This legislative proposal aims to safeguard veterans' sensitive personal information by prohibiting the Department of Veterans Affairs (VA) from entering into contracts that permit contractors to sell or otherwise disclose this data for consideration. It specifically amends title 38, United States Code, to establish a clear ban on such contractual agreements, reinforcing the protection of veterans' privacy. Within one year of enactment, the Secretary of Veterans Affairs must ensure that all existing and new contracts handling sensitive data, termed covered contracts , include clauses explicitly prohibiting the monetization, sale, or misuse of this information by any contractor or subcontractor. Concurrently, the Secretary is required to issue a directive providing guidance to VA employees and contractors on how to identify and prevent the unauthorized use of veterans' data. A report detailing these actions, including the contract clause and guidance, must be submitted to the appropriate congressional committees. The bill defines covered information broadly to include protected health information and personally identifiable information, even if anonymized, encompassing data protected under various federal statutes and regulations. This comprehensive definition ensures that a wide range of sensitive veteran data is protected under these new contractual requirements.