Senators: Feds Overcharge For Passports

State Dept. May Have Collected $111M More In Fees Than Costs; Base Price Is $97

(AP)  First, Americans endured exasperating delays and ruined vacations from passport processing backlogs. Now, a congressional investigation indicates they may have been overcharged, too - perhaps by more than $100 million a year.

Sens. Byron Dorgan, D-N.D., and Charles Schumer, D-N.Y., said the State Department and Postal Service quietly gouged U.S. citizens over the government's $97 passport fees, even as new anti-terrorism laws require more travelers to carry passports. They are asking the Bush administration for an accounting of where the passport profits go.

Over the past year, as the government issued nearly 14 million new passports, it collected at least $111.4 million more in passport fees than its stated costs, according to calculations by The Associated Press based on figures from State Department and congressional investigators.

The government's standard $97 fee is just a start for some people. The State Department offers to send travelers a passport in a hurry for an extra $60 plus overnight delivery costs. Some private companies offer speedy service for $180 or more. Passport photos typically cost $15.

Since 2005, a new passport has cost $97 for adults, $82 for children under 16. At the senators' request, congressional investigators studied whether a $30 portion of that charge was justified.

The $30 is intended to cover the cost of clerks examining and accepting passport applications at post offices, State Department passport offices, courthouses, libraries, municipal offices and universities.

The investigators' findings? The government's $30 fee was roughly double the actual cost when imposed in 2002. The Postal Service, which operates 5,382 locations where people can apply for passports, estimated its costs at $13.31 in 2002. The State Department, which operates 14 passport offices, said its costs were $16.20 at that time.

"This is not supposed to be a profit-making venture," Dorgan said. "They charge 30 bucks just for passing something across the counter."

Robert Tollin of New York City, who received his passport in June just in time for his honeymoon in Mexico, was angry when informed how much the fee exceeded the costs.

"That's over a 200 percent markup," Tollin said. "Maybe I should be in the Post Office business. That's an exorbitant markup. I don't mind paying a service fee, but that's outrageous."

The remaining $67 is spent producing the passport booklet and for related costs, such as rent at passport offices, security guards and background checks. Investigators from the Government Accountability Office did not look into that portion of the fee.

A Postal Service spokeswoman, Joanne Veto, said the agency's $13.31 figure was not an accurate reflection of its costs when the fee was imposed. Congressional investigators, however, said that was the figure the Postal Service gave the State Department for use in setting the $30 fee.

The State Department said in a statement, "We aren't able to comment on GAO reports before they are officially released."

The department told the GAO it has hired a contractor to perform a new cost study of the fee before December 2008.

"It's sort of a tax," Schumer said. "Where did all the money go? What are they going to do to correct it?" Schumer and Dorgan have asked Secretary of State Condoleezza Rice to determine whether fees should be lowered.

The reputation of the government's passport agency was severely tarnished during the summer, when a processing backlog by July left more than 2 million people waiting for passports. Officials said 500,000 were left waiting more than three months, trying to obtain what typically is ready in six weeks.

Vacations, weddings, honeymoons, business meetings, education plans and nonrefundable deposits all fell victim to the delays. People lost work time waiting in long lines.

[keithle1]

Why do you want to visit another country anyway?
USA not have enough stuff to see & do?

[Krazcarl]

I''m stupid never knew how much a passport cost thought around ten bucks someone stated you need a passport to canada unless that''s a new development never did from maine. As you see I need to get out more.

[signof4]

OMG! That Bush/Chaney are getting rich off of war, oil, and now - PASSPORT gouging!!!! Thank God Senators Schemer and Doogan are hot on the case!!! :)
Losers!

[oscarez]

"it collected at least $111.4 million more in passport fees than its stated costs"

Does any one, besides me, feel like we are in a time-warp? Give billions to Iraq and screw the American people for passports. Will Bush ever end!!!

[teliza1]

Not only are the fees exhorbitant, but you can''t use a passport to go to Europe if it is within 6 months of expiration. So, it really lasts 6 months less than you think! Maybe it no longer matters because we can''t go anywhere now because the dollar is so weak against every other currency, even the Canadian dollar.

[signof4]

If the 11% approval congress weren''t SHORTENING the work week (remember the most transparent, above board congress in history((Nancy)) they might be able to look in to it! LOL

They''ll just have to let Chuck Schemer and Byron Doogan remain on the case.

[antoniof123]

Posted by republic1776
it cost me $90 for a passport in 1997.
Has nothing to do with Bush.

10 year US passport cost me $60 in 1997. I cant stop laughing that you overpaid. (HINT) It had everything to do with the worst Congress in US history that was destroying America from within from 1995-2006.

Posted by danstoned at 11:16 AM : Nov 02, 2007

I can''t stop laughing either and if you look at the post just after yours someone believed this clown who said they paid $90. God I wish if they were going to lie they would do it someplace were others who have an IQ of more than 5 would not be able to read it.

[dtopol]

Instead of charging high fees for U.S. Citizens, why don''t we just charge really high fees for others coming into this county (right after we build fences to protect our borders) who never seem to then leave it.

[antoniof123]

Brought to you by the family value party of god lower taxes smaller government.

My God has this group done anything right in the last 7 plus years?

Please someone tell me just the fact to back it up too.

[signof4]

OMG! That Bush/Chaney are getting rich off of war, oil, and now - PASSPOORT gouging!!!! Thank God Senators Schemer and Dugan are hot on the case!!!

[mediamomma]

It seems to me that if we are forced to get passports to go back and forth to Canada (I myself am in a border state), that they should reduce the price of passports so it is affordable to the average American citizen. Single parents who want to take their kids on a trip to Park Safari in Canada cannot afford to buy themselves a passport along with one for each of their kids. This country is being driven right into the ground by our government and we are letting it happen. And we the people are paying the price. Yet we sit here and gripe about it in these posts but who has the guts to stand up and try to stop this? When is someone going to say enough is enough? Isn''t it about time we take back our country and run it as it was supposed to be run according to the original constitution?

[oleander8]

"care less due to economic situations I''''ll be hanging at the house if you can afford overseas travel you can afford a passport if not stay at home theres plenty of places to visit in the USA,"
[Posted by crzmeat]

Not all overseas travel is vacation related. Even if you can afford a gallon of milk - no one has the right to charge you for 2 gallons.

[newsjunky5]

Wasn''t one of our complaints against the old USSR the restriction of free travel? Now we restrict it here in the U.S.A. with high fees. And those "of the people." people can make a few bucks at the same time.

[jetranger7]

OK,OK,OK, CBS NEWS, the Money -$$$$- was being Diverted along with ALL the "GOLD" from under the World Trade Center, and US-TAX Payer money, to a SECRET Location that the American Public doesn''t know anything about, like all the rest of the GOLD also from Saddam Husseins stash as well,, that location is very Secret,, you know, I wouldn''t tell you about where its at in Crawford Texas, if you forced me to, I won''t give up where its at in Crawford Texas, I won''t tell !!

[Krazcarl]

care less due to economic situations I''ll be hanging at the house if you can afford overseas travel you can afford a passport if not stay at home theres plenty of places to visit in the USA,

[likeitis5050]

IOWEIGN Apparently the issue is moot altogether...

it cost me $90 for a passport in 1997.
Has nothing to do with Bush.

-----------

Posted by republic1776

So perhaps we''re just dealing with alarmists...period.

[danstoned]

Posted by republic1776
it cost me $90 for a passport in 1997.
Has nothing to do with Bush.

10 year US passport cost me $60 in 1997. I cant stop laughing that you overpaid. (HINT) It had everything to do with the worst Congress in US history that was destroying America from within from 1995-2006.

[ioweign]

Will we see a correction in the situation anytime soon? Not unless Pelosi and Reid pull the sticks out of their a..s..s.es and do something actually beneficial for everyone and not just for themselves and those who think exactly like them...no more no less.

Posted by likeitis5050 at 10:51 AM : Nov 02, 2007

This took place back in 2002 - where was the oversight then - when Congress could have nipped it in the bud !!

[condumism]

Posted by toldyouso21
so now SS is declared "insolvent" and in trouble and they do not return the Billions they stole.

Please post US your source of information (dissinformation?). YOU do not qualify as a legitimate source.

[republic1776]

it cost me $90 for a passport in 1997.
Has nothing to do with Bush.