Deadline and participation instructions for national UI identity verification

CLASSIFICATION
         EMPLOYMENT AND TRAINING ADMINISTRATION                  Unemployment Insurance
                     ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
                U.S. DEPARTMENT OF LABOR                         OUI/DPM
                   Washington, D.C. 20210                        DATE
                                                                 January 13, 2025


     ADVISORY:        UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 11-23,
                      Change 2


     TO:              STATE WORKFORCE AGENCIES

     FROM:            JOSÉ JAVIER RODRÍGUEZ
                      Assistant Secretary

     SUBJECT:         National Identity (ID) Verification Offering (NIDVO) – Announcing a
                      Deadline to Implement NIDVO Services and Providing Additional
                      Participation Instructions

     1. Purpose. To advise states that to remain eligible for participation in NIDVO and
        have the U.S. Department of Labor (Department) directly cover at least two years of
        transaction costs subject to funding availability, states must implement one or both of
        the NIDVO services no later than December 31, 2025. To successfully deploy prior
        to this deadline, as described in more detail below, a state should begin the
        implementation process no later than October 20, 2025.

     2. Action Requested. The Department’s Employment and Training Administration
        (ETA) requests that State Workforce Agency (SWA) Administrators provide
        information in this Unemployment Insurance Program Letter (UIPL) to appropriate
        program staff.

     3. Summary and Background.

        a. Summary – The Department’s NIDVO initiative provides states with access to online
           ID verification services through the U.S. General Services Administration’s (GSA)
           Login.gov and in-person ID verification services through the U.S. Postal Service
           (USPS). Such services are intended to be part of a state’s multi-layered approach to
           fraud prevention and detection – providing access to government-operated ID
           verification services which can supplement the state’s existing tools. As described in
           UIPL No. 11-23, Change 1, state(s) must have entered into a data sharing agreement
           (DSA) with the Department by June 28, 2024, to participate in one or both of the
           NIDVO services and have the Department directly cover at least two years of
           transaction costs.


       RESCISSIONS                                               EXPIRATION DATE
       None                                                      Continuing

  To remain eligible for participation in NIDVO and have the Department directly cover
  at least two years of transaction costs, states must implement one or both of the NIDVO
  services no later than December 31, 2025. To successfully deploy prior to this
  deadline, as described in more detail below, a state should begin the implementation
  process no later than October 20, 2025. This deadline is necessary to ensure the
  states have identity proofing solutions in place as soon as possible and for the
  Department to determine the future costs of the NIDVO program.

  The Department also reiterates that it is critical for states to openly communicate and
  provide robust feedback to the Department on their participation experience and the
  Department has outlined this partnership and process within the participation
  agreements described below. This UIPL also provides additional information regarding
  the individual-level data that participating states are required to report as part of this
  effort and announces changes to state and Department roles and responsibilities. The
  Department is also implementing a two-year Data Sharing Agreement (DSA) and
  Partnership Addendum (PA) cycle, which will reduce the administrative burden on both
  the Department and the states from having to execute the DSA and PA each year.

b. Background – On March 11, 2021, the President signed American Rescue Plan Act
   (ARPA) into law (Public Law (Pub. L.) 117-2). Section 9032, ARPA, amended the
   Coronavirus Aid, Relief, and Economic Security (CARES) Act by creating Section 2118
   which provided a $2,000,000,000 appropriation to the Secretary of Labor (Secretary) to:
   (1) detect and prevent fraud, (2) promote equitable access, and (3) ensure timely
   payment of benefits to eligible workers with respect to unemployment compensation
   (UC) programs. These are commonly referred to as ARPA’s three pillars. ARPA
   describes allowable uses of these funds, including awarding grants for such purposes to
   states and territories administering UC programs and for systemwide infrastructure
   investment and development. The Fiscal Responsibility Act (FRA) (Pub. L. 118-5),
   signed into law on June 3, 2023, rescinded $1,000,000,000 of the unobligated ARPA
   funds.

On July 13, 2023, the Department issued UIPL No. 11-23 announcing funding available
under the ARPA to make available to states government-operated ID verification services
developed by GSA to verify identities online through Login.gov and by USPS to verify
identities in-person at participating USPS retail locations nationwide. This partnership
between the Department and the service providers will further inform whether there is a
need for standardized mechanisms for ID verification within the UI system as a potential
long-term, federally supported sustainable public offering to states. On April 29, 2024, the
Department issued UIPL 11-23, Change 1, that announced it will cover transaction costs
for identity verification for participating states for at least the later of: two years after the
date the state deploys NIDVO; or two years after the date of issuance of that UIPL, subject
to the availability of funding and all applicable agreements being executed. If there is
sufficient funding available, the Department may cover transaction costs for a longer period

   for all states that have deployed or will deploy NIDVO, pursuant to the guidance in the
   UIPL.

   As of November 30, 2024, a total of 19 states are currently using one or both services
   through NIDVO.

4. Deploying ID Verification Services through NIDVO. NIDVO is intended to be part of a
   state’s multi-layered approach to fraud prevention and detection – providing access to
   government-operated ID verification services which can supplement the state’s other fraud
   controls and mitigating tools. As described in UIPL No. 11-23, Change 1, state(s) must have
   entered into a DSA with the Department by June 28, 2024, to participate in one or both of the
   NIDVO services and have the Department directly cover at least two years of transaction
   costs, subject to available funding.

   States must implement one or both of the NIDVO services no later than December 31, 2025,
   to remain eligible for participation in NIDVO and have the Department directly cover at least
   two years of transaction costs. If the service is not deployed and used in the state by the
   deadline, then the Department will not cover transaction cost for the NIDVO service. There
   are three stages that occur after signing the DSA and before deployment.

   1) Policy Review (PR): ETA assesses whether the state is following the requisite due
      process requirements for ID verification services based on the state’s answer to a 5-
      question Policy Review.
   2) Partnership Addendum (PA): The state and Department execute a PA to the DSA, which
      memorializes the specific requirements, terms, and obligations of the participating state
      and Department for participation in NIDVO.
   3) IT Implementation: The state partner works with the Department’s Office of Chief
      Information Officer (OCIO) to conduct the necessary information technology (IT)
      implementation activities, including development of a web page to refer individuals to
      the service.

   Included in the PA is the obligation for the state to report individual-level data to the
   Department, as originally described in Section 4.c.iii. of UIPL No. 11-23, for the Department
   to assess the efficacy and equity of the offerings. Further instruction regarding the state’s
   obligation to report individual-level data is provided below and will also be included in the
   PA. Additional updates to this and other elements of participation in NIDVO may be made
   through the DSA and PA process with participating states as negotiated and approved by
   the Department and state.

   The Department is also implementing a two-year DSA and PA cycle, which will reduce the
   administrative burden on both the Department and the states from having to execute the
   DSA and PA each year.

a. States must implement one or both of the NIDVO services no later than December
   31, 2025. Based upon recent deployments with states currently participating in NIDVO,
   the Department estimates that the Policy Review stage will generally take 14 calendar
   days and execution of the PA will occur consecutively and also generally take 14
   calendar days – amounting to a cumulative total of approximately four weeks. IT
   implementation can occur simultaneously with these two stages and can generally be
   completed within 4-6 weeks.

      i. Policy Review (PR): The PR process generally takes 14 calendar days.
      ii. Partnership Addendum (PA):
          o The PA process generally takes 14 calendar days.
          o This timeline starts after the Policy Review is complete.
     iii. IT Implementation:
          o As noted above, the IT Implementation generally takes 4-6 weeks to
             complete.
          o The timeline starts simultaneously with the PR process.

  This estimated timeline reflects timely correspondence between the Department and
  state. This timeline can be adjusted as needed, contingent on state resources, the pace of
  state engagement, and the deadline outlined in this UIPL.

  To achieve deployment prior to the deadline stated above, a state should begin the
  Policy Review and IT Implementation stages no later than October 20, 2025. Should
  these stages require more time, the Department will coordinate with the state to
  complete the processes as quickly as possible. The Department will only grant an
  extension if the state has completed the IT implementation and issue(s) are found during
  deployment to production. However, the Department strongly encourages states to start
  the implementation process as soon as possible to mitigate the risks of unforeseen delay.

b. Importance of Communication and Partnership during NIDVO Participation. The
   Department realizes that this is a new endeavor for the Department in providing these
   types of services to states in the administration of the UI program. Also, because the
   process by which ID verification is conducted within the UI program continues to
   evolve and adapt, it is critical for states to openly communicate and provide robust
   feedback to the Department on their participation experience.

  States must provide due process rights for all individuals, including individuals who
  verify their identify through the NIDVO process. To meet this requirement and reduce
  administrative burdens that could be incurred by the state when deploying NIDVO, the
  Department is committed to taking steps to work with states to ensure these
  requirements are met, including working closely in partnership with the state to ensure
  that all due process requirements explained in current and future guidance are

  implemented within appropriate timelines. To meet these goals, it is essential that
  states work in partnership with the Department to address issues and share information
  regarding fraud to continue to strengthen the offering as fraud activity continues to
  evolve. This partnership and process has been memorialized via the PA.

  i. State Roles and Responsibilities. To ensure due process for individuals going
     through the NIDVO process, the Department added the following language to the PA.

     If the Department or state UI agency identifies any ID verification compliance
     issues related to participation in the National ID Verification Offering before,
     during, or after the implementation of either (or both) login.gov or USPS, the
     state will:

     a) Work in partnership with the Department to identify options to become
        compliant;
     b) Meet ID verification compliance with current and any future relevant
        guidance within 12 months of this executed Addendum or on a timeline agreed
        upon between the Department and the state; and
     c) Inform the Department about potential barriers to becoming compliant and/or
        challenges encountered/positive practices implemented as a result of
        becoming compliant.

 ii. Department Roles and Responsibilities. Building on the addition described above
     regarding State Roles and Responsibilities, the Department also added the following
     language to the PA.

     Notify the state of any compliance issues identified related to participation in the
     National ID Verification Offering, including sufficient detail documenting the
     issue(s).

     a) Collaborate with the state UI agency to assist in compliance as the project
        nears its deployment date and continue to serve as a strategic partner and
        collaborator in ensuring the state UI agency takes the necessary actions to
        meet the documentation requirements detailed in UIPL No. 16-21 and future
        guidance published by ETA.

c. Reporting Individual-Level Data in Accordance with the Partnership Addendum.
   As a condition to participate in the NIDVO services and as specified in the PA, the state
   must disclose certain data to the Department. The Department will store that data for the
   purpose of assessing the effectiveness and equity of ID verification at the point of
   delivery. Below are additional instructions about the list of required individual-level
   data elements. Additionally, states must link the state-provided elements with the result
   codes received back from the Department to Login.gov and USPS (as applicable).

     i.   Individuals to be Reported and Frequency of Data Submission. The state must
          report all individuals referred to the NIDVO service(s) in the quarter in which they
          are referred by the state. If an individual completes a service in the quarter following
          the quarter in which the individual was referred (for example, referral to the service
          occurs on September 30th and verification is completed on October 3rd), then the state
          must also report this individual in the subsequent quarterly submission, including the
          updated verification result, using the same State Specific Unique Identifier in each
          case.

    ii.   State-provided Elements. In addition to the individual-level data elements described
          in Section 4.c.iii.B. of UIPL No. 11-23, the state must also report the “Date of
          Referral by State” which is defined as the date the transaction was processed via
          NIDVO by USPS or Login.gov.

   iii.   Linking State-provided Elements to Result Codes. By signing the PA, the state
          agrees to match the state-provided data elements with certain data elements received
          back from the Department with respect to Login.gov and USPS, where applicable.
          These additional result codes will only be returned for individuals who reached
          Identity Assurance Level 1 (IAL 1) or ID verified status.

5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office.

6. References.

   • Division B, Title I, Section 24, of the Fiscal Responsibility Act of 2023 (Pub. L. 118-5);
   • American Rescue Plan Act of 2021 (ARPA), including Title IX, Subtitle A, Crisis
     Support for Unemployed Workers (Pub. L. 117-2);
   • UIPL No. 11-23, Change 1, Announcing an Extension of Period of Time that Funding
     will be Available to Cover Transaction Costs and Announcing the Establishment of a
     Deadline for States to Enter into Data Sharing Agreements (DSAs) for the National
     Identity Verification Offering (NIDVO) Established in Unemployment Insurance
     Program Letter (UIPL) No. 11-23, issued April 29, 2024,
     https://www.dol.gov/agencies/eta/advisories/uipl-11-23-change-1; and
   • UIPL No. 11-23, Announcement of Grant Opportunities and National Identity (ID)
     Verification Offering under the American Rescue Plan Act (ARPA), issued July 13,
     2023, https://www.dol.gov/agencies/eta/advisories/uipl-11-23.

7. Attachment(s). N/A.