Proposed ‘Improving Digital Identity Act’ Would Establish White House Task Force on Digital ID

Legislators are pushing for federal involvement in the development of digital identity ecosystems as more states begin to adopt mobile driver’s licenses and other digital forms of ID. The Improving Digital Identity Act, spearheaded by Rep. Bill Foster (D-Ill.), is one such effort aimed at formalizing the government’s role in establishing standards and encouraging the use of digital identity credentials.

Foster’s bill proposes a task force within the Executive Office of the President to enhance access and security between physical and digital IDs, with a particular focus on promoting digital versions of existing credentials. If successful, the initiative would provide a foundation for more secure online interactions, reducing the risk of fraud and identity theft.

Foster has also teamed up with Rep. Clay Higgins (R-La.) to introduce complementary legislation focusing on the Transportation Security Administration’s use of digital identity technology. Their proposal, which has passed committee but awaits a full House vote, would require the TSA to report on the implications of digital IDs for homeland security.

In an interview with NextGov/FCW, Foster underscored the importance of a federal digital ID standard, noting that such a system could offer an additional authentication layer for online transactions. Foster highlighted the rising threat of deepfake technologies and cyber fraud, stating that beyond promoting the development of deepfake detection software, “the next best thing you can do is provide people with at least the ability to prove they are who they say they are.”

The bill has drawn support from various sectors, particularly financial institutions, which are eager for a standardized method of meeting Know Your Customer (KYC) requirements. Foster expressed optimism that the private sector would quickly adopt a federal standard for digital identity once it is defined. He cited the billions lost to COVID-related fraud as a prime example of the need for secure digital credentials, saying, “It was because we did not demand a secure digital ID that we had these tens of billions [of dollars] of COVID identity fraud.”

A recent report by the Information Technology and Innovation Foundation (ITIF) would seem to support Foster’s efforts, noting that a federal framework could drive broader adoption and improve interoperability between states. Foster’s bill avoids mandating a single federal identity credential, instead allowing states the flexibility to implement their own solutions.

Despite the growing enthusiasm, the path forward for the Improving Digital Identity Act has been slow. Similar legislation introduced by Sens. Krysten Sinema (D-Ariz.) and Cynthia Lummis (R-Wyo.) has faced delays despite bipartisan support. Foster remains hopeful that the legislation will be included in the House AI Task Force’s recommendations, particularly as states continue to embrace mobile IDs.

Source: NextGov/FCW

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October 2, 2024 – by Cass Kennedy