,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #gbgj  ,,in ,,the ,,house ,,of  
,,representatives  ,january #bg1        
#bjbf,mr4 ,sessions 7for himself and    
,mr4 ,foster7 introduced the following  
bill2 which was referred to the         
,committee on ,oversight and ,government
 ,reform1 and in addition to the        
,committees on ,financial ,services1 and
 ,energy and ,commerce1 for a period to 
be subsequently determined by the       
,speaker1 in each case for consideration
 of such provisions as fall within the  
jurisdiction of the committee concerned 
,a ,,bill  ,to establish a              
government-wide approach to stopping    
identity fraud and theft in the         
financial services industry1 and for    
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,stop ,identity
 ,fraud and ,identity ,theft ,act of    
#bjbf4  #b4 ,findings ,congress finds   
the following3 7#a7 ,the lack of an     
easy1 affordable1 and reliable way for  
organizations1 businesses1 and          

government agencies to identify whether 
an individual is who they claim to be   
online creates an attack vector that    
leads to millions of ,americans being   
victimized by ,china and ,north ,korea1 
and other hostile nation-states1 as well
 as organized crime gangs1 all of whom  
steal and compromise identities to      
commit cybercrime and fraud4  7#b7      
,incidents of identity theft and        
identity fraud continue to rise in the  
,united ,states1 where more than #cec   
million people were impacted by data    
breaches in #bjbc4  7#c7 ,the           
,government ,accountability ,office     
7,,gao7 estimated that the ,federal     
,government could lose between #bcc     
billion and #eba billion annually to    
fraud2 ,,gao estimated that the amount  
of fraud in unemployment insurance      
programs during the ,,covid-#ai pandemic
 was likely between #ajj billion and    
#ace billion and found that the majority
 of this fraud occurred because         
compromises of identity4  7#d7 ,the     

,financial ,crimes ,enforcement ,network
 of the ,department of the ,treasury    
reported that #bab billion worth of     
suspicious financial transactions in    
#bjba was tied to some form of identity 
compromise2 in #bjbd1 they revealed that
 this number had exploded in #bjbc1     
covering over #gj percent of all        
,suspicious ,activity ,reports 7,s,a,rs7
 filed by banks1 tied to #cid billion of
 transactions4  7#e7 ,in #bjbd1 the     
,department of the ,treasury report on  
,managing ,artificial                   
,intelligence-,specific ,cybersecurity  
,risks in the ,financial ,services      
,sector flagged the threat of new       
deepfake attacks powered by artificial  
intelligence and noted ,the volume of   
these types of exploitations or         
cyber-enabled attacks is likely to rise 
as technological developments like      
,generative ,,ai reduce the cost1       
complexity1 and time required to        
leverage gaps in our digital            
infrastructure44  7#f7 ,the inadequacy  

of current digital identity solutions   
degrades security and privacy for all   
,americans1 and as deepfake attacks     
become more prevalent1 next generation  
solutions are needed that can protect   
consumers1 businesses1 and government   
agencies from identity-related          
cybercrime4  7#g7 ,government entities1 
as authoritative issuers of identity in 
the ,united ,states1 are uniquely       
positioned to deliver critical          
components that address deficiencies in 
our identity infrastructure and augment 
private sector identity and             
authentication solutions4  7#h7 ,state  
governments are particularly well suited
 to play a role in enhancing digital    
identity solutions used by both the     
public and private sectors1 given the   
role of ,state governments as the       
issuers of driver's licenses and other  
identity documents commonly used today4 
7#i7 ,the ,national ,institute of       
,standards and ,technology 7,,nist7 was 
directed in the ,,chips and ,science    

,act of #bjbb to launch new work to     
develop a framework of common           
definitions and voluntary guidance for  
digital identity management systems1    
including identity and attribute        
validation services provided by         
,federal1 ,state1 and local governments1
 and work is underway at ,,nist to      
create this guidance4 ,however1 ,state  
and local agencies lack resources to    
implement this new guidance1 and if this
 does not change1 it will take decades  
to harden deficiencies in identity      
infrastructure4  7#aj7 ,it should be the
 policy of the ,government to use the   
authorities and capabilities of the     
,government to enhance the security1    
reliability1 privacy1 and convenience of
 digital identity solutions that support
 and protect transactions between       
individuals1 government entities1 and   
businesses1 and that enable ,americans  
to prove who they are online4  #c4      
,identity fraud prevention innovation   
grants  7a7 ,in general ,the ,secretary 

of the ,treasury shall1 not later than  
#a year after the date of the enactment 
of this section1 establish a grant      
program to provide identity fraud       
prevention innovation grants to ,states4
  7b7 ,use of amounts  7#a7 ,in general 
,states shall use amounts provided under
 this section to-- 7,a7 develop digital 
versions of driver's licenses and other 
identity credentials that comply with   
the guidelines for identity and         
attribute validation services developed 
by the ,national ,institute of          
,standards and ,technology under section
 #ejd of the ,cybersecurity ,enhancement
 ,act of #bjad2  7,b7 protect the       
privacy and security of individuals1    
including guarding against deepfake     
attacks powered by artificial           
intelligence2  7,c7 catalyze the        
development1 deployment1 and use of more
 resilient1 interoperable solutions     
,americans can use to protect and assert
 their identity online2  7,d7 reduce    
identity theft and fraud by replacing   

legacy identity systems that are highly 
vulnerable to attack from organized     
criminals and hostile nation-states with
 more robust solutions that can defeat  
these attacks2  7,e7 ensure the         
integrity of ,government benefit        
programs paid through the ,department of
 the ,treasury2  7,f7 protect the       
,united ,states financial system from   
abuse by illicit actors2 and  7,g7      
enable more trusted transactions online4
  7#b7 ,requirement ,not less than #aj  
percent of any amounts provided to a    
,state under this section shall be used 
by such ,state to provide services      
designed to assist individuals with     
obtaining any identity credentials or   
identity verification services that are 
required to obtain a digital driver's   
license or other digital identity       
credential offered by such ,state       
physical4  7c7 ,limitations ,a ,state   
may not use any amounts provided under  
this section to-- 7#a7 require a person 
to obtain or use a digital driver's     

license or digital identity credential2 
7#b7 support any by such ,state to      
eliminate the issuance of physical      
driver's licenses and physical identity 
credentials2 or  7#c7 support the       
issuance of drivers licenses or identity
 credentials to unauthorized immigrants4
  7d7 ,rule of construction ,nothing in 
this section may be construed to require
 any ,state to develop or issue digital 
versions of driver's licenses or other  
identity credentials4  7e7 ,definitions 
,in this section3 7#a7 ,secretary ,the  
term ,secretary means the ,secretary of 
the ,treasury4  7#b7 ,identity          
credential ,the term identity credential
 means a document or other evidence of  
the identity of an individual issued by 
a ,state that conveys the identity of   
the individual1 including a driver's    
license1 ,state-issued identification   
card1 or birth certificate4  7#c7       
,unauthorized immigrant ,the term       
unauthorized immigrant means a person   
who is not-- 7,a7 is not citizen or     

national of the ,united ,states2  7,b7  
is not an alien lawfully admitted for   
permanent or temporary residence in the 
,united ,states2  7,c7 does not have    
conditional permanent resident status in
 the ,united ,states2  7,d7 does not    
have an approved application for asylum 
in the ,united ,states2 and  7,e7 did   
not enter into the ,united ,states in   
refugee status4