`[Federal Register Volume 90, Number 8 (Tuesday, January 14, 2025)]
[Rules and Regulations]
[Pages 3472-3503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00484]



[[Page 3471]]

Vol. 90

Tuesday,

No. 8

January 14, 2025

Part V





Department of Homeland Security





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Transportation Security Administration





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6 CFR Part 37





Minimum Standards for Driver's Licenses and Identification Cards 
Acceptable by Federal Agencies for Official Purposes; Phased Approach 
for Card-Based Enforcement; Final Rule

  Federal Register / Vol. 90 , No. 8 / Tuesday, January 14, 2025 / 
Rules and Regulations  

[[Page 3472]]


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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

6 CFR Part 37

[Docket No. TSA-2023-0003]
RIN 1652-AA77


Minimum Standards for Driver's Licenses and Identification Cards 
Acceptable by Federal Agencies for Official Purposes; Phased Approach 
for Card-Based Enforcement

AGENCY: Transportation Security Administration (TSA), Department of 
Homeland Security (DHS).

ACTION: Final rule.

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SUMMARY: This rule ensures that Federal agencies have appropriate 
flexibility to implement the card-based enforcement provisions of the 
REAL ID regulations after the May 7, 2025, enforcement deadline by 
explicitly permitting agencies to implement these provisions in phases. 
Under this rule, agencies may implement the card-based enforcement 
provisions through a phased enforcement plan if they determine it is 
appropriate upon consideration of relevant factors including security, 
operational feasibility, and public impact. The rule also requires 
agencies to coordinate their plans with DHS, make the plans publicly 
available, and achieve full enforcement by May 5, 2027.

DATES: Effective January 14, 2025.

FOR FURTHER INFORMATION CONTACT: George Petersen, REAL ID Program, 
Enrollment Services and Vetting Programs, Transportation Security 
Administration, 6595 Springfield Center Drive, Springfield, VA 20598; 
telephone: (571) 227-2215; email: [email protected].

SUPPLEMENTARY INFORMATION:

Availability of Rulemaking Document

    You can find an electronic copy of this rulemaking using the 
internet by accessing the Government Publishing Office's web page at 
https://www.govinfo.gov/app/collection/FR/ to view the daily published 
Federal Register edition or accessing the Office of the Federal 
Register's web page at https://www.federalregister.gov. Copies are also 
available by contacting the individual identified for ``General'' in 
the FOR FURTHER INFORMATION CONTACT section. Make sure to identify the 
docket number of this rulemaking.

Abbreviations and Terms Used in This Document

APA--Administrative Procedure Act
DHS--Department of Homeland Security
DL/IDs--Driver's Licenses and Identification Cards
DMV--Departments of Motor Vehicles
EDL--Enhanced Driver's Licenses
NPRM--Notice of Proposed Rulemaking
TSA--Transportation Security Administration

Table of Contents

I. Executive Summary
    A. Purpose of the Regulatory Action
    B. Summary of the Major Provisions of the Regulatory Action
    C. Costs and Benefits
II. Background
    A. Statutory and Regulatory History
    B. Phased Enforcement Rulemaking
    C. Broad DHS Approach
III. General Discussion of the Rulemaking
    A. Rulemaking Objectives
    B. Summary of Regulatory Provisions
    C. Maintaining the May 7, 2025, Card-Based Enforcement Deadline
    D. Phased Enforcement Guidance
IV. Discussion of Comments
    A. General Opposition to REAL ID
    B. Legal Authority
    C. General Support for the Rulemaking
    D. Immediate Transition to Full Enforcement
    E. Extension of the Card-Based Enforcement Deadline
    F. Confusion Associated With Phased Enforcement Generally
    G. Public Availability of Agencies' Phased Enforcement Plans
    H. Length of Phased Enforcement Period
    I. Relevant Factors and Resources for Development and Approval 
of Phased Enforcement Determinations by Federal Agencies
    J. Phased Enforcement Implementation Concerns
    K. Alternative Approaches to Phased Enforcement
    L. Costs of the Rule
V. Statutory and Regulatory Analyses
    A. Administrative Procedure Act
    B. Paperwork Reduction Act
    C. Economic Impact Analysis
    D. Executive Order 13132 (Federalism)
    E. Executive Order 13175 (Tribal Consultation)
    F. Environmental Analysis
    G. Energy Impact Analysis
    H. Small Business Regulatory Enforcement Fairness Act of 1996 
(Congressional Review Act)

I. Executive Summary

A. Purpose of the Regulatory Action

    Secure driver's licenses and identification documents are a vital 
component of our national security framework. The REAL ID Act,\1\ 
passed by Congress in 2005, enacted the 9/11 Commission's 
recommendation that the Federal Government ``set standards for the 
issuance of . . . sources of identification, such as drivers 
licenses.'' \2\ The REAL ID Act and its implementing regulations set 
minimum security standards for State-issued driver's licenses and 
identification cards (DL/IDs), which are designed to improve the 
security and reliability of those documents. These requirements allow 
Federal agencies that accept State-issued DL/IDs for official purposes 
to determine with greater accuracy whether individuals presenting a DL/
ID are who they say they are.
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    \1\ Public Law 109-13, 119 Stat. 231, 302 (May 11, 2005) 
(codified at 49 U.S.C. 30301 note).
    \2\ The 9/11 Commission Report, Final Report of the National 
Commission on Terrorist Attacks upon the United States (July 2004) 
(9/11 Commission Report), p. 390, available at https://www.govinfo.gov/app/details/GPO-911REPORT (last visited April 16, 
2024).
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    Pursuant to the REAL ID regulations, REAL ID card-based enforcement 
begins on May 7, 2025. Card-based enforcement means that Federal 
agencies may only accept DL/IDs for official purposes, defined in the 
REAL ID Act and regulation, if the DL/IDs are issued in accordance with 
REAL ID requirements.\3\ In order to fully realize the enhanced 
security provided by the REAL ID requirements, DHS is committed to 
beginning card-based enforcement on May 7, 2025. However, as of January 
2024, only approximately 56 percent of DL/IDs in circulation nationally 
are REAL ID-compliant.\4\ In 34 States,\5\ less than 60 percent of DL/
IDs in circulation are REAL ID-compliant, and, of those, in 22 States 
less than 40 percent are REAL ID-compliant.\6\ Further, because of a 
history of REAL ID deadlines being extended, DHS believes that the 
public may continue to expect that additional extensions are likely and 
not feel urgency to obtain a REAL ID-compliant card. DHS believes this 
lack of urgency is likely to delay increased adoption in many States 
despite best efforts to inform the public, potentially leading to

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last-minute surges in demand for REAL ID-compliant IDs leading up to 
the deadline.
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    \3\ 6 CFR 37.5(b).
    \4\ Based on REAL ID issuance data, as of January 2024, 
voluntarily submitted monthly to DHS by the compliant states. While 
REAL ID issuance data through October 2024 is available, based on 
the most recent data, DHS expects the percentage of REAL IDs by the 
card-based enforcement date to be on par with the forecasts 
presented in the NPRM. As a result, the regulatory analyses (section 
V(b)(2)(d) Adoption of REAL ID-Compliant DL/IDs) maintains the 
values used in the NPRM which DHS published in September 2024.
    \5\ DHS uses ``states'' and ``licensing jurisdictions'' 
interchangeably throughout this document to refer collectively to 
the 56 different U.S. jurisdictions that issue DL/IDs that are 
governed by the REAL ID regulations. These jurisdictions are the 50 
states, the District of Columbia, and the territories of Puerto 
Rico, U.S. Virgin Islands, Guam, the Commonwealth of the Northern 
Mariana Islands, and American Samoa. 6 CFR 37.3.
    \6\ See supra note 4.
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    DHS believes this surge could overwhelm some States with low levels 
of adoption and result in backlogs and delays in REAL ID issuance. In 
light of this, DHS anticipates that a significant number of individuals 
seeking to use their DL/ID for a REAL ID official purpose on and after 
May 7, 2025, may not have a compliant DL/ID. DHS recognizes that this 
could result in a situation where individuals are unable to present a 
compliant DL/ID to access a Federal facility, board a federally 
regulated commercial aircraft, or enter a nuclear power plant on a 
large scale. For some agencies, this scenario may raise serious 
concerns related to security, agency operations, and potential impact 
to the public. While these concerns are especially acute in an airport 
security environment, DHS anticipates that other Federal agencies that 
operate facilities visited frequently by the general public \7\ may 
also face similar concerns. This rule recognizes these concerns and 
provides flexibility by permitting agencies to, for a period of up to 2 
years, implement REAL ID card-based enforcement using a phased approach 
tailored to their specific operations.
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    \7\ The requirements of the REAL ID Act and regulation apply 
only in contexts where individuals are required to present an 
identification document to Federal agencies for official purposes. 
Accessing a Federal facility that is normally open to the public and 
does not require visitors to establish their identity to enter is 
generally not an official purpose under the REAL ID Act and 
regulation. See REAL ID Act of 2005 Implementation: An Interagency 
Security Committee Guide (2019), p. 4-7, available at https://www.cisa.gov/resources-tools/resources/isc-guide-real-id-act-2005-implementation (last visited October 3, 2024).
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    DHS believes that this approach will be more effective at achieving 
full enforcement than further extensions of the enforcement deadline. 
This rule demonstrates that the Government is preparing for and 
planning to begin enforcement on May 7, 2025, and provides an 
opportunity for States and the public to prepare for full enforcement. 
After May 7, 2025, when agencies begin full enforcement or implement a 
phased enforcement plan, as appropriate, the public will be further 
incentivized to obtain a REAL ID as they realize and anticipate 
consequences for presenting a non-compliant DL/ID. At the same time, 
the rule is intended to allow a transition to full enforcement that 
mitigates the potential negative impact to agencies and the public if 
every agency was required to begin full enforcement immediately on the 
card-based enforcement date. Given the current percentage of REAL ID-
compliant DL/IDs that have been issued (as a percentage of all DL/IDs), 
the challenges many States are experiencing as they seek to increase 
adoption of compliant DL/IDs, and the resulting concerns Federal 
agencies may have, the rule provides important flexibility to agencies 
to ensure a smooth transition to card-based enforcement. The rule 
balances the increased security benefits of beginning card-based 
enforcement with an understanding of the significant risks that some 
Federal agencies may experience as a result of an immediate transition 
to full enforcement.\8\
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    \8\ ``Full enforcement'' or ``full card-based enforcement'' 
means that an agency will not accept noncompliant DL/IDs for REAL ID 
official purposes.
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B. Summary of the Major Provisions of the Regulatory Action

    Under the REAL ID regulations, Federal agencies may not accept non-
compliant DL/IDs for REAL ID official purposes on and after the card-
based enforcement of May 7, 2025. Under this rule, Federal agencies are 
still required to commence REAL ID card-based enforcement on May 7, 
2025. However, this rule provides agencies, for a period of up to 2 
years, the flexibility to implement a phased approach to card-based 
enforcement, after considering relevant factors including security, 
operational feasibility, and impact to the public. The rule provides an 
enforcement approach that allows agencies to maximize security gains in 
contexts where a swift transition to full enforcement poses little 
risk, while minimizing the risks in contexts where large numbers of 
individuals seeking to use noncompliant DL/IDs raises serious concerns.
    To ensure that agencies' phased enforcement plans consistently and 
appropriately advance the objectives of the REAL ID regulations, this 
rule requires agencies to coordinate their phased enforcement plans 
with DHS and begin full enforcement no later than May 5, 2027. To 
ensure transparency and public visibility, the rule requires agencies 
that use a phased enforcement plan to make their plan publicly 
available on their web page and require DHS to make publicly available 
a list of agencies that have coordinated phased enforcement plans with 
DHS. Finally, the rule's preamble provides guidance to Federal agencies 
on types of phased enforcement plans that agencies may consider.

C. Costs and Benefits

    As described in the notice of proposed rulemaking (NPRM) (89 FR 
74137, September 12, 2024) and discussed below, DHS estimates the cost 
of the rule, over 2 years, is $1.73 million undiscounted and $1.70 
million discounted at 2 percent. DHS, as the agency administering the 
REAL ID program, and other Federal agencies will largely bear the cost 
of the rule related to facilitating phased enforcement while benefits 
include flexibility to Federal agencies that may reduce operational 
disruptions as well as to States and individuals associated with 
additional time to obtain and process REAL IDs.
    Specifically, DHS will incur costs to coordinate with Federal 
agencies on their phased enforcement plans and provide guidance on 
phased enforcement. DHS estimates the 2-year cost to DHS is $0.033 
million undiscounted and $0.031 million discounted at 2 percent. 
Federal agencies will incur costs to familiarize themselves with the 
rule, assess whether to implement a phased enforcement plan, and if so, 
develop a plan. DHS estimates the 2-year cost to Federal agencies is 
$1.70 million undiscounted and $1.67 million discounted at 2 percent.
    DHS also identifies other non-quantified costs that affected 
parties may incur. A portion of the benefits associated with the REAL 
ID rule will be delayed as a result of agencies implementing a phased 
approach, with the full security benefit not realized until full 
enforcement occurs. Federal agencies will also incur costs related to 
phased enforcement plan implementation which may include training 
personnel on the policies of the plan and efforts to inform the public 
of the new identity verification policies related to plans. Individuals 
may also incur costs to become aware of phased enforcement plans and 
respond accordingly.
    DHS identifies various non-quantified benefits associated with the 
final rule. Federal agencies will have flexibility to enforce the REAL 
ID card-based regulations in a phased manner that may reduce security 
vulnerabilities, operational disruption and public impact but will not 
unnecessarily delay REAL ID enforcement for those Federal agencies 
ready to fully implement on the card-based enforcement deadline. A 
phased approach will also allow individuals more time to obtain a REAL 
ID-compliant DL/ID, reduce potential queuing and associated delays at 
access points, and may help mitigate potential application backlogs at 
State licensing agencies.

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II. Background

A. Statutory and Regulatory History

    The REAL ID Act sets minimum security requirements for the issuance 
and production of DL/IDs issued by the States, territories, and the 
District of Columbia in order for Federal agencies to accept these 
documents for official purposes.\9\ Official purposes include: (1) 
accessing Federal facilities, (2) boarding federally regulated 
commercial aircraft, (3) entering nuclear power plants, and (4) any 
other purposes that the Secretary of Homeland Security shall 
determine.\10\
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    \9\ Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Tsunami Relief, 2005, Public Law 109-13, 
Div. B. title II, sections 201 to 207, May 11, 2005, as amended 
(codified at 49 U.S.C. 30301 note).
    \10\ Id. at section 201.
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    On January 29, 2008, DHS published a final rule implementing the 
REAL ID Act's requirements (2008 Final Rule).\11\ The regulations 
include both a deadline for State compliance with the REAL ID 
requirements and a separate deadline after which individuals must 
present a REAL ID-compliant license or identification card in order for 
Federal agencies to accept the document for official purposes.\12\ DHS 
refers to these deadlines as ``state-based'' and ``card-based'' 
enforcement, respectively. Under the REAL ID regulations, card-based 
enforcement begins on May 7, 2025.\13\ On and after this date, Federal 
agencies may not accept for official purposes a DL/ID issued by a State 
unless that DL/ID was issued in accordance with the REAL ID standards 
by a REAL ID-compliant jurisdiction.\14\
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    \11\ See 73 FR 5272 (Jan. 29, 2008) (codified as amended at 6 
CFR part 37).
    \12\ 6 CFR 37.51(a) and 37.5.
    \13\ 6 CFR 37.5(b); 88 FR 14473 (Mar. 9, 2023) (extending the 
REAL card-based enforcement deadline from May 3, 2023, to May 7, 
2025). Additional background related to extensions of card-based 
deadline as a result of the COVID-19 pandemic is provided in the 
Notice of Proposed Rulemaking. 89 FR 74137.
    \14\ Under the REAL ID Act and regulations, States may also 
issue noncompliant licenses and identification cards, which will not 
be acceptable by Federal agencies for official purposes after the 
card-based deadline. 6 CFR 37.71; REAL ID Act sec. 202(d)(11). The 
REAL ID regulations authorize, but do not require, Federal agencies 
to accept these noncompliant cards until card-based enforcement 
begins. 6 CFR 37.5(c).
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B. Phased Enforcement Rulemaking

    Based on REAL ID data compiled by compliant licensing 
jurisdictions, as of January 2024, DHS estimates that compliant States, 
territories, and the District of Columbia have issued approximately 162 
million REAL ID-compliant DL/IDs, which represents approximately 56 
percent of the population possessing a State-issued DL/ID.\15\ Data 
from the States also indicates that the States have approximately 110 
million noncompliant marked DL/IDs and approximately 14 million legacy 
licenses without any markings (issued before a State's REAL ID 
compliance determination) still in circulation.\16\ Further, the 
national adoption rate as of January 2024, stands at approximately 0.56 
percent per month. As detailed in the regulatory analyses (section 
IV(b)(2)(e) Adoption of REAL ID-Compliant DL/IDs) DHS estimates that 
only about 61.2 percent of DL/IDs in circulation will be REAL ID-
compliant by the card-based enforcement deadline of May 7, 2025.\17\
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    \15\ DHS began to collect data voluntarily submitted by 
licensing jurisdictions including the total number of DL/IDs, number 
of REAL IDs, number of non-compliant cards, and number of ``legacy'' 
cards in July 2019. Beginning in October 2019, DHS began to receive 
the data on a monthly basis. While REAL ID issuance data through 
October 2024 is available, based on the most recent data, DHS 
expects the percentage of REAL IDs by the card-based enforcement 
date to be on par with the forecasts presented in the NPRM. As a 
result, the regulatory analyses (section V(b)(2)(d) Adoption of REAL 
ID-Compliant DL/IDs) maintains the values used in the NPRM which DHS 
published in September 2024.
    \16\ Additional background regarding DHS' efforts to support 
implementation of the REAL ID Act and factors impacting the pace of 
REAL ID adoption, including the effect of the COVID-19 pandemic, is 
provided in the Notice of Proposed Rulemaking. 89 FR 74137.
    \17\ Over the twelve months between January 2023 and January 
2024, the national compounded monthly growth rate for the adoption 
of REAL IDs was 0.56 percent. DHS applied the 0.56 compounded growth 
rate over the 16 months between January 2024 and May 2025 to 
forecast the percentage of REAL IDs in circulation by May 2025, 
relative to all DL/IDs in circulation.
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    Even taking these estimates into account, DHS believes that 
beginning card-based enforcement on May 7, 2025, is the most effective 
path to achieve full implementation of the REAL ID Act and regulations. 
The requirements of the REAL ID Act and regulations provide significant 
security benefits by improving the accuracy of identity verification 
processes.\18\ Beginning card-based enforcement will mark an important 
step towards full realization of these increased security standards. 
However, DHS recognizes that for some agencies, an immediate transition 
to full enforcement may not be appropriate. On September 12, 2024, DHS 
published an NPRM that proposed explicitly permitting agencies to 
implement card-based enforcement in phases if an agency determines that 
a phased approach is appropriate after considering relevant 
factors.\19\
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    \18\ See 73 FR 5325-5326, and accompanying Regulatory 
Evaluation, Department of Homeland Security, January 17, 2008, 
Regulatory Evaluation, Docket Number DHS-2006-0030; 9 H.R. Rep. No. 
109-72, 176-185 (2005) available at https://www.congress.gov/109/crpt/hrpt72/CRPT-109hrpt72.pdf (last visited June 17, 2024).
    \19\ 89 FR 74137.
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C. Broad DHS Approach

    This rulemaking represents one aspect of DHS' broad approach 
towards transitioning to enforcement of the REAL ID requirements on May 
7, 2025. Although this rule is critical to providing agencies with the 
necessary flexibility to ensure a smooth transition to full card-based 
enforcement, DHS is also engaged in a number of efforts to improve 
adoption rates. This layered approach includes heavy engagement with 
States that have low REAL ID adoption rates, a public advertising 
campaign raising awareness of upcoming REAL ID enforcement and the 
benefits of obtaining a REAL ID,\20\ and communication with the travel 
industry. This rule, in combination with these other efforts, lays the 
necessary foundation for transitioning the nation to enforcement of 
REAL ID requirements on May 7, 2025.
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    \20\ DHS Launches ``Be Your REAL ID Self[hairsp]'' Public 
Awareness Campaign, January 15, 2021, https://www.dhs.gov/real-id/news/2021/01/15/dhs-launches-be-your-real-id-self-public-awareness-campaign.
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III. General Discussion of the Rulemaking

A. Rulemaking Objectives

    DHS is issuing this rule in recognition that without a significant 
increase in the adoption rate leading up to the May 7, 2025, deadline, 
millions of noncompliant cards will still be in circulation on that 
date. Even assuming a substantial increase in the adoption rate, it is 
difficult to predict the number of people who will seek to use 
noncompliant DL/IDs for Federal official purposes when enforcement 
begins on May 7, 2025. Further, the population-wide adoption rate 
likely will differ from the adoption rate of specific populations who 
will need to present a REAL ID for official purposes including boarding 
federally regulated commercial aircraft or entering a Federal facility. 
The adoption rate also is likely to differ across geographic areas with 
certain regions having relatively higher or lower concentrations of 
individuals without a REAL ID-compliant DL/ID.
    This rulemaking acknowledges the possible risks to Federal agencies 
and potential public impact should a significant number of individuals 
seek to use non-REAL ID-compliant DL/IDs for REAL ID official purposes 
when enforcement begins on May 7, 2025. In

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some cases, a sudden transition to full enforcement may impact how 
agencies provide certain services or conduct business with the public. 
If many individuals seek to use noncompliant DL/IDs at the same 
location, this could result in significant backlogs at access points to 
Federal facilities and TSA security checkpoints. In the example of TSA, 
if large numbers of individuals arrived at an airport security 
checkpoint with noncompliant DL/IDs,\21\ they will not be able use that 
DL/ID to proceed through screening, potentially resulting in missed 
flights. Additionally, long lines, confusion, and frustrated travelers 
at the checkpoint may greatly increase security risks both to 
passengers and TSA personnel by drawing the resources and attention of 
TSA personnel away from other passengers, including those known to pose 
an elevated risk. DHS anticipates that other Federal agencies may also 
experience a negative impact if they begin full enforcement on May 7, 
2025.
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    \21\ Although a segment of the population may not possess a REAL 
ID, they may have other forms of identification acceptable for 
official purposes (e.g., a U.S. passport, U.S. passport card, or 
military identification). TSA's acceptable ID list is available at 
https://www.tsa.gov/travel/security-screening/identification. Other 
Federal agencies may also accept identification in addition to REAL 
ID-compliant DL/IDs. Individuals who need to visit a Federal 
facility should check in advance whether the agency requires 
identification for access purposes and, if they do, review the 
agency's access control policies.
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    Given that approximately 56 percent of DL/IDs in circulation are 
REAL ID-compliant as of January 2024, the low current adoption rates, 
and DHS' estimate that 61.2 percent of REAL IDs, relative to all DL/IDs 
in circulation, will be REAL ID-compliant by May 7, 2025, there is a 
real possibility of disruptions like those described above could occur 
if all agencies begin full enforcement on the deadline.\22\ 
Additionally, even if population-wide adoption rates are significantly 
higher than they are currently, these outcomes may nonetheless unfold 
if adoption rates remain low in specific States or amongst specific 
groups of individuals. Operational disruptions could still occur at 
locations in areas that have a high concentration of individuals 
without REAL ID-compliant DL/IDs or during times of the year when large 
numbers of people who do not fly frequently, and who may not possess a 
REAL ID-compliant DL/ID seek to travel. DHS anticipates that other 
agencies that operate facilities nationwide or experience substantial 
shifts in the number of individuals presenting identification for 
official purposes throughout the year may have similar concerns about 
the possibility of disruption based on the current trend in REAL ID 
adoption rates.
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    \22\ Supra note 15.
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    Recognizing these challenges and the uncertainty in the number of 
individuals Federal agencies may encounter who do not have a REAL ID-
compliant DL/ID on May 7, 2025, this rule provides Federal agencies 
added flexibility to implement enforcement of the REAL ID regulations 
in a manner that takes into account relevant factors including 
security, operational feasibility, and public impact. The ability to 
implement the card-based requirements under a phased approach, for a 2-
year period, allows Federal agencies to start card-based enforcement in 
a manner that limits potential disruption to operations, reduces 
negative public impact, and supports a smooth transition to full card-
based enforcement and the increased security benefits of REAL ID. For 
example, agencies will have the ability to begin enforcement by issuing 
warning notices or through progressive consequences if they determine 
that those measures would most effectively mitigate the risks of an 
immediate transition to full enforcement. Without this flexibility, and 
especially if the adoption rate remains low leading up to May 7, 2025, 
DHS believes Federal agencies could face a serious risk of operational 
disruption, negative public impact, and potential security 
vulnerabilities.
    Further, implementation of card-based enforcement through a phased 
approach is consistent with DHS' approach to State-based 
enforcement.\23\ DHS' approach to State-based enforcement demonstrated 
that phased enforcement can be effective in achieving compliance with 
REAL ID requirements. This rule provides Federal agencies the 
flexibility to determine whether a phased plan to implement the REAL ID 
card-based enforcement requirements beginning on May 7, 2025, is 
appropriate in particular circumstances. This flexibility allows 
agencies to begin card-based enforcement as part of a measured, 
responsible, and achievable plan leading to full enforcement of the 
REAL ID regulations.
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    \23\ Beginning in January 2013, DHS incrementally enforced the 
State-based regulatory deadline prohibiting agencies from accepting 
licenses and cards issued by States that were not compliant with the 
REAL ID standards. State-based enforcement concluded with the final 
phase, boarding federally regulated commercial aircraft, going into 
effect in 2018. DHS Releases Phased Enforcement Schedule for REAL ID 
(Dec. 20, 2013), available at https://www.dhs.gov/news/2013/12/20/dhs-releases-phased-enforcement-schedule-real-id.
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    Providing agencies the flexibility to begin enforcement using a 
phased approach may also facilitate increased adoption of REAL ID-
compliant DL/IDs. DHS anticipates that agencies announcing concrete 
plans for beginning enforcement on May 7, 2025, will demonstrate that 
the deadline is not being extended and will likely incentivize 
individuals to obtain a REAL ID-compliant DL/ID. An agency's specific 
enforcement phase may also encourage increased adoption. For example, 
agencies may choose to issue a written or verbal warning the first time 
an individual attempts to use their non-compliant DL/ID after the May 
7, 2025, enforcement deadline, letting that individual know they will 
be denied entry if they attempt to use their non-compliant card at that 
location another time. Individualized warnings like this may be more 
effective at encouraging compliance than broad public messaging.
    Finally, increased demand leading up to and after the deadline may 
outpace the ability of licensing jurisdictions to meet that demand. 
During DHS' engagement with States in preparation for the beginning of 
card-based enforcement, some States have expressed concern with ability 
to meet potential demand.\24\ Allowing agencies to use a phased 
approach may also provide licensing jurisdictions the opportunity to 
make adjustments to alleviate potential backlogs.
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    \24\ For example, Oregon has recently approved an increase in 
DMV staff dedicated to issuing REAL ID-compliant DL/IDs in 
anticipation of the May 7, 2025, deadline. Oregon Department of 
Transportation (ODOT), ODOT Operational Report to the Oregon 
Transportation Commission (March 5, 2024), available at https://www.oregon.gov/odot/Get-Involved/OTCSupportMaterials/Agenda_F_Operational_Report_PACKET.pdf (last visited April 17, 
2024).
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B. Summary of Regulatory Provisions

1. Agency Determination in Consideration of Relevant Factors
    This rule permits agencies to make a determination that phased 
enforcement is appropriate, in consideration of relevant factors 
including security, operational feasibility, and public impact. The 
rule recognizes that individual Federal agencies are in the best 
position to determine how to ensure successful implementation of the 
REAL ID requirements within their own unique operational contexts. It 
allows individual agencies to use their own expertise to structure 
enforcement plans in such a manner that will lead to successful 
enforcement of the REAL ID regulations while mitigating potential

[[Page 3476]]

risks of immediately transitioning to full enforcement on May 7, 2025.
    In making a determination of whether phased enforcement instead of 
an immediate transition to full enforcement is appropriate, agencies 
must, at a minimum, consider three relevant factors that will inform 
their decision. DHS identified the three factors it believes are most 
likely to impact efficient and successful implementation of card-based 
enforcement: security, operational feasibility, and public impact. In 
addition to these factors, agencies may consider other factors they 
deem relevant and necessary to make their determination.
    In considering security, agencies should weigh both the security 
benefits that card-based enforcement provides as well as potential 
security vulnerabilities that an immediate transition to full 
enforcement might create. For many agencies, DHS anticipates that the 
increased security provided by card-based enforcement weighs in favor 
of an immediate transition to full enforcement. However, in certain 
contexts, an immediate transition to full enforcement may result in 
security vulnerabilities. For example, no longer accepting noncompliant 
DL/IDs may lead to long lines and crowding at access points to Federal 
facilities or airport security checkpoints \25\ creating soft targets 
for terrorists or violent extremists.\26\ Additionally, an atmosphere 
of confusion and frustrated individuals who are denied access risks 
distracting security personnel from correctly executing their 
procedures. Agencies should take a holistic approach in evaluating the 
security implications of transitioning to full enforcement.
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    \25\ The requirements of the REAL ID Act and regulations 
specifically apply to Federal agencies accepting DL/IDs for official 
purposes. As such, the official purpose of boarding a federally 
regulated commercial aircraft is primarily operationalized at the 
TSA security checkpoint rather than at an airport departure gate 
where passengers physically board commercial aircraft.
    \26\ See U.S. Department of Homeland Security Soft Targets and 
Crowded Places Security Plan Overview, 5-6 (May 2018), available at 
https://www.cisa.gov/sites/default/files/publications/DHS-Soft-Target-Crowded-Place-Security-Plan-Overview-052018-508_0.pdf (last 
visited October 9, 2024).
---------------------------------------------------------------------------

    Regarding operational feasibility, agencies should consider any 
implications that transitioning to full enforcement may have on their 
ability to continue effectively carrying out operations in support of 
their mission. DHS anticipates that in many cases, immediately 
transitioning to full enforcement would have little to no impact on 
agencies' ability to execute their missions and would enhance security. 
Agencies may have limited interactions with the general public that 
necessitate individuals seeking to access Federal facilities to present 
proof of identity for entry. In other circumstances, agencies may be 
able to easily adjust the manner in which they interact with the public 
or provide a service to alleviate the need for individuals to use their 
DL/ID for a REAL ID official purpose. For example, agencies may be able 
to hold meetings in facilities that do not require the presentation of 
identification documents or hold virtual meetings. For certain agencies 
whose missions include operations requiring frequent use of 
identification documents for a REAL ID official purpose, an immediate 
transition to full enforcement may challenge an agency's ability to 
effectively carry out its mission if a large number of individuals seek 
to use noncompliant DL/IDs after the May 7, 2025, deadline. For these 
agencies, implementing card-based enforcement through a phased approach 
would allow for the opportunity to observe changes in the number of 
noncompliant cards they encounter after the deadline and transition to 
full enforcement in a manner that ensures continuity of operations.
    Finally, agencies should assess whether an immediate transition to 
full enforcement would negatively impact the public and the provision 
of services. The requirements of the REAL ID Act and regulation apply 
only in contexts where individuals must present an identification 
document to Federal agencies for REAL ID official purposes.\27\ Card-
based enforcement does not impact access to Federal facilities that do 
not require identification (for example, public areas of the 
Smithsonian museums). Card-based enforcement also does not impact 
public services that require identification for purposes other than an 
official purpose as defined by the Act and regulation (for example, 
applying for or receiving Federal benefits is not a REAL ID official 
purpose). However, in cases where a government function impacting the 
public does involve a REAL ID official purpose (for example, boarding a 
federally regulated commercial aircraft or providing a public service 
that necessitates members of the public accessing a Federal facility 
that requires proof of identity for entry), agencies should consider 
the extent to which an immediate transition to full enforcement would 
impact their ability to carry out that function.
---------------------------------------------------------------------------

    \27\ See REAL ID Act of 2005 Implementation: An Interagency 
Security Committee Guide (2019), p. 4-7, available at https://www.cisa.gov/resources-tools/resources/isc-guide-real-id-act-2005-implementation (last visited October 9, 2024).
---------------------------------------------------------------------------

    DHS anticipates that agencies' consideration of all relevant 
factors will be informed by changes in the adoption rate leading up to 
the card-based enforcement deadline. Certain factors may be given more 
or less weight depending on the number of noncompliant DL/IDs agencies 
are likely to encounter on and after the deadline. For agencies that 
determine that beginning full card-based enforcement on May 7, 2025, 
would not pose significant risks after considering security, 
operational feasibility, public impact, and other relevant factors, 
this rule maintains the current regulatory default of an immediate 
transition to full enforcement. Agencies that determine that commencing 
full card-based enforcement on May 7, 2025, is not appropriate after 
considering the relevant factors, may utilize a phased approach. A 
phased approach would allow them to facilitate continued secure and 
orderly operations and minimize impacts to the public while 
implementing enforcement phases that lead to full enforcement. This 
flexibility allows these agencies to maintain operational efficiency; 
reduce security risks born from long lines, incidents, and distractions 
caused by additional identity verification procedures or turning away 
individuals who do not have acceptable identification; decrease 
potential public backlash to security personnel enforcing REAL ID; and 
limit potential negative impacts to the public.
2. Coordination of Phased Enforcement Plans With DHS
    Should an agency determine that phased enforcement is appropriate, 
DHS also recognizes that the individual agency is best positioned to 
structure its enforcement plan to account for its particular 
operational setting. The rule therefore allows agencies to develop 
individual phased enforcement plans best suited for specific contexts. 
Although this rule does not prescribe the form that phased enforcement 
plans must take in incrementally implementing enforcement of the 
requirements, DHS does provide some options that agencies may 
consider.\28\ For example, agencies' plans may include an initial phase 
during which warning notices are issued and/or a phase involving 
progressive enforcement measures--such as a ``three-strikes'' system or 
other methods--that enable agencies to begin

[[Page 3477]]

enforcement without immediately denying access to individuals with 
noncompliant identification on the card-based enforcement deadline.
---------------------------------------------------------------------------

    \28\ More detailed discussion of these options is provided in 
section D. below.
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    In order to ensure that agencies' enforcement plans appropriately 
advance the objectives of the REAL ID regulations and maintain 
consistent progress towards full enforcement, the plans must be 
coordinated with DHS. The REAL ID Act grants DHS authority to implement 
the Act's requirements.\29\ Requiring agencies that make a 
determination to implement the REAL ID regulations through a phased 
enforcement plan to coordinate their plan with DHS ensures consistency, 
as appropriate. It also maintains DHS oversight of successful 
implementation of the Act and regulatory requirements. Agencies seeking 
to use a phased enforcement plan are required to coordinate with DHS 
through the TSA REAL ID Program Office.\30\
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    \29\ 49 U.S.C. 30301 note; 73 FR 5271.
    \30\ On December 29, 2022, the Consolidated Appropriations Act, 
2023 (Pub. L. 117-328), was signed into law, authorizing the 
transfer of the REAL ID Program from the DHS Office of Strategy, 
Policy, and Plans to TSA. On May 22, 2023, the Secretary of Homeland 
Security approved a delegation formally vesting in TSA the authority 
to manage, administer, and coordinate DHS actions necessary for 
implementation of the REAL ID Act.
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    DHS strongly encourages agencies to make a determination of whether 
a phased enforcement plan is appropriate and, where appropriate, 
develop their plan in advance of the May 7, 2025, deadline. However, 
DHS recognizes that while agencies may seek to begin full enforcement 
on the deadline, they may encounter unanticipated challenges. 
Similarly, agencies that developed a phased enforcement plan may 
encounter or have unforeseen issues in implementing the plan they 
developed. In such cases, agencies may coordinate a new or modified 
phased enforcement plan with DHS after the enforcement deadline. 
Additional information regarding how agencies should coordinate with 
DHS will be provided on the DHS REAL ID web page.\31\
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    \31\ https://www.dhs.gov/real-id.
---------------------------------------------------------------------------

3. Public Notice
    DHS acknowledges the potential for some confusion resulting from 
the possibility of agencies implementing phased enforcement plans that 
vary across agencies. The rule seeks to mitigate that potential 
confusion by (1) requiring agencies using a phased approach to make 
their plan publicly available on their web page, and (2) requiring DHS 
to post a list of agencies that have coordinated phased enforcement 
plans with DHS on the DHS REAL ID web page \32\ to provide public 
notice of the agencies implementing phased approaches. Agencies should 
also clearly provide their policies for access control, including other 
acceptable forms of identification.
---------------------------------------------------------------------------

    \32\ Id.
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4. Two-Year Phased Enforcement Period
    Under the rule, any agency that chooses to implement card-based 
enforcement under a phased approach must fully enforce the card-based 
requirements no later than May 5, 2027. On and after that date, 
agencies may not accept noncompliant marked DL/IDs or legacy DL/IDs for 
official purposes. As mentioned above, DHS anticipates that shortly 
before, and as REAL ID card-based enforcement begins on May 7, 2025, 
individuals' urgency to obtain a compliant DL/ID will likely increase 
as they realize that they will need a compliant DL/ID when they seek to 
use their DL/ID for REAL ID official purposes. In States with low 
adoption rates, large numbers of individuals may rapidly seek to obtain 
REAL ID-compliant DL/IDs. This potential increase in demand may 
challenge the capacity of licensing jurisdictions and may create 
backlogs in issuance of REAL ID-compliant cards. The 2-year window 
during which agencies may implement enforcement in phases is designed, 
in part, to provide States additional time to meet increases in demand 
for REAL ID-compliant cards. Agencies that decide to use a phased 
enforcement plan may choose to implement plans that reach full 
enforcement in less than 2 years, but all phased plans must conclude, 
reaching full card-based enforcement, no later than May 5, 2027.
    DHS also considered setting the maximum phased enforcement period 
for other durations between at 1 and 5 years. DHS chose 2 years as the 
maximum period during which agencies may implement phased enforcement 
plans to balance delay in fully realizing the security benefits of REAL 
ID with allowing sufficient time for Federal agencies' phased 
enforcement plans to incentivize greater adoption rates, limit negative 
enforcement impacts (where appropriate), and provide States time to 
meet increased demand.
    DHS believes that a 1-year timeframe may not provide agencies 
sufficient flexibility to develop a phased enforcement plan with a long 
enough duration time to leverage the anticipated effects of phased 
enforcement, reflected in increased adoption rates. Many individuals 
may only seek to use their DL/ID for official purposes once or twice a 
year (for example, boarding a commercial flight to travel for a holiday 
or vacation). If agencies were limited to a 1-year phased enforcement 
period, they would not be able to design a plan that would account for 
individuals who learn of the need to obtain a REAL ID-compliant DL/ID 
towards the end of that 1-year period--possibly through a warning 
notice as part of an agency's phased enforcement plan--and who may not 
have sufficient time to obtain a compliant DL/ID before full 
enforcement begins. Additionally, if increased demand for compliant DL/
IDs leading up to and right after the deadline results in backlogs at 
State Departments of Motor Vehicles (DMVs),\33\ 1 year may not be 
sufficient time for States to make any necessary adjustments to process 
potential backlogs. Although a 1-year phased enforcement period would 
provide a shorter delay in obtaining the full security benefits of REAL 
ID,\34\ DHS believes it may not provide a long enough period for 
agencies to leverage the effects of phased enforcement as individuals 
and States both apprehend the need for action as a result of card-based 
enforcement and take the necessary actions.
---------------------------------------------------------------------------

    \33\ Throughout this rule DHS uses ``DMV'' to generally refer to 
licensing jurisdictions' motor vehicle licensing agencies.
    \34\ The regulatory evaluation for the Minimum Standards for 
Driver's Licenses and Identification Cards Acceptable by Federal 
Agencies for Official Purposes Final Rule identifies the primary 
benefit of REAL ID as improving security and lessening the 
vulnerability of Federal buildings, nuclear facilities, and aircraft 
to terrorist attacks. Department of Homeland Security, January 17, 
2008, Regulatory Evaluation, Docket Number DHS-2006-0030. https://www.regulations.gov/document/DHS-2006-0030-10704. pgs. 129-130.
---------------------------------------------------------------------------

    DHS did not select 3, 4, or 5 years because DHS believes a maximum 
time period longer than 2 years would unduly delay the security 
benefits of REAL ID and is unlikely to provide the same incentive for 
individuals to prioritize obtaining a complaint DL/ID. DHS believes 
that 2 years after the card-based enforcement deadline strikes the 
appropriate balance and provides a sufficient amount of time for 
individuals to obtain and States to provide REAL ID-compliant DL/IDs to 
any eligible individual who seeks to obtain one. DHS believes that 
allowing more time for phased enforcement beyond 2 years is unlikely to 
offer a meaningful additional opportunity for individuals and States to 
take necessary action and could further delay the security benefits of 
REAL ID. Additionally, allowing for phased enforcement for more than 2 
years may

[[Page 3478]]

discourage individuals and States from prioritizing necessary action.
5. Acceptance of Noncompliant Marked DL/IDs
    Finally, to avoid any confusion about the ability of Federal 
agencies to continue to accept noncompliant marked DL/IDs issued under 
Sec.  37.71, the rule clarifies that Federal agencies may continue to 
accept these licenses past May 7, 2025, if they are doing so pursuant 
to an enforcement plan coordinated with DHS. Although some agencies may 
accept noncompliant marked DL/IDs for official purposes as part of a 
phased enforcement plan, other agencies may choose not to accept 
noncompliant marked DL/IDs as part of their phased enforcement plan; 
may determine that phased enforcement is not appropriate; or currently 
do not accept noncompliant marked DL/IDs for official purposes.\35\ 
Individuals who need to visit a Federal facility should check in 
advance whether the agency requires identification for access purposes 
and, if they do, review the agency's access control policies.
---------------------------------------------------------------------------

    \35\ For example, the U.S. Department of Defense (DoD) recently 
finalized an update to its DoD-Wide installation security policy and 
is in the process of no longer accepting noncompliant marked cards 
across all of its facilities and installations.
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C. Maintaining the May 7, 2025, Card-Based Enforcement Deadline

    During the development of this rule, DHS also considered further 
extending the REAL ID card-based enforcement deadline to allow for more 
time for the adoption rate to increase. However, based on DHS' 
observation of public behavior following prior extensions, DHS has 
concluded that many individuals will continue to delay obtaining a REAL 
ID in part due to a perceived lack of need. DHS believes that 
maintaining the deadline of May 7, 2025, while providing agencies the 
flexibility to implement the requirements through a phased enforcement 
plan where appropriate, will allow for a faster and smoother transition 
to full card-based enforcement than another extension of the deadline.
    DHS prefers this rule's approach rather than an extension for 
several reasons. By maintaining the current deadline, agencies that do 
not determine that phased enforcement is appropriate will immediately 
transition to full card-based enforcement on May 7, 2025. This allows 
the security benefits of REAL ID to be fully realized in contexts where 
full enforcement is unlikely to create other security risks, interfere 
with operational feasibility, or disrupt public services. If DHS had 
extended the deadline, agencies that could have immediately 
transitioned to full enforcement on May 7, 2025, would likely have 
waited until the new deadline, delaying security benefits that were 
otherwise available. DHS expects that a significant number of agencies 
will begin full enforcement on the deadline because doing so is 
appropriate within their operational context.
    Further, DHS believes that this rulemaking's approach is likely to 
have a positive impact on the REAL ID adoption rate, while an extension 
would not have incentivized an increase in demand for REAL ID-compliant 
DL/IDs. Since the most recent extension in March 2023, DHS has observed 
the rate of growth in adoption of compliant DL/IDs remains very low 
(0.56 percent).\36\ Because of the history of extensions related to 
REAL ID enforcement, DHS expects that there is some confusion, lack of 
awareness, and apathy associated with the May 7, 2025, deadline. Given 
this prior history, DHS believes that the public may continue to expect 
that additional extensions are likely and not feel urgency to obtain a 
REAL ID-compliant DL/ID. As a result, DHS believes that an extension of 
the card-based enforcement date would not have been an effective means 
of incentivizing changed behavior.
---------------------------------------------------------------------------

    \36\ Supra note 17.
---------------------------------------------------------------------------

    Conversely, DHS expects that allowing agencies to enforce the May 
7, 2025, deadline through a phased approach will incentivize increased 
demand for REAL ID-compliant DL/IDs in at least two ways. First, it 
will incentivize increased adoption rates as the deadline approaches. 
In part due to concerns related to low adoption rates, DHS has 
previously extended the card-based deadline several months before the 
enforcement date, limiting the effect of urgency to obtain a compliant 
DL/ID related to the deadline. As the May 7, 2025, deadline approaches, 
and DHS does not issue an extension, DHS expects individuals that were 
otherwise relying on another extension will obtain a compliant DL/ID. 
This rule demonstrates that DHS is planning for enforcement to begin on 
May 7, 2025, and not extending the deadline. DHS expects that as this 
becomes apparent to the public, more individuals will prioritize 
obtaining a REAL ID.
    Second, DHS expects individuals who may not be aware of the 
deadline to be incentivized to obtain a compliant DL/ID when they 
experience the consequences of enforcement. During the phased 
enforcement period, individuals will experience varying levels of 
consequences including warning notices and progressive enforcement (as 
part of a phased enforcement plan), or full enforcement (where agencies 
transition to full enforcement on the deadline). These consequences 
will incentivize individuals who experience them to obtain a REAL ID-
compliant DL/ID. Further, because the individuals who most frequently 
use their DL/ID for REAL ID purposes will be the most likely to 
experience consequences, DHS expects that phased enforcement will 
especially incentivize increased adoption amongst this population. A 
phased approach will in turn lessen the likelihood of disruption when 
agencies transition to full enforcement because the individuals who 
most often use DL/IDs for REAL ID official purposes will have been 
motivated to obtain a REAL ID during the phased enforcement period. 
Additionally, individuals may share their experience with personal 
contacts, potentially incentivizing others to obtain a compliant DL/ID. 
DHS expects that as awareness that REAL ID is being enforced becomes 
widespread, individuals who intend to use their DL/ID for official 
purposes will be motivated to obtain a REAL ID-compliant DL/ID.

D. Phased Enforcement Guidance

    Under this rule, agencies have broad discretion to determine the 
structure of their phased enforcement plan so long as they comply with 
the requirements in the rule to:
    (1) Make a determination that a phased enforcement plan is 
appropriate in consideration of relevant factors including security, 
operational feasibility, and public impact;
    (2) Coordinate the phased enforcement plan with DHS;
    (3) Make the phased enforcement plan publicly available on the 
agency's web page; and
    (4) Achieve full enforcement of the card-based REAL ID requirements 
no later than May 5, 2027.
    The required coordination with DHS will provide DHS with visibility 
on Government-wide implementation of REAL ID. It will also allow DHS to 
serve in a liaison role between agencies where there may be overlapping 
equities. During the coordination process, DHS will seek to provide 
agencies guidance on how best to use their phased plan to transition to 
full enforcement. DHS may offer feedback or suggestions related to an 
agency's plan during this process. However, as long as agencies comply 
with the requirements in this rule, they

[[Page 3479]]

have broad discretion as to how they structure their plans.
    As guidance to Federal agencies and to promote consistency, DHS 
provides the below examples of enforcement models as options agencies 
may consider if they determine that a phased approach to REAL ID card-
based enforcement on May 7, 2025, is appropriate. DHS anticipates that 
informed compliance would be the enforcement model best suited to most 
agencies that decide to implement through a phased enforcement plan. 
Federal agencies that do not make a determination that phased 
enforcement is appropriate and do not coordinate a phased enforcement 
plan with DHS must begin full card-based enforcement on May 7, 2025. 
Under full card-based enforcement, Federal agencies may only accept a 
State-issued DL/ID for official purposes if that DL/ID is issued in 
accordance with REAL ID requirements by a REAL ID-compliant State.
    Informed Compliance Model. Under an informed compliance model, 
agencies would provide written and verbal notice to any individual that 
seeks to use a noncompliant DL/ID for an official purpose on or after 
the card-based enforcement date of May 7, 2025. Individuals would then 
be permitted to continue the process for accessing a Federal facility 
or boarding a commercial aircraft. The written notice agencies provide 
should inform the individual that their DL/ID is noncompliant with REAL 
ID requirements, that they should contact their DMV for further 
information regarding obtaining a REAL ID-compliant DL/ID, and what to 
expect if the individual presents a noncompliant DL/ID and no other 
acceptable form of identification in the future. An accompanying verbal 
notice should briefly summarize the written notification and, at a 
minimum, inform the individual they are not in compliance with REAL ID 
requirements and direct the individual to reference the written notice. 
Under this model, agencies would not maintain a record of individuals 
who have presented a noncompliant DL/ID and have been issued a notice. 
Individuals who present an alternate acceptable form of identification 
(for example, a passport at the TSA checkpoint) would not receive a 
noncompliance notification. Under this model, agencies would continue 
to employ existing security and identity verification processes to 
confirm the authenticity and validity of the noncompliant DL/ID 
presented.\37\
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    \37\ As an example, the NPRM discussed DHS' use of an Informed 
Compliance model to enforce the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users. See 89 FR 
74145.
---------------------------------------------------------------------------

    Informed Compliance with Limits. Under an Informed Compliance with 
Limits model, agencies would limit the number of times an individual 
may present a noncompliant DL/ID for an official purpose. Once an 
individual exceeds the prescribed number of allowable attempts, they 
would be denied the ability to use their noncompliant DL/ID for the 
REAL ID official purpose (e.g., use the noncompliant DL/ID for purposes 
of accessing a Federal facility) if they have no other acceptable form 
of identification. Employing this model would likely create significant 
requirements and obligations for the agency. Specifically:
    1. The agency would collect personally identifiable information 
(PII), including name, DL/ID State, and DL/ID number, as well as other 
information necessary to reliably identify the individual. This PII 
would need to be collected, maintained, and used in accordance with all 
applicable Federal guidelines and policy requirements related to 
collection of PII. This would likely require agencies to obtain an 
Office of Management and Budget (OMB)-approved Paperwork Reduction Act 
(PRA) information collection and prepare a Privacy Threshold Analysis, 
Privacy Impact Assessment, System of Records Notice, and other 
documentation for collection, storage, and use of PII.
    2. The individual would attest that the PII provided is theirs and 
accurate.
    3. The agency would need to be able to demonstrate that they 
delivered a notification of noncompliance to the individual (i.e., 
record of transmittal).
    4. The agency may wish to obtain the individual's acknowledgement 
of receipt of the noncompliance notification at the time the individual 
presents the noncompliant DL/ID.
    5. The agency would need to develop a system to track the number of 
instances the individual presented a noncompliant DL/ID and no other 
acceptable ID.
    6. The agency would need to determine a limit on the number of 
times an individual may be authorized access after presenting a 
noncompliant DL/ID and no other acceptable form of identification.
    7. The agency would need to define an appropriate period of time 
(in days/weeks) during which the individual may continue to use a 
noncompliant DL/ID for purposes of accessing the agency, after which 
the applicant would be given another notification of noncompliance if 
they again presented a noncompliant DL/ID (in other words, how long 
individuals may continue to use their noncompliant DL/ID on the same 
``strike'' or ``warning'' before incurring a subsequent ``strike'' or 
``warning'').
    Agencies would need to choose an appropriate time period during 
which individuals would continue to use their noncompliant DL/ID 
without it being treated as an additional instance of noncompliance 
(``strike'' or ``warning''). Agencies should choose a time period 
appropriate to their operations. For agencies where the identity 
verification for official purposes is rare or isolated, it may be 
appropriate to treat each time an individual presents a noncompliant 
DL/ID as an instance of noncompliance. However, DHS believes that in 
certain cases individuals may need to use their DL/ID for a REAL ID 
official purpose for multiple instances within a short period of time 
(e.g., boarding a return flight from a destination or returning to a 
Federal facility to follow-up on the purpose of the initial visit). 
Individuals may not be able to obtain a REAL ID in between such related 
instances, so in these cases agencies may choose a time period that 
allows for multiple uses of a noncompliant DL/ID as part of the same 
instance of noncompliance. After the allotted time period expires, the 
presentation of a noncompliant DL/ID would be treated as another 
instance of noncompliance.
    Agencies employing an Informed Compliance with Limitations model 
should provide individuals who present a noncompliant DL/ID with 
specific notice whenever an instance is being counted towards that 
individual's limit. The notice should reference the agency's overall 
policy and how the particular instance would affect the individual in 
the future. Agencies may choose to adopt different nomenclature for 
initial and subsequent instances of an individual presenting a 
noncompliant DL/ID. This may include language or consequences of 
subsequent notifications under this that progress in seriousness. For 
example, an agency may choose to permit access on the first two 
instances of noncompliance and deny access on the third (and any 
subsequent instance). Upon the third instance, the individual would be 
issued a ``final'' notification that their State-issued DL/ID is 
noncompliant and can no longer be accepted by that agency for the REAL 
ID official purpose. The Federal agency would not accept the 
individuals noncompliant DL/ID at that time and on all future instances 
unless the individual obtains a REAL ID

[[Page 3480]]

or presents an alternative, acceptable form of identification.
    DHS acknowledges that an Informed Compliance with Limitations 
enforcement plan would likely demand significant agency resources. DHS 
expects many agencies to begin full enforcement on the May 7, 2025, 
deadline. Of the agencies that do determine a phased approach is 
appropriate, DHS expects most will use a simple plan that provides a 
time-limited warning period (i.e., ``Informed Compliance''). Given the 
resources required, including the need for secure systems, DHS expects 
very few agencies to choose an enforcement plan that tracks individual 
instances of noncompliance.
    Additional considerations. Agencies may determine to implement a 
phased approach that employs only one of these models followed by full 
enforcement. For example, an agency may choose to begin enforcement 
with an Informed Compliance Phase or Informed Compliance with Limits 
Phase for a set period of time (e.g., 3 months, 6 months, 1 year) 
followed by a transition to full enforcement at the end of that period. 
Alternatively, agencies may develop a plan that combines both models 
before transitioning to full enforcement. For example, an agency may 
begin enforcement with an initial Informed Compliance Phase for a set 
period of time, followed by an Informed Compliance with Limits Phase 
for an additional period of time, before beginning full enforcement. 
Agencies have the flexibility to determine the model(s) and timing that 
best suit their operational environment.
    Although DHS believes the models discussed above are likely to be 
the most common and effective, they are not exclusive. Agencies may 
develop plans based on other models. However, all phased enforcement 
plans, whether based on the above models or a different model must be 
coordinated with DHS and must conclude, and agencies must fully enforce 
REAL ID card-based requirements, no later than May 5, 2027. For 
agencies that make a determination that phased enforcement is 
appropriate, the same factors that they considered to make that 
determination should inform their determination of how to structure 
their plan.
    Finally, although REAL ID adoption rates should inform agencies 
when developing their enforcement plans, agencies' plans should be 
consistent across all States and territories. In other words, agencies 
should have a consistent national policy and individuals should not be 
subject to different consequences based on the adoption rate of a 
particular jurisdiction. To reduce the potential for confusion, ensure 
fair and equitable treatment of residents of all States, and ensure 
operational consistency, agencies that have operations or facilities 
spanning multiple States and territories should have one plan for all 
their facilities. Agencies' plans may make distinctions based on the 
types of facilities they operate (e.g., agencies may wish to begin full 
enforcement at certain types of facilities but use a phased approach at 
another type of facility) as long as the same policies apply to the 
same types of facilities nationwide and treat all DL/ID holders 
similarly. For example, agencies may choose to begin full enforcement 
at their headquarters facility while implementing a phased approach at 
field offices where the public more frequently seeks to use DL/IDs for 
official purposes, but (in this example) the same phased enforcement 
policy should apply to all field offices no matter where they are 
located. Agencies should provide information regarding their plans on 
their website and take other appropriate measures to inform the public 
and provide notice regarding their plan.
    DHS acknowledges that some agencies may maintain offices in or 
conduct operations out of leased facilities or multi-tenant facilities 
where the agency does not have direct control over the access control 
policies of the facility. Agencies leasing space in their facilities to 
other agencies and lead tenants as part of facility security committees 
determining physical security polices for multi-tenant facilities 
should develop plans that take into account the operations of tenant 
agencies and potential public impact associated with those operations 
when developing phased enforcement plans. As previously discussed, 
agencies may make distinctions based on the types of facilities they 
operate. Depending on the context, it may be appropriate for an agency 
developing a phased enforcement plan to draw a distinction between 
facilities that are shared by with agencies and facilities that are 
used solely by the agency developing the plan.

IV. Discussion of Comments

    DHS published the NPRM on September 12, 2024,\38\ and the deadline 
for public comments was October 15, 2024.\39\ During the 30-day comment 
period, DHS received over 11,000 comments on the NPRM. DHS carefully 
considered every comment received as part of the official record. DHS 
also received 103 comments submitted after the comment period closed. 
Although DHS did not consider comments submitted after the comment 
period closed, DHS determined that these comments were substantively 
similar to other comments received within the comment period and are 
addressed by DHS' response to those comments.
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    \38\ 89 FR 74137.
    \39\ The NPRM provided for a comment period of 30 days. The 
Regulations.gov system was unavailable on October 12th and 13th due 
to a planned outage, so the comment period closed on October 15th to 
provide the public with the full 30 days to comment.
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    DHS received several comments suggesting that the 30 days provided 
for comment was not long enough. DHS considered these comments and 
determined not to extend the comment period for the NPRM. As discussed 
above, under the REAL ID regulations, Federal agencies may only accept 
compliant State-issued DL/IDs for official purposes beginning on May 7, 
2025, which at the time of publication, is less than 6 months away. 
Given the importance of providing clarity for Federal agencies and to 
the public on agencies' authority to implement card-based enforcement 
through a phased approach, extending the comment period beyond 30 days 
would delay issuance of this final rule, thereby depriving Federal 
agencies certainty and valuable time as they plan to begin card-based 
enforcement. Further, suggestions that a longer comment period would be 
appropriate did not articulate any particular reason why the 30-day 
comment period was insufficient, and instead provided generalized 
statements that additional time would allow for greater public 
awareness. Moreover, the regulatory changes made by this rule are not 
overly complex, and DHS believes that 30 days provided sufficient time 
for the public to provide meaningful comments.

A. General Opposition to REAL ID

    Comments: Many commenters expressed general opposition to the 
requirements of the REAL ID Act and implementing regulations. Several 
commenters asserted that the REAL ID Act and implementing regulations 
are generally unconstitutional, including under the 1st (individual 
freedoms), 4th (search and seizure), 5th (criminal procedures), 6th 
(criminal procedures), 7th (jury trial), 9th (rights not enumerated), 
10th (rights reserved to states or people), and 14th (due process and 
equal protection) amendments to the U.S. Constitution. In making these 
claims, commenters asserted that the

[[Page 3481]]

REAL ID Act and regulations violate privacy or put personal information 
at risk, including by establishing a national ID or social credit 
reporting system; mandating a digital ID, collecting biometrics 
unlawfully; intruding on citizens privacy and facilitating government 
surveillance; creating a vast collection of sensitive personal data 
that makes citizens more vulnerable to identity theft; or allowing for 
sharing of individuals' information with foreign governments and 
international organizations. Other comments asserted that the REAL ID 
Act and regulations interfere with a constitutionally protected right 
to interstate travel. Some commenters asserted that the REAL ID Act and 
implementing regulations are unauthorized, including claims that they 
exceed the Federal government's statutory jurisdiction; create a system 
whereby the Secretary of DHS has unilateral authority to add new 
official purposes and curtail constitutional rights; waste taxpayer 
money; or constitute Government overreach. Regarding the impact on 
States, commenters asserted that the REAL ID Act and regulations are 
inconsistent with State authority, including by encroaching on state 
sovereignty; undermining principles of federalism; imposing significant 
costs on States, which would require increased Federal funding and 
technical support; and imposing these costs as an unfunded mandate on 
states.
    Commenters also state that the REAL ID Act and regulations 
negatively affect individuals by burdening certain populations 
unjustly, including non-citizens, who may not have sufficient 
documentation to obtain a REAL ID, which would thereby limit their 
access to essential services and travel; by constituting a significant 
financial burden to obtain a REAL ID-compliant DL/ID; or by imposing an 
undue burden on individuals that have changed their name (for example, 
in relation to marriage or divorce). Additionally, commenters suggested 
that indefinite phased enforcement be used to nullify the REAL ID act 
and regulations, or that the phased enforcement rule be revised to 
instead provide an individual opt-out mechanism from the REAL ID 
requirements. Finally, commenters assert that the REAL ID Act and 
implementing regulations are outdated, do not actually provide 
increased security benefits, and will not make the nation safer. On a 
related issue, several commenters raised concerns that DHS takes for 
granted that DHS has certified all 56 licensing jurisdictions when, in 
the commenter's view, all DHS certifications erroneously determine the 
states to comply; and that the rulemaking will result in inconsistent 
DL/ID issuance procedures across the states.
    DHS response: DHS appreciates the many comments received regarding 
the REAL ID Act and regulations. Although these concerns are sometimes 
represented as directed at the current rulemaking, DHS did not propose 
substantive amendments to the REAL ID requirements, and comments 
expressing opposition to those underlying requirements or their 
implementation by current State implemented REAL ID issuance processes 
are outside of the scope of this rulemaking. Congress passed the REAL 
ID Act in 2005, enacting the 9/11 Commission's recommendation that the 
Federal government set minimum standards for the issuance of sources of 
identification, such as drivers' licenses, and charged DHS with 
implementing the statutory requirements.\40\ DHS went through notice 
and comment rulemaking and published a final rule on January 29, 2008, 
implementing the REAL ID Act's requirements. In 2020, Congress 
reaffirmed its commitment to REAL ID by passing the REAL ID 
Modernization Act, which updated certain provisions of the original 
statutory language.\41\ The Phased Enforcement NPRM did not propose 
changes to the existing regulatory requirements that provide the 
substantive standards for REAL ID issuance. Under the REAL ID 
regulations card-based enforcement begins on May 7, 2025. This rule 
only modifies provisions related to the enforcement deadline to provide 
Federal agencies with the flexibility to implement card-based 
enforcement through a phased enforcement plan where appropriate. This 
final rule does not alter any of the substantive requirements of the 
REAL ID regulations and only amends the provisions related to the 
deadline for card-based enforcement. As DHS did not propose substantive 
amendments to REAL ID requirements, comments expressing opposition to 
those underlying requirements are outside the scope of this rulemaking.
---------------------------------------------------------------------------

    \40\ 49 U.S.C. 30301 note.
    \41\ Title X of Division U of the Consolidated Appropriations 
Act, 2021, Public Law 116-260, 134 Stat. 2304.
---------------------------------------------------------------------------

B. Legal Authority

    Comments: Some commenters stated that the REAL ID Act does not 
provide authority for this rulemaking. Another commenter expressed the 
view that the flexibility provided by this rule constitutes an improper 
delegation of authority to DHS components and other agencies and 
exceeds DHS' authority under the REAL ID Act. The commenter suggests 
that, through this rule, DHS is redelegating its regulatory authority 
to other agencies. The commenter noted that instead of setting 
standards for the acceptance of IDs, this rule allows agencies to make 
decentralized and nonstandard determinations regarding the acceptance 
or rejection of noncompliant DL/IDs. Additionally, the commenter stated 
that agencies' phased enforcement plans, themselves, would constitute 
Federal regulations.
    DHS response: DHS disagrees that the REAL ID Act does not provide 
authority for this rulemaking, as the statute explicitly authorizes DHS 
to promulgate regulations to implement the Act's requirements. Section 
205 of the REAL ID Act provides that ``[a]ll authority to issue 
regulations . . . shall be carried out by the Secretary.'' \42\ In 
issuing this rule, DHS is exercising its rulemaking authority to 
implement the REAL ID requirements in consideration of Federal 
agencies' authority to make agency-specific decisions about enforcement 
actions affecting individuals presenting DL/IDs which are not compliant 
with the READ ID Act and regulations.\43\ Under the REAL ID Act and 
regulations, all agencies are still required to begin card-based 
enforcement on May 7, 2025, but the rule provides a formal structure 
under which agencies may flexibly exercise their existing enforcement 
authority. The rule clarifies and reinforces that the general 
principles underpinning agencies' enforcement authority apply to the 
prohibition on Federal agency ``acceptance'' of noncompliant DL/IDs.
---------------------------------------------------------------------------

    \42\ Sec. 205(a) of the REAL ID Act.
    \43\ 49 U.S.C. 30301 note, section 202(a)(1).
---------------------------------------------------------------------------

    DHS further disagrees with the position that this rule 
inappropriately delegates rulemaking authority to other agencies. This 
rule does not provide agencies with any authority or discretion to 
modify the substantive requirements of the REAL ID regulations. 
Agencies' phased enforcement plans cannot alter the standards that 
govern whether a DL/ID is REAL ID-compliant. DHS also disagrees with 
the notion that REAL ID authority was provided solely to DHS, and that 
agencies' phased enforcement plans constitute regulations. Although the 
REAL ID Act generally granted DHS authority to implement the Act's 
provisions, Congress vested the authority to enforce acceptance of REAL 
ID-compliant DL/IDs with each

[[Page 3482]]

individual agency.\44\ This rule acknowledges the statutory authority 
of other agencies to enforce acceptance of REAL ID-compliant DL/IDs in 
matters under their purview. The rule enhances agencies' existing 
enforcement authority by explicitly providing temporary, limited 
flexibility for agencies to begin card-based enforcement in a manner 
that takes into account relevant factors, allowing agencies to more 
smoothly transition to full card-based enforcement. The rule also 
provides DHS oversight of phased enforcement plans by requiring 
agencies to coordinate such plans with DHS, which mitigates the 
commenter's concern by allowing DHS to ensure that plans advance the 
objectives of the REAL ID regulations and maintain consistent progress 
towards full enforcement and to ensure consistency, as appropriate.
---------------------------------------------------------------------------

    \44\ 49 U.S.C. 30301 note, section 202(a)(1), ``Beginning 3 
years after the date of the enactment of this division, a Federal 
agency may not accept, for any official purpose, a driver's license 
or identification card issued by a State to any person unless the 
State is meeting the requirements of this section'' (emphasis 
added).
---------------------------------------------------------------------------

    Comments: One commenter stated that this rule purports to impose a 
new ID requirement for airline passengers because it implies that 
passengers who do not present a REAL ID-compliant DL/ID or acceptable 
alternative would not be able to board federally regulated commercial 
aircraft.
    DHS response: This rule only relates to Federal agency, including 
TSA, acceptance of State-issued DL/IDs for defined REAL ID official 
purposes. Boarding federally regulated commercial aircraft is an 
official purpose under the REAL ID Act and regulations. Upon full card-
based enforcement, TSA may not accept noncompliant State-issued DL/IDs 
at security screening checkpoints for the purpose of boarding federally 
regulated commercial aircraft.\45\ This rule does not otherwise effect 
TSA's policies related to acceptable forms of identification and 
identity verification.
---------------------------------------------------------------------------

    \45\ 6 CFR 37.5(b).
---------------------------------------------------------------------------

C. General Support for the Rulemaking

    Comments: Several commenters expressed general support for the 
proposed rule. Commenters wrote that they agreed that a phased roll out 
was a necessary step to begin enforcement and that this approach is a 
blend of practicality and foresight that benefits everyone. One 
commenter noted that the rule balances the purpose of the REAL ID Act 
and regulations with practical considerations. The commenter stated 
that by allowing agencies to gradually implement enforcement, the rule 
may alleviate potential disruptions at airports and Federal facilities. 
Other commenters noted that allowing agencies to use a phased 
enforcement plan is a practical and thoughtful approach that will 
ensure security while giving agencies the opportunity to address 
challenges associated with enforcement. Another commenter shared that 
this approach allows some agencies to quickly transition to full 
enforcement where they do not anticipate challenges while allowing 
other agencies flexibility to make necessary plans to enforce the 
requirements efficiently.
    DHS response: DHS agrees with these comments and believes that this 
rule provides appropriate flexibility that will enable Federal agencies 
to help ease the transition to full implementation of the card-based 
enforcement provisions of the REAL ID regulations. DHS believes this 
rule appropriately balances the security benefits that card-based 
enforcement provides with the negative effects that some Federal 
agencies may experience if they were to immediately transition to full 
enforcement on May 7, 2025.

D. Immediate Transition to Full Enforcement

    Comments: Several commenters expressed opposition to agencies using 
a phased approach and any delay to full card-based enforcement. 
Commenters pointed to a number of reasons supporting the position that 
full enforcement should begin on May 7, 2025, including: that the 
public has had ample time to obtain REAL ID-compliant DL/IDs; that 
agencies have had twenty years to determine how to enforce REAL ID; and 
that allowing phased enforcement will serve as a disincentive to 
adoption if the public delays obtaining a REAL ID because they either 
(1) expect agencies to use a phased approach and not enforce 
immediately or (2) simply perceive this as an extension of the 
deadline; and that many individuals can provide alternative, acceptable 
identification, such as passports to reduce operational impacts. 
Commenters also noted that REAL ID requirements help protect the 
aviation transportation system and that phased enforcement would delay 
the security benefits of card-based enforcement. One commenter stated 
DHS' estimate that only 4 percent of agencies may determine that a 
phased enforcement plan is appropriate implies that the rule is 
unnecessary. Yet another commenter suggested that in lieu of a 
regulation allowing phased enforcement, DHS should conduct a public 
awareness campaign to inform the public about the card-based 
enforcement deadline and to understand to what degree individuals are 
aware of REAL ID.
    DHS response: DHS considered not issuing this rule and allowing 
card-based enforcement to begin across all Federal agencies as an 
alternative and agrees with the comments about the important security 
benefits that REAL ID provides. However, DHS believes that providing 
agencies flexibility to consider relevant factors and make a 
determination to, in some cases, begin implementation through phased 
enforcement will facilitate a smoother transition to full card-based 
enforcement and mitigate potential risks associated with an immediate 
transition across all agencies.
    Given the current number of DL/IDs that are non-compliant, DHS 
anticipates that a significant number of individuals seeking to use 
their DL/ID for a REAL ID official purpose on and after May 7, 2025, 
may not have a REAL ID-compliant DL/ID. DHS delayed implementation of 
the REAL ID deadline for a number of years to allow for more 
individuals to obtain REAL-ID compliant DL/ID. Despite the Federal 
government's years of preparation for REAL ID, the adoption rate 
remains low and instances of individuals seeking to use a noncompliant 
DL/ID for a defined official purpose may occur on a large scale, 
raising concerns related to security, agency operations, and potential 
impact to the public. In contexts where agency operations involve large 
numbers of individuals presenting DL/IDs for REAL ID official purposes 
or where agencies have limited capacity to conduct identity 
verification processes where REAL ID is required, this may result in 
longer lines, general delays, confusion, and frustration. Disruptions 
to agency operations caused by large numbers of individuals attempting 
to use noncompliant DL/IDs are also likely to have broader effects and 
impact individuals who bring a valid form of identification. Such 
disruptions pose potential security risks at access points to TSA 
security checkpoints or other Federal facilities. DHS believes that the 
potential risks an immediate transition to full enforcement would cause 
for some agencies will be mitigated by the flexibility provided by 
phased enforcement.
    In addition, some commenters may have misunderstood this rule as an 
extension of the card-based deadline until May 5, 2027. As explained 
above,\46\ this rule is not an extension of

[[Page 3483]]

the deadline. The rule maintains an immediate transition to full 
enforcement on May 7, 2025, for those agencies that do not determine 
that a phased approach to enforcement is appropriate. Recognizing the 
security benefits provided by REAL ID, this rule provides an 
enforcement approach that allows agencies to realize security gains in 
contexts where a swift transition to full enforcement poses little 
risk, while reducing the risks in contexts where large numbers of 
individuals seeking to use noncompliant DL/IDs raises serious concerns. 
Under this rule, agencies must specifically consider security when 
determining whether a phased enforcement plan is appropriate. DHS 
anticipates that for many agencies, phased enforcement will not be 
appropriate where the benefits of beginning full card-based enforcement 
on May 7, 2025, outweigh the other factors and benefits of phased 
enforcement. A phased approach will be more likely for those agencies 
where potential risks related to security, operational feasibility, and 
public impact strongly weigh in favor of and support implementing a 
phased enforcement plan. In this way, the rule appropriately balances 
obtaining the security benefits of REAL ID with the need to mitigate 
potential risks.
---------------------------------------------------------------------------

    \46\ Supra III.C.
---------------------------------------------------------------------------

    DHS also does not agree that allowing agencies to enforce through a 
phased approach will disincentivize the public in obtaining a REAL ID-
compliant DL/ID. Rather, implementation of this rule and enforcing the 
regulatory deadline beginning May 7, 2025, will incentivize the public 
to obtain compliant DL/IDs while considering the need of some agencies 
to enforce through a phased approach to address security and public 
interest concerns. Beginning May 7, 2025, DHS anticipates that many 
agencies will begin full enforcement, and not accept non-compliant DL/
ID. Those agencies that choose to implement the regulatory deadline 
using a phased approach will decide the timeline and conditions 
appropriate for their agency to implement within the 2-year period. DHS 
expects the public to see the tangible results of attempting to use a 
non-compliant ID/ID for official purposes, either directly, through 
media coverage, or via DHS and agency public messaging, and decide to 
obtain a compliant DL/ID.
    DHS' estimate that only 4 percent of agencies may ultimately 
determine that a phased enforcement plan is appropriate does not 
indicate that the rule is unnecessary. The frequency and volume of 
Federal agencies' interactions with the public that may require 
presentation of a DL/ID for a REAL ID official purpose varies 
significantly. Based on its stakeholder engagements with Federal 
agencies, DHS believes that the vast majority of agencies do not handle 
a significant volume of individuals presenting DL/IDs for an official 
purpose under the REAL ID Act and regulation. However, other agencies 
(for example, TSA) encounter a much larger volume of individuals on a 
daily basis that must present an identification document for a REAL ID 
official purpose. Although DHS estimates that only 4 percent of 
agencies will make a determination to use a phased enforcement plan, 
this rule acknowledges that each individual agency is in the best 
position to consider the relevant factors and make a determination 
based on the agency's own mission and operational context. DHS believes 
it is important for all agencies to have the flexibility provided by 
this rule as they prepare to begin card-based enforcement on May 7, 
2025.
    Finally, DHS also appreciates the value of increasing public 
awareness of REAL ID requirements. TSA has undertaken efforts to 
conduct surveys on the public's awareness of REAL ID and is engaged in 
public awareness campaigns through multiple media outlets. Given the 
modest changes to the REAL ID adoption rate over the past year 
notwithstanding DHS' significant public outreach, DHS does not believe 
a public awareness campaign on its own would sufficiently increase the 
adoption rate of compliant DL/IDs by May 7, 2025, to effectively 
mitigate the risks some agencies may face if they immediately 
transitioned to full enforcement.

E. Extension of the Card-Based Enforcement Deadline

    Comments: Some commenters suggested that rather than beginning 
card-based enforcement on May 7, 2025, DHS should issue an extension of 
the card-based enforcement deadline. Commenters wrote that the deadline 
should be extended because of low rates of adoption of REAL ID-
compliant DL/IDs, the impact of the COVID-19 pandemic on States' 
ability to issue REAL ID-compliant DL/IDs, and a lack of public 
awareness. One commenter wrote that an extension of 2 or 3 years would 
be appropriate. Other commenters suggested that REAL ID enforcement 
should be extended for 5 years, 7 years, 10 years or more. Some 
commenters stated that individuals had encountered challenges in 
obtaining a REAL ID due to complexity in meeting eligibility 
requirements or unequal access to DMVs due to physical distance from 
DMV locations, work schedules, and lack of transportation. Another 
commenter stated that REAL ID enforcement should not begin until the 
Federal government or State governments provide funding such that the 
cost of obtaining a REAL ID-complaint DL/ID is not passed on to 
individuals.
    DHS response: DHS considered an extension to the card-based 
enforcement deadline but chose the approach provided by this rule for 
several reasons. As discussed above,\47\ DHS believes that maintaining 
the deadline of May 7, 2025, will continue to encourage REAL ID 
adoption whereas an extension of the deadline would reduce adoption 
incentives. Maintaining the deadline while providing agencies the 
flexibility of phased enforcement where appropriate will allow for a 
faster and smoother transition to full card-based enforcement than 
another extension of the deadline.
---------------------------------------------------------------------------

    \47\ Supra III.C.
---------------------------------------------------------------------------

    This approach maintains the current deadline, facilitating an 
immediate transition to full enforcement for agencies that do not 
determine phased enforcement is appropriate. In this way, the security 
benefits of REAL ID can be fully realized in contexts where full 
enforcement poses little risk of creating other security risks, 
interfering with operational feasibility, or disrupting public 
services. Further, DHS believes that this approach will encourage REAL 
ID adoption by maintaining the urgency to obtain a compliant DL/ID 
prior to the deadline and after the deadline, when individuals 
experience the consequences of card-based enforcement. As individuals 
learn that their noncompliant DL/ID can no longer be used for defined 
official purposes, they will be incentivized to obtain a REAL ID-
compliant DL/ID.
    DHS appreciates concerns raised that an extension is necessary due 
to the current REAL ID adoption rate and the impact of COVID-19 to 
State's ability to issue REAL ID-compliant IDs. DHS has previously 
issued a number of extensions to account for slow growth in the REAL ID 
adoption rate, as well as COVID-19 impact, however, even given these 
prior extensions the rate of REAL ID issuance remains low. To increase 
adoption and realize the benefits of the REAL ID Act, the REAL ID 
deadline must be enforced. DHS believes that maintaining the 
enforcement date along with measures encouraging adoption as part of 
phase enforcement plans will help increase adoption rates thereby 
providing the security benefits of REAL ID while also addressing 
concerns about low adoption rates and State's ability to

[[Page 3484]]

issue REAL ID-compliant IDs. Specifically, DHS recognizes that many 
individuals still do not have a compliant DL/ID, and beginning full 
enforcement on May 7, 2025, may not be practical for all Federal 
agencies. As such, the rule allows for agencies to determine, after 
considering relevant factors including security, operational 
feasibility, and public impact that they should implement the deadline 
through a phase approach.
    DHS does not agree that the date should be extended due to the lack 
of public awareness. DHS, in close coordination with States, airlines, 
airports, and other industry partners, has messaged the importance of 
obtaining a REAL ID-compliant DL/ID for a number of years. DHS believes 
that continued messaging alone will not result in a substantial 
increase in adoption rates. DHS believes that beginning enforcement, 
with the flexibility phased enforcement provides, will increase public 
awareness and increase REAL ID adoption rates more quickly than an 
extension of the deadline.
    DHS recognizes some individuals have encountered challenges in 
obtaining a REAL ID-compliant DL/ID due to an inability to meet 
eligibility requirements. DHS recommends that individuals contact their 
State licensing agency directly to determine if they are able to meet 
issuance requirements. In addition, many agencies allow for individuals 
to provide other acceptable forms of identification or allow 
individuals to proceed using alternative access control procedures. DHS 
recommends that individuals without a REAL ID-compliant ID contact the 
Federal agency in question to determine that agency's unique access 
control requirements.
    DHS also does not agree that the deadline should be extended 
because of challenges that individuals may face in obtaining a REAL ID-
compliant DL/ID due to unequal access to DMVs. DHS recognizes that some 
individuals may have a more difficult time traveling to a DMV to obtain 
a REAL ID-compliant DL/ID than others. However, to realize the security 
benefits of REAL ID, DHS believes that beginning card-based enforcement 
on May 7, 2025, is appropriate and that individuals will have had 
sufficient time to obtain a REAL ID-compliant DL/ID before that date. 
To the extent agencies implement card-based enforcement through phased 
enforcement plans, this rule may provide additional time after the 
deadline for individuals to obtain REAL ID-compliant DL/IDs.
    Finally, DHS disagrees with the comment that DHS should delay card-
based enforcement until Federal or State funding reduces the costs of 
obtaining a REAL ID compliant-DL/ID. Congress passed the REAL ID Act in 
2005 and DHS issued a final rule implementing the Act's requirements in 
2008. The Act and regulations provide for the statutory and regulatory 
framework for REAL ID. Under this framework, neither Congress nor DHS 
set parameters on the cost to individuals to obtain a REAL ID-compliant 
DL/ID. Therefore, DHS believes enforcement of REAL ID requirements 
should not be tied to the cost of obtaining a REAL ID-compliant DL/ID.
    Comment: One commenter suggested extending the deadline because 
Washington state does not issue REAL ID DL/IDs.
    DHS response: The State of Washington issues Enhanced Driver's 
Licenses (EDLs), which are designated as acceptable border-crossing 
documents by DHS under the Western Hemisphere Travel Initiative and are 
an acceptable form of identification for REAL ID official Federal 
purposes such as accessing a Federal facility or boarding a commercial 
aircraft. Michigan, Minnesota, New York, Vermont, and Washington are 
the only States that currently issue EDLs. For more information on 
EDLs, please visit the DHS website.\48\
---------------------------------------------------------------------------

    \48\ https://www.dhs.gov/enhanced-drivers-licenses-what-are-they.
---------------------------------------------------------------------------

F. Confusion Associated With Phased Enforcement Generally

    Comments: Multiple commenters stated that the REAL ID requirements, 
delays, and shifting deadlines were already confusing, and that a 
phased approach will only add more confusion and complexity. Some 
commenters noted that the proposed rule could cause confusion through 
inconsistent enforcement timelines across Federal agencies. Another 
commenter noted that DHS did not prescribe the form that agencies' 
plans must take, claiming it would cause unspecified harm, which DHS 
assumes refers to confusion related to inconsistent enforcement plans 
across agencies. Other commenters also expressed concerns over public 
awareness of the proposed rule. These commenters suggested that a lack 
of public awareness could impede the effectiveness of the rule in 
encouraging REAL ID adoption, and result in demand surges at DMVs at 
the end of the phased enforcement period.
    There were also comments about public awareness of the REAL ID 
requirements and enforcement plans. Specifically, some commenters 
expressed concerns that people who do not fly often may not see 
postings by TSA and may not be aware of REAL ID requirements. Others 
who supported the rule emphasized the importance of an expansive public 
campaign.
    DHS response: DHS appreciates that some commenters are concerned 
that REAL ID messaging, to date, has been confusing, and that the 
phased implementation plans allowed through this rule could add to that 
confusion. To mitigate potential confusion regarding the REAL ID dates 
changes in the regulation, DHS has worked closely with States, industry 
and media partners to ensure the public was aware of the REAL ID 
extensions. DHS will continue its current messaging that the REAL ID 
deadline will not be extended past May 7, 2025, and that individuals 
should obtain a REAL ID-compliant ID, or other acceptable form of 
identification, as soon as possible. To ensure public visibility and 
reduce confusion regarding individual enforcement plans, agencies that 
implement card-based enforcement using a phased approach must make 
their plan publicly available on their web page. DHS must also make 
publicly available a list of agencies that have implemented a phased 
enforcement plan. Additionally, to prepare the public for REAL ID 
enforcement, DHS is conducting public awareness campaigns through 
internet, currently, and television and radio campaigns starting in 
2025, which will continue through the card-based enforcement date.
    TSA's REAL ID Program is also working closely with States and the 
travel industry to support efforts to raise awareness among their 
citizens and customers. This includes a media campaign ``toolkit,'' 
which provides stakeholders with digital, print, social media, and 
audio/video materials, that can be used by stakeholders in their own 
media campaigns.\49\ DHS has also collaborated with States and other 
stakeholders on media events designed to increase public awareness of 
the REAL ID deadline. DHS believes these public awareness efforts will 
help mitigate, but not eliminate, the risk of demand surges towards the 
end of the phased enforcement period. DHS believes that despite public 
awareness campaigns, many individuals will choose to wait until the 
last minute to obtain a REAL ID compliant-DL/ID, so it may not be 
possible to eliminate all risk

[[Page 3485]]

of a demand surge. However, by targeting messaging at individuals more 
likely to need a compliant DL/ID (e.g., domestic commercial air 
travelers) media campaigns will likely encourage some individuals to 
obtain a compliant DL/ID, mitigating a potential surge approaching the 
deadline.
---------------------------------------------------------------------------

    \49\ ``Be Your REAL ID Self[hairsp]'' Campaign Toolkits, https://www.dhs.gov/real-id/campaign-toolkits (last visited November 20, 
2024).
---------------------------------------------------------------------------

    DHS acknowledges that this rule could potentially create confusion 
due to the possibility of inconsistent enforcement timelines, with some 
agencies implementing full enforcement and other agencies implementing 
varying phased enforcement plans. The rule's requirement that agencies 
post their plans publicly on their web page is intended to provide 
transparency and mitigate potential confusion. To the extent variation 
in enforcement across Federal agencies still results in some confusion, 
DHS believes that the approach offered by this rule will be more 
effective than other alternatives that may offer more straightforward 
messaging. Although immediately beginning full card-based enforcement 
across all agencies or extending the deadline for card-based compliance 
might present a simpler message to communicate to the public, as 
explained above in DHS' response to other comments,\50\ DHS believes 
the approach provided in this rule will better enable a smooth 
transition to full card-based enforcement. DHS believes that the 
benefit of allowing enforcement to begin with the flexibility for 
phased enforcement, where appropriate, outweighs the risk of potential 
confusion, particularly with the mitigation through public 
communication.
---------------------------------------------------------------------------

    \50\ Supra IV.D., IV.E.
---------------------------------------------------------------------------

    Finally, DHS acknowledges that a successful implementation of REAL 
ID enforcement relies on public awareness of the REAL ID requirements, 
upcoming deadline, and phased enforcement plans. For years, DHS has 
made significant efforts to raise public awareness of REAL ID 
enforcement, to include providing information at the TSA security 
checkpoint about the upcoming REAL ID deadline, and will continue to do 
so through May 7, 2025. To continue DHS's commitment to transparency 
and public awareness regarding REAL ID requirements, as discussed 
below, this final rule requires agencies to post their phased 
enforcement plans, if they choose to use them, on their agency website.

G. Public Availability of Agencies' Phased Enforcement Plans

    Comment: One commenter expressed concern that online publication of 
agency phased enforcement plans may not provide sufficient public 
awareness or adequately prepare the public for what to expect when 
seeking to use a noncompliant DL/ID for a defined official purpose. The 
commenter suggested that agencies should also be required to maintain 
information regarding their phased enforcement plans on site at 
locations where individuals may need to use a DL/ID for a defined 
official purpose.
    DHS response: DHS appreciates this comment highlighting the 
importance of ensuring that information regarding agencies' phased 
enforcement plans is available to the public. Given the scope of 
potential phased enforcement plans, which range from full enforcement 
to non-enforcement through the 2-year period, DHS does not believe it 
is appropriate to prescribe specific means by which the individual 
agency must inform members of the public about their plan, beyond the 
general requirement to make it publicly available on an agency website. 
One of DHS' goals in requiring agencies to make their plans available 
on their websites is to allow individuals to prepare in advance of 
arriving at an agency location and seeking to use to a noncompliant DL/
ID for a REAL ID official purpose. This requirement does not prevent 
agencies from also providing their plan, or information about their 
plan, ``on-site'' for individuals who arrive and seek to use a 
noncompliant DL/ID.
    As a component of the individual agency plan, that agency may 
choose to engage in a variety of outreach and engagement activities 
relevant to their specific goals; but imposition of general 
requirements in this rule cannot effectively account for the specific 
needs of the plan, variation in agency location and operations, and 
relevant audience. For example, in the informed compliance phased 
enforcement model described above,\51\ agencies could provide a notice 
to individuals presenting a noncompliant DL/ID. The notice could inform 
the individual that their DL/ID is noncompliant with REAL ID 
requirements and that they should contact their DMV for further 
information regarding obtaining a REAL ID-compliant DL/ID. The notice 
could also tell the individual what to expect if the individual 
presents a noncompliant DL/ID and no other acceptable form of 
identification in the future.
---------------------------------------------------------------------------

    \51\ Supra III.D.
---------------------------------------------------------------------------

    As noted above, DHS is engaged in a layered approach to improve 
adoption, including heavy engagement with States that have low REAL ID 
adoption rates, a public advertising campaign raising awareness of 
upcoming REAL ID enforcement and the benefits of obtaining a REAL 
ID,\52\ and communication with the travel industry.
---------------------------------------------------------------------------

    \52\ DHS Launches ``Be Your REAL ID Self[hairsp]'' Public 
Awareness Campaign, January 15, 2021, https://www.dhs.gov/real-id/news/2021/01/15/dhs-launches-be-your-real-id-self-public-awareness-campaign.
---------------------------------------------------------------------------

H. Length of Phased Enforcement Period

    Comments: Multiple commenters expressed support for a phased 
approach but highlighted concerns over the timeframe for the phased 
enforcement period. Some commenters believe a phased enforcement period 
of 2 to 3 years is appropriate. Other commenters expressed that DHS did 
not provide sufficient data or evidence to support a 2-year phased 
enforcement period. One commenter states a 2-year period is not long 
enough based on adoption rates to date and the current proportion of 
DL/ID holders that have a REAL ID-compliant DL/ID. The commenter notes 
that 2 years might not allow for a significant increase in the 
proportion of REAL ID-compliant DL/IDs and that Federal agencies may 
experience the same operational risks at the end of the 2-year 
enforcement period in the presence of significant REAL ID 
noncompliance. Another commenter noted that many individuals have 
obtained noncompliant marked DL/ID with validity periods of up to 8 
years, depending on the state, and that these individuals would need to 
visit a DMV in advance of the expiration of their current DL/ID in 
order to obtain a REAL ID-compliant DL/ID. This commenter suggested 
that DHS should, at a minimum, extend the phased enforcement period to 
4 years, which would align with shortest validity period amongst most 
populous states. Still other commenters proposed that Federal agencies 
should be permitted to specify their own dates for achieving full 
enforcement, that the phased enforcement period should be indefinite, 
or that DHS consider future rulemaking to modify the phased enforcement 
period if necessary.
    DHS response: DHS appreciates the thoughtful comments it received 
regarding the appropriate length of the phased enforcement period. In 
determining the length of the phased enforcement period, DHS balanced 
factors supporting a shorter period of phased enforcement with those 
possibly warranting a longer period. In support of providing a shorter 
phased enforcement period, DHS seeks to reduce the delay in realizing 
the

[[Page 3486]]

security benefits associated with REAL ID, and additionally seeks to 
ensure that imminent enforcement provides a compelling rationale for 
members of the public to obtain a REAL ID-compliant DL/ID. In support 
of a longer phased enforcement period, DHS seeks to provide sufficient 
time for phased enforcement plans to exert an effect on public 
perception, to limit negative enforcement impacts on agency operations 
and the public, and to provide sufficient time for States to meet 
increased demand. DHS has balanced these factors to arrive at an up to 
2-year period available for phased enforcement. The 2-year period 
allows agencies to develop plans that adjust for operational impacts 
and provides individuals and States time to take necessary action. This 
period allows States to adjust or reallocate resources to meet 
increased demand over annual budgeting cycles, while still maintaining 
a level of urgency necessary to prioritize such action. Allowing for 
more than 2 years for phased enforcement would potentially further 
delay the security benefits of REAL ID and would likely not provide 
members of the public a compelling reason to prioritize obtaining a 
REAL ID compliant DL/ID.
    DHS also does not believe that it would be appropriate to allow 
each Federal agency to specify the duration of their own phased 
enforcement period beyond the 2 years permitted by this rule. Doing so 
would permit agencies to use a phased approach indefinitely, avoiding 
the implementation of the legal requirements associated with the REAL 
ID act and regulations. Allowing a more lengthy phased enforcement 
period than 2 years would also unnecessarily delay realization of the 
security benefits of REAL ID. Finally, a common defined available 
period for phased enforcement ensures consistent, accountable, and 
transparent national action, while still allowing agencies to balance 
operational needs, security benefits, and public impact to determine 
the individualized timeframe of their own enforcement, within those 
bounds.
    As described above, one comment suggested that DHS should base the 
phased enforcement period on the minimum length of the validity period 
for DL/IDs in some states, rather than balancing various factors to 
determine the enforcement. The commenter recommended 4 years because 
this is the shortest validity period amongst more populous States. 
Since there is not a single common validity period among all states, 
the choice of a 4-year period rather than the many longer periods in 
other States implicitly acknowledges the interests DHS has described 
above compelling shorter phased enforcement periods. The diversity in 
length of validity periods across States also suggests that there is 
highly limited benefit to tying the phased enforcement period to one 
particular validity period, as it would not be common to most members 
of the public. In addition, the length of validity of DL/IDs has 
limited utility in light of states ability to continue issuance of non-
REAL ID compliant DL/IDs. While DHS acknowledges that some individuals 
who have recently obtained noncompliant DL/IDs may need to obtain a 
REAL ID-compliant DL/ID before their noncompliant DL/ID expires, the 
avoidance of this circumstance in some limited instances (namely, the 
class of persons who have a DL/ID which would specifically expire 
between 2 and 4 years from the REAL ID enforcement date) is not 
compelling when compared to the broader interests DHS has considered in 
providing a shorter period of phased enforcement, as described above.
    Individuals may also continue to choose to obtain a noncompliant 
DL/ID, even after the enforcement date, because they do not anticipate 
needing an acceptable form of identification to verify their identity 
for a defined official purpose or because they had another identity 
document, such as a passport, that is widely accepted. DHS does not 
believe it is appropriate to further delay the security benefits of 
REAL ID based on individual's decisions to obtain noncompliant-marked 
cards. For any individual holding a noncompliant DL/ID, who realizes 
that they need to obtain a compliant DL/ID, a 2-year phased enforcement 
period provides sufficient time for them to do so.
    Additionally, some commenters discussing the appropriate maximum 
phased enforcement period appear to assume that 100 percent of state-
issued DL/IDs in circulation must be REAL ID-compliant before the 
Federal Government begins full card-based enforcement. This is 
incorrect. In the 2008 final rule DHS assumed, in response to public 
comments, that only 75 percent of DL/ID holders may ever obtain a REAL 
ID-compliant DL/ID.\53\ Individuals may choose not to obtain a REAL ID-
compliant DL/ID for a number of reasons, including that they do not 
anticipate needing identification for a REAL ID official purpose or 
that they have another form of acceptable identification (e.g., a 
passport). Although the balance point that the actual percentage of 
REAL ID-compliant DL/IDs will eventually reach is uncertain (i.e., it 
could be more or less than 75 percent), DHS anticipates that the number 
of individuals presenting noncompliant DL/IDs for REAL ID official 
purposes at the time agencies transition from phased enforcement to 
full enforcement will have fallen and thereby reduce potential security 
risks, operational disruption, or significant public impact.\54\
---------------------------------------------------------------------------

    \53\ 73 FR 5272, 5322.
    \54\ See infra table 5. DHS forecasts that the number of DL/IDs 
that are REAL ID-compliant may rise to 83 percent by May 2027.
---------------------------------------------------------------------------

    Finally, DHS appreciates the recommendation that DHS consider 
future rulemaking to modify the phased enforcement period if necessary. 
As with this rulemaking, DHS will leverage its rulemaking authority as 
necessary to ensure successful implementation of the REAL ID 
requirements.

I. Relevant Factors and Resources for Development and Approval of 
Phased Enforcement Determinations by Federal Agencies

    Comments: Some commenters expressed that the relevant factors DHS 
identified and that the rule requires agencies to consider when 
determining whether a phased approach is appropriate are overly broad 
and allow Federal agencies too much discretion in determining whether 
to implement a phased enforcement plan and what form the plan would 
take, resulting in widely varying policies that may hinder compliance 
and enforcement by individuals and agencies, respectively. These 
commenters also expressed concern that with this discretion, agencies 
may transition to full enforcement prior to the end of the 2-year 
maximum phased enforcement period, arguing instead that REAL ID should 
be repealed or extended outright for 2 years, citing general concerns 
regarding the REAL ID Act unrelated to this rulemaking. One commenter 
expressed concern about the adequacy of the TSA REAL ID Program's 
resources to support the required DHS coordination of agencies' phased 
enforcement plans. The commenter suggested that DHS should work to 
achieve a common understanding of the REAL ID regulations across all 
Federal agencies.
    DHS response: Under this rule, DHS intentionally provides Federal 
agencies significant discretion and flexibility to implement the REAL 
ID requirements using an approach that is best suited to their 
operations and contexts. Given the large number of Federal agencies, 
their variety of missions and operational settings, and significant 
variation in the

[[Page 3487]]

frequency and volume of interactions with the public in the context of 
a defined REAL ID official purpose, DHS believes that attempting to 
develop a uniform phased enforcement approach or more specific list of 
factors is not feasible. Further, DHS believes that each individual 
agency is in a better position than DHS to weigh factors and make 
judgments regarding whether phased enforcement is appropriate and, if 
so, what form an agency's phased enforcement plan should take. The rule 
requires that agency plans be coordinated with DHS, which will allow 
DHS to ensure a level of consistency, as appropriate, and oversight of 
successful implementation of the REAL ID requirements.
    As discussed above,\55\ this rule maintains the card-based 
enforcement deadline and a regulatory default of full enforcement on 
May 7, 2025, absent an affirmative determination by an agency to use a 
phased enforcement plan. The rule is structured in this way to 
facilitate each agency's transition to full implementation of REAL ID 
requirements as soon as practicable. DHS anticipates that many agencies 
will determine that a phased approach is not necessary or appropriate 
and will transition to full enforcement immediately on May 7, 2025. For 
agencies that do determinate that phased enforcement is appropriate, 
DHS does not expect that all phased enforcement plans will take the 
entire 2-year period. In some cases, agencies' phased enforcement plans 
may provide for reaching full enforcement well in advance of May 5, 
2027.
---------------------------------------------------------------------------

    \55\ Supra III.C.
---------------------------------------------------------------------------

    Finally, DHS notes that the TSA REAL ID Program is well-prepared to 
support DHS coordination of agencies' phased enforcement plans. Since 
Fall 2023, the TSA REAL ID Program Office has been hosting monthly 
stakeholder engagement sessions with Federal agencies. During these 
sessions, DHS has briefed Federal agencies on the REAL ID regulations' 
card-based enforcement requirements and this rulemaking to allow 
agencies the flexibility to implement card-based enforcement through a 
phased approach, if appropriate. Through interagency discussion during 
these sessions, DHS has built an understanding of which agencies may 
consider phased enforcement plans and what form those plans may take. 
Although the rule provides agencies broad discretion to structure their 
phased enforcement plans in a manner best suited to their operations, 
the rule requires agencies to coordinate their plans with DHS to ensure 
that plans advance the objectives of the REAL ID regulations and 
maintain consistent progress towards full enforcement. Through this 
coordination, DHS will maintain oversight of successful implementation 
of the REAL ID Act and ensure consistency, as appropriate.

J. Phased Enforcement Implementation Concerns

    Comments: DHS received some comments related specifically to the 
official purpose of boarding a federally regulated commercial aircraft 
and card-based enforcement at TSA security screening checkpoints. These 
commenters expressed concerns that beginning card-based enforcement at 
TSA security checkpoints may increase passenger wait times and 
congestion in the public areas of airports, potentially increasing the 
burden on law enforcement officers who respond to issues arising at 
airports. One commenter suggested that TSA should develop a plan that 
clearly provides criteria for incidents that rise to level requiring 
notification to law enforcement. Another commenter suggested that, as 
part of phased enforcement, TSA should require individuals enrolled in 
TSA Precheck[supreg] to present a REAL ID-compliant DL/ID to use the 
TSA Precheck[supreg] lane. Multiple commenters recommended that TSA 
develop a ``contingency'' plan to address travelers who may be unable 
to use their noncompliant DL/ID to proceed through the screening 
checkpoint.
    DHS also received comments asserting that the proposed phased 
approach would exacerbate costs to individuals and to the Federal 
Government, for example, because individuals may need to update their 
identification multiple times to comply with evolving standards. Other 
commenters asked that DHS provide more detail about the consequences of 
the rule; and concerns that phased enforcement will be ``increasingly 
painful'' on the public and is thus not in their best interests.
    DHS response: DHS appreciates the thoughtful comments received 
regarding TSA's implementation of card-based enforcement. This rule 
allows TSA to make a determination, after considering relevant factors, 
that a phased approach to card-based enforcement may be appropriate. 
Consistent with this rule, TSA is planning for a number of scenarios, 
including considering a phased approach to enforcement. In making its 
determination, TSA will take into account the relevant factors of 
security, operational feasibility, and public impact, including TSA 
checkpoint operations that involve interaction with law enforcement and 
potential impact to travelers and transportation stakeholders.
    Concerns regarding costs associated with compliance with 
requirements of the REAL ID Act and regulation were addressed in the 
2008 final rule and are outside the scope of this rulemaking. Regarding 
the concern that a phased approach will add additional costs to 
implementation because of a need to update identification multiple 
times, DHS notes that the REAL ID card-based requirements, issued 
through the 2008 final rule, were not amended by this rulemaking. 
Further, nothing in this rule will impact the requirements for 
issuance. The rule instead provides individuals potentially more time 
to obtain a REAL ID compliant license if they plan to present their DL/
ID to an agency that is implementing the May 7, 2025, enforcement 
deadline through a phased approach.
    Regarding commenters' questions about the consequences of the rule, 
if an individual attempts to provide a non-compliant DL/ID after May 7, 
2025, and the agency does not have a phased enforcement plan in place, 
the Federal agency may not accept that non-compliant DL/ID. Each 
individual agency is responsible for determining access control 
procedures at their facilities, and what alternatives may be available, 
such as other acceptable forms of identification. If the agency does 
have a phased enforcement plan in place, that plan must be posted on 
the agency website. For example, an agency may only accept a non-
compliant DL/ID from an individual twice before it is rejected. In that 
instance, the individual will be subject to the agency's published 
plan.
    DHS understands that some commenters are concerned that the phased 
enforcement plans may be ``increasingly painful'' on the public. 
However, without the flexibility for a phased approach, no Federal 
agencies may accept non-compliant DL/IDs for REAL ID official purposes 
on and after May 7, 2025. This rule provides flexibility to agencies, 
allowing them to implement phased enforcement plans that provide more 
time for individuals to obtain a REAL ID-compliant DL/ID.
    Comments: Some commenters expressed concern that agencies' phased 
enforcement plans may involve the collection of personal information 
and privacy issues, particularly if agencies implement a phased 
enforcement plan using the informed compliance with limits model. One 
commenter expressed

[[Page 3488]]

the need for transparency and clear policies to protect PII.
    DHS response: DHS appreciates these comments and acknowledges the 
importance of privacy protections and safeguarding of personally 
identifiable information. This rule only provides agencies with the 
flexibility to implement the card-based enforcement deadline through a 
phased approach and, as noted above.\56\ Any PII collected as part of 
an agency's phased enforcement plan must be collected, maintained, and 
used in accordance with all applicable Federal guidelines and 
requirements related to collection of PII. Depending on the type and 
manner of information collected, this will likely require agencies to 
obtain an OMB-approved PRA information collection, or to prepare a 
Privacy Threshold Analysis, Privacy Impact Assessment, System of 
Records Notice, and other documentation to ensure adequate protections 
are in place regarding the collection, storage, and use of PII.
---------------------------------------------------------------------------

    \56\ Supra III.D.
---------------------------------------------------------------------------

    Comments: One commenter expressed concern that Federal agencies' 
implementation of phased enforcement plans may result in a burden on 
States because individuals will seek information from State DMVs 
regarding Federal card-based enforcement.
    DHS response: DHS appreciates concerns related to increasing the 
burden on States. Overall, DHS believes this rule lessens the burden on 
States by allowing agencies to implement card-based enforcement using a 
phased approach. In the event of backlogs at State DMVs due to 
increased demand leading up to and after the deadline, this rule may 
provide States additional time to make adjustments to meet increases in 
demand for REAL ID-compliant cards. DHS acknowledges that States, 
including DMV personnel, may receive inquiries regarding Federal 
agencies' phased enforcement plans. To mitigate potential confusion 
associated with phased enforcement, this rule requires agencies using a 
phased approach to make their plans available on their website. It also 
requires DHS to make available on the DHS REAL ID web page a list of 
agencies that have coordinated phased enforcement plans. DHS welcomes 
States to direct individuals with questions regarding Federal card-
based enforcement to the DHS REAL ID web page.

K. Alternative Approaches to Phased Enforcement

    Comments: One commenter suggested an alternative approach to phased 
enforcement based on the issuance date of the identification document. 
In the suggested alternative, Federal agencies could choose to accept, 
for a period up to 2 years after the card-based enforcement deadline, 
noncompliant DL/IDs with issuance dates before May 7, 2025. After the 
phased enforcement period, Federal agencies would only accept REAL ID-
compliant identification for official purposes.
    DHS response: DHS appreciates this comment suggesting an 
alternative to the phased enforcement approach taken by this rule. DHS 
believes that if an agency determines that phased enforcement is 
appropriate, the agency is in the best position to structure a phased 
enforcement plan that meets the needs of its operational context. While 
the rule requires agencies to coordinate phased enforcement plans with 
DHS, the rule provides agencies broad discretion to design a plan that 
will achieve a smooth transition to full enforcement within their 
context. DHS provides some phased enforcement models that agencies may 
consider,\57\ but agencies have discretion to develop their own models.
---------------------------------------------------------------------------

    \57\ Supra III.D.
---------------------------------------------------------------------------

    A phased enforcement plan based on DL/ID issuance date would be 
compatible with the broad scope of discretion given to individual 
agencies under this rule. That is, individual agencies could adopt such 
a model of enforcement if they choose to do so based on their specific 
circumstances. It is, however, not appropriate to adopt universally, 
because DHS believes that each individual agency is in the best 
position a phased enforcement plan that meets their own particular 
circumstances. In light of agencies' varying operational contexts and 
interaction with REAL ID requirements, DHS believes that providing 
agencies broad discretion is preferable to universally mandating a 
specific phased enforcement plan for every agency.

L. Costs of the Rule

    Comment: One commenter expressed opposition to the rule, citing the 
financial implications and estimated costs of the REAL ID Act. The 
commenter stated an additional delay in card-based enforcement will 
only exacerbate costs and demand further financial backing for the 
eventual enforcement in a decades old policy, without citing specific 
amounts in additional costs.
    DHS response: The rule results in an estimated $1.73 million in 
quantifiable costs over 2 years to Federal agencies and DHS, which are 
separate, and a fraction of the estimated costs related to the REAL ID 
Act. In addition, the rule will help individuals without REAL ID-
compliant identification, or an acceptable alternative, avoid costs 
that they may face when attempting to use a DL/ID for an official 
purpose during the phased enforcement period.
    DHS does not possess data on State expenditures, but as all States 
have met the state-based deadline for compliance, many of the costs 
associated with implementation of the REAL ID Act have already been 
incurred and will not be impacted by this rule. States and individuals 
would continue to incur costs related to obtaining REAL IDs; with or 
without this rule, which may be impacted by the rate at which they 
occur. As stated in the rule, DHS anticipates providing the opportunity 
for a phased approach may actually reduce and/or spread overall costs 
(rather than processing a higher number of REAL ID requests in a 
shorter period of time and consequences of a large portion of the 
population not having acceptable ID).

V. Statutory and Regulatory Analyses

A. Administrative Procedure Act

    The Administrative Procedure Act (APA), 5 U.S.C. 553(d) requires 
publication of an amendment in the Federal Register at least 30 days 
before the effective date of the final rule, unless good cause, as 
prescribed in the APA, is found. Here, DHS has concluded there is good 
cause to make this rule effective immediately. In determining whether 
the good cause exception of section 553(d) may be invoked to allow an 
immediate publication date, an agency is required to balance the 
necessity for immediate implementation against principles of 
fundamental fairness which require that all affected persons be 
afforded reasonable time to prepare for the effective date of the 
rule.\58\ Agencies may also dispense with the delayed effective date 
requirement for rules that ``recognize an exemption or relieve[ ] a 
restriction.'' \59\
---------------------------------------------------------------------------

    \58\ United States v. Gavrilovic, 551 F.2d 1099 (8th Cir. 1977) 
(noting that the ``legislative history of the APA'' indicates that 
the waiting period ``was not intended to unduly hamper agencies from 
making a rule effective immediately,'' but intended ``to `afford 
persons affected a reasonable time to prepare for the effective date 
of a rule . . . or to take other action which the issuance may 
prompt' '' (citing S. Rep. No. 752, 79th Cong., 1st Sess. 15 (1946); 
H.R. Rep. No. 1980, 79th Cong., 2d Sess. 25 (1946))).
    \59\ 5 U.S.C. 553(d)(1). See Independent U.S. Tanker Owners 
Commission v. Skinner, 884 F.2d 587, 591 (D.C. Cir. 1989).
---------------------------------------------------------------------------

    Here, finalizing the provisions of this rule immediately may serve 
to lessen a burden on the public by providing agencies more time before 
the May 7,

[[Page 3489]]

2025, enforcement date to determine whether to implement phased 
enforcement plans and, if using a phased enforcement plan, to develop 
and communicate that plan to the public. If agencies choose to 
implement card-based enforcement using phased enforcement plans, the 
public may be provided with additional time beyond the enforcement date 
to obtain a REAL ID-compliant DL/ID, reducing potential negative 
impacts on May 7, 2025. Further an immediate effective date would not 
result in unfairness because the REAL ID requirements of the 2008 final 
rule are already in effect and this rule does not alter any of the 
substantive REAL ID requirements or the enforcement date. Therefore, 
there are no new requirements that States or the public need to prepare 
to meet because of this final rule. The purpose of the waiting period 
is ``to give affected parties time to adjust their behavior before the 
final rule takes effect.'' \60\ As this rule does not alter the 
substantive REAL ID requirements or enforcement date, a waiting period 
is not necessary because this rule does not change the date by which 
the public must adjust their behavior. Allowing this rule to become 
immediately effective does not alter the May 7, 2025, date on which 
agencies will begin card-based enforcement, so finalizing the 
provisions in this rule does not require anyone to change their conduct 
or to take any particular steps in advance of the effective date.\61\
---------------------------------------------------------------------------

    \60\ Riverbend Farms, Inc. v. Madigan, 958 F.2d 1479, 1485 (9th 
Cir. 1992).
    \61\ See United States v. Gavrilovic 551 F.2d 1099 (8th Cir. 
1977).
---------------------------------------------------------------------------

B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et seq.) 
requires that DHS consider the impact of paperwork and other 
information collection burdens imposed on the public and, under the 
provisions of 44 U.S.C. 3507(d), obtain approval from the OMB for each 
collection of information it conducts, sponsors, or requires through 
regulations. This final rule itself does not directly call for new 
collection of information under the PRA as the rulemaking relates to 
Federal agency submission of phased enforcement plans which are not 
covered under the PRA. However, agencies that utilize a phased 
enforcement plan, depending on the requirements associated with their 
respective plan, will likely need to submit or modify an OMB 
information collection request.

C. Economic Impact Analyses

1. Regulatory Impact Analysis Summary
    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order (E.O.) 12866 (Regulatory Planning and 
Review),\62\ as affirmed by E.O. 13563 (Improving Regulation and 
Regulatory Review),\63\ and as amended by E.O. 14094 (Modernizing 
Regulatory Review) \64\ directs each Federal agency to propose or adopt 
a regulation only upon a reasoned determination that the benefits of 
the intended regulation justify its costs. Second, the Regulatory 
Flexibility Act of 1980 (RFA) requires agencies to consider the 
economic impact of regulatory changes on small entities.\65\ Third, the 
Unfunded Mandates Reform Act of 1995 (UMRA) requires agencies to 
prepare a written assessment of the costs, benefits, and other effects 
of proposed or final rules that include a Federal mandate likely to 
result in the expenditure by State, local, or Tribal governments, in 
the aggregate, or by the private sector, of $100 million ($183 million 
in 2023 dollars) or more annually (adjusted for inflation).\66\
---------------------------------------------------------------------------

    \62\ 58 FR 51735 (Oct. 4, 1993).
    \63\ 76 FR 3821 (Jan. 21, 2011).
    \64\ 88 FR 21879 (Apr. 11, 2023).
    \65\ Public Law 96-354, 94 Stat. 1164 (Sept. 19, 1980) (codified 
at 5 U.S.C. 601 et seq., as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996 (SBREFA)).
    \66\ Public Law 104-4, 109 Stat. 66 (Mar. 22, 1995) (codified at 
2 U.S.C. 1181-1538).
---------------------------------------------------------------------------

2. Executive Orders 12866, 13563, and 14094 Assessment
    Executive Order 12866 (Regulatory Planning and Review), as affirmed 
by Executive Order 13563 (Improving Regulation and Regulatory Review) 
and amended by Executive Order 14094 (Modernizing Regulatory Review), 
directs agencies to assess the costs and benefits of available 
regulatory alternatives and, if regulation is necessary, select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasizes the importance 
of quantifying costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility.
    DHS summarizes the findings:
     In accordance with E.O. 12866, the OMB has designated this 
rulemaking a ``significant regulatory action'' as defined under section 
3(f)(1) of E.O. 12866, as amended by E.O. 14094. Accordingly, the rule 
has been reviewed by OMB.
     The Secretary, pursuant to 5 U.S.C. 605(b), certifies that 
the final rule will not have a significant economic impact on a 
substantial number of small entities. The final rule is only applicable 
to Federal Government agencies, who under the RFA are not considered 
small entities.
     This final rule is not likely to result in the expenditure 
by State, local, or Tribal governments, in the aggregate, or by the 
private sector, of $100 million ($183 million in 2023 dollars) or more 
annually (adjusted for inflation) such that a written statement is not 
required under UMRA.
a. OMB A-4 Statement
    The OMB A-4 Accounting Statement presents the annualized costs and 
benefits, as well as the qualitative benefits of the final rule.

                                                     Table 1--OMB Circular A-4 Accounting Statement
                                                                      [$ Millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Estimates                           Units
                                              --------------------------------------------------------------------
                   Category                                                        Year     Discount      Time                     Notes
                                                Primary      Low        High      dollar      rate       horizon
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Monetized.........................        N/A        N/A        N/A        N/A          2%         N/A  Not Quantified.
Annualized Quantified, But Non-Monetized.....        N/A        N/A        N/A        N/A          2%         N/A  Not Quantified.

[[Page 3490]]

 
Unquantified.................................  The final rule will provide Federal agencies the flexibility to
                                               decide whether to enforce the REAL ID card-based regulations in a
                                               phased manner that may reduce security vulnerabilities,
                                               operational disruption and public impact related to official
                                               Federal purposes. A phased approach will not unnecessarily delay
                                               REAL ID enforcement for those Federal agencies ready to fully
                                               implement on the card-based enforcement deadline. A phased
                                               approach will also allow individuals more time to obtain a REAL ID
                                               and may help mitigate potential application backlogs at State
                                               licensing agencies. Furthermore, a phased approach may reduce
                                               potential queuing and associated delays at access points.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Monetized.........................      $0.87        N/A        N/A       2023          2%     2 Years
Annualized Quantified, But Non-Monetized.....        N/A        N/A        N/A        N/A          2%         N/A  Not Quantified.
                                              ----------------------------------------------------------------------------------------------------------
Unquantified.................................  Full security benefits associated with REAL ID rule will not be
                                               realized, as a result of agencies implementing a phased approach,
                                               until full enforcement occurs. Federal agencies will also incur
                                               costs related to plan implementation, including, but not limited
                                               to training personnel on the policies of the plan, and efforts to
                                               inform individuals of the new identity verification policies
                                               related to plans. Individuals may also incur costs to become aware
                                               of phased enforcement plans and respond accordingly.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Transfers
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Monetized Federal Budgetary               N/A        N/A        N/A        N/A          2%         N/A  Not Quantified.
 Transfers.
--------------------------------------------------------------------------------------------------------------------------------------------------------
From/To......................................  From:
                                               To:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Other Annualized Monetized Transfers.........        N/A        N/A        N/A        N/A          2%         N/A  Not Quantified.
--------------------------------------------------------------------------------------------------------------------------------------------------------
From/To......................................  From:
                                               To:
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Net Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Annualized Monetized Net Benefits............        N/A        N/A        N/A        N/A          2%         N/A  Not Quantified.
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Effects
--------------------------------------------------------------------------------------------------------------------------------------------------------
State, Local, and/or Tribal Government.......  None.
Small Business...............................  None.
Wages........................................  None.
Growth.......................................  Not measured.
--------------------------------------------------------------------------------------------------------------------------------------------------------

b. Need for regulation
    In January 2008, DHS published the Minimum Standards for Driver's 
Licenses and Identification Cards Acceptable by Federal Agencies for 
Official Purposes Final Rule to implement the requirements of the Act. 
Since the publication of the original Final Rule, DHS extended the 
original compliance date multiple times in response to challenges in 
REAL ID adoption, including but not limited to, the COVID-19 pandemic. 
In accordance with the Final Rule published in March 2023, Federal 
agencies are required to commence card-based enforcement on May 7, 
2025, at which point Federal agencies may not accept for official 
purposes a license or identification card issued by a State unless that 
license or card was issued in accordance with the REAL ID standards by 
a REAL ID-compliant jurisdiction.\67\
---------------------------------------------------------------------------

    \67\ See 88 FR 14473 (Mar. 9, 2023), codified at 6 CFR 37.5.
---------------------------------------------------------------------------

    DHS does not intend to extend the card-based enforcement deadline 
further and intends to commence enforcement of the REAL ID card-based 
requirements on May 7, 2025. However, based on current adoption rates 
of REAL ID-compliant DL/IDs and the projected number of compliant DL/
IDs in circulation by the card-based enforcement date (discussed in the 
succeeding section), DHS believes this rulemaking is necessary to 
provide flexibility to mitigate potential risks related to security, 
operational feasibility, and public impact.
    Without the flexibility the final rule permits, agencies may be 
faced with serious concerns that immediate implementation of full 
enforcement may create including security vulnerabilities, operational 
challenges, and disruption of Government services. For instance, there 
could be cases where an agency needs to conduct work with a subject-
matter expert or specialist that does not have REAL ID-compliant 
identification and is therefore unable to access the Federal facility. 
Barring a phased enforcement plan, the agency may need to come up with 
alternate accommodations, which could include holding meetings or 
presentations offsite or standing up a virtual option. These options 
may result in additional costs that would otherwise not be incurred if 
the agency was operating under a phased enforcement plan. Additionally, 
absent a phased enforcement plan, individuals without a REAL ID-
compliant DL/ID or acceptable alternative will not have an acceptable 
form of identification to board federally regulated aircraft upon card-
based enforcement. This represents a large use

[[Page 3491]]

case for REAL ID. These individuals will not have an acceptable form of 
identification to access the security checkpoint which could result in 
backlogs and other negative outcomes on travel (e.g., delayed or missed 
flights). This may also have a potential impact on the customer 
experience and air travel. Long lines, confusion, and frustrated 
travelers at the checkpoint may also increase security risks.\68\ Given 
the current level of REAL ID adoption across various States, the start 
of card-based enforcement may also create an increased demand on States 
to issue REAL IDs, which could result in strained resources and a 
potential delay of application processing time or backlog. Additional 
disruptive impacts to those who currently rely upon non-REAL ID-
compliant DL/IDs for official Federal purposes may also occur.
---------------------------------------------------------------------------

    \68\ The requirements of the REAL ID Act and regulations 
specifically apply to Federal agencies accepting DL/IDs for official 
purposes. To the extent air carriers also require individuals to 
present a compliant DL/ID for check-in or to drop off luggage, lines 
and crowding may also occur at ticket counters and baggage drop-off 
locations at airports. See U.S. Department of Homeland Security. 
``Soft Targets and Crowded Places Security Plan Overview'' (May 
2018). Available at https://www.cisa.gov/sites/default/files/publications/DHS-Soft-Target-Crowded-Place-Security-Plan-Overview-052018-508_0.pdf. Accessed on Apr. 17, 2024.
---------------------------------------------------------------------------

    Federal agencies that determine an immediate transition to full 
enforcement would raise concerns related to security, operational 
feasibility, or negatively impact the public, will benefit from phased 
enforcement, and will be able to implement a phased enforcement plan, 
coordinated with DHS, to provide a smoother transition to full card-
based enforcement.\69\ This final rule will also enable these agencies 
to minimize negative impact to individuals who do not have REAL ID-
compliant DL/IDs and provide States time to issue and individuals time 
to obtain REAL ID-compliant DL/IDs during initial phases of 
enforcement.
---------------------------------------------------------------------------

    \69\ Card-based enforcement should not impact access to Federal 
facilities that do not require identification (e.g., public areas of 
the Smithsonian). Card-based enforcement also should not impact 
public services that require identification for purposes other than 
an official purpose as defined by the Act and regulation (e.g., 
applying for or receiving Federal benefits is not a REAL ID official 
purpose). However, in cases where provision of a public service does 
involve a REAL ID official purpose, agencies should consider the 
extent to which an immediate transition to full enforcement will 
impact their ability to provide that service.
---------------------------------------------------------------------------

c. Baseline Summary
    The baseline represents DHS' best assessment of what the world will 
be like absent this regulatory action.\70\
---------------------------------------------------------------------------

    \70\ Office of Information and Regulatory Affairs. Circular No. 
A-4. November 9, 2023. https://www.whitehouse.gov/wp-content/uploads/2023/11/CircularA-4.pdf. Accessed February 12, 2024.
---------------------------------------------------------------------------

    Absent this regulatory action, beginning on May 7, 2025 (card-based 
enforcement date), all Federal agencies will be prohibited from 
accepting non-REAL ID-compliant State-issued DL/IDs for REAL ID 
official purposes.\71\ If an individual does not have a REAL ID-
compliant DL/ID, the individual may use another acceptable form of 
identification as determined by individual agencies' identity 
verification and access policies.\72\ In accordance with the 2008 Final 
Rule, enforcement on the card-based enforcement date will be applied 
unilaterally, across all respective agency locations in the United 
States and its territories including, accessing Federal facilities, 
boarding federally regulated commercial aircrafts (i.e., TSA airport 
security checkpoints), and entering nuclear power plants.
---------------------------------------------------------------------------

    \71\ The Act does not require individuals to present 
identification where it is not currently required to access a 
Federal facility (such as to enter the public areas of the 
Smithsonian).
    \72\ Alternate acceptable forms of identification may include, 
and are not limited to, U.S. passports, and passport cards.
---------------------------------------------------------------------------

    DHS estimates that by the card-based enforcement date, 
approximately between 61 and 66 percent of all State-issued DL/IDs will 
be REAL ID-compliant based on adoption data provided by States, to DHS, 
through January 2024. The lower-end values represent a monthly adoption 
rate similar to current rates through card-based enforcement.\73\ 
However, DHS expects that the adoption rate may also increase ahead of 
the card-based enforcement date as a result of both natural adoption 
prior to enforcement and efforts by DHS to drive awareness and action. 
Ahead of the card-based enforcement deadline, DHS plans to launch 
additional phases of its public service campaign ``Be Your REAL ID 
Self[hairsp]'', which in part, provides toolkits for Government and 
industry partners. To account for this increased rate of adoption, DHS 
uses a Compounded Monthly Growth Rate of 1.03 percent (compared to a 
current 0.56 percent CMGR) for its higher-end value of 66 percent of 
REAL ID compliant DL/IDs by the card-based enforcement date.
---------------------------------------------------------------------------

    \73\ In section IV(B)(2)(d)(4), Forecast of REAL ID Compliance 
Under Phased Enforcement, DHS estimates 61.2 percent of REAL ID 
Compliant DL/IDs by applying a 0.56 percent compounded monthly 
growth rate which represents the adoption of REAL IDs between 
January 2023 and January 2024. This represents a lower-end forecast 
where DHS assumes the monthly adoption rate of REAL IDs remains 
unchanged leading up to the card-based enforcement date of May 7, 
2025. DHS also presents a high-end forecast of 66.0 percent of REAL 
ID compliant DL/IDs that uses a compounded monthly growth rate of 
1.03 percent and represents the adoption of REAL IDs between January 
2020 and January 2024 which captures periods of high and low 
adoption of REAL IDs.
---------------------------------------------------------------------------

    As a result, approximately between 34 percent and 39 percent of DL/
IDs in circulation will be non-compliant (either legacy or non-
compliant marked DL/IDs). Individuals with non-REAL ID-compliant DL/IDs 
will not be permitted to use those DL/IDs to access Federal facilities 
nationwide, including the security checkpoint at airports, unless they 
are able to present an approved alternate form of identification such 
as a passport.\74\
---------------------------------------------------------------------------

    \74\ In 2008, DHS issued the Minimum Standards for Driver's 
Licenses and Identification Cards Acceptable by Federal Agencies for 
Official Purposes Final Rule. In the Regulatory Evaluation for the 
Final Rule, DHS noted that 25 percent of the population already held 
a valid passport and that in a few years' time the Department of 
State anticipated that the figure would increase to approximately 33 
percent. As of 2023, the Department of State reports that 
160,668,889 valid passports (including passport books) are in 
circulation (https://travel.state.gov/content/travel/en/about-us/reports-and-statistics.html). Over the 10-year period of 2014 to 
2023, approximately 13.24 percent of passports issued were passports 
cards. The Department of State notes that one customer may also have 
both a passport book and card which counts as two valid passports. 
To prevent double counting for individuals that hold both a passport 
book and a passport card, DHS multiplies 160,668,889 by 1 minus 
13.24 percent to estimate 139,396,328 passports. Using the Census 
Bureau's projected population for 2023, DHS estimates that 
approximately 41 percent of the population has a passport. DHS 
acknowledges that some percentage of individuals with REAL-ID 
compliant DL/IDs may also hold a passport and thus there is 
uncertainty with how many individuals with non-compliant IDs will be 
able to use a passport as an alternate form of identification.
---------------------------------------------------------------------------

d. Adoption of REAL ID-Compliant DL/IDs
    Prior to the onset of the COVID-19 pandemic in the United States in 
October 2019, DHS estimated that approximately 33 percent, or 90.9 
million of the 274.8 million DL/IDs in circulation, were REAL ID-
compliant.\75\ In April 2020, DHS issued an amended final rule to 
further delay the card-based enforcement date from October 1, 2020, to 
October 1, 2021. DHS noted that the COVID-19 pandemic had caused 
significant disruption citing that State and local government offices, 
including the DMV, have restricted all but the most essential services, 
and that in some cases, had been temporarily closed to the public. In 
October 2020, national REAL ID compliance was approximately 41 
percent.\76\ Three years later, in

[[Page 3492]]

October 2023, the national REAL ID compliance rate increased to 
approximately 56 percent.\77\ Despite a modest increase in the number 
of compliant REAL IDs between October 2023 and January 2024, the 
percentage of REAL ID DL/ID remains unchanged at 56 percent over this 
time period, with the remaining 44 percent of State-issued DL/IDs being 
noncompliant.\78\
---------------------------------------------------------------------------

    \75\ DHS began to collect data from the states including, total 
number of DL/IDs, number of REAL IDs, number of non-compliant cards, 
and number of ``legacy'' cards in July 2019. Monthly reporting 
subsequently began in October 2019.
    \76\ 41.08 Percent of REAL ID-compliant IDs in October 2020 = 
112,807,718 REAL IDs / 274,611,013 Total IDs in Circulation.
    \77\ 56.11 Percent of REAL ID-compliant IDs in October 2023 = 
160,039,272 REAL IDs / 285,246,641 Total IDs in Circulation.
    \78\ 56.42 Percent of REAL ID-compliant IDs in January 2024 = 
162,111,658 REAL IDs / 287,321,596 Total IDs in Circulation.
---------------------------------------------------------------------------

    However, individual State compliance includes a wider range of 
rates. Table 2 presents REAL ID compliance over time based on the 56 
licensing jurisdictions percentage of REAL IDs issued relative to the 
total number of IDs in circulation for each jurisdiction. As shown in 
the table, State compliance rates have generally increased over time. 
For instance, the number of licensing jurisdictions where the 
percentage of REAL IDs, relative to all DL/IDs in circulation, is 
greater than 75 percent has increased from eight jurisdictions in 
October 2019 to 17 in January 2024. Similarly, the number of licensing 
jurisdictions where the percentage of REAL IDs, relative to all DL/IDs 
in circulation, is less than 25 percent has decreased from 31 in 
October 2019 to 9 in January 2024.

                                      Table 2--REAL ID Compliance Over Time
----------------------------------------------------------------------------------------------------------------
                                                                       Number of licensing jurisdictions
 Range (REAL IDs as a percentage of total IDs in circulation ---------------------------------------------------
                      by jurisdiction)                          October      October      October      January
                                                                  2019         2020         2023         2024
----------------------------------------------------------------------------------------------------------------
0%-24%......................................................           31           22           12            9
25%-49%.....................................................           11           15           16           18
50%-74%.....................................................            6            9           12           12
75%-100%....................................................            8           10           16           17
----------------------------------------------------------------------------------------------------------------

1. Compounded Monthly Growth Rates (CMGR)
    DHS began receiving monthly data on the number of REAL IDs for each 
of the 56 licensing jurisdictions in October 2019 (and has monthly data 
through early 2024). Using this data, DHS calculates the growth, or 
increase, in number of REAL IDs month over month, relative to the total 
number of DL/IDs in circulation. Using the historic adoption data, DHS 
calculates CMGRs which represents growth over various intervals of 
time. In subsequent sections, DHS uses CMGRs to forecast REAL ID 
compliance.
    In the first 6 months that DHS began to receive monthly data, 
between October 2019 and March 2020, the CMGR of REAL IDs was 
approximately 2.5 percent. Between April and May of 2020, the CMGR of 
REAL IDs had decreased to 0.5 percent. The CMGR later increased to 
approximately 2.0 percent between June 2020 and October 2020. Over the 
3 years following October 2020, the CMGR of REAL IDs was 1.3 percent 
between October 2020 and September 2021, 0.9 percent between October 
2021 and September 2022, and 0.8 percent between October 2022 and 
September 2023. Over the 12-month period, between January 2023 and 
January 2024, the national CMGR for the adoption of REAL IDs was 0.56 
percent.\79\
---------------------------------------------------------------------------

    \79\ 0.56 percent CMGR (January 2023 through January 2024) = 
((162,111,658 REAL IDs in January 2024 / 151,652,714 REAL IDs in 
January 2023) [supcaret] (1 / 12) - 1).
---------------------------------------------------------------------------

2. Projection of Total Number of DL/IDs
    DHS leverages monthly data received from the 56 licensing 
jurisdictions to estimate the total number of DL/IDs in future months. 
The report provides DHS with the total number of DL/IDs in circulation, 
including the proportions of REAL-ID compliant, ``legacy'' cards, and 
non-compliant cards. Based on the January 2024 data from the licensing 
jurisdictions, there were 287,321,596 DL/IDs in circulation.
    DHS uses this value as a starting overall DL/ID population. Next, 
DHS leverages the U.S. Census Bureau's Monthly Population Estimates for 
the United States to estimate the total U.S. population and proportion 
with a DL/ID. DHS first estimates the total population using Census 
Bureau annual population data to calculate a compound annual growth 
rate (CAGR) of 0.60 percent in the U.S. population from 2012 to 
2022.\80\ DHS divides the CAGR of 0.60 percent by 12 to calculate a 
simple compound monthly growth rate (CMGR) of 0.05 percent. DHS then 
uses Census Bureau monthly population estimates through December 2023, 
and applies the simple CMGR of 0.05 percent to forecast the population 
for each month through October 2027.\81\ DHS estimates a total 
population of 355,966,451 in January 2024.
---------------------------------------------------------------------------

    \80\ U.S. Census Bureau (December 2019). Annual Estimates of the 
Resident Population for the United States: April 1, 2010, to July 1, 
2019 (NST-EST2019-01). Retrieved from https://www.census.gov/data/tables/time-series/demo/popest/2010s-national-total.html. Accessed 
on May 12, 2023.
    \81\ U.S. Census Bureau (December 2023). Monthly Population 
Estimates for the United States: April 1, 2020, to December 1, 2024 
(NA-EST2023-POP). Retrieved from https://www.census.gov/data/tables/time-series/demo/popest/2020s-national-total.html. Accessed on 
January 4, 2024.
---------------------------------------------------------------------------

    Last, DHS divides the total number of DL/IDs by the total 
population. As of January 2024, 85.5 percent of the population held a 
driver's license or identification card.\82\ DHS assumes this 
proportion of the population holds true through October 2027 (some 
portion of the adult population may not need a DL/ID, along with most 
of the population under the legal driving age). DHS multiplies the 85.5 
percent proportion by the projected population each month to estimate 
the total number of DL/IDs in circulation.
---------------------------------------------------------------------------

    \82\ 85.5 percent of the population as DL/ID holders in January 
2024 = 287,321,596 (DL/IDs in circulation as of January 2024) / 
355,966,451 (total population in January 2024).
---------------------------------------------------------------------------

3. Forecast of REAL ID Compliance Under Status Quo
    If full card-based enforcement, absent phased enforcement, were to 
take place on May 7, 2025, DHS assumes that the adoption of REAL ID-
compliant DL/IDs will spike leading up to, and continuing for a period 
of time past, the card-based enforcement date as individuals, who may 
otherwise have held off on acquiring a REAL ID-compliant DL/IDs, will 
take steps to ensure they will not be turned away from Federal 
facilities where a REAL ID will be required for official purposes.
    DHS assumes such a spike will be similar to a 23 percent increase 
that the Department of State experienced in

[[Page 3493]]

passport applications after implementation of the first phase of the 
Western Hemisphere Travel Initiative (WHTI).\83\ Specifically, in 
fiscal year 2007, the Department of State experienced an influx of 
passport applications prior to, and after, the implementation of its 
first phase of the WHTI, which established new document requirements 
for travelers entering the United States from within the Western 
Hemisphere. At the time, the Department of State forecasted it would 
receive approximately 15 million passport applications in the 2007 
fiscal year, however, it ended up receiving approximately 18.6 million 
passport applications, an approximate 23 percent increase over the 
original estimate.\84\
---------------------------------------------------------------------------

    \83\ The populations affected by WHTI and REAL ID, while not 
exact, are similar in the sense that both initiatives affect 
identity documentation required by the traveling public and are not 
intended to represent the population of those who are obtaining 
government services. DHS believes WHTI represents a situation 
similar enough to REAL ID to serve as a proxy absent better 
information. See 71 FR 68412 (November 24, 2006).
    \84\ Government Accountability Office (GAO) (July 2008). State 
Department: Comprehensive Strategy Needed to Improve Passport 
Operations. GAO-08-891, page 16. Retrieved from https://www.gao.gov/assets/gao-08-891.pdf. Accessed on March 15, 2024.
---------------------------------------------------------------------------

    As aforementioned, in January 2024, 56.42 percent or 162.1 million 
of the 287.3 total IDs in circulation are REAL ID-compliant. Based on 
the data range of January 2023 through January 2024, DHS expects that 
through April 2024, the 0.56 percent CMGR for the adoption of REAL IDs 
to remain unchanged,\85\ bringing the percentage of REAL IDs relative 
to all IDs in circulation to 57.3 percent. In the year leading up to 
the card-based enforcement deadline, DHS considers a similar situation 
as the influx of passports leading up to, and through, the 
implementation of WHTI, and applies a 23 percent increase in the 
adoption of REAL IDs (equivalent to a CMGR of 1.61 percent).\86\ Using 
this methodology,\87\ by May 2025, approximately 70 percent or 202.7 
million of the total 289.6 million IDs in circulation would be REAL-ID 
compliant.\88\
---------------------------------------------------------------------------

    \85\ See footnote 63.
    \86\ Based upon the WHTI scenario, DHS assumes a 23 percent 
increase to the total number of REAL IDs in April 2024 (164,837,213 
REAL IDs), approximately one-year prior to card-based enforcement. 
TSA assumes the 23 percent increase will be spread across the 13 
months leading up to card-based enforcement on May 7, 2025. 
202,749,772 REAL IDs in May 2025 = 164,837,213 REAL IDs in April 
2024 x (1 + 23 Percent). Since the 23 percent increase is spread out 
over the year leading up to the card-based enforcement date, DHS 
uses the resulting number of REAL IDs in May 2025 to calculate a 
1.61 Percent CMGR. 1.61 Percent CMGR = (202,749,772 REAL IDs in May 
2025 / 164,837,213 REAL IDs in April 2024) [supcaret] (1 / 13)-1).
    \87\ Under the status quo, which would result in full, and 
immediate, card-based enforcement on May 7, 2025, DHS estimates a 23 
percent increase in the adoption of REAL IDs in the year leading up 
to card-based enforcement, adopted based on the implementation of 
WHTI. Absent this influx, and under Phased Enforcement beginning May 
7, 2025, DHS evaluates two scenarios in section IV(B)(2)(d)(4), 
Forecast of REAL ID Compliance Under Phased Enforcement. First, a 
lower estimate which assumes no changes to the 0.56 percent CMGR 
which results in 61.2 percent of all DL/IDs in May 2025 being REAL 
ID compliant. Second, a higher estimate which uses a 1.03 percent 
CMGR resulting in 66 percent of all DL/IDs being REAL ID compliant 
in May 2025.
    \88\ 70.00 Percent of REAL IDs in May 2025 = 202,749,772 REAL 
IDs in May 2025 / 289,641,636 IDs in Circulation in May 2025.
---------------------------------------------------------------------------

    Following the card-based enforcement date, DHS expects the spike to 
remain in place for approximately 4 to 5 months as individuals work to 
secure appointments with their local DMV.\89\ DHS applies the 1.61 
percent CMGR to estimate the percentage of REAL IDs in October 2025. 
DHS estimates approximately 75 percent of DL/IDs in circulation would 
be REAL ID-compliant.\90\
---------------------------------------------------------------------------

    \89\ The WHTI was implemented in two phases with the second 
impacting land and seaports beginning at the end of January 2008 
(2008 fiscal year). As such, following the initial spike in passport 
applications within fiscal year 2007, the Department of State also 
issued a higher than historical number of passports in fiscal year 
2008 despite the total number of passports issued being lower than 
the preceding year. (Department of State. Reports and Statistics. 
U.S. Passports Issued Per Fiscal Year (1996-2023). Retrieved from 
https://travel.state.gov/content/travel/en/about-us/reports-and-statistics.html. Accessed on March 15, 2024.) Absent the final rule, 
following the card-based enforcement date, full enforcement would 
begin so there would be no similar resurgence as seen with WHTI 
implementation. However, a similar spike may be seen with the 
implementation of the phased enforcement rule. Under which, 
following the initial spike, there will likely be a decrease in 
adoption rates, before a second spike leading up to the May 2027 
full compliance date.
    \90\ 75.09 Percent of REAL IDs Compliant in October 2025 = 
218,052,964 REAL IDs in October 2025 / 290,370,483 IDs in 
Circulation in October 2025.
---------------------------------------------------------------------------

    To forecast beyond October 2025, under the status quo of full 
enforcement beginning May 2025, DHS assumes a 50-percent decrease of 
the initial spike in the adoption of REAL IDs between October 2025 and 
October 2026.\91\ DHS estimates that by October 2026, one and a half 
years after the card-based enforcement deadline, approximately 83 
percent of DL/IDs in circulation would be REAL ID-compliant.\92\ 
Subsequently, to estimate the percentage of REAL IDs relative to all 
DL/IDs in circulation, 2 years after the card-based enforcement date, 
DHS assumes an additional 50-percent decrease in the adoption of REAL 
IDs between October 2026 and October 2027.\93\ Under this assumption, 
DHS estimates that approximately 87 percent of DL/IDs would be REAL ID-
compliant by October 2027.\94\
---------------------------------------------------------------------------

    \91\ 11.5 Percent Increase in REAL IDs (One Year After Card-
Based Enforcement) = (23 Percent Initial Surge / 2) x 100. 
Equivalent to a 0.91 Percent CMGR. 0.91 Percent CMGR = ((243,121,919 
REAL IDs in October 2026 / 218,052,964 REAL IDs in October 2025) 
[supcaret] (1 / 12)-1).
    \92\ In the Regulatory Evaluation for the 2008 Final Rule, DHS 
assumed 75 percent of the population that hold DL/IDs would seek to 
obtain a REAL ID. DHS describes this assumption further in the 
subsequent section, however, the 83 percent compliance rate by 
October 2026, roughly over one-and-a-half-years post card-based 
enforcement exceeds the 75 percent assumption. DHS notes that the 
adoption rate for REAL ID may decrease when REAL ID reaches a 
natural adoption threshold.
    \93\ 5.75 Percent Increase in REAL IDs = (11.5 Percent Initial 
Surge / 2) x 100. Equivalent to a 0.47 Percent CMGR. 0.47 Percent 
CMGR = ((257,101,923 REAL IDs in October 2027 / 243,121,919 REAL IDs 
in October 2026) [supcaret] (1 / 12)-1).
    \94\ Supra note 76.
---------------------------------------------------------------------------

    DHS assumes that once the percentage of REAL IDs, relative to all 
DL/IDs in circulation reach a natural adoption threshold or equilibrium 
\95\ (with all those who want/need a REAL ID largely have them or an 
alternate form of identification), which DHS currently assumes as 75 
percent, the increase in the proportional value over subsequent months 
and years would be minimal.\96\ In 2008, DHS issued the Minimum 
Standards for Driver's Licenses and Identification Cards Acceptable by 
Federal Agencies for Official Purposes Final Rule. The NPRM which 
preceded the 2008 Final Rule included DHS's assumption that 100 percent 
of the population that hold DL/IDs would seek to obtain a REAL ID. 
However, in the 2008 Final Rule, the assumption was revised to 75 
percent.\97\ DHS noted that the 100 percent assumption was unrealistic 
if States do not require all applicants to obtain REAL IDs. DHS further 
cited, that if States offer a choice of either compliant or non-
compliant licenses to applicants, that some portion of the population 
will choose to receive non-compliant licenses because they may not need 
a REAL ID for Federal

[[Page 3494]]

official purposes or they may already possess a compliant alternate 
form of identification.\98\ While DHS maintains the 75 percent 
assumption from the 2008 Final Rule, DHS acknowledges the uncertainty 
and that the natural threshold for REAL ID compliance may be above or 
below 75 percent.
---------------------------------------------------------------------------

    \95\ The natural adoption threshold or equilibrium is the 
estimated proportion at which TSA assumes most people who want a 
REAL ID largely have them, and it is unlikely to change much in the 
absence of any changes in conditions. This accounts for some portion 
of the population that chooses not to obtain a REAL ID (as States 
continue to offer non-compliant DL/IDs).
    \96\ DHS anticipates future renewal surges associated with 
existing REAL-ID holders, and additional initial adoptions 
associated with population growth.
    \97\ In 2008, DHS noted that approximately 25 percent of the 
population held a valid passport. Furthermore, DHS noted that 20 
percent of the population has never flown on a commercial plane, and 
47 percent flies rarely or never. Combining the two groups, at least 
40 percent of the population would not need to obtain a REAL ID. 
However, DHS assumed some proportion of the combined grouping would 
obtain a REAL ID regardless, reducing the estimate to 25 percent. 
Subtracting this 25 percent estimate from the initial 100 percent 
assumption results in 75 percent that would obtain a REAL ID.
    \98\ Department of Homeland Security. April 28, 2008. Regulatory 
Evaluation for REAL ID Program. Docket DHS-2006-0030. https://www.regulations.gov/document/DHS-2006-0030-10704.
---------------------------------------------------------------------------

    In subsequent sections, DHS refers to the 75 percent assumption as 
the 75 percent threshold. The threshold represents an assumed natural 
point where REAL ID adoption will slow and essentially not grow in 
proportion as all those willing to get a REAL ID have done so. While 
DHS assumed this value to be approximately 75 percent, the actual rate 
could be higher or lower.\99\
---------------------------------------------------------------------------

    \99\ DHS believes there is a greater likelihood of the actual 
REAL ID threshold being greater than 75 percent rather than lower 
than 75 percent.
---------------------------------------------------------------------------

4. Forecast of REAL ID Compliance Under Phased Enforcement
    To estimate the percentage of REAL ID-compliant DL/IDs by the card-
based enforcement date, May 7, 2025, DHS uses the 0.56 percent CMGR 
estimated from January 2023 to January 2024.\100\ Next, DHS applies the 
0.56 CMGR over the 16 months between January 2024 and May 2025 to 
forecast the percentage of REAL IDs in circulation by May 2025, 
relative to all IDs in circulation. Using this methodology, DHS 
estimates that approximately 61 percent of all IDs in circulation would 
be REAL ID-compliant by the card-based enforcement date.
---------------------------------------------------------------------------

    \100\ Supra note 76.
---------------------------------------------------------------------------

    The aforementioned methodology assumes that the 16 months between 
January 2024 and May 2025 will be similar to the trends seen between 
January 2023 and January 2024.\101\ Accordingly, DHS provides an 
alternate forecast on the percentage of REAL ID-compliant DL/IDs in May 
2025 using the 1.03 percent CMGR for the adoption of REAL ID over last 
4-years.\102\ DHS applies the 1.03 percent CMGR over the 16 months 
between January 2024 and May 2025 to forecast that approximately 66 
percent of IDs in circulation by May 2025 would be REAL ID-compliant by 
the card-based enforcement date.
---------------------------------------------------------------------------

    \101\ DHS acknowledges that there is a level of uncertainty with 
compliance rates. For instance, closer to the card-based enforcement 
date, the adoption rate may increase. Furthermore, the final rule, 
and by extent, subsequent phased enforcement plans adopted by some 
agencies may provide individuals additional time to become compliant 
and thus result in lower or stagnant adoption rates.
    \102\ 1.03 percent CMGR (January 2020 through January 2024) = 
((162,111,658 REAL IDs in January 2024 / 99,076,573 REAL IDs in 
January 2020) [supcaret] (1 / 48)-1). DHS uses the last 4 years of 
data reported by all licensing jurisdictions to represent a more 
comprehensive timeframe, capturing periods of high and low adoption 
of REAL IDs.
---------------------------------------------------------------------------

    Using the aforementioned CMGRs, 0.56 percent and 1.03 percent, DHS 
estimates that approximately 61 percent (lower-end of forecast) and 66 
(upper-end of forecast) of all DL/IDs in circulation by May 2025 would 
be REAL ID-compliant, respectively. Table 3 reflects the forecasted 
number of REAL IDs using the two CMGR described in this section.

                       Table 3--Forecasted Number, and Percentage of, REAL IDs in May 2025
----------------------------------------------------------------------------------------------------------------
                                                                  Last 12 month trend       Last 4 year trend
                                                                  (0.56 percent CMGR)      (1.03 percent CMGR)
----------------------------------------------------------------------------------------------------------------
Approx. IDs in Circulation....................................                     289,641,636
                                                               -------------------------------------------------
Forecasted Number of REAL IDs.................................              177,187,465              191,027,256
REAL IDs as a Percentage of All IDs...........................                    61.2%                    66.0%
----------------------------------------------------------------------------------------------------------------

    As shown in table 3, under both the 0.56 percent CMGR and the 1.03 
percent CMGR, the forecasted percentage of REAL IDs relative to all DL/
IDs in circulation for May 2025, 61.2 percent and 66.0 percent, 
respectively, falls below the 2008 assumption that 75 percent of all 
holders would seek to obtain a REAL ID. In table 4, DHS illustrates the 
breakdown of how many DL/IDs would need to be REAL ID-compliant by the 
card-based enforcement date to meet the 75 percent threshold. Applying 
the 75 percent assumption from the 2008 Rule results in approximately 
217.2 million of the 289.6 million IDs in circulation, in May 2025, 
would be REAL ID-compliant. As shown, in addition to the 25 percent of 
DL/IDs in circulation that DHS assumes would be non-compliant, an 
additional 40.0 million and 26.2 million DL/IDs that would have been 
assumed to be REAL ID-compliant, respectively, would not be able to be 
used for official purposes beginning May 7, 2025.
    Next, DHS estimates the CMGR needed to reach the 75 percent of REAL 
ID-compliant licenses and identification cards by the card-based 
enforcement date using the January 2024 national compliance rate for 
REAL ID of 56 percent. In the sixteen months between January 2024 and 
May 2025, the average monthly CMGR for the adoption of REAL ID would 
need to increase to 1.85 percent.\103\
---------------------------------------------------------------------------

    \103\ 1.85 percent CMGR = ((217,231,227 REAL IDs to Achieve 75 
Percent Threshold in May 2025 / 162,111,658 REAL IDs in January 
2024) [supcaret] (1 / 16)-1).

                     Table 4--Number of REAL IDs in May 2025 to Achieve 75 Percent Threshold
----------------------------------------------------------------------------------------------------------------
                                         Last 12 month trend       Last 4 year trend      75% assumption  (1.85
                                         (0.56 percent CMGR)      (1.03 percent CMGR)         percent CMGR)
----------------------------------------------------------------------------------------------------------------
Approx. IDs in Circulation...........                                 289,641,636
                                      --------------------------------------------------------------------------
Number of REAL IDs Needed to Achieve                              217,231,227 (75.0%)
 75% Threshold.
                                      --------------------------------------------------------------------------
DHS Forecasted REAL IDs..............  177,187,465 (61.2%)....  191,027,256 (66.0%)....  217,231,227
Difference Between Threshold and       40,043,762 (13.8%).....  26,203,971 (9.0%)......  0 (0.0%)
 Forecasted.
----------------------------------------------------------------------------------------------------------------


[[Page 3495]]

    Next, DHS uses two scenarios to forecast the national compliance 
rate following the card-based enforcement date. First, DHS assumes the 
61.2 percent and 66.0 percent REAL ID adoption trends presented in 
table 3 remain unchanged after the start of card-based enforcement. 
Under this scenario, 2 years after card-based enforcement, in May 2027, 
which is when phased approach plans would need to commence full 
enforcement by, the national REAL ID rate would be 69.1 percent and 
83.4 percent.\104\
---------------------------------------------------------------------------

    \104\ The 83.4 percent compliance rate by May 2027, 2 years 
after the card-based enforcement deadline, exceeds the 75 percent 
assumption from the 2008 Regulatory Evaluation. DHS notes that the 
adoption rate for REAL ID may dampen as it approaches or starts to 
exceed 75 percent of the population.
---------------------------------------------------------------------------

    Following the card-based enforcement date, DHS expects a change in 
the rate of adoption. Phased enforcement plans could result in REAL ID 
compliance being spread over time compared to continued increases in 
compliance if full card-based enforcement went into effect across all 
agencies. Phased enforcement may also incentivize some portion of the 
public to obtain a REAL ID as DHS begins card-based enforcement in May 
2025 without further extensions and as non-compliant DL/ID holders 
attempt to use non-compliant identification for official purposes 
during the period of phased enforcement. For this second scenario, DHS 
uses the midpoint of the two CMGRs (0.56 percent and 1.03 percent) used 
to estimate the national REAL ID rate in May 2025 to estimate the 
national REAL ID rate after the card-based enforcement date. Using this 
methodology, DHS calculates a 0.79 percent CMGR which would likely 
capture a balance between potential high and low adoption rates for 
REAL IDs.\105\ Next, DHS applies the 0.79 percent CMGR to the 61.2 
percent and 66.0 percent estimates for May 2025. Two years after the 
commencement of card-based enforcement, by May 2027, DHS estimates 
approximately 73.1 percent and 78.8 percent of DL/IDs issued would be 
REAL ID-compliant, respectively.\106\ Depending on the scenario, the 75 
percent threshold may be reached as early as July 2026. However, under 
a lower CMGR, in which the CMGR stays at 0.56 percent, the 75 percent 
threshold may not be reached until October 2028.
---------------------------------------------------------------------------

    \105\ 0.79 Percent CMGR = (0.557 Percent CMGR (Last Twelve 
Months) + 1.031 Percent CMGR (Last 48 Months)) / 2.
    \106\ In the Regulatory Evaluation for the 2008 Final Rule, DHS 
assumed 75 percent of the population that hold DL/IDs would seek to 
obtain a REAL ID. However, the 78.8 percent compliance rate by May 
2027, roughly 2 years post card-based enforcement exceeds the 75 
percent assumption. DHS notes that the adoption rate for REAL ID may 
decrease when REAL ID reaches a natural adoption threshold.
---------------------------------------------------------------------------

5. Summary of REAL ID Compliance
    Table 5 describes the proportion of all DL/IDs that are REAL ID-
compliant under the baseline scenario and phased enforcement at 6-month 
intervals leading up to, and after, the card-based enforcement date. In 
the baseline scenario, as discussed in section IV.B.2.d.3, DHS assumes 
a spike in REAL ID compliance in the year leading up to the card-based 
enforcement date (1.61 percent CMGR). DHS then assumes a reduction in 
the CMGR to 0.91 percent from October 2025 to October 2026 and to 0.47 
percent after October 2026. This accounts for anticipated increases 
leading up to and through enforcement including natural adoption prior 
to a deadline, additional informational campaigns, and increased 
incentives for those without REAL ID compliant DL/IDs that would be 
denied when using non-compliant DL/IDs for official purposes.
    DHS also presents two phased enforcement scenarios that each 
include a lower and upper bound range, as discussed in section 
IV.B.2.d.4. Under the first phased enforcement scenario, DHS assumes 
trend growth rates remain the same before and after the card-based 
enforcement date (0.56 percent CMGR for the lower bound estimate, 1.03 
percent CMGR for the upper bound estimate). This scenario assumes no 
change in identified trends leading up or after enforcement where the 
lower value represents current adoption rates (unchanged) and the 
higher value accounts for enforcement and phased enforcement impacts on 
adoption rates. Under the second phased enforcement scenario, DHS 
assumes the 0.56 percent CMGR for the lower bound estimate and 1.03 
percent CMGR for the upper bound estimate up to the card-based 
enforcement date. After the card-based enforcement date, DHS assumes a 
change in the CMGR to 0.79 percent, the midpoint of the lower bound and 
upper bound trend rates to represent possible changes in behavior post 
enforcement date. Specifically, that in the lower end, more individuals 
will get REAL DL/IDs and on the higher end, less will seek REAL DL/IDs. 
However, DHS acknowledges there is a level of uncertainty with such 
adoption rates.

                                     Table 5--REAL ID Compliance by Scenario
----------------------------------------------------------------------------------------------------------------
                                               Phased enforcement scenario 1     Phased enforcement scenario 2
                                                     (constant rates)              (post enforcement change)
            Month              Baseline  (%) -------------------------------------------------------------------
                                                Lower bound     Upper bound
                                                    (%)             (%)        Lower bound (%)   Upper bound (%)
----------------------------------------------------------------------------------------------------------------
May 24......................            58.2            57.6            58.7              57.6              58.7
Nov 24......................            63.8            59.3            62.2              59.3              62.2
May 25......................            70.0            61.2            66.0              61.2              66.0
Nov 25......................            75.7            63.1            69.9              64.0              69.0
May 26......................            79.7            65.0            74.1              66.9              72.1
Nov 26......................            83.6            67.0            78.6              69.9              75.4
May 27......................            85.7            69.1            83.4              73.1              78.8
----------------------------------------------------------------------------------------------------------------

    The baseline and phased enforcement scenarios present different 
trade-offs. Under the baseline scenario, the REAL ID compliance rate 
grows and increases more quickly as a result of more rapid surges in 
adoption. Such a surge in application for REAL IDs, may lead to 
potential backlogs at State DMVs and provide individuals reduced 
options after the enforcement date (e.g., denied DL/ID use for official 
purpose). This may serve as a strong motivator but may also have 
negative consequences (e.g., not allowed to board a commercial flight 
for a critical matter).
    Under a phased approach, DHS forecasts a slower adoption of REAL 
ID, as compared to the baseline, with

[[Page 3496]]

compliance increases being spread over the 2-year phased enforcement 
period. This approach provides individuals more time to obtain a REAL 
compliant DL/ID and allows individuals who possess non-compliant DL/IDs 
to use such DL/IDs for official purposes while also creating 
opportunities for enforcement mechanisms (e.g., warnings) that may 
serve to incentivize the public to obtain a REAL ID without, or 
reduced, negative consequences.
    DHS notes that differences in compliance rates between the baseline 
and scenarios could have large impacts. For example, TSA screens 
approximately 2.5 million passengers a day.\107\ If one percent of 
those passengers were to present a noncompliant DL/ID at a checkpoint, 
it would result in 25,000 passengers being unable to use the 
noncompliant DL/ID at the checkpoint in just a single day. If this was 
extrapolated out a week the number increases to 175,000, then 750,000 
in a month and 2,250,000 in three months all of which may result in 
operational and security concerns. DHS recognizes TSA is a large use 
case, but also recognizes that impacts on a smaller scale could apply 
to other Federal agencies. If TSA chooses to employ phased enforcement 
at security screening checkpoints, the impacts associated with 
travelers presenting non-compliant DL/IDs would be reduced and spread 
out over the course of the phased enforcement plan, rather than 
absorbed in the initial days of enforcement. TSA may also employ other 
actions to limit or address concerns and mitigate any impediments on 
the traveling public associated with enforcement, but any such actions 
and associated impacts are separate from this rule. Regardless, DHS 
believes a phased enforcement approach will help reduce challenges that 
large numbers of non-compliant DL/ID holders could present compared to 
full and immediate enforcement under the baseline.
---------------------------------------------------------------------------

    \107\ Transportation Security Administration. TSA checkpoint 
travel numbers (current year versus prior year/same weekday). 
Passenger Volumes. Retrieved from: https://www.tsa.gov/travel/passenger-volumes. Accessed on August 1, 2024.
---------------------------------------------------------------------------

a. Phased Enforcement Population
    Under the REAL ID Act and regulations, on and after the card-based 
enforcement date, Federal agencies are prohibited from accepting non-
REAL ID-compliant DL/IDs for official purposes. The rulemaking will 
allow Federal agencies to implement the card-based enforcement 
requirement of the REAL ID Act and regulations under a phased approach 
if the agency determines a significant security or operational risk, or 
if public services offered by the agency will be impacted with full 
enforcement. Federal agencies that opt to do so must coordinate a plan 
with DHS. After coordination of a plan with DHS, a Federal agency may 
continue to accept non-REAL ID-compliant licenses and IDs on and after 
May 7, 2025, as part of a phased enforcement plan. To ensure that 
agencies' enforcement plans appropriately advance the objectives of the 
REAL ID regulations, this rule requires agencies' plans to include 
measures for full card-based enforcement by May 5, 2027.
    Based on agency information in the Federal Register, DHS estimates 
there are 434 Federal agencies, including cabinet-level departments, 
who may require REAL IDs for official Federal purposes.\108\ To 
estimate the number of Federal agencies that will submit a phased 
enforcement plan under this rulemaking, DHS considered three factors; 
(1) agencies that are on track to not accept noncompliant marked cards 
on, or before, the card-based enforcement date; (2) agencies that do 
not typically require forms of identification for official purposes 
(e.g. to be presented for entry); and (3) DHS' monthly engagements with 
Federal stakeholders.
---------------------------------------------------------------------------

    \108\ Federal Register. Retrieved from https://www.federalregister.gov/agencies. Accessed on May 10, 2023.
---------------------------------------------------------------------------

    Agencies on track to not accept noncompliant marked cards on or 
before the card-based enforcement date. First, each Federal agency has 
the authority to set its own minimum security access requirements and, 
if desired, can decide not to accept noncompliant marked cards before 
the card-based enforcement date. For example, the U.S. Department of 
Defense (DoD) finalized an update to its DoD-wide installation security 
policy and is in the process of no longer accepting noncompliant marked 
cards across all of its facilities and installations.\109\ DHS assumes 
Federal agencies on track to implement enforcement by the effective 
date, are more likely to not pursue a phased enforcement plan.
---------------------------------------------------------------------------

    \109\ DoD will continue to accept state-issued noncompliant 
unmarked ``legacy'' cards until the May 7, 2025, deadline. 
Department of Homeland Security. REAL ID Frequently Asked Questions. 
Retrieved from https://www.dhs.gov/real-id/real-id-faqs. Accessed on 
August 2, 2024.
---------------------------------------------------------------------------

    Agencies that do not, or do not typically, require forms of 
identification to be displayed for entry. Each facility makes a risk-
based decision to determine if a form of identification is needed for 
entry, and if so, which forms will be accepted. For instance, an agency 
may require identification as part of their overall security strategy 
including, but not limited to, checking the individual against a 
checklist, or to verify that the individual is on an invitation or 
approved visitors list. If an agency only requires an individual to 
present a form of identification solely to record the individual's 
presence as opposed to for screening and access purposes, the 
requirements under the REAL ID Act of 2005 would not apply.
    There are agencies that do not typically require forms of 
identification for official purposes or only experience of low volume 
of such interactions. A key factor in an agency's consideration may be 
the number of individuals that enter, or pass through, the Federal 
facility in a given day. For some Federal agencies, access to certain 
areas of the facility is presently granted without the need for an 
individual to present a form of identification for entry. For instance, 
the public areas of the Smithsonian and the National Park Service 
(NPS). While the Smithsonian and NPS will still be required to enforce 
REAL ID requirements on the card-based enforcement date, the 
enforcement will be limited to the individuals attempting to access the 
non-public areas. Presumably, as the number of individuals to this 
restricted entry area are significantly fewer than the daily number of 
visitors to Smithsonian facilities and National Parks, agencies like 
the Smithsonian and NPS may not need to submit phased enforcement plans 
due to limited security or operational risks.
DHS' Monthly Engagements With Federal Stakeholders
    In Fall 2023 and the first quarter of 2024, DHS began hosting 
monthly stakeholder engagement sessions with Federal agencies.\110\ 
During these sessions, DHS briefed agencies regarding the card-based 
enforcement date and this rulemaking to allow agencies the option for a 
phased approach if they determine such a plan is appropriate. Through 
hosting the sessions, DHS was able to establish a greater 
understanding, across the Government, on which agencies may consider a 
phased approach based on security, operational, or public impact risks 
associated with full enforcement. For instance, some agencies noted 
that they will follow guidance put forth by their cabinet-level 
department. Of the sample of agencies invited,

[[Page 3497]]

approximately 63 percent attended one or more stakeholder meetings. 
Based on feedback from agencies and recurring attendance over months, 
DHS assumes that 50 percent of agencies that attended one or more 
meetings will pursue a phased enforcement plan.
---------------------------------------------------------------------------

    \110\ While engagements with Federal stakeholders have continued 
since the publication of the NPRM, there have not been significant 
updates that would impact the supporting analysis. As such, DHS 
retains its initial assumptions for the Final Rule.
---------------------------------------------------------------------------

    Based on these three factors, DHS assumes that of the 434 Federal 
agencies, 96 percent will not submit a phased enforcement plan. As 
such, these agencies will join the Department of Defense and begin full 
card-based enforcement on May 7, 2025. While individuals will need to 
present a REAL-ID compliant identification or an approved alternate 
identification for official purposes from that date forth; based on 
engagements with DHS subject matter experts (SMEs) and Federal 
agencies, the vast majority of agencies do not handle a significant 
volume, on a daily basis, of individuals required to present REAL ID 
for official Federal purposes.\111\
---------------------------------------------------------------------------

    \111\ DHS notes that most Federal employees and contractors have 
existing access to their respective facilities via employee 
identification/access cards and will not require separate submission 
of a REAL ID for access.
---------------------------------------------------------------------------

    DHS assumes that the remaining 4 percent of Federal agencies will 
develop and coordinate phased enforcement plans with DHS. The majority 
of such plans are anticipated to represent a low-to-medium use case 
(e.g., visitor access to a facility) with TSA representing a high-use 
case given the volume of individuals boarding federally regulated 
commercial aircraft per day.\112\
---------------------------------------------------------------------------

    \112\ TSA presents a unique and the largest use case for REAL ID 
enforcement. Each day, the agency screens over two million 
passengers at airport security checkpoints across the United States 
and its territories.
    TSA Checkpoint Travel Numbers (Current Year Versus Prior 
Year(s)/Same Weekday). https://www.tsa.gov/travel/passenger-volumes. 
Accessed August 18, 2023.
---------------------------------------------------------------------------

b. Cost of the Final Rule
    The following summarizes the estimated costs of the final rule over 
a 2-year period of analysis. Specifically, impacts are evaluated 
between 2024 and 2025 to align with agency efforts to develop a phased 
enforcement plan prior to the current card-based enforcement date.\113\
---------------------------------------------------------------------------

    \113\ DHS retains the evaluation of cost for the rule over a 2-
year period, as presented in the NPRM. Based on engagements with 
stakeholders, DHS believes that federal agencies have already 
incurred some costs in 2024 as they have discussed the necessity, 
and the possibility of, implementing a phased enforcement plan. DHS 
also acknowledges there are minimal impacts to cost in terms of 
discounting.
---------------------------------------------------------------------------

    Federal agencies will incur costs to familiarize themselves with 
the rule, assess whether to implement a phased enforcement plan, and if 
so, develop a plan. DHS, as the agency administering the REAL ID 
program, will incur costs to coordinate with Federal agencies that 
voluntarily implement a phased enforcement plan.
Compensation Rates
    DHS estimates the labor-related costs for DHS and other Federal 
agencies. First, DHS uses the GS, step 3 wage scale for the Washington 
DC metro area to represent the annual wage for each GS level.\114\ For 
Senior Executive Service (SES) employees, DHS uses the midpoint of the 
range of basic pay as the estimate for the SES annual wage.\115\
---------------------------------------------------------------------------

    \114\ Salary Table No. 2023-DCB, Pay & Leave: Salaries & Wages, 
Office of Personnel Management, https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/23Tables/html/DCB.aspx. DHS typically uses the DHS Modular Cost Model (not 
publicly available) which leverages DC-area locality, Step 3, for 
budgeting to assist with calculating benefits, and other forms of 
compensation for Federal employees. DHS uses Step 3 for wages to 
align with DHS Modular Cost Model.
    \115\ The basic pay for SES employees in 2023 ranged from 
$141,022 to $212,200 with a midpoint of $176,561. Salary Table No. 
2023-ES, Pay & Leave: Salaries & Wages, Office of Personnel 
Management, www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/23Tables/exec/html/ES.aspx.
---------------------------------------------------------------------------

    DHS then multiplies annual wages for each GS level and SES by a 
compensation factor that represents fully loaded compensation rates. 
The compensation factor is the sum of all annual compensation which 
includes wages and internal DHS data on awards, bonuses, personnel 
benefits, and transit benefits, divided by the annual wage.
    DHS calculates a compensation rate per hour by dividing the annual 
fully loaded compensation rates by 2,087, which represents the number 
of annual work hours.\116\ Table 6 summarizes the compensation rates 
per hour for the relevant labor categories DHS uses in the analysis.
---------------------------------------------------------------------------

    \116\ OPM changed the 2,080 work hours to 2,087 by amending 5 
U.S.C. 5504(b), the latter is assumed to capture year-to-year 
fluctuations in work hours. Source: Consolidated Omnibus Budget 
Reconciliation Act of 1985 (Pub. L. 99-272, April 7, 1986).

                                      Table 6--Compensation Rates per Hour
----------------------------------------------------------------------------------------------------------------
                                                         Compensation           Annual         Compensation rate
         Labor category               Annual wage        factor \117\      compensation rate       per hour
                                                   a                   b           c = a x b       d = c / 2,087
----------------------------------------------------------------------------------------------------------------
GS-13...........................            $119,482               1.353            $161,673              $77.47
GS-14...........................             141,192               1.349             190,482               91.27
GS-15...........................             166,079               1.346             223,507              107.09
SES.............................             176,561               1.345             237,416              113.76
----------------------------------------------------------------------------------------------------------------
Note: Calculation may not be exact due to rounding.

DHS Costs
    DHS will incur costs related to coordinating with Federal agencies 
on their phased enforcement plans to address any potential concerns 
ahead of the REAL ID card-based enforcement date. This includes the 
cost to develop guidance for agencies on phased enforcement and time to 
review and coordinate with agencies on their plans. Furthermore, DHS 
will publish the list of agencies that have coordinated phased 
enforcement plans.
---------------------------------------------------------------------------

    \117\ Compensation factors for the different GS levels and SES 
vary because DHS calculates some benefits as a percentage of wages 
and other benefits are static amounts that are equal for all GS 
levels and SES.
---------------------------------------------------------------------------

    DHS will develop guidance to inform Federal agencies that they may 
implement REAL ID card-based enforcement using a phased approach, how 
to do so, and the level of coordination necessary with DHS. DHS 
consulted with internal SMEs who estimate a range to develop guidance 
between 60 to 100 hours. DHS uses the midpoint of this range, 80 hours, 
to calculate the cost to develop guidance. DHS assumes this time will 
be split between GS-13, GS-14, and GS-15 employees, with a respective 
burden of 45 percent, 45 percent, and 10 percent. DHS calculates a 
weighted average guidance development compensation rate of $86.64 per 
hour by summing the product of the compensation rates and the 
proportion of burdens for the

[[Page 3498]]

respective groups of employees contributing to the efforts.\118\ DHS 
estimates a $6,931 guidance development cost by multiplying the 80-hour 
burden and the weighted average guidance development compensation rate 
of $86.64 per hour.
---------------------------------------------------------------------------

    \118\ $86.64 guidance development compensation per hour = (45 
percent GS-13 burden x $77.47 GS-13 compensation per hour) + (45 
percent GS-14 burden x $91.27 GS-14 compensation per hour) + (10 
percent GS-15 burden x $107.09 GS-15 compensation per hour).
---------------------------------------------------------------------------

    DHS coordination will also include reviewing phased enforcement 
plans to ensure compliance with the REAL ID Act and regulations (but 
will not include approval of plans). DHS consulted with internal SMEs 
who estimate a range to coordinate and review plans between 8 and 24 
hours per plan.\119\ DHS uses the midpoint of the range, 16 hours per 
plan, to calculate DHS coordination costs. DHS assumes this time will 
be split between GS-13 and GS-14 employees, with a respective burden of 
50 percent and 50 percent. DHS estimates a weighted average 
coordination compensation of $84.37 per hour by summing the product of 
the compensation rates and the proportion of burdens for the respective 
groups of employees contributing to the efforts.\120\ DHS estimates the 
coordination cost by multiplying the 18 agencies that will develop 
plans, the 16-hour time burden, and weighted average coordination 
compensation rate of $84.37 per hour for a total coordination cost of 
$24,298.\121\
---------------------------------------------------------------------------

    \119\ Phased Enforcement Plan coordination and review time 
estimate is less than it would take for a formal approval.
    \120\ $84.37 coordination compensation per hour = (50 percent 
GS-13 burden x $77.47 GS-13 compensation per hour) + (50 percent GS-
14 burden x $91.27 GS-14 compensation per hour).
    \121\ DHS assumes 4 percent of the 434 Federal agencies will 
submit phased enforcement plans, or about 18 agencies (see Phased 
Enforcement Population). DHS coordination cost = 18 agencies x 16 
hours x $84.37 = $24,298.
---------------------------------------------------------------------------

    DHS will also incur costs to make publicly available a list of 
agencies that have coordinated phased enforcement plans with DHS. DHS 
will publish the list of agencies on a web page on DHS's REAL ID 
website prior to the card-based enforcement date. DHS SMEs estimate it 
will take 16 hours to create, review, approve, and publish content on 
its existing REAL ID website. DHS assumes this time would be split 
between GS-13 and GS-14 employees, with a respective burden of 50 
percent and 50 percent. DHS estimates a weighted average publishing 
compensation of $84.37 per hour by summing the product of the 
compensation rates and the proportion of burdens for the respective 
groups of employees contributing to the efforts.\122\ DHS calculates a 
publishing cost of $1,350 by multiplying the 16-hour burden and 
weighted average publishing compensation rate of $84.37 per hour. DHS 
assumes the incremental maintenance costs for this one web page will be 
minimal because DHS already maintains the DHS REAL ID website. 
Furthermore, DHS will not need to update the website content frequently 
because all Federal agencies that voluntarily implement a phased 
enforcement plan will need to do so by May 7, 2025.
---------------------------------------------------------------------------

    \122\ $84.37 weighted average publishing compensation per hour = 
(50 percent GS-13 burden x $77.47 GS-13 compensation per hour) + (50 
percent GS-14 burden x $91.27 GS-14 compensation per hour).
---------------------------------------------------------------------------

    DHS estimates the 2-year total cost for phased enforcement 
coordination to be $0.033 million undiscounted and $0.031 million 
discounted at 2 percent. Table 7 describes the total costs of the final 
rule to DHS.

                                                               Table 7--Total Cost to DHS
                                                             [$Actual dollars, 2023 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        Cost to develop   Cost to coordinate    Cost to publish                 Total cost
                                                           guidance      --------------------        list        ---------------------------------------
                        Year                         --------------------                    --------------------              d = a + b + c
                                                                                   b                             ---------------------------------------
                                                               a                                       c             Undiscounted      Discounted at 2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
2024: 1.............................................              $6,931                  $0                  $0              $6,931              $6,795
2025: 2.............................................                   0              24,298               1,350              25,648              24,652
                                                     ---------------------------------------------------------------------------------------------------
    Total...........................................               6,931              24,298               1,350              32,579              31,447
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

Federal Agency Costs
    All Federal agencies will need to familiarize themselves with the 
final rule and phased enforcement concept and determine if a phased 
enforcement plan is necessary. DHS assumes at least one attorney and 
one manager at the GS-14 and GS-15 levels within each agency will 
review the rule. DHS estimates that each person reviewing the 
rulemaking will spend an average of 1.1 hours.\123\ DHS calculates a 
weighted average familiarization compensation rate of $99.18 per hour 
by summing the product of the compensation rates and the proportion of 
burdens for the respective groups of employees contributing to the 
efforts.\124\ DHS estimates the cost for all Federal agencies to 
familiarize themselves with phased enforcement by multiplying the 434 
Federal agencies, the two employees per agency reviewing the 
rulemaking, the 1.1 hours familiarization burden and the weighted 
average familiarization compensation rate of $99.18 per hour for an 
initial familiarization cost of $94,145.\125\
---------------------------------------------------------------------------

    \123\ DHS estimates a familiarization cost and time burden based 
on the time required to read all of the words in the final rule. DHS 
also assumes that individuals responsible for reviewing the final 
rule read at a rate of 238 words per minute. 1.09 familiarization 
time burden = 15,616 words in final rule / 238 words per minute / 60 
minutes. Brysbaert, Marc, ``How many words do we read per minute? A 
review and meta-analysis of reading rate.'' Journal of Memory and 
Language (Aug. 2019).
    \124\ DHS estimates one GS-14 and one GS-15 employee will spend 
an equal amount of time to review the final rule (i.e., a 50 percent 
burden for the GS-14 level and 50 percent burden for the GS-15 
level). $99.18 weighted average familiarization compensation per 
hour = (50 percent GS-14 burden x $91.27 GS-14 compensation per 
hour) + (50 percent GS-15 burden x $107.09 GS-15 compensation per 
hour).
    \125\ Note: Calculation may not be exact due to rounding.
---------------------------------------------------------------------------

    In addition to familiarization, all Federal agencies will need to 
determine if based on their specific environment, developing and 
coordinating a phased enforcement plan is necessary. DHS SMEs estimate 
Federal agencies will spend, on average, between 10 to 40 hours to make 
a determination. DHS uses the midpoint of the range, 25 hours, to 
calculate the cost to make a determination. DHS assumes this time will 
be split between a GS-15 and SES, with a respective burden of 50 
percent and 50 percent. DHS calculates a

[[Page 3499]]

weighted average plan determination compensation of $110.43 per hour by 
summing the product of the compensation rates and the proportion of 
burdens for the respective groups of employees contributing to the 
efforts.\126\ DHS estimates the cost for all Federal agencies to 
determine a need for a phased enforcement plan by multiplying the 434 
Federal agencies, the 25-hour burden, and the plan determination 
compensation rate of $110.43 per hour. This plan determination cost is 
$1.20 million.\127\
---------------------------------------------------------------------------

    \126\ DHS assumes the burden to make a plan determination is 
split with 50 percent of the effort by GS-15 employees and 50 
percent by SES employees because the determination will be made by 
senior level employees. $110.43 weighted average plan determination 
compensation per hour = (50 percent GS-15 burden x $107.09 GS-15 
compensation per hour) + (50 percent SES burden x $113.76 SES 
compensation per hour).
    \127\ Note: Calculation may not be exact due to rounding.
---------------------------------------------------------------------------

    Federal agencies that develop phased enforcement plans will also 
incur costs to develop and coordinate their respective plans with DHS. 
DHS assumes plan development and coordination will include preparing 
briefing materials for the public and updating the agency's website to 
inform the public of the phased enforcement plan and policies. DHS SMEs 
estimate Federal agencies will spend, on average, between 150 and 300 
hours to develop plans. DHS uses the midpoint of the range, 225 hours, 
to calculate the cost to develop plans. DHS assumes this time will be 
split between GS-14, GS-15, and SES employees, with a respective burden 
of 45 percent, 45 percent, and 10 percent. DHS estimates a weighted 
average plan development compensation of $100.64 per hour by summing 
the product of the compensation rates and the proportion of burdens for 
the respective groups of employees contributing to the efforts.\128\ 
DHS multiplies the 18 agencies that develop plans,\129\ the 225-hour 
development time burden, and the plan development compensation rate of 
$100.64 per hour to calculate a plan development cost of $407,594.\130\
---------------------------------------------------------------------------

    \128\ $100.64 weighted average plan development compensation per 
hour = (45 percent GS-14 burden x $91.27 GS-14 compensation per 
hour) + (45 percent GS-15 burden x $107.09 GS-15 compensation per 
hour) + (10 percent SES burden x $113.76 SES compensation per hour).
    \129\ DHS assumes 4 percent of the 434 Federal agencies will 
submit phased enforcement plans, or about 18 agencies (see Phased 
Enforcement Population).
    \130\ Note: Calculation may not be exact due to rounding.
---------------------------------------------------------------------------

    Table 8 presents the total Federal cost estimates over the 2-year 
period of analysis which equates to $1.70 million undiscounted and 
$1.67 million discounted at 2 percent.

                                                   Table 8--Total Quantified Cost to Federal Agencies
                                                            [$ Actual dollars, 2023 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        Familiarization   Plan determination   Plan development       Total cost to Federal agencies
                                                             cost                cost                cost        ---------------------------------------
                        Year                         ------------------------------------------------------------              d = a + b + c
                                                                                                                 ---------------------------------------
                                                               a                   b                   c             Undiscounted      Discounted at 2%
--------------------------------------------------------------------------------------------------------------------------------------------------------
2024: 1.............................................             $94,145          $1,198,136            $407,594          $1,699,874          $1,666,543
2025: 2.............................................                   0                   0                   0                   0                   0
                                                     ---------------------------------------------------------------------------------------------------
    Total...........................................              94,145           1,198,136             407,594           1,699,874           1,666,543
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

Unquantified Costs
    The final rule will also include non-quantified impacts and costs 
to affected entities. Such impacts are difficult to quantify largely 
due to a high degree of uncertainty. One such impact is the delay of 
benefits from the original rule by implementing the card-based 
enforcement requirement of the REAL ID rule in a phased manner. Full 
security benefits associated with the REAL ID rule will not be 
realized, as a result of agencies implementing a phased approach, until 
full enforcement occurs. As the benefits associated with the 2008 rule 
are difficult to quantify, so too is the quantification of their 
delay.\131\ Nonetheless, this final rule will have less unrealized or 
delayed security benefits compared to an extension of the full 
compliance date.
---------------------------------------------------------------------------

    \131\ In GAO Report 12-893 (Driver's License Security), GAO 
highlights the steps taken by States to detect counterfeit documents 
and identity thefts, many of the same requirements of the REAL ID 
Act. For instance, the verification of Social Security as well as 
the use of SAVE have helped reduced the number of fraudulent 
licenses issued. Retrieved from https://www.gao.gov/assets/gao-12-893.pdf. Accessed on August 28, 2024.
---------------------------------------------------------------------------

    Federal agencies that voluntarily implement card-based enforcement 
in a phased approach will incur costs related to plan implementation. 
However, DHS assumes there will be a high degree of variability among 
such plans, and agencies will have discretion to determine what aspects 
to include in a phased enforcement plan. Nonetheless, Federal agencies 
will likely incur costs related to training necessary personnel on the 
processes and procedures of phased enforcement plans. Federal agencies 
will also likely incur costs to inform the public or appropriate 
stakeholders impacted about the new identity verification procedures 
related to the agencies' phased enforcement plans (e.g., awareness 
campaign through media, signage at access points, and/or providing 
notices for individuals with non-compliant identification). Such costs 
may extend through agencies' phased enforcement plans, beyond years one 
and two of this analysis. Individuals may also incur costs to become 
aware of phased enforcement plans and respond accordingly.
Total Cost of Phased Enforcement Rule
    Table 9 presents the 2-year total cost of the phased enforcement 
final rule. DHS estimates the total cost of the final rule to be $1.73 
million undiscounted and $1.70 million discounted at 2 percent.

[[Page 3500]]



                                 Table 9--Total Cost of Phased Enforcement Rule
                                         [Actual dollars, 2023 dollars]
----------------------------------------------------------------------------------------------------------------
                                      Cost to DHS       Cost to Federal                 Total cost
                                 --------------------      agencies      ---------------------------------------
              Year                                   --------------------                c = a + b
                                           a                             ---------------------------------------
                                                               b             Undiscounted      Discounted at 2%
----------------------------------------------------------------------------------------------------------------
2024: 1.........................              $6,931          $1,699,874          $1,706,805          $1,673,339
2025: 2.........................              25,648                   0              25,648              24,652
                                 -------------------------------------------------------------------------------
    Total.......................              32,579           1,699,874           1,732,453           1,697,991
                                 -------------------------------------------------------------------------------
    Annualized..................  ..................  ..................  ..................             874,549
----------------------------------------------------------------------------------------------------------------
Note: Totals may not add due to rounding.

a. Benefits of the Final Rule
    Phased enforcement provides Federal agencies the flexibility on how 
to start enforcing REAL ID card-based enforcement requirements in a 
manner that may reduce operational disruption, security risk, and 
public impact. This is especially relevant for Federal agencies that 
process large numbers of individuals and require identification for 
access purposes. Phased enforcement provides Federal agencies more time 
to implement strategies to engage stakeholders and encourage REAL ID 
adoption. It can also provide time for agencies to develop alternative 
means to ensure continued operations for services or activities that 
require use of REAL ID for official purposes. Allowance of a phased 
approach will not unnecessarily delay REAL ID enforcement for those 
Federal agencies ready to fully implement while also allowing more time 
for those Federal agencies who they themselves, or their stakeholders, 
will benefit from more time to implement.
    Phased enforcement of the card-based requirement will provide the 
public more time to obtain REAL-ID compliant DL/IDs. This may mitigate 
a potential backlog of applications for States with lower compliance 
rates.\132\ The percentage of DL/IDs that are REAL ID-compliant lags 
well behind the national average in some States and those States may 
otherwise experience a surge in REAL ID applications in the absence of 
phased enforcement. States may thus be able to avoid an increase in 
processing times and costs related to measures to alleviate backlogs in 
applications, such as longer operating hours, increasing staff, and 
overtime pay. States and their DMVs may also be able to smooth out 
their operational needs, as the phased enforcement approach may 
mitigate a surge in REAL ID applications prior to full enforcement.
---------------------------------------------------------------------------

    \132\ DHS forecasts the rate of REAL IDs under the baseline 
scenario would reach 85.7 percent by May 2027 whereas, DHS forecasts 
the rate under phased enforcement would be between 69.1 to 83.4 
percent by May 2027. This 2.3 to 16.6 difference helps spread the 
processing of REAL ID requests for states as well as reducing 
additional negative impacts associated with rapid enforcement.
---------------------------------------------------------------------------

    A higher proportion of individuals with compliant identification 
also reduces potential queuing and associated delays. For example, if 
an individual presents valid, non-REAL ID-compliant identification at 
an access point, security or screening workforce may require additional 
time to confirm the individual's identity, and/or explain the 
requirements of REAL ID and thus delay the individual, or not provide 
the individual access.\133\ Such delays may also have downstream 
impacts and cause longer delays for other individuals waiting in line 
at the access point, including for those who may possess a REAL ID-
compliant document. However, under a phased enforcement plan, after 
verifying the individual's identity, the individual may be able to use 
the valid, non-compliant identification to access Federal facilities 
(for a temporary period of time).
---------------------------------------------------------------------------

    \133\ Delays may be short and straight forward or lengthy and 
more complex. For example, simply explaining the REAL ID 
requirements and providing an alternative form of identification may 
only take a few minutes whereas individuals unable to use a 
noncompliant DL/ID may escalate the situation, refusing to leave the 
access point, request to speak with supervisors, or even assaulting 
security or screening workforce which represent longer customer 
interactions and consume more resources (e.g., additional workforce 
and/or law enforcement) to resolve each interaction.
---------------------------------------------------------------------------

    Finally, any benefits to individuals or States associated with 
procuring a noncompliant card will be extended to those impacted 
through the phase-in period of card-based enforcement to the extent the 
agencies such individuals interact with for official purposes determine 
to implement card-based enforcement through a phased approach, in place 
of full and immediate enforcement on May 7, 2025; however, the security 
benefits associated with full enforcement will also be delayed.
b. Alternatives Considered
    DHS considered two alternatives under the proposed rule, the no 
action baseline scenario which would commence full card-based 
enforcement in May 2025 and an extension of the card-based enforcement 
deadline.
Alternative 1: Baseline Scenario
    In the no action baseline scenario (Alternative 1), full card-based 
enforcement would begin in May 2025 without further extensions of the 
enforcement date or a phased approach to enforcement.
    In the baseline scenario, absent phased enforcement, DHS forecasts 
that by May 2025, approximately 70 percent of all State-issued DL/IDs 
would be REAL ID-compliant. Full card-based enforcement when a 
significant percentage of the population could present non-compliant 
identification may increase operational risks to Federal agencies; 
especially agencies that process a large number of individuals per 
day.\134\ Federal agencies would be unable to accept noncompliant DL/
IDs and may have to turn away individuals unable to present REAL ID-
compliant identification, or another form of acceptable identification. 
Federal agencies would also spend additional time adjudicating such 
transactions where individuals present non-compliant identification, 
including handling additional questions and waiting for individuals to 
present compliant identification. Individuals without compliant 
identification and those waiting in long queues could become frustrated 
and cause incidents,

[[Page 3501]]

such as a backlash to security personnel enforcing REAL ID.
---------------------------------------------------------------------------

    \134\ For example, if an agency processes 2.5 million visitors a 
day and 30 percent of visitors have non-compliant DL/IDs, it could 
potentially result in 750,000 visitors being unable to use their DL/
IDs to gain access per day. Such large numbers of individuals with 
non-compliant identification could result in operational and 
security concerns as well as negative public impacts.
---------------------------------------------------------------------------

    The additional time required to adjudicate transactions involving 
the presentation of non-compliant identification could lead to delays 
including accessing Federal facilities and federally regulated 
commercial aircraft, which could impact both individuals with non-
compliant identification and individuals waiting in queues, increasing 
their time burden and associated opportunity costs. These delays could 
have a significant effect on the travel industry, with individuals 
unable to present compliant identification at TSA checkpoints being 
denied access, or individuals caught in long queues, that may result in 
canceling, postponing, or adjusting travel plans and incurring 
associated costs. This may include making alternative travel 
arrangements whose substitution may include less efficient modes of 
transportation (e.g., travelers deciding to drive rather than fly).
    While nationwide, approximately 56.4 percent of all DL/IDs are REAL 
ID-compliant as of January 2024, there is a wide distribution of 
compliance across States with some lagging well behind the national 
average. Implementation of full card-based enforcement in May 2025 may 
lead to a surge in REAL ID applications and visits to the Department of 
Motor Vehicles, especially in those States with lower levels of REAL ID 
adoption. As a result, States may incur additional costs to resolve 
such potential surges in applications, including, but not limited to, 
operating longer hours, hiring more workers, and providing overtime pay 
for employees. Surges in applications could also lead to additional 
costs for individuals, including increased processing times to obtain a 
REAL ID and increased waiting times at the Department of Motor 
Vehicles.
    For example, in 2007, DHS and the Department of State implemented 
the WHTI rule.\135\ The WHTI rule imposed new documentation 
requirements for U.S. citizens and nonimmigrant aliens from certain 
countries entering the United States from countries within the Western 
Hemisphere. The WHTI rule led to a larger than anticipated increase in 
passport applications in 2007, longer passport processing times from 5 
weeks to 10 to 12 weeks, and longer lines and crowded waiting rooms at 
Department of State facilities. The Department of State incurred $42.8 
million in costs (in 2007 dollars) to alleviate the surge in 
applications through additional staff, overtime pay, travel for 
temporary staff, telephone services for its call centers, equipment, 
and furniture.\136\
---------------------------------------------------------------------------

    \135\ 71 FR 68412 (November 24, 2006).
    \136\ State Department: Comprehensive Strategy Needed to Improve 
Passport Operations, United States Government Accountability Office 
(Jul. 28, 2008), available at https://www.gao.gov/assets/gao-08-891.pdf.
---------------------------------------------------------------------------

    Implementing full card-based REAL ID enforcement would allow for 
the full realization of the benefits of the REAL ID rule without 
further delay. Specifically, DHS believes the primary benefit of REAL 
ID enforcement, as discussed in the 2008 rule, would be a potential 
increase to U.S. national security by reducing the vulnerability to 
criminal or terrorist activity of Federal buildings, nuclear power 
plants, and aircraft. An additional possible benefit of the 2008 rule 
includes reducing fraud, by increasing the difficulty of fraudulently 
obtaining a valid license and increasing the cost to create false 
licenses.
    DHS rejects Alternative 1 as it limits the flexibility Federal 
agencies can use to implement REAL ID card-based enforcement. The 
potential for large numbers of individuals presenting non-REAL ID-
compliant identification as a means to verify identity to access 
Federal facilities could cause operational risks to Federal agencies; 
especially those that process large numbers of individuals (e.g., the 
airport security environment). Surges in REAL ID applications may also 
cause negative impacts to States in issuing REAL IDs, and individuals 
in obtaining them. The preferred alternative allows Federal agencies to 
take such factors into account and make determinations about how to 
address potential full card-based enforcement risks associated with the 
card-based enforcement date.
Alternative 2: Extension of Card-Based Enforcement Deadline
    In this alternative, DHS would issue a rule to extend the card-
based enforcement date from May 7, 2025, to some date between 1 and 2 
years later (Alternative 2). Alternative 2 is distinct from the 
preferred alternative because it extends the card-based enforcement 
date for all Federal agencies and does not specifically include an 
option to implement card-based enforcement through a phased approach. 
Under Alternative 2, Federal agencies would be prohibited from 
accepting noncompliant cards by a new date.
    While Alternative 2 would afford the public more time to obtain 
REAL ID-compliant identification, implementing Alternative 2 would 
potentially allow those without REAL ID-compliant DL/ID to prolong 
obtaining such document. REAL ID adoption rates may continue to 
decrease further then they have over the last 12 months. Issuing 
another extension may send a signal to individuals and industry that 
full implementation of REAL ID is delayed indefinitely and that 
additional extensions continue to be real possibilities thereby not 
providing sufficient encouragement or incentive for the public to 
obtain REAL IDs.
    This alternative would also delay the security benefits associated 
with the REAL ID rule across all Federal agencies until the extended 
card-based enforcement date.
    Under the Alternative 2, DHS and Federal agencies would be able to 
avoid the quantifiable and unquantifiable costs related to the 
preferred alternative. For Federal agencies, this includes phased 
enforcement plan development and implementation. Alternative 2 also 
shares some of the same benefits as the proposed rule. For example, 
extending the card-based enforcement date would provide the public more 
time to obtain a REAL ID and may mitigate a potential backlog of 
applications for States with lower compliance rates (or may simply 
further put off the issue without a real solution). States may be able 
to avoid costs related to measures to alleviate backlogs in 
applications for a period of time. The alternative would help Federal 
agencies that process large numbers of individuals avoid operational 
disruption in May 2025 because agencies would be able to continue to 
accept valid and unexpired non-REAL ID-compliant identification.
    DHS does not prefer Alternative 2. Since 2020, DHS has extended the 
card-based enforcement date on three occasions and by nearly 5 years. 
DHS believes the vast majority of Federal agencies will be ready to 
fully enforce the card-based deadline on May 7, 2025. Another extension 
may give the public and industry the impression that REAL ID will 
continue to be delayed and not enforced in the near future. Thus, the 
preferred alternative maintains the effective date for those Federal 
agencies able to implement yet also provides flexibilities for those 
who will benefit from additional time.
3. Regulatory Flexibility Assessment
    The RFA of 1980 (5 U.S.C. 601, et seq.) requires Federal agencies 
to consider the potential impact of regulations on small businesses, 
small government jurisdictions, and small organizations during the 
development of their rules.\137\ The Secretary, pursuant

[[Page 3502]]

to 5 U.S.C. 605(b), certifies that this rule will not have a 
significant economic impact on a substantial number of small entities. 
The final rule is only applicable to Federal agencies who under the RFA 
are not considered small entities. Accordingly, DHS is not required to 
prepare a regulatory flexibility analysis.
---------------------------------------------------------------------------

    \137\ Public Law 96-354, 94 Stat. 1164 (Sept. 19, 1980), 
codified at 5 U.S.C. 601 et seq., as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA).
---------------------------------------------------------------------------

4. Unfunded Mandates Reform Act Assessment
    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and Tribal 
governments and the private sector. Under section 202 of the UMRA, DHS 
generally must prepare a written Statement, including a cost-benefit 
analysis, for proposed and final rules with ``federal mandates'' that 
may result in expenditures by State, local, and Tribal governments in 
the aggregate or by the private sector of $100 million or more 
(adjusted for inflation) in any one year.
    Before DHS promulgates a rule for which a written statement is 
required, section 205 of the UMRA generally requires TSA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective, or least burdensome alternative 
that achieves the objectives of the rulemaking. The provisions of 
section 205 do not apply when they are inconsistent with applicable 
law. Moreover, section 205 allows DHS to adopt an alternative other 
than the least costly, most cost-effective, or least burdensome 
alternative if the proposed or final rule provides an explanation why 
that alternative was not adopted.
    Before DHS establishes any regulatory requirements that may 
significantly or uniquely affect small governments, including Tribal 
governments, it must develop under section 203 of the UMRA a small 
government agency plan. The plan must provide for notifying potentially 
affected small governments, enabling officials of affected small 
governments to have meaningful and timely input in the development of 
DHS regulatory proposals with significant Federal intergovernmental 
mandates, and informing, educating, and advising small governments on 
compliance with the regulatory requirements.
    When adjusted for inflation, the threshold for expenditures becomes 
$183 million in 2023 dollars. DHS has determined that this rule does 
not contain a Federal mandate that may result in expenditures that 
exceed that amount either for State, local, and Tribal governments in 
the aggregate in any one year thus a written statement is not required 
under UMRA.

D. Executive Order 13132 (Federalism)

    A rule has federalism implications under E.O. 13132, ``Federalism'' 
(64 FR 43255, Aug. 10, 1999), if it has a substantial direct effect on 
State governments, on the relationship between the National Government 
and the States, or on the distribution of power and responsibilities 
among the various levels of government. DHS has analyzed this final 
rule under E.O. 13132 and has determined that although this rulemaking 
may indirectly affect the States, it does not impose substantial direct 
compliance costs or preempt State law. The direct compliance costs to 
States for implementation of REAL ID requirements were already 
accounted for in DHS 2008 final rule.\138\ In fact, the final rule is 
responsive to concerns expressed by State agencies regarding the 
upcoming deadline and will potentially provide States' residents more 
time to obtain a REAL ID-compliant DL/ID if agencies determine to 
implement card-based enforcement through a phased approach. The key 
impact of the rulemaking is to allow Federal agencies the authority to 
provide a phased enforcement approach.
---------------------------------------------------------------------------

    \138\ See 73 FR 5272 (Jan. 29, 2008).
---------------------------------------------------------------------------

E. Executive Order 13175 (Tribal Consultation)

    This final rule does not have Tribal implications under E.O. 13175, 
``Consultation and Coordination with Indian Tribal Governments,'' 
because it does not have a substantial direct effect on one or more 
Indian Tribes, on the relationship between the Federal Government and 
Indian Tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian Tribes. The REAL ID Act 
applies solely to issuance and Federal acceptance of state issued DL/
ID. Section 202(a)(1) specifically provides, ``a Federal agency may not 
accept, for any official purpose, a driver's license or identification 
card issued by a state to any person unless the state is meeting the 
requirements of this section.'' Section 201(5) defines the term 
``state'' to mean ``a state of the United States, the District of 
Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Islands.'' Because Tribal 
governments do not fall within the statutory definition of ``state,'' 
identification cards issued by Tribal governments are not subject to 
REAL ID requirements.

F. Environmental Analysis

    DHS and its components review actions to determine whether National 
Environmental Policy Act \139\ (NEPA) applies to them and, if so, what 
degree of analysis is required. DHS Directive 023-01 Rev. 01 
(Directive) and Instruction Manual 023-01-001-01,\140\ Rev. 01 
(Instruction Manual) establishes the procedures that DHS and its 
components use to comply with NEPA and the Council on Environmental 
Quality (CEQ) regulations \141\ for implementing NEPA.
---------------------------------------------------------------------------

    \139\ See Public Law 91-190, 42 U.S.C. 4321-4347.
    \140\ See DHS, Implementing the National Environmental Policy 
Act, DHS Directive 023-01, Rev 01 (Oct. 31, 2014), and DHS 
Instruction Manual 023-01-001-01, Rev. 01 (Nov. 6, 2014), https://www.dhs.gov/publication/directive-023-01-rev-01-and-instruction-manual-023-01-001-01-rev-01-and-catex (last visited July 17, 2024).
    \141\ 40 CFR parts 1500 through 1508.
---------------------------------------------------------------------------

    The CEQ regulations allow Federal agencies to establish in their 
NEPA implementing procedures categories of actions (``categorical 
exclusions'') which experience has shown normally do not individually 
or cumulatively have a significant effect on the human environment and, 
therefore, do not require an environmental assessment or environmental 
impact statement.\142\
---------------------------------------------------------------------------

    \142\ See 40 CFR 1501.4(a).
---------------------------------------------------------------------------

    Under DHS NEPA implementing procedures, for an action to be 
categorically excluded, it must satisfy each of the following three 
conditions: (1) the entire action clearly fits within one or more of 
the categorical exclusions; (2) the action is not a piece of a larger 
action; and (3) no extraordinary circumstances exist that create the 
potential for a significant environmental effect.\143\
---------------------------------------------------------------------------

    \143\ See Instruction Manual, section V.B.2 (a-c).
---------------------------------------------------------------------------

    The clarification and notice provided by this final rule fits 
within categorical exclusion A3(d) ``Promulgation of rules . . . that 
interpret or amend an existing regulation without changing its 
environmental effect.'' Instruction Manual, appendix A, table 1. 
Furthermore, the final rule is not part of a larger action and presents 
no extraordinary circumstances creating the potential for significant 
environmental impacts. Therefore, the final rule is categorically 
excluded from further NEPA review.

G. Energy Impact Analysis

    The energy impact of this rulemaking has been assessed in 
accordance with the Energy Policy and Conservation Act (EPCA), Public 
Law 94-163, as amended

[[Page 3503]]

(42 U.S.C. 6362). DHS has determined that this rulemaking will not be a 
major regulatory action under the provisions of the EPCA.

H. Small Business Regulatory Enforcement Fairness Act of 1996 
(Congressional Review Act)

    Under the Congressional Review Act (CRA), enacted as part of the 
Small Business Regulatory Enforcement Fairness Act of 1996, Public Law 
104-121, the Administrator of the Office of Information and Regulatory 
Affairs has determined that this final rule meets the criteria in 5 
U.S.C. 804(2). The CRA generally provides a 60-day delayed effective 
date for such rules \144\ but an agency can bypass that requirement 
``for good cause.'' \145\ Because this rule provides flexibility for 
agencies to implement phased enforcement plans none of which will have 
any impact on the public until the REAL ID effective date on May 7, 
2025, DHS has for good cause found that the 60-day delay typically 
required under 5 U.S.C. 801(a)(3)(A) is unnecessary. Therefore, 
consistent with 5 U.S.C. 808(2), this rule will become effective 
January 14, 2025.
---------------------------------------------------------------------------

    \144\ See 5 U.S.C. 801(a)(3).
    \145\ See 5 U.S.C. 808(2).
---------------------------------------------------------------------------

List of Subjects in 6 CFR Part 37

    Document security, Driver's licenses, Identification cards, Motor 
vehicle administrations, Physical security.

Regulatory Amendments

    For the reasons set forth in the preamble, the Department of 
Homeland Security amends 6 CFR part 37 as follows:

PART 37--REAL ID DRIVER'S LICENSES AND IDENTIFICATION CARDS

0
1. The authority citation for part 37 continues to read as follows:

    Authority: 49 U.S.C. 30301 note; 6 U.S.C. 111, 112.


0
2. Amend Sec.  37.5 by revising paragraphs (b) and (c) and adding 
paragraphs (d) and (e) to read as follows:


Sec.  37.5  Validity periods and deadlines for REAL ID driver's 
licenses and identification cards.

* * * * *
    (b) Except as provided in paragraph (d) of this section, on or 
after May 7, 2025, Federal agencies shall not accept a driver's license 
or identification card for official purposes from any individual unless 
such license or card is a REAL ID-compliant driver's license or 
identification card issued by a State that has been determined by DHS 
to be in full compliance as defined under this subpart.
    (c) Through the end of May 6, 2025, Federal agencies may accept for 
official purposes a driver's license or identification card issued 
under Sec.  37.71. Except as provided in paragraph (d) of this section, 
on or after May 7, 2025, Federal agencies shall not accept for official 
purposes a driver's license or identification card issued under Sec.  
37.71.
    (d) Federal agencies may implement the requirements of paragraphs 
(b) and (c) of this section through a phased enforcement plan if the 
agency determines phased implementation is appropriate. Federal 
agencies that implement phased enforcement plans authorized by this 
paragraph (d) must:
    (1) Make a determination that a phased enforcement plan is 
appropriate in consideration of relevant factors including security, 
operational feasibility, and public impact;
    (2) Coordinate the phased enforcement plan with DHS;
    (3) Make the phased enforcement plan publicly available on the 
agency's web page; and
    (4) Achieve full enforcement of the requirements of paragraphs (b) 
and (c) of this section no later than May 5, 2027.
    (e) DHS will make publicly available on the DHS REAL ID web page a 
list of agencies that have coordinated phased enforcement plans with 
DHS pursuant to paragraph (d) of this section.

    Dated: January 7, 2025.
David P. Pekoske,
Administrator.
[FR Doc. 2025-00484 Filed 1-13-25; 8:45 am]
BILLING CODE 9110-05-P`