diff --git a/modules/net-vpc-factory/factory-projects-object.tf b/modules/net-vpc-factory/factory-projects-object.tf
index cbc9685ea..ed2770b0e 100644
--- a/modules/net-vpc-factory/factory-projects-object.tf
+++ b/modules/net-vpc-factory/factory-projects-object.tf
@@ -27,6 +27,7 @@ locals {
     data_defaults = merge({
       billing_account = null
       contacts        = {}
+      deletion_policy = null
       factories_config = merge({
         custom_roles  = null
         observability = null
@@ -82,6 +83,7 @@ locals {
     data_overrides = merge({
       billing_account = null
       contacts        = null
+      deletion_policy = null
       factories_config = merge({
         custom_roles  = null
         observability = null
@@ -131,6 +133,11 @@ locals {
         try(v.billing_account, null),
         local.__projects_config.data_defaults.billing_account
       ), null)
+      deletion_policy = try(coalesce( # type: string
+        local.__projects_config.data_overrides.deletion_policy,
+        try(v.deletion_policy, null),
+        local.__projects_config.data_defaults.deletion_policy
+      ), null)
       contacts = coalesce( # type: map
         local.__projects_config.data_overrides.contacts,
         try(v.contacts, null),
diff --git a/modules/project-factory/README.md b/modules/project-factory/README.md
index 8165d0697..64690cefe 100644
--- a/modules/project-factory/README.md
+++ b/modules/project-factory/README.md
@@ -494,10 +494,10 @@ service_accounts:
 
 | name | description | type | required | default |
 |---|---|:---:|:---:|:---:|
-| [factories_config](variables.tf#L121) | Path to folder with YAML resource description data files. | <code title="object&#40;&#123;&#10;  budgets &#61; optional&#40;object&#40;&#123;&#10;    billing_account   &#61; string&#10;    budgets_data_path &#61; string&#10;    notification_channels &#61; optional&#40;map&#40;any&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;&#41;&#10;  context &#61; optional&#40;object&#40;&#123;&#10;    folder_ids            &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    iam_principals        &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    perimeters            &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    tag_values            &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    vpc_host_projects     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    notification_channels &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;, &#123;&#125;&#41;&#10;  folders_data_path  &#61; optional&#40;string&#41;&#10;  projects_data_path &#61; optional&#40;string&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> | ✓ |  |
-| [data_defaults](variables.tf#L17) | Optional default values used when corresponding project data from files are missing. | <code title="object&#40;&#123;&#10;  billing_account &#61; optional&#40;string&#41;&#10;  contacts        &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  factories_config &#61; optional&#40;object&#40;&#123;&#10;    custom_roles  &#61; optional&#40;string&#41;&#10;    observability &#61; optional&#40;string&#41;&#10;    org_policies  &#61; optional&#40;string&#41;&#10;    quotas        &#61; optional&#40;string&#41;&#10;  &#125;&#41;, &#123;&#125;&#41;&#10;  labels                     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  metric_scopes              &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  parent                     &#61; optional&#40;string&#41;&#10;  prefix                     &#61; optional&#40;string&#41;&#10;  service_encryption_key_ids &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  services                   &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  shared_vpc_service_config &#61; optional&#40;object&#40;&#123;&#10;    host_project             &#61; string&#10;    network_users            &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    service_agent_iam        &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;    service_agent_subnet_iam &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;    service_iam_grants       &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    network_subnet_users     &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;, &#123; host_project &#61; null &#125;&#41;&#10;  storage_location &#61; optional&#40;string&#41;&#10;  tag_bindings     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  service_accounts &#61; optional&#40;map&#40;object&#40;&#123;&#10;    display_name   &#61; optional&#40;string, &#34;Terraform-managed.&#34;&#41;&#10;    iam_self_roles &#61; optional&#40;list&#40;string&#41;&#41;&#10;  &#125;&#41;&#41;, &#123;&#125;&#41;&#10;  vpc_sc &#61; optional&#40;object&#40;&#123;&#10;    perimeter_name    &#61; string&#10;    perimeter_bridges &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    is_dry_run        &#61; optional&#40;bool, false&#41;&#10;  &#125;&#41;&#41;&#10;  logging_data_access &#61; optional&#40;map&#40;object&#40;&#123;&#10;    ADMIN_READ &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_READ  &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_WRITE &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;&#10;  &#125;&#41;&#41;, &#123;&#125;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [data_merges](variables.tf#L64) | Optional values that will be merged with corresponding data from files. Combines with `data_defaults`, file data, and `data_overrides`. | <code title="object&#40;&#123;&#10;  contacts                   &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  labels                     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  metric_scopes              &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  service_encryption_key_ids &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  services                   &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  tag_bindings               &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  service_accounts &#61; optional&#40;map&#40;object&#40;&#123;&#10;    display_name   &#61; optional&#40;string, &#34;Terraform-managed.&#34;&#41;&#10;    iam_self_roles &#61; optional&#40;list&#40;string&#41;&#41;&#10;  &#125;&#41;&#41;, &#123;&#125;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>&#123;&#125;</code> |
-| [data_overrides](variables.tf#L83) | Optional values that override corresponding data from files. Takes precedence over file data and `data_defaults`. | <code title="object&#40;&#123;&#10;  billing_account &#61; optional&#40;string&#41;&#10;  contacts        &#61; optional&#40;map&#40;list&#40;string&#41;&#41;&#41;&#10;  factories_config &#61; optional&#40;object&#40;&#123;&#10;    custom_roles  &#61; optional&#40;string&#41;&#10;    observability &#61; optional&#40;string&#41;&#10;    org_policies  &#61; optional&#40;string&#41;&#10;    quotas        &#61; optional&#40;string&#41;&#10;  &#125;&#41;, &#123;&#125;&#41;&#10;  parent                     &#61; optional&#40;string&#41;&#10;  prefix                     &#61; optional&#40;string&#41;&#10;  service_encryption_key_ids &#61; optional&#40;map&#40;list&#40;string&#41;&#41;&#41;&#10;  storage_location           &#61; optional&#40;string&#41;&#10;  tag_bindings               &#61; optional&#40;map&#40;string&#41;&#41;&#10;  services                   &#61; optional&#40;list&#40;string&#41;&#41;&#10;  service_accounts &#61; optional&#40;map&#40;object&#40;&#123;&#10;    display_name   &#61; optional&#40;string, &#34;Terraform-managed.&#34;&#41;&#10;    iam_self_roles &#61; optional&#40;list&#40;string&#41;&#41;&#10;  &#125;&#41;&#41;&#41;&#10;  vpc_sc &#61; optional&#40;object&#40;&#123;&#10;    perimeter_name    &#61; string&#10;    perimeter_bridges &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    is_dry_run        &#61; optional&#40;bool, false&#41;&#10;  &#125;&#41;&#41;&#10;  logging_data_access &#61; optional&#40;map&#40;object&#40;&#123;&#10;    ADMIN_READ &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_READ  &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_WRITE &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;&#10;  &#125;&#41;&#41;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [factories_config](variables.tf#L123) | Path to folder with YAML resource description data files. | <code title="object&#40;&#123;&#10;  budgets &#61; optional&#40;object&#40;&#123;&#10;    billing_account   &#61; string&#10;    budgets_data_path &#61; string&#10;    notification_channels &#61; optional&#40;map&#40;any&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;&#41;&#10;  context &#61; optional&#40;object&#40;&#123;&#10;    folder_ids            &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    iam_principals        &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    perimeters            &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    tag_values            &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    vpc_host_projects     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;    notification_channels &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;, &#123;&#125;&#41;&#10;  folders_data_path  &#61; optional&#40;string&#41;&#10;  projects_data_path &#61; optional&#40;string&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> | ✓ |  |
+| [data_defaults](variables.tf#L17) | Optional default values used when corresponding project data from files are missing. | <code title="object&#40;&#123;&#10;  billing_account &#61; optional&#40;string&#41;&#10;  contacts        &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  deletion_policy &#61; optional&#40;string&#41;&#10;  factories_config &#61; optional&#40;object&#40;&#123;&#10;    custom_roles  &#61; optional&#40;string&#41;&#10;    observability &#61; optional&#40;string&#41;&#10;    org_policies  &#61; optional&#40;string&#41;&#10;    quotas        &#61; optional&#40;string&#41;&#10;  &#125;&#41;, &#123;&#125;&#41;&#10;  labels                     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  metric_scopes              &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  parent                     &#61; optional&#40;string&#41;&#10;  prefix                     &#61; optional&#40;string&#41;&#10;  service_encryption_key_ids &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  services                   &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  shared_vpc_service_config &#61; optional&#40;object&#40;&#123;&#10;    host_project             &#61; string&#10;    network_users            &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    service_agent_iam        &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;    service_agent_subnet_iam &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;    service_iam_grants       &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    network_subnet_users     &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  &#125;&#41;, &#123; host_project &#61; null &#125;&#41;&#10;  storage_location &#61; optional&#40;string&#41;&#10;  tag_bindings     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  service_accounts &#61; optional&#40;map&#40;object&#40;&#123;&#10;    display_name   &#61; optional&#40;string, &#34;Terraform-managed.&#34;&#41;&#10;    iam_self_roles &#61; optional&#40;list&#40;string&#41;&#41;&#10;  &#125;&#41;&#41;, &#123;&#125;&#41;&#10;  vpc_sc &#61; optional&#40;object&#40;&#123;&#10;    perimeter_name    &#61; string&#10;    perimeter_bridges &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    is_dry_run        &#61; optional&#40;bool, false&#41;&#10;  &#125;&#41;&#41;&#10;  logging_data_access &#61; optional&#40;map&#40;object&#40;&#123;&#10;    ADMIN_READ &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_READ  &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_WRITE &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;&#10;  &#125;&#41;&#41;, &#123;&#125;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [data_merges](variables.tf#L65) | Optional values that will be merged with corresponding data from files. Combines with `data_defaults`, file data, and `data_overrides`. | <code title="object&#40;&#123;&#10;  contacts                   &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  labels                     &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  metric_scopes              &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  service_encryption_key_ids &#61; optional&#40;map&#40;list&#40;string&#41;&#41;, &#123;&#125;&#41;&#10;  services                   &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;  tag_bindings               &#61; optional&#40;map&#40;string&#41;, &#123;&#125;&#41;&#10;  service_accounts &#61; optional&#40;map&#40;object&#40;&#123;&#10;    display_name   &#61; optional&#40;string, &#34;Terraform-managed.&#34;&#41;&#10;    iam_self_roles &#61; optional&#40;list&#40;string&#41;&#41;&#10;  &#125;&#41;&#41;, &#123;&#125;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>&#123;&#125;</code> |
+| [data_overrides](variables.tf#L84) | Optional values that override corresponding data from files. Takes precedence over file data and `data_defaults`. | <code title="object&#40;&#123;&#10;  billing_account &#61; optional&#40;string&#41;&#10;  contacts        &#61; optional&#40;map&#40;list&#40;string&#41;&#41;&#41;&#10;  deletion_policy &#61; optional&#40;string&#41;&#10;  factories_config &#61; optional&#40;object&#40;&#123;&#10;    custom_roles  &#61; optional&#40;string&#41;&#10;    observability &#61; optional&#40;string&#41;&#10;    org_policies  &#61; optional&#40;string&#41;&#10;    quotas        &#61; optional&#40;string&#41;&#10;  &#125;&#41;, &#123;&#125;&#41;&#10;  parent                     &#61; optional&#40;string&#41;&#10;  prefix                     &#61; optional&#40;string&#41;&#10;  service_encryption_key_ids &#61; optional&#40;map&#40;list&#40;string&#41;&#41;&#41;&#10;  storage_location           &#61; optional&#40;string&#41;&#10;  tag_bindings               &#61; optional&#40;map&#40;string&#41;&#41;&#10;  services                   &#61; optional&#40;list&#40;string&#41;&#41;&#10;  service_accounts &#61; optional&#40;map&#40;object&#40;&#123;&#10;    display_name   &#61; optional&#40;string, &#34;Terraform-managed.&#34;&#41;&#10;    iam_self_roles &#61; optional&#40;list&#40;string&#41;&#41;&#10;  &#125;&#41;&#41;&#41;&#10;  vpc_sc &#61; optional&#40;object&#40;&#123;&#10;    perimeter_name    &#61; string&#10;    perimeter_bridges &#61; optional&#40;list&#40;string&#41;, &#91;&#93;&#41;&#10;    is_dry_run        &#61; optional&#40;bool, false&#41;&#10;  &#125;&#41;&#41;&#10;  logging_data_access &#61; optional&#40;map&#40;object&#40;&#123;&#10;    ADMIN_READ &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_READ  &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;,&#10;    DATA_WRITE &#61; optional&#40;object&#40;&#123; exempted_members &#61; optional&#40;list&#40;string&#41;&#41; &#125;&#41;&#41;&#10;  &#125;&#41;&#41;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>&#123;&#125;</code> |
 
 ## Outputs
 
diff --git a/modules/project-factory/factory-projects-object.tf b/modules/project-factory/factory-projects-object.tf
index cbc9685ea..ed2770b0e 100644
--- a/modules/project-factory/factory-projects-object.tf
+++ b/modules/project-factory/factory-projects-object.tf
@@ -27,6 +27,7 @@ locals {
     data_defaults = merge({
       billing_account = null
       contacts        = {}
+      deletion_policy = null
       factories_config = merge({
         custom_roles  = null
         observability = null
@@ -82,6 +83,7 @@ locals {
     data_overrides = merge({
       billing_account = null
       contacts        = null
+      deletion_policy = null
       factories_config = merge({
         custom_roles  = null
         observability = null
@@ -131,6 +133,11 @@ locals {
         try(v.billing_account, null),
         local.__projects_config.data_defaults.billing_account
       ), null)
+      deletion_policy = try(coalesce( # type: string
+        local.__projects_config.data_overrides.deletion_policy,
+        try(v.deletion_policy, null),
+        local.__projects_config.data_defaults.deletion_policy
+      ), null)
       contacts = coalesce( # type: map
         local.__projects_config.data_overrides.contacts,
         try(v.contacts, null),
diff --git a/modules/project-factory/main.tf b/modules/project-factory/main.tf
index 93372600b..8b5abb6da 100644
--- a/modules/project-factory/main.tf
+++ b/modules/project-factory/main.tf
@@ -37,6 +37,7 @@ module "projects" {
   source          = "../project"
   for_each        = local.projects
   billing_account = each.value.billing_account
+  deletion_policy = each.value.deletion_policy
   name            = each.value.name
   parent = lookup(
     local.context.folder_ids, each.value.parent, each.value.parent
diff --git a/modules/project-factory/schemas/project.schema.json b/modules/project-factory/schemas/project.schema.json
index fc00d4368..2da7b7906 100644
--- a/modules/project-factory/schemas/project.schema.json
+++ b/modules/project-factory/schemas/project.schema.json
@@ -85,6 +85,10 @@
         }
       }
     },
+    "deletion_policy": {
+      "type": "string",
+      "enum": ["PREVENT", "DELETE", "ABANDON"]
+    },
     "iam": {
       "$ref": "#/$defs/iam"
     },
diff --git a/modules/project-factory/variables.tf b/modules/project-factory/variables.tf
index cd76d2d17..54cfceab0 100644
--- a/modules/project-factory/variables.tf
+++ b/modules/project-factory/variables.tf
@@ -19,6 +19,7 @@ variable "data_defaults" {
   type = object({
     billing_account = optional(string)
     contacts        = optional(map(list(string)), {})
+    deletion_policy = optional(string)
     factories_config = optional(object({
       custom_roles  = optional(string)
       observability = optional(string)
@@ -86,6 +87,7 @@ variable "data_overrides" {
     # data overrides default to null to mark that they should not override
     billing_account = optional(string)
     contacts        = optional(map(list(string)))
+    deletion_policy = optional(string)
     factories_config = optional(object({
       custom_roles  = optional(string)
       observability = optional(string)
diff --git a/tests/modules/alloydb/examples/psc.yaml b/tests/modules/alloydb/examples/psc.yaml
index d142c971a..1866d7dc3 100644
--- a/tests/modules/alloydb/examples/psc.yaml
+++ b/tests/modules/alloydb/examples/psc.yaml
@@ -1,4 +1,4 @@
-# Copyright 2024 Google LLC
+# Copyright 2025 Google LLC
 #
 # Licensed under the Apache License, Version 2.0 (the "License");
 # you may not use this file except in compliance with the License.
@@ -50,7 +50,6 @@ values:
     labels: null
     machine_config:
       - cpu_count: 2
-    network_config: []
     psc_instance_config:
       - allowed_consumer_projects:
           - '123'