Governor Phil Murphy signed legislation on Thursday establishing the digital IDs.
Officials say digital driver's licenses, also known as mDLs, offer convenience and security.
They will be accessible on smartphones and other mobile devices, making it harder for individuals to lose or forget their identification. It will also allow residents to update their documents electronically.
Officials say the bill also offers protections for mDL holders, such as prohibiting persons or entities, including law enforcement, from requiring the holder to turn over their electronic device to verify their identity. It also establishes that just displaying the mDL does not imply consent to a search or access to other phone data, and that information seen while verifying someone's identity cannot be used as probable cause for a search warrant.
Participation in the digital driver's license and identification cards will be voluntary.
Officials said the Fiscal Year 2025 Appropriations Act allocated $1.5 million towards implementing mDLs, with these resources remaining available for FY2026.
Currently, at least 15 states and Puerto Rico have implemented mDL programs, with another 10 states and Washington, DC planning to follow.