States have voiced concerns that they do not have the funds necessary to implement REAL ID. How does DHS expect States to pay for REAL ID?
The issuance of drivers licenses and identification cards is a State function, whose costs will continue to be born primarily by each State. Neither the REAL ID Act nor this rule alters this responsibility. That said, DHS recognizes that States will incur significant costs in implementing REAL ID, and has sought to reduce the anticipated financial impact in several ways. First, the final rule addresses significant issues presented by those who submitted comments to the NPRM, including the need for additional time and flexibility in how the final rule is implemented. Additionally, many States have already made investments in more secure processes, which mirror in many instances the requirements outlined in the rule. These factors have substantially reduced estimated hard costs to States from $14.6 billion in the NPRM to approximately $4 billion in the final rule. DHS is also implementing an age-based enrollment approach. This allows States to focus the first phase of enrollment on those
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