Stop Identity Fraud and Identity Theft Act of 2026

This bill establishes a grant program to help states develop digital identity credentials, like digital driver's licenses, to prevent identity fraud and theft, particularly from cyberattacks and organized crime. The Secretary of the Treasury must create this program within one year of the bill's enactment.

Sec. 3, Identity fraud prevention innovation grants: The Treasury Secretary sets up a grant program for states to create digital driver's licenses and other identity credentials that meet NIST guidelines. States must use the grants to protect against deepfake AI attacks, develop secure online identity solutions, reduce identity theft, safeguard government benefit programs, protect the financial system, and enable trusted online transactions. At least 10 percent of a state's grant must help individuals get the identity documents needed for a digital credential. States cannot use the money to require people to get or use a digital ID, stop issuing physical IDs, or support issuing IDs to unauthorized immigrants. The bill does not require any state to create digital IDs.