NADA Says REAL ID Act is Unfunded Mandate That May Slow DMVs

NADA Says –REAL ID” Act is Unfunded Mandate That May Slow DMVs

In 2005, Congress passed the REAL ID Act, a program recommended by the 9/11 Commission, to require states to make identification more secure by verifying the name, date of birth, Social Security Number, residence and citizenship status of each driver’s license applicant prior to issuing identification. The act has been controversial based on privacy concerns and funding. Nationwide costs of complying with the act are estimated at $11 billion to $25 billion over 10 years, and there is concern that state DMV offices will be forced to pull resources from other areas, such as vehicle title processing and registrations. To date, Congress has appropriated only $40 million for REAL ID programs. In July, Sen. Lamar Alexander (R-Tenn.) proposed $300 million in federal funds to help states implement the REAL ID Act. The amendment to the Homeland Security spending bill was killed by a 50-44 vote, in part because some lawmakers did not want to shift funds from other Homeland Security priorities, such as border security. The failure of Congress to provide significant financial assistance for states to comply with Real ID will increase the call by states to further delay or dismantle the federal program.

The Senate funding bill as passed would not provide any funds to aid states in complying with this new mandate; the House-passed measure would provide $50 million. A conference committee will determine the final funding figure. Funding for the REAL ID program will continue to be a key topic. The American Association of Motor Vehicle Administrators (AAMVA) estimates visits to DMV offices will increase 75 percent annually. Citing unfunded federal mandates as well as privacy concerns, implementation of the act has already been delayed two years ã until 2009. NADA will continue to keep dealers posted on developments of this new law.