DOJ Finalizes Bulk Sensitive Data Transfer Rule for National Security

Published
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10

Why it matters

The Department of Justice has issued a final rule under Executive Order 14117 that prohibits the transfer or access of bulk sensitive personal data—including health records and genomic information—by countries of concern such as China, Russia, and Iran, or by designated covered persons. Codified at 28 C.F.R. Part 202, the rule took effect April 8, 2025, with a 90-day grace period that expired July 8, 2025. Full enforcement begins October 6, 2026. The rule applies broadly to healthcare organizations, life sciences firms, cloud vendors, AI developers, and research institutions engaged in international vendor agreements, investments, or data sharing arrangements. Even de-identified genomic data involving as few as 100 samples can trigger the rule's thresholds.

The DOJ's National Security Division will oversee enforcement, with CISA providing security requirements. The rule targets not only data transfers but also access to sensitive information, and applies to anonymized data that existing HIPAA protections do not adequately cover. The specific scope of enforcement actions and compliance timelines for particular sectors remain subject to agency guidance as the October deadline approaches.

Attorneys advising healthcare systems, research institutions, and technology companies should immediately audit data flows to foreign entities, review vendor agreements for countries-of-concern involvement, and assess cloud and AI training arrangements. The low thresholds for "bulk" data mean routine offshore operations may trigger compliance obligations. Civil and criminal penalties apply for violations. Organizations should prioritize contract updates and compliance program development before October 6, 2026.

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