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Activists Claim Success: No RFID Chips Required in Driver's License Regulations

The group claims the total cost of issuing new licenses with RFID chips could reach $17.4 billion and the average cost of a license would shoot from between $10 to $20 to more than $93.

Citizens Against Government Waste (CAGW) declared a victory for taxpayers and drivers yesterday after the Department of Homeland Security (DHS) released proposed regulations for personal identification that do not mandate the use of radio-frequency identification (RFID) technology. The REAL ID Act requires DHS to establish federal standards for state-issued driver's licenses and identification cards.

To meet the REAL ID requirement that licenses be "machine readable," DHS recommends the use of 2D bar codes, the technology that most states already use to make secure cards at a reasonable cost. No state currently uses RFID, an automatic identification method that relies on storing and remotely retrieving data using radio waves.

CAGW has released two reports, "Real ID: Big Brother Could Cost Big Money" and "Border Security: PASS Card Fails on Cost, Privacy" criticizing RFID-based identification. The group claims the total cost of issuing new licenses with RFID chips could reach $17.4 billion and the average cost of a license would shoot from between $10 to $20 to more than $93. In contrast, the National Conference of State Legislatures estimated that it would cost $9 to $13 billion to implement REAL ID Act regulations based on current licensing techniques. RFID also threatens privacy, said CAGW in a release, raising the possibility of identity thieves remotely accessing their victims' personal information with a hand-held scanner.