The "Protecting Americans Privacy Act of 2025" safeguards financial and tax information by restricting unauthorized access to Treasury Department systems, enabling legal action for privacy violations with significant financial penalties.
Charles "Chuck" Schumer
Senator
NY
The "Protecting Americans Privacy Act of 2025" aims to safeguard financial and tax information by restricting unauthorized access to the Treasury Department's payment systems and preventing the unlawful disclosure of tax returns. It prohibits specific individuals, including certain federal employees and contractors, from accessing these systems or disclosing tax information. Individuals harmed by violations can pursue legal action, with a minimum damage award of $250,000 for unauthorized access or disclosure. The act clarifies that it does not retroactively determine the legality of actions taken before its enactment.
Treasury Payment Systems Get Locked Down: New Bill Boosts Privacy, Hikes Penalties for Snooping
The Protecting Americans' Privacy Act of 2025 is all about tightening security around the Treasury Department's central payment systems—basically, where the government handles a massive amount of financial transactions. The bill, signed into law, specifically prohibits unauthorized access to these systems, aiming to keep sensitive financial data out of the wrong hands.
No Entry
This section gets into the nitty-gritty of who is barred from accessing these systems. It's not just about keeping out hackers; the law also targets specific individuals within the government and its contractors. Think federal employees with less than a year on the job, high-level execs (CEOs, CFOs, etc.), board members, and anyone with a conflict of interest or without a signed ethics agreement. Section 2 of the bill lays it all out, even defining terms like "covered employee" and "federal contractor" to eliminate any wiggle room. If someone does manage to get unauthorized access, or if they knowingly let someone else in, they're breaking the law.
And the consequences? Pretty severe. If you're harmed by a violation, you can sue in either U.S. District Court or state court. The bill mandates a minimum of $250,000 in damages per unauthorized access (SEC. 2), plus the possibility of punitive damages and coverage of attorney's fees. Imagine a small business owner whose financial data is exposed due to unauthorized access—this provision gives them serious legal firepower.
Tax Time Tighter
The bill also cracks down on how tax return information is handled within these Treasury systems (SEC. 3). It specifically forbids disclosure of this info to the same restricted individuals listed in the access section. If your tax info is improperly inspected or disclosed, you can sue for damages, and again, the minimum payout is a hefty $250,000, significantly higher than the usual $1,000 under existing tax code (26 U.S. Code § 7431).
This is a major upgrade in protection. Previously, the penalties might not have been enough to deter someone with access. Now, the stakes are much higher. This change directly benefits every taxpayer by adding an extra layer of security and a powerful deterrent against snooping.
Looking Ahead
It is important to note that both sections of the bill include a clause stating that these new rules don't automatically make any past actions illegal. It's a forward-looking law, focused on preventing future breaches and protecting privacy from here on out. This bill is all about increasing government accountability and making sure that sensitive information is handled with the utmost care. It's a win for privacy advocates and anyone concerned about the security of their financial data within government systems.