Coming on the heels of the new REAL ID Requirements, the Department of Homeland Security has announced the fiscal year 2008 REAL ID grants which total $79 million. Many states were scrambling to request extensions for the new requirements and these grants will provide states with some of the funding necessary to move towards REAL ID Compliance.

There was much resistance from many states regarding the new REAL ID requirements, specifically with the funding issues that would arise. These newly allocated grants will alleviate some of the burden on the States in the updating and upgrading of their drivers license system. The grants will fund specific statewide initiatives including, but not limited to: physical security of the license, upgrading facility security, as well as modernizing document imaging and storage.

With the REAL ID requirements in place, states were able to develop plans and determine the funding required for various portions of the new guidelines. These newly allocated grantswere based on each individual state plan and their needs. Several states received additional funding which would be used for pilot programs and a nationwide hub. The state of Missouri received nearly $18 million to develop a verification hub that will be used to confirm documentation against other states' databases. Additionally, Florida, Indiana, Wisconsin and Nevada received additional funding to test and implement Missouri's hub.

The significant funding being provided to states for their REAL ID requirements and drivers' license upgrades may increase state's motivation to move towards REAL ID compliance. As states become more willing to comply with the proposed guidelines, DHS will be more likely to provide additional funding in the future. Each state will have different needs and requirements and it is important for vendors to understand state's needs (and match it to their grants) and provides them with the necessary technology accordingly.

REAL ID Demonstration Awards, by State