Stop Identity Fraud and Identity Theft Act of 2026

Key Points

• Congress proposes a new grant program run by the Treasury Department to help states upgrade their identity systems. States would use the money to create digital versions of driver's licenses and other IDs that are much harder for criminals to fake or steal online.
• A major goal of the plan is to stop 'deepfake' attacks and other high-tech fraud powered by artificial intelligence. By moving away from older, vulnerable systems, the government hopes to block hostile countries and organized crime gangs from stealing billions of dollars through identity theft.
• The program is voluntary for both states and individuals. The bill specifically states that the government cannot force people to use digital IDs, and states are prohibited from getting rid of traditional physical plastic licenses.
• To ensure everyone can participate, states must use at least 10% of the grant money to help residents get the documents they need to verify their identity. However, the bill strictly bans using these funds to provide identity credentials to unauthorized immigrants.
• This effort addresses a massive financial drain on the country. The government estimates it loses between $233 billion and $521 billion every year to fraud, much of which happens because current online identity checks are too easy for hackers to trick.