Digital IDs gain momentum as state laws take effect; legislation is advanced

A significant shift toward the implementation of digital IDs is taking place in the U.S. this this year as new laws take effect and more and more states introduce legislation and policies to enhance security and streamline identification processes. These efforts aim to modernize identity verification, improve cybersecurity, and provide residents with greater convenience.

The push forward with digital ID initiatives reflects a broader movement toward integrating digital identities into daily life. While some states have focused on implementing digital driver’s licenses (mDLs), others are exploring comprehensive digital identity frameworks. Approximately three-quarters of U.S. states are offering or are developing electronic driver’s licenses.

States have been feeling the pressure to enact mDL laws as the Department of Homeland Security set a deadline of May 7 for full enforcement of REAL ID requirements. After this date, only mDLs issued by states that have received a waiver from the Transportation Security Administration (TSA) will be accepted for official federal purposes, such as boarding commercial aircraft. States are encouraged to ensure their digital IDs comply with REAL ID standards to facilitate their acceptance.

Effective January 1, Illinois implemented nearly 300 new state laws, including the adoption of digital driver’s licenses and state IDs. While physical IDs remain mandatory, the digital versions aim to modernize identification methods and offer residents more flexibility. This initiative is part of a broader legislative effort to update state policies in line with technological advancements.

Also starting this year, Montana will allow digital driver’s licenses. In 2023, the Montana Legislature passed House Bill 519 authorizing the use of digital driver’s licenses. The law allows drivers to present either a digital or physical copy of their driver’s license when operating a motor vehicle. The Montana Department of Justice is tasked with establishing a program by September 1 to issue digital licenses alongside traditional physical ones. The department is also responsible for adopting rules by July 1 to implement the program, covering aspects such as issuance requirements, specifications, security and privacy protections, and allowable uses of digital driver’s licenses.

In North Carolina, legislation mandates the Division of Motor Vehicles to develop and launch a comprehensive digital license system by July 1. These digital licenses will adhere to security standards specified in the ISO/IEC 18013-5 standard, ensuring encryption and biometric verification.

On February 6, Arkansas Governor Sarah Huckabee Sanders signed House Bill 1135 into law expanding the state’s digital identification program. The legislation allows for the issuance of digitized identification cards in addition to digital driver’s licenses, enabling residents to carry official identification on their mobile devices. The Arkansas Department of Finance and Administration is responsible for implementing this program, with specific details and the official app’s release date to be announced.

Georgia House Bill 296, introduced on February 5 by State Representative Houston Gaines, seeks to amend state law to permit motorists to present digital driver’s licenses as valid identification during traffic stops and other interactions with law enforcement. This legislative effort aims to expand the use of electronic licenses beyond their current limited application at select TSA checkpoints such as those at Hartsfield-Jackson Atlanta International Airport.

In Texas, House Bill 3426, filed on February 26, proposes the issuance of digital versions of driver’s licenses, commercial driver’s licenses, and personal identification certificates. The bill outlines the format and security features of these digital IDs and authorizes a fee for their issuance.

Also this month, Idaho‘s House Transportation and Defense Committee introduced a bill permitting optional electronic driver’s licenses. State Representative Stephanie Mickelsen emphasized that these digital licenses aim to provide a secure and convenient method for motorists to store their information, benefiting both drivers and law enforcement officers. While the digital IDs would be optional and not replace physical licenses, some legislators have expressed concerns about potential data breaches and the necessity of such IDs.

On February 11, Senate Bill 260, known as the Individual Digital Identity Amendments, was introduced in Utah which seeks to establish a state-endorsed digital identity program and provide residents with a secure and verifiable digital identity for both governmental and private use.

A core principle of the bill is that each individual possesses a unique identity, which the state does not create but may recognize under specific circumstances. The bill states that Utah will be the only governmental entity authorized to endorse an individual’s digital identity, contingent upon legislative approval of the program. This endorsement is intended to empower residents, giving them autonomy over how, when, and with whom their digital identity is shared, as well as where it is stored.

The bill aims to address concerns over privacy, security, and identity theft by providing Utah residents with a secure, verifiable form of digital identification that can be used in both government and private-sector transactions. However, the initiative has generated controversy.

Opponents argue that while the bill’s intent is to protect privacy, state involvement in digital identity management could lead to unintended consequences, such as increased surveillance or potential misuse of personal data. Supporters, however, emphasize the benefits of a reliable, secure identification system that can streamline access to services and reduce fraud.

As the bill moves through legislative discussions, stakeholders from various industries and advocacy groups are closely monitoring its progress. The outcome of Senate Bill 260 may influence how digital identities are implemented nationwide, setting a precedent for future policies on technology, privacy, and government oversight.

Also in Utah, Senate Bill 271, the Unauthorized Artificial Intelligence Impersonation Amendments, has been introduced. This legislation addresses the misuse of artificial intelligence to impersonate individuals and aims to protect residents from digital identity theft and fraud.

Meanwhile, Ohio has taken its own steps toward digital identification. About seven months ago, the state joined a select group of other states by allowing residents to store their ID on their phones. However, usage has remained relatively low, prompting Ohio lawmakers to propose new legislation aimed at expanding its adoption.

Ohio has been proactive in moving toward digital identity. In mid-2024, the state launched its mobile driver’s license program, allowing residents to add their driver’s licenses to digital wallets on smartphones and smartwatches. This initiative saw rapid adoption, with approximately 350,000 mDLs added to Apple Wallets by this January, representing 3.5 percent of all driver’s licenses in the state. These digital IDs are accepted at various venues, including casinos and select businesses, enhancing convenience and security for residents and establishments.

House Bill 78, sponsored by Representatives Thomas Hall and Joe Miller, seeks to allow Ohioans to use a digital ID in nearly all situations where a physical ID is required. The bill initially included digital IDs as a valid form of identification for voting, but that provision was removed to ensure the state’s election infrastructure remains secure.

If passed, the legislation would permit residents to use a digital ID when pulled over by law enforcement, for Bureau of Motor Vehicle transactions, and in other instances where identification is required. However, even if a person opts for a digital ID, they must still possess a physical ID, though they would not be required to carry it.

“I think it’s a huge ease-of-use program for the state of Ohio,” Hall said. “We want to make sure that the infrastructure is ready for that and secure for that. If you want to have a valid credit card, you got to have a valid physical ID as well. You can still use a digital side of things, but you need to have that valid for security purposes.”

State officials have expressed confidence in the security and convenience of digital IDs, with the Ohio Department of Public Safety stating that the state has worked to ensure their reliability.

“Ohio has worked to ensure that digital IDs are secure and convenient and would welcome more options for residents to use them” the department said.

Hall emphasized that the measure is about making life easier for residents, including professionals such as truck drivers who frequently need to present identification.

Despite the proposed expansion, some remain skeptical. Representative Jack Daniels, who owns a trucking company, downplayed the importance of digital IDs, arguing that they do not offer significant advantages for his industry.

“I don’t care about the phone, that makes no difference to me,” Daniels said. “I don’t see why you need your ID on your phone. I just don’t want to lose the enhanced ID.”

Daniels also expressed concerns about the potential impact on Enhanced IDs, which allow residents to cross borders by land without a passport.

While enhanced IDs are technically legal in Ohio, the federal government has not yet approved their full use.

The bill recently had its first hearing before the House Technology and Innovation Committee and is expected to undergo further debate before a final vote.

At the federal level, in one of his last official acts as President, Joe Biden issued a robust new executive order (EO) on January 16 aimed at bolstering national cybersecurity that put forth a comprehensive strategy to address digital identity challenges of cybersecurity, privacy, and authentication. The EO built on Biden’s May 12, 2021, executive order, Improving the Nation’s Cybersecurity, and the initiatives that were detailed in the National Cybersecurity Strategy.

Much as anticipated, Biden’s EO instructed federal agencies that issue grants to consider supporting states in the development of mDLs, with the stipulation that those credentials should not enable surveillance or tracking of interactions in which the digital ID is used.

As of February 27, President Donald Trump has not issued any executive orders or taken specific actions regarding mobile driver’s licenses. While Trump has revoked several executive orders from the prior administration, the January 16, 2025, cybersecurity executive order remains in effect. The initiatives promoting mobile driver’s licenses and digital identity verification presumably continue under the existing order.

Article Topics

biometrics  |  digital ID  |  digital identity  |  identity verification  |  mDL (mobile driver's license)  |  Montana  |  Ohio  |  United States  |  Utah