Official: DHS Doesn't Know What Real ID Will Cost States

The Homeland Security Department does not have an accurate estimate of how much it will cost states to meet a federal mandate requiring them to issue new driver's licenses and identification cards, even though states must begin to come into compliance by the end of next year, a top department policy official told Congress today.

The department used "speculative" data provided by states to estimate that it would cost them about $4 billion to comply with the so-called Real ID law, Stewart Baker, the department's policy chief, told the Senate Homeland Security and Governmental Affairs Government Management Subcommittee at a hearing. Baker said the cost could be as low as $500 million. But an analysis done by the National Governors Association, the National Conference of State Legislatures and the American Association of Motor Vehicle Administrators in 2006 estimated states would need to spend about $11 billion over five years. Baker said the department will ask the states for updated cost estimates.

"Our view is we need better information," Baker said later. He would not elaborate on the process that will be used to get better estimates. "We are looking at ways to do that," he said.

Senators in both parties expressed frustration that the department does not yet have accurate cost estimates for the law, which requires states to verify the identify and citizenship of residents before issuing them new, secure driver's licenses and identification cards. States must begin to come into compliance with Real ID by the end of 2009, and issue new driver's licenses and identification cards to all residents under the age of 50 by 2013.

Along with Real ID, the hearing also examined whether the federal government is prepared to implement the Western Hemisphere Travel Initiative, which will require U.S. citizens and other travelers entering the United States by land and sea from countries in the Western Hemisphere to present secure identification documents, such as passports or new passport-like cards, beginning in June 2009.

Senate Homeland Security and Governmental Affairs ranking member Susan Collins said both Real ID and WHTI "have been flawed programs" that could lead to serious problems.

"In the case of WHTI, the Department of Homeland Security has not been sufficiently attuned to how important cross-border travel is to everyday life for those who live in border communities," said Collins, whose home state of Maine borders Canada. "In the case of Real ID, the department has not resolved long-standing privacy and funding concerns."

Homeland Security and Governmental Affairs Government Management Subcommittee Chairman Daniel Akaka, D-Hawaii, said both programs "pose significant threats to Americans' privacy and civil liberties." Akaka has introduced a bill to repeal the Real ID law. Collins asked Baker if Homeland Security would support providing states $1 billion in funding this year to help them come into compliance with Real ID. Baker would not commit, reiterating that better cost estimates are needed.

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