Analyst: Obama may spend a billion on biometrics

The Obama administration is likely to spend $750 million to $1 billion on biometric applications this year, primarily in defense, intelligence and homeland security, according to a new report from Jeremy Grant, an analyst for the Stanford Group Co. research firm.

Key programs at the Defense Department could result in $500 million to $600 million in biometrics contracts, and intelligence programs could add another $250 million to $350 million, Grant said. Other major programs contributing to the growth include the Homeland Security Department’s U.S. Visitor and Immigrant Status Indicator Technology and Real ID Act of 2005, the FBI’s Next Generation Identification and Homeland Security Presidential Directive-12, he said.

“U.S. identity solutions projects should survive intact through the presidential transition and the industry should continue to do well in the Obama administration,” Grant wrote. “Still, the distractions of the transition -– magnified by the economic crisis -– will slow some projects and delay the creation of new ones.

We forecast flat government spending for 2009 outside of several key programs, as a new administration takes a year to review and reshape existing initiatives.”