Protecting Stolen Encrypted Data Act of 2026

This bill directs the President, through the Department of Defense and the National Intelligence Director, to create strategies for identifying stolen sensitive data and classified information held by foreign entities. It specifically targets financial, medical, biometric data, intellectual property, and trade secrets belonging to U.S. persons. The legislation authorizes these officials to determine if destroying, manipulating, or recovering such stolen data serves U.S. economic and national security interests, and if so, permits them to attempt those actions while potentially informing the data owners. Officials must submit a report to Congress within one year outlining their strategies, actions taken, and recommendations for future legislative or administrative steps.