Identity fraud prevention innovation grants

(a) In general The Secretary of the Treasury shall, not later than 1 year after the date of the enactment of this section, establish a grant program to provide identity fraud prevention innovation grants to States. (b) Use of amounts (1) In general States shall use amounts provided under this section to— (A) 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 504 of the Cybersecurity Enhancement Act of 2014; (B) protect the privacy and security of individuals, including guarding against deepfake attacks powered by artificial intelligence; (C) catalyze the development, deployment, and use of more resilient, interoperable solutions Americans can use to protect and assert their identity online; (D) 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 attacks; (E) ensure the integrity of Government benefit programs paid through the Department of the Treasury; (F) protect the United States financial system from abuse by illicit actors; and (G) enable more trusted transactions online. (2) Requirement Not less than 10 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 physical. (c) Limitations A State may not use any amounts provided under this section to— (1) require a person to obtain or use a digital driver’s license or digital identity credential; (2) support any by such State to eliminate the issuance of physical driver’s licenses and physical identity credentials; or (3) support the issuance of drivers licenses or identity credentials to unauthorized immigrants. (d) 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 credentials. (e) Definitions In this section: (1) Secretary The term Secretary means the Secretary of the Treasury. (2) 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 individual, including a driver’s license, State-issued identification card, or birth certificate. (3) Unauthorized immigrant The term unauthorized immigrant means a person who is not— (A) is not citizen or national of the United States; (B) is not an alien lawfully admitted for permanent or temporary residence in the United States; (C) does not have conditional permanent resident status in the United States; (D) does not have an approved application for asylum in the United States; and (E) did not enter into the United States in refugee status.