One Step Closer to an Online Digital Identity Management System

Just before the teams took the field at last year’s Congressional Baseball game, I had the opportunity to completely “nerd out” with Rep. Bill Foster (D-IL) about a piece of legislation he cosponsored with John Katko (R-NY) titled the "Improving Digital Identity Act." The good news is that it looks like that the legislation is finally on the verge of becoming law now that the Homeland Security and Governmental Affairs Committee (HSGAC) voted affirmatively earlier last week on the companion bill that is in the Senate. It now goes to the Senate Floor for consideration.???

The Improving Digital Identity Act proposes to establish a multi-agency “Identity Task Force” to develop secure methods for federal, state and local governments to validate identity attributes and support interoperable digital identity verification. This task force would consist of cabinet secretaries, heads of other federal agencies, state and local government officials, congressional committee designated members and a position appointed by the president. To guide the selection of digital identity solutions, the National Institute of Standards and Technology (NIST) would develop a standards framework for digital identity verification.

The task force will publish a report with recommendations on research and development in digital identity verification systems and designing a framework that will enable government agencies to securely verify citizens' identities in real-time online. This will streamline processes such as opening a bank account and would be very effective in reducing the levels of identity fraud we witnessed with COVID relief funds or even social security fraud.

Implementing a government-wide, consensual biometric identity management system would be a significant step forward for individual citizens, as well. As a former federal employee who was one of the 22 million people adversely affected by the two-year (2013-2015) data breach of the Office of Personnel Management (OPM), I believe having a government-wide tool to confirm identity is long overdue. Leveraging biometric identity programs like TSA Pre-check and Global Entry have made my traveling less burdensome, tasks that should be simple – like e-filing my taxes – continue to be a challenge because of the need to confirm my identity using traditional methods. ?

While some opponents (many of whom are in the business of providing similar services for a fee) have identified concerns with a federal identity capability, many of those can be addressed by the multi-agency task force. Privacy concerns: A federal digital identity bill could potentially collect and store a large amount of personal information, which raises privacy concerns for many people.

·????????Security risks: If the system is not secure, there is a risk that hackers could gain access to sensitive personal information, which could result in identity theft or other forms of fraud. While I am still squeamish given my experience with the OPM hack, the federal government commitment to cybersecurity has increased significantly since 2015 and the adoption of “zero trust” programs throughout the government should help reduce this risk.

·????????Cost: Implementing a federal digital identity system can be expensive, both for the government and for the individuals who would be required to obtain and maintain a digital identity. However, from my discussions with Rep. Foster, he intends for the system to be free for citizens and objectively no more burdensome than similar, commercial sector biometric identity programs.

·????????Accessibility: Theoretically, not everyone may have access to the technology needed to participate in a digital identity system, which could create a digital divide and exclude certain groups of people. However, the application of “real ID” programs through state motor vehicle departments has shown an effective pathway for reaching most people in America. The bill attempts to address this by including a specific provision on equitable access to digital identity verification.

·????????Centralization: A federal digital identity system could be seen as overly centralized, which raises concerns about government surveillance and control, particularly in our current political environment that aims to undermine trust in our nation’s institutions. The bill includes a provision to prohibit the task force from recommending the creation of a single identity credential or a central national identification registry.

·????????Consistency: Creating a uniform system across the entire country could be challenging due to varying state laws, regulations, and technology infrastructures. However, if it is run as a tool just for the federal agencies, that standardized system would only need to be interoperable with state systems – not replace them.

While Congress has worked to address these concerns, and the Task Force will continue to work to address them even further, the benefits clearly outweigh the potential risks.

First, a Federal digital identity system can help prevent identity theft and fraud by providing a secure and reliable way to verify an individual's identity online. This can help protect individuals' sensitive information, such as financial data and personal information, from being compromised.

Second, citizens can use a single credential to access a wide range of government services and programs, rather than having to create and manage multiple accounts for each service. This can simplify the process of accessing government services and reduce the burden on individuals and government agencies alike.

Third, a Federal digital identity system can help streamline government processes by enabling electronic transactions and reducing the need for paper-based forms and processes (think: the Paperwork Reduction Act). This can save time and resources for both individuals and government agencies, allowing them to focus on other important tasks and services.