Privacy advocates are alarmed by a D.C. Department of Motor Vehicles initiative to embed SmarTrip computer chips inside every new D.C. driver’s license, making it easier than ever to track D.C. residents on their travels through the transit system.

The DMV will spend $830,000 a year to install SmarTrip chips in all driver’s licenses and identification cards starting in October 2008. SmarTrip “is the most efficient way of paying for transit service,” according to DMV documents, and lodging the chips in about 440,000 licenses “will allow all District residents access to SmarTrip cards and encourage transit use.”