1. Short title This Act may be cited as the Improving Digital Identity Act of 2020 . 2. Findings Congress finds the following: (1) The lack of an easy, affordable, and reliable way for organizations, businesses, and government agencies to identify whether an individual is who they claim to be online creates an attack vector that is widely exploited by adversaries in cyberspace, and precludes many high-value transactions from being available online. (2) Incidents of identity theft and identity fraud continue to rise in the United States, where more than 164,000,000 consumer records containing personally identifiable information were breached in 2019, increasing the total number of data breaches by 17 percent from the previous year. (3) In 2019, losses resulting from identity fraud amounted to $16,900,000,000. (4) In 2019, the Director of the Treasury Department Financial Crimes Enforcement Network stated, “The abuse of personally identifiable information, and other building blocks of identity, is a key enabler behind much of the fraud and cy­ber­crime affecting our nation today.” (5) Trustworthy digital identity solutions can help under-banked and unbanked individuals better access to digital financial services through innovative delivery channels that promote financial inclusion. (6) The inadequacy of current digital identity solutions degrades security and privacy for all Americans, and next generation solutions are needed that improve both security and privacy. (7) Government entities, as authoritative issuers of identity in the United States, are uniquely positioned to deliver critical components that address deficiencies in our digital identity infrastructure and augment private sector digital identity and authentication solutions. (8) State governments are particularly well suited to play a role in enhancing digital identity solutions used by both the public and private sectors, given the role of State governments as the issuers of driver’s licenses and other identity documents commonly used today. (9) The