starting jan 1 of 07 you already need a passport to fly into the states from canada. As far as needing a passport to drive into the country they say you'll "need" one by jan 1, 08. The original date for this to occurr was 2006 or earlier, but contuies to get pushed back. I know the govenor of michigan is working very had to get the federal government to agree on a compromise and let michigan and perhaps other states have a special drivers liscense that includes ones citizenship to sidestep the passport rule. I already have my passport. I figured it would just make it easier for me to take the bus across the border. Turns out i've been pulled over and inspected more with the passport than with my old drivers liscense.
I'm not sure why passports are being required, other than the fact that the government stands to make a lot of $$$ at over $100 each. All of the 911 terrorists were here with legal passports, so the new rule won't help with that sort of activity.
The new rule will hurt both the economys of ontario and michigan as there will be less tourism between the 2 countries.
just my 2 cents
Quis custodiet ipsos custodes (who will watch the watchmen?)