DOJ Builds Digital Wall to Keep Foreign Spies Away
Published Date: 1/8/2025
Rule
Summary
Starting April 8, 2025, the Department of Justice is blocking certain countries and people from accessing sensitive U.S. personal and government data to keep Americans safe. This new rule affects businesses and data brokers who handle this info, making sure they follow strict limits on sharing or selling it. No big costs are expected, but everyone involved needs to get ready for these important changes.
Analyzed Economic Effects
7 provisions identified: 3 benefits, 3 costs, 1 mixed.
Ban on Certain Data Transactions
Starting April 8, 2025, the Department of Justice prohibits certain transactions that involve United States Government-related data or bulk U.S. sensitive personal data when a foreign country or national has an interest. The rule covers acquisition, holding, use, transfer, transportation, exportation, or dealing in property that could give countries of concern or covered persons access to that data.
Prohibition on Certain Data-Brokerage Sales
The rule prohibits certain commercial data-brokerage transactions that would provide access to government-related data or bulk U.S. sensitive personal data to countries of concern or covered persons. Data brokers and purchasers who trade in such bulk data will be subject to these prohibitions.
Security Conditions on Deals and Contracts
The rule imposes predefined security requirements on certain restricted transactions, including investment, employment, and vendor agreements that involve government-related data or bulk U.S. sensitive personal data. Such transactions will be allowed only to the extent they meet those security requirements.
Recordkeeping, Reporting, and Audits
The rule establishes recordkeeping and reporting requirements, due diligence obligations for restricted transactions, audits, and reports to be furnished on demand, including reports on rejected prohibited transactions. It also establishes penalties and a compliance and enforcement regime.
Licenses and Advisory Opinions Process
The Department will issue general and specific licenses and advisory opinions to authorize otherwise prohibited or restricted transactions and may modify or rescind those licenses. Businesses and other U.S. persons can seek these licenses to pursue transactions that would otherwise be barred or restricted by the rule.
Exemptions for Official and Critical Transactions
The rule exempts certain transactions from its prohibitions and restrictions, including transactions conducted for the official business of the United States Government by employees, grantees, or contractors, and transactions under grants, contracts, or other agreements with the U.S. Government, including those for outbreak and pandemic prevention, preparedness, and response. The preamble also lists other exempt categories such as telecommunications services, financial services, and certain medical product authorizations and clinical investigations.
Designation of Countries and Covered Persons
The rule establishes a process to identify and designate 'countries of concern' and classes of 'covered persons' whose access to government-related data or bulk U.S. sensitive personal data poses a national security risk. Those designations determine which foreign countries and persons the prohibitions and restrictions apply to.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-17622, Federal Independent Dispute Resolution Operations; Correction
This document corrects typographical errors and omissions in the final rule that appeared in the June 4, 2026, Federal Register titled "Federal Independent Dispute Resolution Operations" (referred to hereafter as the "IDR final rule"). The effective date of the IDR final rule was August 3, 2026.
2026-17650, Fisheries of the Exclusive Economic Zone off Alaska; Pacific Ocean Perch in the Central Aleutian District of the Bering Sea and Aleutian Islands Management Area
NMFS is prohibiting directed fishing for Pacific ocean perch in the Central Aleutian district (CAI) of the Bering Sea and Aleutian Islands management area (BSAI) by vessels participating in the BSAI trawl limited access sector fishery. This action is necessary to prevent exceeding the 2026 total allowable catch (TAC) of Pacific ocean perch in the CAI allocated to vessels participating in the BSAI trawl limited access sector fishery.
2026-17639, Airworthiness Directives; Pilatus Aircraft Ltd. Airplanes
The FAA is adopting a new airworthiness directive (AD) for certain Pilatus Aircraft Ltd. (Pilatus) Model PC-12/47E airplanes. This AD was prompted by a report that the emergency exit door could not be opened from inside an airplane. This AD requires modification of the passenger service unit (PSU) trim panel if dual lock fastener tapes are not installed. This AD also prohibits the installation of affected parts. The FAA is issuing this AD to address the unsafe condition on these products.
2026-17636, Vessel and Shipyard Financing, Regulatory Revision
This interim final rule revises MARAD regulations implementing the Vessel and Shipyard Financing Program (Title XI Program or the Program) financial and programmatic requirements. Specifically, MARAD implements statutory changes, updates the vessel project and shipyard project financing requirements imposed on Title XI Program borrowers, aligns the Title XI Program with modern Federal credit best practices, corrects numerous legal citations, improves accessibility by modernizing text, and removes obsolete references. This rule also streamlines the MARAD Title XI regulations by removing 14 of 34 sections of the existing regulations.
2026-17645, Pacific Halibut Fisheries of the West Coast; Inseason Action for the 2026 Area 2A Pacific Halibut Directed Commercial Fishery
NMFS announces an inseason action for the 2026 Pacific halibut non-Tribal directed commercial fishery in the International Pacific Halibut Commission's (IPHC) regulatory Area 2A. This action adds a fishing period, September 1 through September 3, 2026, with a fishing period catch limit of 5,000 pounds (lb) (2.27 metric tons (mt)) per vessel, dressed weight. This action is intended to provide additional opportunity for the fleet to achieve the 2026 non-Tribal directed commercial fishery allocation.
2026-17652, Requests for Arbitration Panels
The Federal Mediation and Conciliation Service (FMCS) is issuing an interim final rule with requests for comments to amend its arbitration services regulations. The interim final rule clarifies the circumstances in which the Office of Arbitration (OA) may decline to issue an arbitration panel, make a direct appointment, or provide related arbitration services. The rule would remove language that could be read to require FMCS to honor every unilateral request for an arbitration panel, regardless of legal constraints or FMCS's authority. Due to a technical error, FMCS is reposting this IFR and extending the deadline for comments to 30 days from the date of publication in the Federal Register. FMCS seeks public comment on this interim final rule.
Previous / Next Documents
Previous: 2024-30826, Certificates of Compliance
Starting July 8, 2026, importers, manufacturers, and private labelers of CPSC-regulated products must file their Certificates of Compliance electronically with U.S. Customs. This new rule makes the process smoother and matches other safety testing rules. Products entering from foreign trade zones have until January 8, 2027, to follow the new electronic filing system—helping keep products safe and paperwork easy!
Next: 2025-00138, Airworthiness Directives; Gulfstream Aerospace Corporation Airplanes
If you own or fly Gulfstream G500 or G600 jets, listen up! The FAA found cracks in the electrical grounding spots on the wings and now requires inspections, fixes if needed, and sealing those spots to keep everyone safe. These new rules kick in on February 12, 2025, so get ready to act and keep your plane flying smoothly without surprise costs.