Stop Identity Fraud and Identity Theft Act of 2026

HR 7270 creates a federal grant program administered by the Treasury Secretary to provide funding to states for developing secure digital identity systems. States would use these grants to create digital driver’s licenses and identity credentials that comply with NIST guidelines, prioritize protection against deepfake attacks, and replace vulnerable legacy systems. The bill requires states to use at least 10% of grant funds to assist individuals in obtaining digital identity services, while prohibiting states from forcing residents to use digital IDs or eliminating physical licenses. It aims to reduce identity theft fraud in government benefit programs and the financial system by enhancing digital identity security, with no requirement for states to develop digital credentials.