Apparently, the POTUS is reconsidering the HSD position on border crossings.
HSD wants only passports to be accepted by Americans returning from other
countries.  Dubya is saying that may be too much hassle for visiting Canada
and Mexico.  He's suggesting electronic fingering as an alternative.

Here's the story:

http://www.nytimes.com/aponline/national/AP-Bush-Passports.html?

You have to be registered to read it; here's an excerpt:
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"In December, Bush signed into law an intelligence overhaul that requires
tighter border security against terrorists and was the basis for the
passport proposal. The White House did not say why the president was unaware
of the plans his administration announced just a week earlier.
The proposed guidelines would require passports or a select number of other
secure documents from anyone -- including Americans -- entering the United
States from Canada, Mexico, Bermuda, the Caribbean and Panama. The rules
were scheduled to become final this fall after a public comment period and
to be phased in by 2008.

Currently, Americans generally need to show a driver's license or other
government-issued photo identification to cross the border from Canada.
Customs officials usually require more proof from Americans returning from
the other countries -- a driver's license plus a birth certificate to prove
citizenship, for example."