Improving Digital Identity Act of 2023

The Improving Digital Identity Act of 2023 establishes a 3-year Improving Digital Identity Task Force within the Executive Office of the President to develop secure, privacy-focused digital identity verification methods that build on existing physical credentials like driver's licenses and passports. The Task Force, composed of federal, state, tribal, and local government officials plus private sector experts, will assess current identity verification systems and recommend strategies for interoperable digital identity solutions while prohibiting a single government-mandated identity credential. The bill requires regular reports to Congress on the Task Force's progress and mandates annual reporting by federal agencies on their digital identity verification capabilities to improve security, reduce fraud, and protect individual privacy. It directly affects government agencies that issue identity credentials, businesses that rely on identity verification, and individuals seeking secure online transactions. The Task Force must submit a final report 180 days before its 3-year sunset.