FR 2025-00484

Summary of the Document

The final rule issued by the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) pertains to the enforcement of the REAL ID Act, targeting the use of state-issued driver's licenses and identification cards for federal purposes. As mandated by the REAL ID Act, enforcement will begin on May 7, 2025. However, to offer flexibility, the rule allows federal agencies to adopt a phased approach, extending the full enforcement period to May 5, 2027, considering factors such as security, operational practicality, and public impact. Agencies choosing this phased rollout must coordinate with the DHS and make their plans publicly available.

Significant Issues and Concerns

One of the primary concerns of the rule is its complexity, which could make it difficult for the general public to fully understand due to its extensive regulatory analysis and legal terms. Furthermore, implementing phased enforcement could lead to inconsistent practices across various federal agencies, possibly causing confusion among the public about the identification requirements. There are also concerns about potential hidden costs and the actual economic impact of the rule, given that the cost estimates and benefits are based on forecasted adoption rates that may not be realized. Additionally, the document mentions potential privacy concerns related to the collection of personal information during the phased enforcement, but it does not provide clear guidelines or safeguards.

Impact on the Public

The public might be impacted by the shift to REAL ID-compliant identification cards, as individuals must ensure they have the right identification to access federal facilities or board commercial aircraft. The information campaign accompanying the rollout is intended to mitigate confusion; however, if the public isn't adequately informed, people may face logistical issues, such as difficulty accessing services or missing flights due to non-compliance.

Positive and Negative Impacts on Stakeholders

Positive Impacts:

For federal agencies, the rule provides flexibility in transitioning to full enforcement. This phased method could help avoid operational disruptions by distributing the compliance effort over time. Additionally, states may appreciate the extended time frame as it could alleviate potential backlogs at Department of Motor Vehicles (DMVs), providing a longer period to issue new compliant IDs.

Negative Impacts:

Conversely, the rule's lack of a uniform application across agencies could result in confusion as individuals may encounter different requirements depending on the agency they visit. This inconsistency could also lead to potential security vulnerabilities at federal facilities if enforcement policies vary significantly. Moreover, businesses such as airlines could face operational challenges if passengers without compliant IDs are stopped, causing delays and dissatisfaction.

In conclusion, while the phased enforcement approach aims to ease the transition to REAL ID compliance, it raises concerns about consistency, economic assumptions, and public preparedness, underscoring the need for clear communication and strategic planning across all stakeholders.

In reviewing the financial aspects of the Federal Register document on the implementation of the REAL ID phased enforcement plan, several key observations are noted regarding spending, cost estimates, and potential economic impacts.

Summary of Financial Allocations

The document estimates that the implementation of the phased enforcement rule will incur a total cost of $1.73 million over two years, which discounts to $1.70 million using a 2% discount rate. This cost encompasses both the expenses borne by the Department of Homeland Security (DHS) and other federal agencies involved. Specifically, the DHS itself anticipates costs of $0.033 million undiscounted (or $0.031 million discounted), attributed to coordination efforts with federal agencies. Meanwhile, federal agencies are expected to incur the bulk of the costs, totaling $1.70 million undiscounted (or $1.67 million discounted) for their phases of rule familiarization, development of enforcement plans, and associated activities.

Relation to Identified Issues

While the document outlines these financial allocations, one of the key issues identified is the potential for hidden costs related to the implementation process. The estimated spending, though minimal relative to the entire REAL ID project, may not fully account for less tangible costs associated with public awareness campaigns or potential adjustments arising from unforeseen public adoption rates. Furthermore, the financial references note a reliance on past data, projecting trends in REAL ID compliance rates that may not materialize as expected. This poses a risk to budgetary and policy planning, as unexpected shifts in the compliance rate could necessitate financial reallocations or increased spending to address potential shortfalls.

Technical and Operational Considerations

The document also highlights compensatory rates and labor costs associated with implementing the enforcement plans. For instance, an average guidance development compensation rate is calculated at $86.64 per hour, reflecting the percentage contributions of different government salary grades involved. These figures illustrate the potential administrative and operational costs, indicating a need for thorough management to prevent operational disruptions during full enforcement phases, which could both exacerbate expenses and lead to public dissatisfaction. Additionally, the complexity of language regarding growth rates and adoption percentages can pose a challenge for individuals without specialized knowledge, potentially complicating both public comprehension and agency execution.

In summary, the document provides a detailed estimation of the costs and efforts required for the phased enforcement of REAL ID compliance. However, it hinges on forecasts that might need adjustment in light of actual public adoption rates and operational experiences, underscoring the necessity for flexible financial planning and transparent communication strategies.