REAL ID Grant Funding

Fiscal Year 08

View the REAL ID Demonstration
Grant Awards Table

The Department of Homeland Security (DHS) has made available $361.375 million in grants (FY06 FY08) to assist states driver's license issuance authorities with REAL ID implementation:

• FY 2008 REAL ID Demonstration Grant Program - FEMA has awarded $79.875 million to assist states and territories with implementing REAL ID. The FY 2008 REAL ID Demonstration Grant Program is designed to assist state progress toward compliance with REAL ID implementation, including deploying the required verification systems and improving each jurisdiction's ability to connect to the required verification systems. Grant funds will help states enhance the integrity of driver's licenses (DL) and identification documents (ID) and improve state issuance capabilities, as well as system security.
• State Homeland Security Grant Program (SHSGP) - $274.5 million in State Homeland Security Grant Program (SHSGP) funds (20% of the total SHSGP minus M&A funds) were made available to states for REAL ID (FY07-FY08).
• REAL ID Pilot Project - The Commonwealth of Kentucky received $3 million in Fiscal Year (FY) 2006 to fund a REAL ID Pilot Project, which will test and validate birth record verification processes and develop a common set of standards that states can use during the driver's license issuance process.
• REAL ID Vital Events Verification State Project Grant – FEMA awarded Kentucky an additional $4 million to help state Departments of Motor Vehicles (DMVs) connect to state Vital Records Offices (VRO). Kentucky will enable state VROs to access the Electronic Verification of Vital Events hub (a web based portal) to verify birth and death record information of individuals applying for REAL ID driver's licenses and identification cards. Kentucky will also use these funds to compare U.S. foreign born citizens applying for a REAL ID driver's license with the Department of State's foreign born citizen birth record information.

The following jurisdictions did not submit grant proposals: Alaska, Idaho, Louisiana, Montana, New Hampshire, the Commonwealth of Northern Mariana Islands, Oklahoma, and Washington State.

Fiscal Year 2009

The President's FY 2009 budget also requests up to $110 million for REAL ID competitive grants for states as part of the National Security and Terrorism Prevention Grants, and $40 million in discretionary funds the state could use for REAL ID implementation as part of the State Homeland Security Grant Program. If the FY 2009 budget request is approved, this provides $511.375 million in grants (FY06-FY09) states can use to assist their driver's license issuance authorities with REAL ID implementation.

• Does DHS expect to make additional REAL ID grant funding available to states in FY 2009 and beyond?
  The President's FY 2009 budget requests up to $110 million for REAL ID grants for states as part of the National Security and Terrorism Prevention Grants, and $50 million in discretionary funds to support completion of a state-governed verification hub for REAL ID implementation.
• If a state already has a REAL ID grant award, can it apply for future REAL ID grant funding?
  Yes. States receiving grant funds in FY 2008 to implement REAL ID may both receive and apply for future funding for the same effort.

Grant Guidance Information

• REAL ID FY08 Grant Guidance (PDF, 38 pages - 174 KB ).

Verification Hub

• The verification hub is a single access point for a state's Department of Motor Vehicles (DMV) to verify a variety of source document data with multiple existing federal databases, state DMVs, and state Vital Record Agencies - including birth certificates, social security numbers, and state-issued driver's licenses. The hub is not a national storage mechanism for state DMV information; rather, it will receive a single DMV applicant information query and route that query to the relevant databases to verify the information with the issuing agency. The hub will consolidate the responses and send back to the requesting DMV a single message verifying the information. The DMV employee will then review the response message to determine whether to issue a REAL ID.
  The state-owned and -operated hub will be designed to provide timely, accurate, and cost-effective verification to all sources through a single mechanism. The alternative-having each state connect directly to every other state and to federal sources separately-is inefficient and cost-prohibitive.
• A lead state will head this effort to develop the hub and will work closely with the four verification pilot test states to test and validate system performance and functionality.

Monitoring and Reporting

• Will DHS monitor grant funded projects?
  FEMA's Regional Offices will be responsible for oversight of REAL ID grant implementation and related program management activities grantees undertake in the regions to comply with REAL ID. DHS and FEMA Regional Offices will work closely with REAL ID grant recipients to ensure a coordinated approach to effective REAL ID implementation in each region.
• What kind of reporting will DHS require from states that receive grant funding? Grant recipients will be required to submit semi-annual progress reports on the status of achievements with compliance benchmarks for REAL ID. Other reports such as the FEMA/GPD financial status report will also be submitted directly to FEMA/GPD pursuant to the terms and conditions and reporting instructions for the grantees. The reporting will set a baseline for the state's progress in meeting the requirements of REAL ID and a basis for performance as a factor for future grant awards.

Funding Conflicts

• If a state receives a REAL ID grant award, must the state use these dollars for REAL ID requirements - as opposed to funding a currently planned initiative that is not related to a requirement in REAL ID? How will states be held accountable for the ensuring that REAL ID grant awards are used on implementing REAL ID requirements? States must use grant funding for projects that meet the REAL ID final rule's requirements. Additionally, states will be required to report on their progress in meeting these requirements. The reporting will set a baseline for the state's compliance with REAL ID and a basis for performance as a factor for future grant awards.
• Does DHS consider state legislation prohibiting a state from compliance with the REAL ID Program a disqualifying factor for receiving a REAL ID grant?
  No. States with legislation in place that prohibits implementation of REAL ID may accept an award. However, the grant recipient must apply these funds to projects that improve their DL and ID issuance capabilities and procedures that satisfy the REAL ID final rule's requirements.
• If a state accepts REAL ID grant dollars, and at a later time its state legislature rules the state is not allowed to move forward with REAL ID implementation, does the state have to return the money? States with legislation in place that prohibits implementation of REAL ID may accept an award. However, the grant recipient must use these funds to improve their driver's license programs commensurate with REAL ID, which includes improvements in state driver's license issuance capabilities and procedures that satisfy the REAL ID final rule's requirements.