Privacy Act Modernization Act of 2025

Privacy Act Modernization Act of 2025

This bill strengthens privacy protections that apply to personal data held or maintained by government agencies. These protections restrict the storage, access, use, and disclosure of personal data, such as an individual’s name or Social Security number.

Currently, these protections apply to U.S. citizens and permanent residents. The bill expands this to include natural persons in the United States and certain associations and corporations. 

The bill places additional limits on the use and disclosure of such data, including by limiting the use of records to a legally authorized purpose and requiring disclosures to be minimal and consistent with a previously stated use.

The bill also increases existing penalties and creates additional criminal penalties for violations. For example, under the bill, an agency employee who willfully discloses individually identifiable information with the intent to sell, transfer, use, or disclose such information for commercial advantage, personal gain, or malicious harm shall be guilty of a felony and fined not more than $250,000, imprisoned for not more than 10 years, or both.

Courts may provide preliminary relief and, if the U.S. is found to have acted intentionally or willfully, the U.S. is liable for additional types of damages (e.g., punitive).

The bill generally takes effect two years after the date of enactment. However, the bill takes effect immediately upon enactment with respect to certain actions taken by the Department of Government Efficiency (DOGE), certain special or temporary employees, and other related individuals and organizations.