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Privacy Frameworks: The Foundation of Responsible Government Data Sharing

	3 Feb 2025
	Written by Corinna Turbes
	Blogs

The ability to derive insights from combining different data sources brings immense opportunities for improving government effectiveness – but only if we maintain the public's trust through continued commitment to privacy protection. Understanding how U.S. privacy laws enable responsible data sharing is crucial for anyone working to harness the power of government data for public good.

When Congress established the core federal privacy framework in the 1970s, they recognized that protecting individual privacy and enabling valuable data sharing are not competing goals but rather complementary imperatives that strengthen each other. Strong privacy protections create the trust and accountability necessary for data sharing to flourish.

The evolution of federal privacy law reflects the government's growing understanding of how to balance data protection with valuable data sharing. The passage of the Privacy Act in 1974 established foundational protections for personal information held by government agencies, requiring transparency about data collection and limiting disclosure. This marked the first comprehensive attempt to protect privacy while enabling legitimate government uses of data. The Paperwork Reduction Act of 1995 built on this foundation by adding requirements for agencies to justify their data collections and minimize burden on the public, recognizing that thoughtful data collection practices are essential to maintaining public trust.

The E-Government Act of 2002 updated these protections for the digital age through Privacy Impact Assessments. The Confidential Information Protection and Statistical Efficiency Act (CIPSEA) of 2018 further contributed to the U.S. privacy environment by creating special provisions for statistical agencies to share data while maintaining strict confidentiality protections.

These laws don't just restrict access -- they provide the roadmap for how to share data responsibly. Together, federal privacy laws establish:

Consistent standards for protecting privacy
Requirements for transparency about data uses
Clear processes for appropriate sharing
Accountability through oversight
Specific pathways for inter-agency collaboration

Any shortcuts around these frameworks risk undermining public trust and the long-term sustainability of government data initiatives. When agencies follow established privacy protocols, they demonstrate respect for individual rights while enabling valuable research and analysis that improves government services.

The future of evidence-based policymaking depends on maintaining this careful balance. As we explore new opportunities for deriving insights from government data, we must remember that privacy protections aren't obstacles to be overcome – they're the essential foundation that makes beneficial data sharing possible.

Moving forward, we should focus on strengthening these frameworks while preserving their core principles. This means:

Supporting agencies in implementing existing privacy requirements
Developing clear processes for evaluating privacy implications of new data initiatives
Ensuring oversight mechanisms keep pace with technological change
Maintaining transparency about how personal information is protected and used

Law	Purpose	Significance	Key Features
Privacy Act of 1974	Establishes core protections for personal information in government systems	Primary law governing federal data disclosure and sharing	Requires System of Records Notices (SORNs) for data systems Creates pathways for inter-agency sharing through exceptions Enables 'routine use' sharing when aligned with original purpose Requires congressional review of SORN updates
Paperwork Reduction Act of 1995	Ensures data collections serve public benefit while minimizing burden	Establishes process for approving and coordinating federal data collections	Requires OMB approval via Information Collection Requests Mandates public comment periods Promotes sharing with federal statistical agencies Creates transparency through notifications
E-Government Act of 2002	Ensures privacy considerations in digital government systems	Addresses privacy in the digital age of government	Requires Privacy Impact Assessments for new systems Evaluates privacy implications before data collection Establishes privacy safeguard requirements Creates transparency about privacy protections
CIPSEA (2018)	Enables statistical research while maintaining strict confidentiality	Creates framework for secure statistical data sharing	Presumes accessibility of government data sets for statistical purposes Creates strong penalties for misuse Applies to designated statistical agencies Establishes confidentiality standards

For more information on the development of federal privacy laws see: Hart, Nick and Wallman, Katherine, Transparency, Accountability, and Consent in Evidence Building: How Government Ethically and Legally Uses Administrative Data for Statistical Activities (July 1, 2018). Bipartisan Policy Center Evidence Project 2018, Available at SSRN: https://ssrn.com/abstract=3914102

Privacy Frameworks: The Foundation of Responsible Government Data Sharing

Law

Purpose

Significance

Key Features

Privacy Act of 1974

Paperwork Reduction Act of 1995

E-Government Act of 2002

CIPSEA (2018)