The 1996 Immigration Act includes a provision mandating that after October 1, 2000, federal agencies may accept as identification only drivers' licenses or similar documents that meet Department of Transportation regulations. On June 17, 1998, the DOT issued these regulations, which require placement of one's social security number on the license.

The program is not binding on the states that issue drivers' licenses, and many states have no plans to begin including social security numbers on them. One of the reasons given for the refusal is the damage that could ensue if a criminal obtained someone's social security number from as lost or stolen license.

The primary concern voiced by most observers is that the program is attempting to institute a national ID card, a move that strikes many as a major invasion of privacy.

FAIR, the Federation for American Immigration Reform, believes the new rules will cut down on the "flourishing fake-identity document industry in the United States churning out fake ID's, Social Security cards, and licenses that provide the magnet that makes illegal immigration possible." This view may be flawed given the ease with which drivers' licenses can be obtained from the state department of motor vehicles with bribery. In early August a year long investigation in Arizona ten people were arrested for selling licenses to known criminals, fugitives, and illegal immigrants. These licenses were issued under fake names, often with real Social Security numbers that belonged to other people.

If the states do not go along with the new federal plan, the workload for federal agencies will be vastly increased as they are forced to cope with applicants who do not have compliant drivers' licenses but do have licenses issued by the state.

As of yet, federal authorities have not said when the new regulations would be finalized.