Lawmakers want government to encourage use of digital IDs

As a growing number of states embrace the use of mobile driver’s licenses, lawmakers are once again seeking to pass legislation that would give the government a greater role in developing digital identity ecosystems.

The concept of digital ID is relatively simple: individuals store their verified personal identity documents on their phone or in an app. Supporters of this approach say it would give consumers and businesses greater confidence in the veracity of transactions and interactions, especially those conducted online.

Despite limited federal action thus far to establish a regulatory standard around the use of digital identifiers, there have been bipartisan efforts in recent years to promote the adoption of these types of virtual identifiers.

Rep. Bill Foster, D-Ill., has been a leading advocate in Congress for increased federal participation in digital identity ecosystems. Last month, Foster reintroduced legislation – the Digital Identity Improvement Act – that calls on the government to explore the use of “consent-based digital identity solutions” that can allow Americans to “ prove who they are online.

The proposal would create a “Digital Identity Enhancement Task Force” within the Executive Office of the President to, in part, “improve access and strengthen security between physical and digital identity credentials, including by promoting the development of digital versions of existing physical identity identifiers. .”

Foster and Rep. Clay Higgins, R-La., also teamed up in June to introduce legislation that would require the Transportation Security Administration to write a report for Congress on its use of digital identities and their potential impact on homeland security. The bill passed the House Homeland Security Committee on June 12, but was not voted on in the full House.

In an interview with Nextgov/FCWFoster said a federal pivot to digital IDs would provide an additional layer of authentication when it comes to protecting virtual transactions and preventing fraud or identity theft.

He noted that deepfake videos and audio files, for example, have been used by scammers to steal funds from unsuspecting victims. Although much of the focus has been on developing software that can detect this type of AI-generated content, Foster said the long-term challenges of successfully using these technologies mean that “the best thing What you can do is at least provide people with the ability to prove that they are who they say they are and not a deepfake.

He added that he hopes his bill “is included in the list of legislative initiatives recommended by the AI ​​Task Force” to address some of these related concerns. House Speaker Mike Johnson, R-La., and Minority Leader Hakeem Jeffries, D-N.Y., announced the launch of the bipartisan group in February to provide policy recommendations regarding the use of emerging technologies.

Foster – who is the ranking member of the House Financial Services Subcommittee on Financial Institutions and Monetary Policy – ​​said “there is a lot of enthusiasm” from large and small financial institutions for a more streamlined way to meet “know your customer” requirements.

“I expect that as soon as the government has a standard that works nationally for authenticating you to different agencies – and potentially states – that the industry will immediately use that as the standard that they will accept for things like opening bank accounts,” he added.

Much of that enthusiasm, Foster said, has to do with fears about identity theft and fraud, exacerbated by the massive amount of COVID-related aid that has been stolen during the pandemic.

“It’s because we haven’t required secure digital identification that we’ve had these tens of billions (of dollars) in COVID-related identity fraud,” he said.

Even as the pandemic has highlighted the importance of verifiable credentials, lawmakers’ proposals have remained stalled in Congress.

Foster noted that his bill is a companion proposal to legislation introduced by Sens. Krysten Sinema, D-Ariz., and Cynthia Lummis, R-Wyo., in March 2023. Their bill passed the Senate committee of Homeland Security and Governmental Affairs last July, but was not voted on by the full Senate.

Although their proposals have received bipartisan support in every session of Congress, Foster, Sinema and Lummis have unsuccessfully introduced variations of their bill since 2020.

Despite the legislative impasse, 13 states now offer mobile driver’s licenses and more are moving to adopt these titles in the coming years. These states have also worked with the TSA to allow their IDs to be used at airport security checkpoints.

In a report released Sept. 23, the Foundation for Information Technology and Innovation said states’ adoption of these virtual identifiers could be boosted by passage of the Security Improvement Act. digital identity, particularly when it comes to promoting the development of digital identifiers.

Ash Johnson, senior policy officer at ITIF and author of the report, said Nextgov/FCW that Foster’s bill “would be really helpful in streamlining the process, motivating more states to join the mix and ensuring that there is that level of interoperability between states.”

Notably, Foster’s bill prohibits “a unique credential provided or mandated by the federal government for the purpose of verifying identity or associated attributes.”

Johnson said this type of approach could mirror the rollout of REAL ID and allow for the eventual development of “general guidelines on the most important features” where “the rest is sort of left to each individual state.”