Payments

Cline bill targets foreign-linked payment systems used by Pentagon retailers

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September 21, 2026

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U.S. Rep. Ben Cline, R-Va., has introduced legislation that would prohibit the Defense Department from contracting with retailers that use certain payment-processing technology connected to countries considered national security threats. The Servicemember Payment Data Privacy and Security Act identifies China, Russia, Iran and North Korea as countries of concern.

The issue was highlighted in a recent advocacy update from the National Automated Merchandising Association.

The legislation would direct the Defense Department to review retailers providing payment-processing equipment, systems or services and determine whether covered foreign-linked technology is an essential part of their contracts. The department would then issue guidance requiring affected retailers to replace the technology or face contract modification or termination. The prohibition on new covered contracts would take effect Jan. 1, 2027.

Cline said in a press release that the measure is intended to protect service members' personal and financial information from foreign adversaries, particularly China. The bill was introduced with Republican Reps. John Moolenaar of Michigan, Barry Moore of Alabama, Eli Crane of Arizona, Keith Self of Texas and Scott Fitzgerald of Wisconsin. Its provisions were later incorporated into the House-passed fiscal 2027 National Defense Authorization Act but must remain in the final legislation to become law.