DHS FY2009 Driver License State Grant Allocation

DHS Announces $48.6 Million in Driver’s License Security Grants

and Driver's License Security Grant Programs (PDF, 5 pages - 81 KB)

The U.S. Department of Homeland Security (DHS) today opened the application period for approximately $48.6 million under the Fiscal Year (FY) 2009 Driver’s License Security Grant Program. These grants support state efforts to prevent terrorism and reduce fraud by improving the reliability and accuracy of identification documents that state governments issue.

The FY 2009 Driver’s License Security Grant Program will accept proposals that improve state capabilities consistent with the requirements of the REAL ID final rule. This year’s program also will contain pre-determined target allocation funds to all 56 states and territories instead of the competitively awarded funds issued to states and territories under the FY 2008 REAL ID program funds.

The total amount of funds allocated for the FY 2009 Driver’s License Security Grant Program is $48,575,000, per the Consolidated Security, Disaster Assistance and Continuing Appropriations Act of 2009 (Public Law 110-329). Grant allocations will be made on a formula basis, dependent on the number of licensed drivers within each eligible state and territory. Eligible applicants are state motor vehicle/driver’s license issuing authorities, also known as the State Motor Vehicle Administration (MVA) or the state Department of Motor Vehicles (DMV). DHS encourages states to submit grant applications to fund projects that will improve driver’s license issuance processes and expedite material compliance with the REAL ID Act and rule. Each grant applicant will need to identify an individual MVA or DMV with overall programmatic and fiscal oversight of FY 2009 Driver’s License Security Grant Program funding awarded to the state.

CSDL Supports REAL ID Grants Distributed by DHS

"A secure license is a prerequisite for a secure nation. Americans realize a driver's license is a passport for air travel and entry to almost any office building in the country,” said Herb London, CSDL Director. “Complying with the law should be an obligation since it will serve as a bulwark for national defense."

Under the REAL ID Systems Integration and Data Verification Grant Program, these funds will help States pay for stronger physical security embedded in drivers’ licenses and ID cards, improve identity authentication of applicants and augment physical and electronic security of issuing facilities. DHS regulations also included a best practices guide for improving the privacy protections of personal data at state DMVs. Most states will look to incorporate those guidelines into their updated procedures.

“The Coalition for a Secure Driver’s License (CSDL) applauds DHS’s grant awards to the states, said Brian Zimmer, President of CSDL. “States need these grants to fund startup capital expenditures. Some states are constrained from committing to comply with REAL ID regulations because DMV officials depend on revenues from license fees to meet budget requirements. Without federal grants, implementation of REAL ID may be stalled or indefinitely delayed even when strongly supported by a Governor and leadership in the state legislature. These grants represent only a down payment on needed federal funding.”

As a condition of obtaining a waiver from DHS earlier this year, states committed to work toward meeting a compliance benchmark set by DHS regulations by December 31, 2009. Five states received additional grants for the capital costs of establishing a central message routing hub that will be operated by the states and the American Association of Motor Vehicle Administrators. Missouri was awarded more than $17 million from DHS as the designated hub state to link REAL ID verification and authentication throughout the country. Florida, Indiana, Nevada, and Wisconsin will each receive $1.2 million in addition to their individual state grant projects as lead states for pilot implementation and verification testing.

The Department of Homeland Security has now described the planned system architecture envisioned for the hub, and how it will be used. DHS explained that it will be an automated message router, and in no way a central database. Through it, states will be able to securely verify the identity, lawful status, and social security number of an applicant.

While some opponents have confused the hub’s intent and labeled it a giant federal database, DHS stressed that it is a high speed means of routing valid queries to a state for verification that the information presented by an applicant is authentic. Personal information will not be stored within the hub, nor will it allow unauthorized searching of information.

DHS relied on a peer review panel of state DMV officials that assessed each State’s grant request and the planned projects for which the grant monies would be used. DHS also used the size of the State’s driver’s license population as a concurrent factor to determine grant amount.

Seven states did not receive funds because they did not submit grant applications: Alaska, Idaho, Oklahoma, Washington, New Hampshire, Louisiana and Montana. While most states are proceeding toward REAL ID compliance, these states did not submit requests for grant money because of laws passed by their state legislatures opposing compliance with REAL ID. Unless an exception is granted by DHS, federal procurement regulations require that states receiving REAL ID grants must dedicate the expenditure of the money towards REAL ID compliance. Of note, despite an existing state law prohibiting compliance with REAL ID, South Carolina applied for a grant and received $500,000.