US Treasury awards ID.me $1B five-year contract

In a significant development for digital identity verification across U.S. federal agencies, ID.me has secured several notable contracts with U.S. government departments, including a new $1 billion Blanket Purchase Agreement with the U.S. Department of Treasury.

The contract, awarded in late December, is expected to span approximately five years and will see ID.me providing critical identity verification and authentication services across various Treasury functions.

The agreement follows a broader federal push to enhance online security, streamline access to government services, and prevent fraud in federal portals.

ID.me has long been involved with government agencies, ensuring that online users are properly verified before accessing sensitive systems. In particular, the Internal Revenue Service (IRS) has been a long-time partner of the company, using its identity verification services to secure taxpayer accounts and combat online fraud.

The IRS has obligated millions of dollars in contracts to ID.me over the years, most recently an $86 million agreement to provide exclusive authentication services for IRS online accounts.

However, in the wake of criticism surrounding facial recognition policies, the IRS revised its approach, shifting to include alternative methods for verification, with ID.me providing verification through a video call with a live agent.

Despite the adjustments, ID.me’s role in ensuring secure access to taxpayer services remains a key part of the agency’s digital infrastructure.

Similarly, the Centers for Medicare and Medicaid Services (CMS) also expanded its reliance on ID.me for digital identity verification, recently awarding the company a contract for services related to Medicare.gov.

As part of its broader identity modernization efforts, CMS has adopted ID.me’s technology to allow beneficiaries to verify their identities when accessing the online Medicare platform. This move aims to streamline the user experience, reduce fraud, and provide more secure and seamless access to critical health services.

The partnership with CMS reflects the growing trend of federal agencies adopting ID.me’s solutions as part of a nationwide initiative to modernize identity systems and improve digital service delivery.

Beyond Treasury, IRS, and CMS contracts, ID.me has expanded its footprint in the federal space, providing services to a wide array of agencies, including the Department of Veterans Affairs and the Social Security Administration (SSA).

These agencies use ID.me’s identity proofing capabilities to secure a variety of services, ranging from healthcare access to social security benefits, further demonstrating the broad utility of the company’s offerings across government functions.

The expansion of ID.me’s role in federal contracting is part of a larger shift in how the U.S. government handles identity management. The reliance on third-party identity verification services is expected to grow as agencies strive to improve security, combat fraud, and streamline user access to public services.

As part of this trend, the General Services Administration (GSA) awarded ID.me a contract in 2025 to provide identity verification services to multiple government entities via GSA’s Federal Supply Schedule.

The contract has positioned ID.me as one of the primary providers of digital identity services to federal agencies, cementing its role as a trusted partner in securing online government services.

ID.me remains one of the most widely used identity verification providers in the federal space, with its technology now supporting access to a wide range of government services, from tax filings to healthcare benefits.

This post was updated at 4:42pm Eastern on January 8, 2026 to clarify ID.me’s role in the IRS’ different verification methods.

Article Topics

Department of Treasury  |  digital identity  |  IAL2  |  ID.me  |  identity proofing  |  identity verification  |  U.S. Government