State and Local Government
State governments typically spend hundreds of millions of dollars each year administering more than a dozen different credential programs. The credentials are used to manage the identities and privileges of citizens for a wide variety of licenses, certifications, and benefits. Examples include credentials for driving and hunting licenses, professional certifications, Medicaid, Food Stamps, and other entitlement programs. Each program typically manages its own stove-piped identity and privilege system.
License and certification fees generate revenue for the states, which helps to offset the cost of administering the programs. States are now recognizing that significant efficiencies would be achieved by consolidating the many credentials into a single multi-purpose credential. The new credential would be based on a strong identity standard, such as PIV-I. The new credentials could have multiple privileges, such as driving or voting, associated with a single identity.
Adoption of a strong identity standard in state credential programs would also have the benefit of dramatically reducing fraud. The cost of fraud in entitlement programs exceeds $150 billion per year, or an average of more than $3 billion per state. State programs to implement strong multipurpose PIV-I credentials would pay for themselves many times over, in fraud savings alone.