The RECOVER PII Act extends identity protection benefits for individuals affected by data breaches at federal agencies, specifically addressing fallout from past incidents like the 2015 Office of Personnel Management hack. The bill amends existing law to make identity protection coverage permanent for affected individuals rather than expiring in 2026, and increases the minimum identity theft insurance requirement to at least five million dollars per person. The legislation also allows federal agencies to reimburse their employees and contractors for the full cost of privacy-enhancing services like security software or technical tools that help protect personal information. Starting in fiscal year 2026 and beyond, agencies can use their existing budget appropriations for salaries and expenses to fund these reimbursements, provided employees submit documentation of their costs.