REAL ID Deadline Delayed Until May 2025. Find Out How This News Could Save You Money

There's no rush to get a state-issued identification card that meets REAL ID rules.

The United States government will eventually mandate that Americans present REAL ID–compliant identification when boarding federally regulated commercial aircrafts and entering certain federal facilities. But the REAL ID deadline continues to be delayed, giving Americans more time to comply with the changes. The deadline has been extended from May 2023 to May 2025. Find out how this news could help you keep more money in your pocket.

What is the REAL ID Act?

The REAL ID Act is a 2005 initiative to set minimum security standards for identification used for federal purposes. State-issued licenses and identification cards must meet these minimum security requirements. Once REAL ID rules are enforced, Americans must present a state-issued REAL ID or another federally approved form of identification when entering some federal facilities and when boarding a commercial aircraft. So this law will have an impact on travel in the future.

The REAL ID deadline has been delayed until May 2025

The Department of Homeland Security was planning to require Americans to have REAL ID-compliant identification ready to use beginning on May 3, 2023. However, the deadline has been extended again. The new deadline is May 7, 2025. That means you don't need to stress about making sure you have a compliant form of identification available -- at least for now.

Americans will be able to keep more money in their pockets

This news could be a financial win for many. That's because many states charge extra to get a state-issued driver's license or identification card that is REAL ID-approved. These costs vary depending on where you live.

You could save anywhere from a few dollars to $30 or more by not having to pay extra for a REAL ID–compliant driver's license or identification card at this time. It's worth noting that some states don't impose an additional fee for a compliant ID -- so be sure to check with your state to learn about these costs.

Another option is to apply for a U.S. passport card or U.S. passport book, which can be presented instead of a state-issued REAL ID card. However, they come with an added cost and may not make sense for you to obtain if you don't plan to travel outside the United States soon.

First-time adult passport book applicants must pay $130 plus an additional $35 acceptance fee. First-time adult passport card applicants must pay $30 and an additional acceptance fee of $35. That means you could save between $65 to $165 if you hold off on getting a passport card or passport book until closer to the new deadline.

Don't wait to plan for this upcoming expense

While it's still early, it's not a bad idea to figure out a plan for when the REAL ID Act is enforced. If you need to get a new state-issued identification card or will get a passport card or passport book, you should budget for the additional cost that you may need to pay.

If your state doesn't charge extra fees, that's excellent news. If you'll need to pay more to comply, it's not too early to set aside some extra funds in your savings account for these expenses. High-yield savings accounts are great places to store extra cash for upcoming expenses because you can earn interest as your money sits in your account. When 2025 rolls around, you'll be glad you took the time to prepare financially. Check out our personal finance guide for additional money-related resources.