Washington state (along with a few others, but I'm not sure which) has instituted an optional "enhanced" driver's license. It requires the same proof of citizenship as a passport to obtain it, but costs a lot less. It qualifies as proof of citizenship, and can be used in place of a passport for crossing the Canadian (and I think Mexican) border by land. I live only about 50 miles or so from the Canadian border, so quick trips across the border for a day or even a few hours are common in this area, and I know very few people who have passports, but a lot who have the enhanced driver's license
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