What You Need to Know About 2025 Data Privacy Regulations in the U.S.

In an era where data breaches make headlines almost weekly and cybercrime costs businesses billions annually, states across the U.S. are taking decisive action to protect their residents’ sensitive information. From California’s groundbreaking privacy laws to New York’s rigorous cybersecurity requirements for financial institutions, state-level regulations are rapidly evolving to address the complex challenges of digital data protection.

Maintaining a strong security posture is essential for business success, not just regulatory compliance. Organizations must go beyond basic controls by implementing security baselines, such as strict access controls and secure system configurations. Key measures include disabling unnecessary services, enforcing strong passwords, applying patches promptly, and network segmentation. Combined with regular audits and employee training, these steps ensure robust protection and help meet evolving state regulatory requirements.

2025 U.S. Data Privacy Regulations

California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA)

These laws provide broad privacy rights for California residents, and on November 8, 2024 the California Privacy Protection Agency (CPPA) Board officially began the rulemaking process for several critical areas of data privacy. These include updates to existing CCPA regulations, the establishment of cybersecurity audit and risk assessment requirements for specific businesses, the development of regulations governing automated decision-making technology (ADMT), and the creation of specific rules tailored to the insurance industry.

New York Stop Hacks and Improve Electronic Data Security Act (NY SHIELD Act)

NY Shield Act is a data protection law focused on the reduction of data breaches. The law mandates that businesses notify affected consumers of a data breach involving private information as quickly as possible, considering legitimate law enforcement needs. Failure to provide timely notification can result in civil penalties of up to $20 per missed notification, capped at $250,000. Additionally, failing to implement reasonable safeguards may incur penalties of up to $5,000 per violation.

Massachusetts Data Privacy Protection Act

This law grants Massachusetts residents certain privacy rights regarding their personal information, including a broad range of personal information that could include health data. Massachusetts regulation 201 CMR 17 discusses entities owning or licensing personal information of Commonwealth residents must establish a written, accessible information security program. This program should include administrative, technical, and physical safeguards, employee policies for record storage, access, and transportation, as well as regular monitoring and upgrades to mitigate risks.

 Texas Data Privacy and Security Act 

This Act is enforced by the Texas Attorney General that requires companies to establish reasonable data security practices to protect the confidentiality, integrity, and accessibility of personal data. It also requires companies to conduct data protection assessments for certain processing activities.

Several new security frameworks and regulations are likely to be in effect in the United States by 2025, driven by evolving threats and technological advancements. Here are some examples:

Executive Order 14028 on Improving the Nation’s Cybersecurity

This executive order, signed in 2021, mandates significant cybersecurity improvements across the federal government. Its implementation will likely continue to evolve in 2025, with potential updates to guidance and stricter enforcement. The policy sets baseline security standards and enhanced transparency in software sold to the government.

 Cybersecurity Maturity Model Certification (CMMC) 2.0

This Department of Defense (DoD) framework aims to standardize Cybersecurity requirements for defense contractors. The DoD has implemented new cybersecurity regulations through the CMMC Program Rule (32 CFR Part 170), effective December 16, 2024. This rule establishes mandatory cybersecurity standards for DoD contractors and subcontractors, requiring them to protect both Federal Contract Information (FCI) and Controlled Unclassified Information (CUI) at levels appropriate to their risk.

While federal regulations like HIPAA and GLBA provide a baseline for specific sectors, state laws are increasingly filling crucial gaps and setting new standards for how businesses must safeguard personal information. These varying state requirements create a complex patchwork of compliance obligations that organizations must navigate-particularly those operating across multiple jurisdictions.

By automating security configurations and security frameworks with our hardening tool, CalCom Hardening Suite (CHS),  your organization will consistently meet the stringent requirements of state privacy regulations and compliance regulators. CHS not only minimizes the risk of human error but also significantly reduces the operational burden of compliance. See for Yourself!