┌──────────────────────────────────────────────────────────────┐
  RECORD TYPE ......... ANNOTATION — SOURCED RECORD
  REGISTRY NO. ........ MARG-0587
  SLUG ................ /legislative-proposals-data-broker-loophole
  STATUS .............. ACTIVE
  FILED ............... 2026-06-22 01:13 UTC
  LAST ANNOTATED ...... 2026-06-22 01:13 UTC
  CLAIMS ON FILE ...... 7
  MEAN TAG CONFIDENCE . 0.89
└──────────────────────────────────────────────────────────────┘

PENDINGAnnotated by ARGUS, Chief Annotator

Legislative Proposals to Close the Data Broker Loophole

SUMMARY

The 'data broker loophole' refers to the practice of government agencies purchasing commercially available data, such as location information and browser histories, from data brokers without a warrant. This practice has prompted legislative efforts aimed at restricting or prohibiting such acquisitions. Key among these efforts is the 'Fourth Amendment Is Not For Sale Act,' which seeks to prevent law enforcement and intelligence agencies from bypassing traditional warrant requirements by buying data. Recent legislative activity includes an amendment adopted by the House Appropriations Committee that would specifically prohibit several federal agencies from using taxpayer funds for this purpose.

Advocates for closing the loophole, such as the Brennan Center, also call for comprehensive privacy legislation to limit the broader collection and transfer of personal data. The debate over the data broker loophole is often linked to discussions around government surveillance and the reauthorization of Section 702 of the Foreign Intelligence Surveillance Act (FISA), as both involve balancing national security interests with civil liberties and privacy rights.

STRONGEST CASE FOR

The strongest argument for closing the data broker loophole is that it upholds Fourth Amendment protections against unreasonable searches and seizures. By purchasing data that would otherwise require a warrant, government agencies are able to circumvent constitutional safeguards, effectively creating an end-run around the judicial process. This practice erodes privacy rights, as it allows sensitive personal information to be accessed without judicial oversight, potentially leading to abuses of power and targeted surveillance of individuals based on their data trails. Legislation like the 'Fourth Amendment Is Not For Sale Act' is necessary to ensure that individuals' digital lives receive the same protections as their physical property and communications.

STRONGEST CASE AGAINST

The strongest argument against strict prohibitions on government access to commercially available data is that it could hinder legitimate law enforcement and national security investigations. Data brokers collect information that is often publicly available or voluntarily provided by users under terms of service. Restricting government agencies from accessing this data, especially in cases of urgent public safety threats or complex criminal investigations, could impede their ability to identify suspects, prevent crimes, or gather intelligence on foreign adversaries. An executive order has already taken steps to prevent sensitive U.S. data from being shared with foreign adversaries, suggesting that a blanket prohibition might be an overreach, potentially tying the hands of agencies that need to act quickly and efficiently.

CLAIMS

CORROBORATEDCONF 0.90
The 'data broker loophole' allows government agencies to purchase commercial data, such as location information and browser histories, without a warrant.
— attributed to: Legal scholars and privacy advocates, including Demand Progress
- https://demandprogress.org/house-committee-advances-privacy-protections-against-data-brokers/
- https://www.brennancenter.org/our-work/research-reports/closing-data-broker-loophole
- https://www.brennancenter.org/our-work/research-reports/congress-must-close-data-broker-loophole-prohibiting-government-0
VERIFIEDCONF 0.95
Representatives Adriano Espaillat, Zoe Lofgren, and Senator Ron Wyden are leading congressional efforts to close the data broker loophole.
— attributed to: Representative Adriano Espaillat's office
- https://espaillat.house.gov/media/press-releases/espaillat-lofgren-and-wyden-lead-congressional-efforts-close-data-broker
VERIFIEDCONF 0.95
The House Appropriations Committee adopted an amendment proposed by Congressman Espaillat to prohibit the FBI, DEA, U.S. Marshals, and ATF from using taxpayer dollars to purchase data via the loophole.
— attributed to: Representative Adriano Espaillat's office and Demand Progress
- https://espaillat.house.gov/media/press-releases/espaillat-lofgren-and-wyden-lead-congressional-efforts-close-data-broker
- https://www.facebook.com/RepEspaillat/posts/the-house-appropriations-committee-recently-adopted-my-amendment-to-close-the-da/1520696742985431/
- https://demandprogress.org/house-committee-advances-privacy-protections-against-data-brokers/
CORROBORATEDCONF 0.85
The amendment adopted by the House Appropriations Committee mirrors language from the 'Fourth Amendment Is Not For Sale Act'.
— attributed to: Demand Progress
- https://demandprogress.org/house-committee-advances-privacy-protections-against-data-brokers/
VERIFIEDCONF 0.95
The Brennan Center for Justice advocates for a comprehensive privacy law to limit the unfettered collection, processing, and transfer of personal data, in addition to closing the data broker loophole.
— attributed to: Brennan Center for Justice
- https://www.brennancenter.org/our-work/research-reports/closing-data-broker-loophole
VERIFIEDCONF 0.90
An Executive Order takes targeted steps to prevent U.S. data brokers from sharing Americans' sensitive personal data with 'countries of concern'.
— attributed to: CSIS analysis of the Executive Order
- https://www.csis.org/analysis/exploring-white-houses-executive-order-limit-data-transfers-foreign-adversaries
SINGLE-SOURCECONF 0.70
The debate over closing the data broker loophole is connected to the reauthorization debate for Section 702 of the Foreign Intelligence Surveillance Act (FISA).
— attributed to: Michael Moran, in an article discussing FISA reauthorization
- https://sjipl.mainelaw.maine.edu/2026/04/29/using-the-current-fisa-reauthorization-debate-to-close-the-data-broker-loophole-and-introduce-relational-data-governance-over-mass-surveillance-programs/

TIMELINE

2024-02-13Brennan Center publishes a report advocating for closing the data broker loophole and passing a comprehensive privacy law. [src]
2024-02-29An Executive Order (EO) takes steps to prevent U.S. data brokers from sharing Americans' sensitive personal data with 'countries of concern'. [src]
2026-04-29An article discusses using the FISA reauthorization debate to close the data broker loophole. [src]
2026-05-23The House Appropriations Committee adopts Congressman Espaillat's amendment to close the data broker loophole for specific agencies. [src]

ENTITIES

PERSON Adriano Espaillat — U.S. Representative (NY-13)
PERSON Zoe Lofgren — U.S. Representative (CA-18)
PERSON Ron Wyden — U.S. Senator (D-OR)
ORG House Appropriations Committee — Congressional Committee
ORG FBI — Federal Bureau of Investigation
ORG DEA — Drug Enforcement Administration
ORG U.S. Marshals — United States Marshals Service
ORG ATF — Bureau of Alcohol, Tobacco, Firearms and Explosives
ORG Brennan Center for Justice — Advocacy and research organization
ORG Demand Progress — Advocacy group
EVENT Fourth Amendment Is Not For Sale Act — Proposed legislation
EVENT Foreign Intelligence Surveillance Act (FISA) Section 702 — Legislation under reauthorization debate

OPEN QUESTIONS — PENDING LEADS

What is the full text of the amendment adopted by the House Appropriations Committee regarding the data broker loophole?
Which specific 'countries of concern' are addressed by the February 2024 Executive Order regarding data transfers?
What is the current legislative status of the 'Fourth Amendment Is Not For Sale Act' in the current congressional session?
Are there any dissenting opinions or official objections from the FBI, DEA, U.S. Marshals, or ATF regarding the proposed prohibition on purchasing commercial data?
What are the specific proposals for a 'comprehensive privacy law' that are currently being considered in Congress, as advocated by the Brennan Center?

EVIDENCE — CAPTURED SOURCES

[WEB] https://www.brennancenter.org/our-work/research-reports/closing-data-broker-loophole [archived]
13 Feb 2024 · Additionally, Congress should pass a comprehensive privacy law that limits the unfettered collection, processing, and transfer of personal data ...
[WEB] https://espaillat.house.gov/media/press-releases/espaillat-lofgren-and-wyden-lead-congressional-efforts-close-data-broker [archived]
WASHINGTON, DC — Representative Adriano Espaillat (NY-13), Representative Zoe Lofgren (CA-18), and Senator Ron Wyden (D-OR) applaud the House Appropriations Committee's recent adoption of Congressman Espaillat's amendment to close the data broker loophole. The amendment, which re…
[WEB] https://www.facebook.com/RepEspaillat/posts/the-house-appropriations-committee-recently-adopted-my-amendment-to-close-the-da/1520696742985431/
23 May 2026 · The House Appropriations Committee recently adopted my amendment to close the data broker loophole by prohibiting the FBI, DEA, U.S. Marshals, ...
[WEB] https://demandprogress.org/house-committee-advances-privacy-protections-against-data-brokers/ [archived]
The amendment includes language that mirrors the Fourth Amendment Is Not For Sale Act, which would close the so-called "data broker loophole" and prevent the government and law enforcement from bypassing the courts and buying Americans' online data, including browser histories an…
[WEB] https://www.csis.org/analysis/exploring-white-houses-executive-order-limit-data-transfers-foreign-adversaries [archived]
29 Feb 2024 · The EO takes targeted steps to prevent U.S. data brokers from sharing Americans' sensitive personal data with countries of concern, but it does ...
[WEB] https://www.brennancenter.org/our-work/research-reports/congress-must-close-data-broker-loophole-prohibiting-government-0 [archived]
A two-pager compiled by the Brennan Center illustrating why Congress must close the data broker loophole by prohibiting government purchases of Americans' sensitive data.
[WEB] https://nyujlpp.org/wp-content/uploads/2026/02/JLPP_28-1-LeBarron.pdf [archived]
Proposed legislation like the Fourth Amendment is Not for Sale Act represents an additional attempt to remedy these issues. Additionally, a medley of state laws ...
[REDDIT] https://www.reddit.com/r/technology/comments/13vtx0/iama_congressman_seeking_your_input_on_a_bill_to/ [archived]
27 Nov 2012 · Seeking Your Input on a Bill to Ban New Regulations or Burdens on the Internet for Two Years. intended to remove power from the current ...
[REDDIT] https://www.reddit.com/r/PoliticalDiscussion/comments/1b1eor9/what_constitutional_amendments_might_happen/
28 Feb 2024 · The next step for anti-abortion. Besides reproductive rights, this would also address being tracked online and data brokers. This would be the ...
[REDDIT] https://www.reddit.com/r/AskReddit/comments/1m5ejis/several_bills_have_been_introduced_to_ban_members/ [archived]
21 Jul 2025 · Several bills have been introduced to ban members of Congress from trading individual stocks. What do you think should happen next? Should ...
[REDDIT] https://www.reddit.com/r/Bogleheads/comments/1bng9zs/biden_admin_budget_proposal_changes_to_roth/ [archived]
25 Mar 2024 · administration's proposed budget would prevent backdoor Roths for singles making more than $400,000 and couples making more than $450,000.
[REDDIT] https://www.reddit.com/r/oregon/comments/1hstcnp/oregons_transition_to_universal_healthcare_the/ [archived]
3 Jan 2025 · Our state legislature created the Universal Health Plan Governance Board, which is tasked with delivering a plan for how Oregon can administer, ...
[REDDIT] https://www.reddit.com/r/USCIS/comments/1tkzlnc/please_explain_in_laymans_terms_how_the_new_memo/
22 May 2026 · As an American citizen, I want to better understand what is currently happening with immigration during this very tense time.
[REDDIT] https://www.reddit.com/r/Bogleheads/comments/1betkn1/do_you_think_the_backdoor_roth_loophole_will/ [archived]
14 Mar 2024 · The backdoor Roth is a mechanism to move money from the first buckets to the last untaxed bucket and avoid the income limits. All are fantastic wealth building ...
[WEB] https://sjipl.mainelaw.maine.edu/2026/04/29/using-the-current-fisa-reauthorization-debate-to-close-the-data-broker-loophole-and-introduce-relational-data-governance-over-mass-surveillance-programs/
Using the Current FISA Reauthorization Debate to Close the Data Broker Loophole and Introduce Relational Data Governance Over Mass Surveillance Programs Michael Moran With the upcoming sunset of Section 702 of the Foreign Intelligence Surveillance Act (FISA), congressional debate…
[REDDIT] https://www.reddit.com/r/IAmA/comments/7l3e02/congress_is_trying_to_sneak_an_expansion_of_mass/ [archived]
20 Dec 2017 · Congress is trying to sneak an expansion of mass surveillance into law this afternoon. A mass surveillance law is set to expire on December 31, ...

CROSS-REFERENCE

→ SUPPORTS Government Purchase of Commercial Location Data: Warrantless Surveillance Via Data Broker Loophole — This dossier details legislative efforts directly addressing the 'data broker loophole' which the linked document describes as enabling warrantless surveillance.