To prohibit the Secretary of Defense from contracting with retailers who use covered payment processing equipment, systems, or services, and for other purposes.
About This Bill
Committee
Latest Action · May 13, 2026
Referred to the House Committee on Armed Services.
This bill prohibits the Department of Defense from contracting with retailers that use payment processing equipment, systems, or services controlled by countries of concern, specifically China, Russia, Iran, North Korea, and any other country the Secretary of Defense designates as a national security risk. The legislation requires the Secretary of Defense to review all current retailers within 180 days to identify those using such "covered" equipment or services, issue guidance within 90 days directing modification or termination of affected contracts, and implement a complete prohibition on new contracts with these retailers starting January 1, 2027. The bill affects military payment processing and retail contractors who work with the Department of Defense, with no specific funding allocated in the text. The Secretary of Defense must report to Congress within one year on how the requirements have been implemented, ensuring military servicemembers' payment data is not processed through foreign adversary-controlled systems.
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