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California is advancing its digital identity initiatives, integrating digital IDs into government services beyond just driver's licenses, including public benefits and transit programs. The state is collaborating with agencies like Cal-ITP (for transit discounts) and federal entities (VA, CMS) to automate eligibility verification for benefits, with plans to expand pilots statewide. It emphasizes privacy compliance, working with the California Privacy Protection Agency to minimize data collection and allow user control over shared information under the Delete Act. Privacy advocates warn of potential surveillance, data breaches and "mission creep," where digital ID systems could expand beyond their original purpose, increasing risks of misuse.