Act, focused on technology companies, and the GUARD Financial Data Act, focused on financial services businesses, are designed to work together to create a single national standard. House Energy and Commerce Chairman Brett Guthrie, R-Ky. and House Financial Services Chairman French Hill, R-Ark., are throwing their support behind the bills, likely giving them momentum for initial votes next month.
Guthrie told CNBC that the SECURITY Act would “put an end to a confusing mess of state-by-state laws that fail consumers and small businesses alike.” He added that the measure would be similar to some bills already passed by states such as Kentucky.
In addition to circumventing state laws, 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 the bill first seen by CNBC.
Neither bill allows people to sue companies for data privacy violations; It’s something Democratic lawmakers have pushed for in the past in previous data privacy bills.
Congress has repeatedly tried to strike the right balance in protecting data privacy over the past few years. Intraparty divisions, as well as differences between Republicans and Democrats, have meant that past efforts have struggled to find widespread support. Two years ago, the Energy and Commerce Committee’s planned vote on a data privacy bill was canceled at the 11th hour after too many Republicans blocked the legislation.
Guthrie is trying to avoid that this time. Last year, he created a working group to gain support from Republican members and hear their views. The strategy, according to committee staffers, is to first ensure Republicans get enough votes to advance the measure through the committee and then work to gain support from Democrats. The House Financial Services Committee is following a similar tactic.
