Rule2025-14134

Privacy Act of 1974; Implementation

Primary source

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Published
July 28, 2025
Effective
August 27, 2025

Issuing agencies

Defense Department

Abstract

The Department of Defense (Department or DoD) is issuing a final rule to amend its regulations to exempt portions of DoD-0020, Military Human Resource Records system of records from certain provisions of the Privacy Act of 1974. Specifically, the rule exempts portions of the Military Human Resource Records from certain provisions of the Privacy Act because of national security, and to prevent the undermining of evaluation materials used to determine potential for promotion.

Full Text

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<title>Federal Register, Volume 90 Issue 142 (Monday, July 28, 2025)</title>
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[Federal Register Volume 90, Number 142 (Monday, July 28, 2025)]
[Rules and Regulations]
[Pages 35434-35436]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14134]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 310

[Docket ID: DoD-2024-OS-0049]
RIN 0790-AL30


Privacy Act of 1974; Implementation

AGENCY: Office of the Secretary of Defense (OSD), Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: The Department of Defense (Department or DoD) is issuing a 
final rule to amend its regulations to exempt portions of DoD-0020, 
Military Human

[[Page 35435]]

Resource Records system of records from certain provisions of the 
Privacy Act of 1974. Specifically, the rule exempts portions of the 
Military Human Resource Records from certain provisions of the Privacy 
Act because of national security, and to prevent the undermining of 
evaluation materials used to determine potential for promotion.

DATES: This rule is effective on August 27, 2025.

FOR FURTHER INFORMATION CONTACT: Ms. Rahwa Keleta, Privacy and Civil 
Liberties Directorate, Office of the Assistant to the Secretary of 
Defense for Privacy, Civil Liberties, and Transparency, Department of 
Defense, 4800 Mark Center Drive, Mailbox #24, Suite 05F16, Alexandria, 
VA 22350-1700; <a href="/cdn-cgi/l/email-protection#98f7ebfcb6f5fbb5f9f4fde0b6f7f9ecebfcb5e8fbf4ecb6f5fae0b6e8fbf4fcb5ebf7eaf6d8f5f9f1f4b6f5f1f4"><span class="__cf_email__" data-cfemail="86e9f5e2a8ebe5abe7eae3fea8e9e7f2f5e2abf6e5eaf2a8ebe4fea8f6e5eae2abf5e9f4e8c6ebe7efeaa8ebefea">[email&#160;protected]</span></a>; (703) 
571-0070.

SUPPLEMENTARY INFORMATION:

Discussion of Comments and Changes

    This proposed rule published in the Federal Register (89 FR 42408) 
on May 15, 2024. Comments were accepted for 60 days until July 15, 
2024. Only two comments were received, neither of which necessitated 
any changes to the rule. One commenter appeared to generally agree with 
DoD's proposed rule. The other commenter acknowledged the necessity for 
the exemptions being claimed, but also offered some suggestions 
seemingly designed to enhance transparency, accountability, record 
accuracy, and safeguarding. DoD agrees with these general goals and 
responds that it follows the requirements of the Privacy Act and DoD 
policy for maintaining a system of records, both of which serve to 
effectuate similar objectives. This final rule adds to the DoD's 
Privacy Act exemptions for Department-wide systems of records found in 
32 CFR 310.13.

I. Background

    In finalizing this rule, DoD is seeking to exempt portions of this 
system of records titled, DoD-0020, Military Human Resource Records, 
from certain provisions of the Privacy Act. This system of records 
describes DoD's collection, use, and maintenance of records about 
members of the armed forces, including active duty, reserve, and guard 
personnel. Records support Department requirements and individual 
Service members' careers, through the collection and management of 
personnel and employment data. This information includes individual's 
pay and compensation, education, assignment history, rank and promotion 
determinations, separation and retirement actions, and career 
milestones.

II. Privacy Act Exemption

    The Privacy Act allows Federal agencies to exempt eligible records 
in a system of records from certain provisions of the Act, including 
those that provide individuals with a right to request access to and 
amendment of their own records. If an agency intends to exempt a 
particular system of records, it must first go through the rulemaking 
process pursuant to 5 U.S.C. 553(b)(1)-(3), (c), and (e). The DoD is 
amending 32 CFR part 310 to add a new Privacy Act exemption rule for 
the DoD-0020, Military Human Resource Records system of records. The 
DoD is adding exemptions for this system of records pursuant to 5 
U.S.C. 552a(k)(1) and (k)(7) because some of its records may contain 
classified national security information or evaluation material, 
including from other systems of records, that is used to determine 
potential for promotion in the armed services. In some cases, such 
records may contain information pertaining to the identity of a source 
who furnished information to the Government under an express promise 
that the source's identity would be held in confidence (or prior to the 
effective date of the Privacy Act, under an implied promise). The DoD 
is claiming an exemption from several provisions of the Privacy Act, 
including various access, amendment, disclosure of accounting, and 
certain recordkeeping and notice requirements, to avoid, among other 
harms, frustrating the underlying purposes for which the information 
was gathered.

Regulatory Analysis

Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review''

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. It has been determined that this rule is not a significant 
regulatory action.

Executive Order 14192, ``Unleashing Prosperity Through Deregulation''

    This rule is not an Executive Order 14192 regulatory action because 
this rule is not significant under Executive Order 12866.

Congressional Review Act (5 U.S.C. 801 et seq.)

    Pursuant to the Congressional Review Act, this rule has not been 
designated a major rule, as defined by 5 U.S.C. 804(2). This rule does 
not have an annual effect on the economy of $100,000,000 or more; a 
major increase in costs or prices for consumers, individual industries, 
Federal, State, or local government agencies, or geographic regions; or 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.

Section 202, Public Law 104-4, ``Unfunded Mandates Reform Act''

    Section 202(a) of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1532(a)) requires agencies to assess anticipated costs and 
benefits before issuing any rule whose mandates may result in the 
expenditure by State, local, and tribal governments in the aggregate, 
or by the private sector, in any one year of $100 million in 1995 
dollars, updated annually for inflation. This rule will not mandate any 
requirements for State, local, or tribal governments, nor will it 
affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Chapter 6)

    The Acting Assistant to the Secretary of Defense for Privacy, Civil 
Liberties, and Transparency has certified that this rule is not subject 
to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because it 
would not, if promulgated, have a significant economic impact on a 
substantial number of small entities. This rule is concerned only with 
the administration of Privacy Act systems of records within the DoD. 
Therefore, the Regulatory Flexibility Act, as amended, does not require 
DoD to prepare a regulatory flexibility analysis.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) was enacted to 
minimize the paperwork burden for individuals; small businesses; 
educational and nonprofit institutions; Federal contractors; State, 
local, and tribal governments; and other persons resulting from the 
collection of

[[Page 35436]]

information by or for the Federal government. The Act requires that 
agencies obtain approval from the Office of Management and Budget 
before using identical questions to collect information from ten or 
more persons. This rule does not impose reporting or recordkeeping 
requirements on the public.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a final rule that has federalism 
implications, imposes substantial direct compliance costs on State and 
local governments, and is not required by statute, or has federalism 
implications and preempts state law. This rule will not have a 
substantial effect on State and local governments.

Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments''

    Executive Order 13175 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct compliance costs on one or 
more Indian tribes, preempts tribal law, or affects the distribution of 
power and responsibilities between the Federal government and Indian 
tribes. This rule will not have a substantial effect on Indian tribal 
governments.

List of Subjects in 32 CFR Part 310

    Privacy.

    Accordingly, 32 CFR part 310 is amended as follows:

PART 310--PROTECTION OF PRIVACY AND ACCESS TO AND AMENDMENT OF 
INDIVIDUAL RECORDS UNDER THE PRIVACY ACT OF 1974

0
1. The authority citation for 32 CFR part 310 continues to read as 
follows:

    Authority: 5 U.S.C. 552a.


0
2. Amend Sec.  310.13 by adding paragraph (e)(15) to read as follows:


Sec.  310.13  Exemptions for DoD-wide systems.

* * * * *
    (e) * * *
    (15) System identifier and name. DoD-0020, ``Military Human 
Resource Records.''
    (i) Exemptions. This system of records is exempt from 5 U.S.C. 
552a(c)(3); (d)(1)-(4); (e)(1); (e)(4)(G), (H), and (I); and (f).
    (ii) Authority. 5 U.S.C. 552a(k)(1) and (k)(7).
    (iii) Exemption from the particular subsections. Exemption from the 
particular subsections is justified for the following reasons:
    (A) Subsection (c)(3), (d)(1), and (d)(2)--(1) Exemption (k)(1). 
Records in this system of records may contain information that is 
properly classified pursuant to executive order. Application of 
exemption (k)(1) may be necessary because access to and amendment of 
the records, or release of the accounting of disclosures for such 
records, could reveal classified information. Disclosure of classified 
records to an individual may cause damage to national security.
    (2) Exemption (k)(7). Records in this system of records may contain 
evaluation material, including from other systems of records, used to 
determine potential for promotion in the Armed Forces of the United 
States. In some cases, such records may contain information pertaining 
to the identity of a source who furnished information to the Government 
under an express promise that the source's identity would be held in 
confidence (or prior to the effective date of the Privacy Act, under an 
implied promise). Application of exemption (k)(7) may be necessary 
because access to, amendment of, or release of the accounting of 
disclosures of such records could identify these confidential sources 
who might not have otherwise provided information to assist the 
Government; hinder the Government's ability to obtain information from 
future confidential sources; and result in an unwarranted invasion of 
the privacy of others.
    (B) Subsection (d)(3) and (4). These subsections are inapplicable 
to the extent that an exemption is being claimed from subsections 
(d)(1) and (2).
    (C) Subsection (e)(1). In the collection of information for 
evaluation material used to determine potential for promotion in the 
Military Services, which may be incorporated into and/or maintained in 
military personnel records, it is not always possible to conclusively 
determine the relevance and necessity of particular information in the 
early stages of the evaluation process. In some instances, it will be 
only after the collected information is evaluated in light of other 
information that its relevance and necessity for effective decision-
making can be assessed. Collection of such information may permit more 
informed decision-making by the Department when making required 
disciplinary or personnel determinations. Additionally, the information 
collected may be properly classified pursuant to executive order. 
Accordingly, application of exemptions (k)(1) or (k)(7) may be 
necessary.
    (D) Subsection (e)(4)(G) and (H). These subsections are 
inapplicable to the extent exemption is claimed from subsections (d)(1) 
and (2).
    (E) Subsection (e)(4)(I). To the extent that this provision is 
construed to require more detailed disclosure than the broad 
information currently published in the system notice concerning 
categories of sources of records in the system, an exemption from this 
provision is necessary to protect the confidentiality of sources of 
information, the privacy and physical safety of witnesses and 
informants, and testing or examination material used solely to 
determine individual qualifications for appointment of promotion in the 
Federal service. Additionally, records in this system may be properly 
classified pursuant to executive order. Accordingly, application of 
exemptions (k)(1) and (k)(7) may be necessary.
    (F) Subsection (f). To the extent that portions of the system are 
exempt from the provisions of the Privacy Act concerning individual 
access and amendment of records, DoD is not required to establish rules 
concerning procedures and requirements relating to such provisions. 
Accordingly, application of exemptions (k)(1) and (k)(7) may be 
necessary.

    Dated: July 23, 2025.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2025-14134 Filed 7-25-25; 8:45 am]
BILLING CODE 6001-FR-P


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Indexed from Federal Register on July 28, 2025.

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