Federal Privacy Legislation Reset Expected Under Cruz, Guthrie

Cruz told us in December he has no plans to take up the bipartisan privacy bill negotiated between incoming ranking member Maria Cantwell, D-Wash., and retired House Commerce Committee Chair Cathy McMorris Rodgers, R-Wash. He said he wants to focus on children’s privacy because it has more bipartisan potential. Guthrie told us he expects to introduce new comprehensive and kids’ bills in 2025 but wants to focus on children’s privacy (see 2412170059).

The Senate passed the Kids’ Online Safety Act (KOSA) and the less controversial Children and Teens’ Online Privacy Protection Act (COPPA 2.0) 91-3 in July. The House Commerce Committee passed its own versions of the bills in September, but the legislation stalled in the face of opposition from House Republican leaders. House Commerce passed its comprehensive privacy bill in 2022. The committee planned to pass an updated version with bicameral support from Cantwell in June, but Rodgers pulled the markup amid tensions with House Speaker Mike Johnson, R-La., and House Majority Leader Steve Scalise, R-La. (see 2406270046).

“I believe it’s going to be a reset” on both comprehensive and kids’ privacy legislation in 2025, Guthrie told us. “We couldn't get across the finish line this Congress, so what we need to do is have a reset button and start a new process to see where we go. But it’s a priority. ... We’re going to get started on it as soon as we’re back in January.”

Cruz told us the bill signed by both Rodgers and Cantwell, the American Privacy Rights Act (APRA), has “a lot of problems” and that kids’ privacy concepts are “closer to the finish line.” He opposed APRA’s private right of action, algorithmic regulations and new FTC authorities.

Sen. Richard Blumenthal, D-Conn., Sen. Marsha Blackburn, R-Tenn., House Innovation Subcommittee Chairman Gus Bilirakis, R-Fla., and Rep. Kathy Castor, D-Fla., unsuccessfully pushed for the House to take up the Senate-passed KOSA before the end of 2024. Cruz joined Cantwell, Blumenthal, Blackburn and Sens. Ed Markey, D-Mass., and Bill Cassidy, R-La., in a Dec. 4 letter, urging Johnson and Scalise to take up KOSA and COPPA 2.0 in 2024. Johnson has said he wants to “get the right” children’s safety legislation signed into law.

House Commerce Committee ranking member Frank Pallone, D-N.J., told us legislators can still work with APRA. “People want comprehensive data privacy legislation,” he said. “Nobody tells me that they don’t want it. We’ll try to build on what we have and achieve a consensus.”

Privacy is very important, but there’s “considerable work to be done to reach common ground” on a comprehensive bill, said Cruz. “There’s a meaningful divide between the two parties, and I think we have more work to do before we have legislation that will achieve consensus.”

Guthrie told us the “most important” goal is passing legislation to protect children’s data, but there should be a comprehensive privacy bill as well.

The fate of the children’s bills will be up to Guthrie, said Rep. Tim Walberg, R-Mich. Walberg authored the House version of COPPA 2.0 with Castor in 2024. He’s leaving the committee after accepting the chair of the House Education and Workforce Committee. “COPPA is ready to go,” he said. “I’m frustrated we didn’t move it.” There's an ongoing “debate” about KOSA, but it has the potential to pass both chambers, he said.