This bill mandates the Secretary of Veterans Affairs to establish a pilot program aimed at modernizing the Department's digital identity proofing and authentication systems . The core objectives include replacing legacy knowledge-based or single-factor identity verification mechanisms with multi-layered, high-assurance digital identity solutions. This initiative seeks to significantly reduce fraud and improper payments, enhance secure access to digital service platforms for veterans, and evaluate potential cost savings and operational efficiencies before any full-scale deployment. The pilot program will be implemented on not more than three high-volume digital service platforms, which may include systems for disability compensation claims, veterans health care enrollment, educational benefits, or home loan benefits. It requires a risk-tiered implementation , mapping digital transaction categories to graduated identity assurance levels based on sensitivity, fraud risk, and potential harm. Any digital identity solution used must be commercially available, independently certified to meet or exceed NIST IAL2 and AAL2 standards, and comply with applicable federal cybersecurity and privacy requirements. The bill authorizes up to $25,000,000 for the pilot program and mandates several reporting requirements, including an implementation plan, an interim performance report, and a final report to Congress. Additionally, the Comptroller General will conduct an independent evaluation assessing the program's effectiveness in reducing fraud, improving veteran access, and its scalability. The authority to carry out this pilot program will terminate two years after the bill's enactment.