HR1834119th CongressWALLET

Breaking the Gridlock Act

Sponsored By: Representative Rep. McGovern, James P. [D-MA-2]

Passed House

Summary

Prohibits data brokers from transferring sensitive U.S. personal data to foreign adversaries. It also strengthens veterans protections, tightens federal procurement for American flags, and orders multiple federal studies and targeted funding.

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  • Protects individuals and families by banning data brokers from selling, licensing, or otherwise making personally identifiable sensitive data of U.S. residents available to foreign adversaries. The Federal Trade Commission enforces the ban and it takes effect 60 days after enactment.
  • Helps veterans and courts by requiring an automatic review of Servicemembers' Group Life Insurance and Veterans' Group Life Insurance maximums every 3 years starting January 1, 2026, directing the Defense Department to identify improper tax withholdings on certain severance payments, and creating a Veterans Pilot Program to fund local treatment and drug courts with reporting requirements.
  • Changes federal operations by requiring most U.S. flags be 100 percent domestically made, ordering a Treasury study on financial risks from China, directing a Transportation Security Administration study due in 270 days on treating travel time as on-duty, and providing FY2026 supplemental appropriations including targeted $1 million additions for telehealth and other agency needs.

*Includes new appropriations, grants, and reporting duties that increase federal spending.*

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 8 benefits, 0 costs, 2 mixed.

Stop selling Americans' sensitive data abroad

If enacted, data brokers would be barred from selling or sharing sensitive personal data of U.S. people with a foreign adversary or an entity they control. Transfers asked for by the person, certain service‑provider uses, news reporting, and public information would still be allowed. The FTC would enforce the ban as an unfair practice. The rule would start 60 days after enactment.

Report on U.S. risks from China finance

If enacted, Treasury would study U.S. exposure to China’s financial sector and report within 1 year. The report would review Chinese reforms, risks to U.S. and global stability, and current U.S. actions. It would recommend further steps and international cooperation. Treasury would send it to Congress and post the unclassified part online.

Tax refunds on veterans' severance

If enacted, the Defense Department would, within 1 year, find veterans who had tax withheld from certain disability severance pay after January 17, 1991. The pay must have been computed under 10 U.S.C. 1212 and not treated as taxable under section 104(a)(4). DoD would tell each person the amount wrongly withheld and how to file an amended return. The normal 3‑year refund window would not end until at least 1 year after that notice is sent.

Faster federal paybacks for local firefighters

If enacted, four departments would have 1 year to set standard timelines for paying local fire departments under cost‑share wildfire agreements. Agencies would review and update current agreements to match the new rules. The rules would require payment when a proper invoice is submitted. Congress states paybacks should happen as soon as possible and by 1 year after the fire.

Review life insurance cap for inflation

If enacted, VA would check the automatic maximum SGLI/VGLI coverage on January 1, 2026 and every three years after. The review would compare the current cap to $400,000 adjusted by the change in CPI since fiscal year 2005. VA would send the results to the House and Senate Veterans' Affairs Committees.

Grants to boost veterans court retention

If enacted, the Justice Department would run a pilot grant program to help people stay and finish veterans treatment and drug courts. Local governments that run these courts could apply. Applications would explain the treatment plan, show data on retention, and include a plan to test results. Grantees would report participant details and completion rates within 180 days.

Small agency grants and Udall funding extended

If enacted, the government would provide $1 million each to several offices for FY ending September 30, 2026. One grant would help a Telehealth Resource Center support telehealth in skilled nursing and nursing facilities. Other $1 million amounts would go to USDA’s budget office, State’s Capital Investment Fund (until expended), Army operations and maintenance, DHS management, and DOE’s Energy Information Administration (until expended). The bill would also extend the Udall Foundation’s authorization through 2029, raise a listed amount from $1,000 to $5,000, and set a reference to fiscal year 2026.

Stronger House whistleblower anti-retaliation rules

If enacted, House rules would bar Members and staff from stopping or punishing someone for giving truthful information to House ethics offices, the Workplace Rights office, or law enforcement. The protection would apply only if the disclosure is truthful and not barred by law or House rules.

TSA would study commute pay time

If enacted, TSA would, within 270 days, study whether time spent traveling between duty sites and airport parking or transit stops should count as on‑duty. The study would cover small, medium, and large hub airports, average commute time, and possible benefits. It would also review tracking methods using phones or location data and the costs, including effects on retirement credit.

Agencies buy only U.S.-made flags

If enacted, federal agencies would generally have to buy flags that are 100% made in the United States from U.S.‑grown or U.S.‑made materials. The rule would not apply if needed U.S. flags are not available at U.S. market prices, for ships in foreign waters, commissary resale, or small purchases. The President could waive the rule to meet a trade agreement and would publish notice within 30 days. It would apply to contracts entered into 180 days after enactment.

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Sponsors & CoSponsors

Sponsor

Rep. McGovern, James P. [D-MA-2]

MA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 230 • No: 196

house vote • 1/8/2026

On Passage

Yes: 230 • No: 196

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