To provide a clarification of non-applicability for regulation and prohibition relating to sensitive personal data under the International Emergency Economic Powers Act, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The DATA Act addresses the transfer of sensitive personal data to China and the national security risks posed by Chinese-controlled connected software applications, particularly TikTok. Title I clarifies that sensitive personal data is not protected under the IEEPA informational materials exemption and directs the Treasury Secretary to prohibit transactions with entities transferring such data to China. Title II establishes a sanctions regime against foreign persons operating connected software applications linked to Chinese espionage, censorship, election interference, or malicious cyber activities. Title III specifically requires Presidential determinations every 180 days on whether ByteDance/TikTok meets sanctionable criteria.
Who Benefits and How
US national security interests benefit from closing a loophole that allowed sensitive personal data to flow to China under the IEEPA informational materials exemption. US citizens benefit from protections against foreign surveillance and data exploitation. Competing US-based social media companies benefit from potential restrictions on TikTok.
Who Bears the Burden and How
ByteDance and TikTok face direct sanctions risk and ongoing presidential scrutiny every 180 days. Foreign persons and entities connected to China that handle sensitive personal data face transaction prohibitions and asset blocking. US persons doing business with entities transferring sensitive data to China face new restrictions. The Treasury Department bears the burden of issuing directives and implementing the new regime within 180 days.
Key Provisions
- Clarifies sensitive personal data transfers are not exempt under IEEPA informational materials provisions
- Directs Treasury to prohibit transactions with entities transferring sensitive personal data to Chinese-connected persons
- Creates sanctions authority to block assets of foreign persons operating Chinese-linked software applications involved in espionage, censorship, or election interference
- Mandates Presidential determination on ByteDance/TikTok every 180 days for 3 years
- Includes 5-year sunset clause for Title II sanctions authority
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Clarifies that the IEEPA informational materials exemption does not apply to sensitive personal data transfers, prohibits US persons from transacting with entities that transfer sensitive personal data to China, and imposes sanctions on foreign persons operating connected software applications linked to China that facilitate espionage, censorship, election interference, or malicious cyber activities.
Key Policy Areas
National Security, Data Privacy, Trade & Sanctions, Technology Regulation
Primary Purpose
Clarifies that the IEEPA informational materials exemption does not apply to sensitive personal data transfers, prohibits US persons from transacting with entities that transfer sensitive personal data to China, and imposes sanctions on foreign persons operating connected software applications linked to China that facilitate espionage, censorship, election interference, or malicious cyber activities.
Policy Domains
Title I - IEEPA Clarification and Data Transfer Prohibition
Identified Gains
Contextual inference, no direct clause citation- US citizens whose personal data is at risk
- US national security apparatus
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Entities transferring sensitive personal data to China
- Treasury Department (implementation)
Contextual inference, no direct clause citation
Title II - Sanctions on Connected Software Applications
Identified Gains
Contextual inference, no direct clause citation- US national security interests
- Competing US-based social media and tech companies
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Foreign persons operating Chinese-linked connected software applications
- Persons facilitating transactions for sanctioned entities
Contextual inference, no direct clause citation
Title III - ByteDance/TikTok Determinations
Identified Gains
Contextual inference, no direct clause citation- US national security interests
- Congressional oversight committees
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- ByteDance and TikTok
- ByteDance/TikTok subsidiaries and controlled entities
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
ReportedAdditional sponsor: Mr. Smith of New Jersey
Reported from the Committee on Foreign Affairs; committed to the …
Mr. McCaul introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
ByteDance Ltd., Chinese-connected software application operators (including TikTok/ByteDance), Companies transferring sensitive personal data to/from China
Positive-direction: US-based social media competitors
Negative-direction: ByteDance Ltd., Chinese-connected software application operators (including TikTok/ByteDance), Companies transferring sensitive personal data to/from China, Entities connected to China handling US personal data, Foreign persons operating connected software applications, Sanctioned foreign persons and entities, TikTok
Congressional oversight committees, Federal agencies implementing the Act (Treasury, Executive), US national security interests
Positive-direction: Congressional oversight committees, US national security interests
Negative-direction: Federal agencies implementing the Act (Treasury, Executive)
Entities facilitating transactions for sanctioned persons, US financial institutions (compliance with blocking orders)
Data brokers dealing with Chinese entities
US persons transacting with Chinese-connected entities
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_president"
- → President of the United States
- "the_president"
- → President of the United States
Note: The Secretary refers to the Secretary of the Treasury in Title I, while the President is the primary actor in Titles II and III
Key Definitions
Terms defined in this bill
The People's Republic of China, its government, and any entity acting on its behalf or benefit
Has the meaning given in Executive Order 14034 relating to protecting Americans' sensitive data from foreign adversaries
Activities originating from outside the US (or allied country) that tamper with, alter, or misappropriate information to interfere with election processes
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology