1. Short title This Act may be cited as the Improving Digital Identity Act of 2023 . 2. Findings Congress finds the following: (1) The lack of an easy, affordable, reliable, and secure 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 293,000,000 people were impacted by data breaches in 2021. (3) Since 2017, losses resulting from identity fraud have increased by 333 percent, and, in 2020, those losses totaled $56,000,000,000. (4) The Director of the Treasury Department Financial Crimes Enforcement Network of the Department of the Treasury has stated that the abuse of personally identifiable information and other building blocks of identity is a key enabler behind much of the fraud and cybercrime affecting the United States today. (5) The inadequacy of current digital identity solutions degrades security and privacy for all people in the United States, and next generation solutions are needed that improve security, privacy, equity, and accessibility. (6) Government entities, as authoritative issuers of identity in the United States, are uniquely positioned to deliver critical components that address deficiencies in the digital identity infrastructure of the United States and augment private sector digital identity and authentication solutions. (7) 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. (8) The public and private sectors should collaborate to deliver solutions that promote confidence, privacy, choice, equity, accessibility, and innovation. The private sector