What this bill does
The **RECOVER PII Act** (H.R. 10034) permanently extends federal identity protection coverage and authorizes federal agencies to reimburse employees and contractors for privacy-enhancing services.
Specifically, the bill removes the original fiscal year 2026 expiration date for federal identity protection coverage, requiring it to remain in place permanently. It also allows executive, legislative, and judicial branch agencies to use existing administrative funds to cover up to 100% of the cost of privacy-enhancing tools for their personnel.
Who it affects
* **Individuals eligible for federal identity protection coverage:** Individuals covered under federal identity protection programs.
* **Federal employees:** Workers across executive, legislative, and judicial branch agencies.
* **Federal contractors:** Companies and contractor employees providing support services to federal agencies.
* **Federal agencies:** Government entities across all three branches responsible for administering these protection programs and reimbursement policies.
What would change
* **Lifetime Identity Protection (Requirement):** Federal identity protection coverage must now last for the remainder of an affected individual's lifetime, rather than expiring at the end of fiscal year 2026.
* **Insurance Minimums (Requirement):** The identity protection coverage must include a minimum of $5,000,000 in identity theft insurance.
* **Agency Reimbursements (Authorization):** Starting in fiscal year 2026, federal agencies are permitted—but not required—to reimburse employees up to 100% for costs spent on privacy-enhancing services.
* **Contractor Reimbursements (Authorization):** Agencies are permitted to pay contractor companies so those companies can reimburse their employees (who support the agency) up to 100% for privacy-enhancing service costs.
* **Documentation Rules (Requirement):** To receive a reimbursement, an employee or contractor employee must submit supporting information or documentation required by the agency.
Money or funding
* **Funding Source:** Starting in fiscal year 2026, agencies are authorized to draw from their existing "salaries and expenses" accounts to pay for privacy-enhancing service reimbursements.
* **Insurance Amount:** Mandates that identity protection coverage includes at least $5,000,000 in identity theft insurance per covered individual.
* **Reimbursement Cap:** Reimbursements for privacy-enhancing services are capped at a maximum of 100% of the actual costs incurred.
Important exceptions or limits
* **No Mandatory Reimbursement:** The bill grants agencies the authority to reimburse privacy-enhancing services, but it does not mandate that agencies must provide these reimbursements.
* **Documentation Dependency:** Reimbursement is strictly contingent upon providing proper supporting documentation specified by the agency; without it, payment cannot be issued.
* **Scope of Privacy Services:** Reimbursements are limited to "privacy-enhancing services," defined as software, hardware, technical processes, or technology tools that reduce, suppress, or eliminate personal information to mitigate privacy risks.
Plain-English bottom line
This bill makes federal identity protection lifetime coverage permanent with at least $5,000,000 in identity theft insurance. It also gives federal agencies the option, starting in fiscal year 2026, to use their administrative budgets to fully reimburse employees and supporting contractors for personal privacy protection software and tools, provided proper proof of purchase is submitted.
