We introduce a new supersymmetric extension of the standard model in which the gauge sector contains complete N = 2 supersymmetry multiplets. Supersymmetry breaking from the D-term vev of a hidden sector U (1) gauge field leads to Dirac soft supersymmetry breaking gaugino masses, and a new type of soft scalar trilinear couplings. The resulting squark and slepton masses are finite, calculable, positive and flavor universal. The Higgs soft mass squared is negative. The phenomenology of these theories differs significantly from the MSSM. We discuss a variety of possible origins for the soft operators and new fields, including models in both four and higher dimensions.