The current US passports are not "in line with current international standards for identity documents"? Since they are widely accepted for use, they should be considered in line with current international standards for identity documents. And since US passports are not considered way more insecure than most other passports out there for border crossings, it's reasonable to conclude that US passport security features are already "in line with current international standards for identity documents while enhancing border security".

The cost to replace the current technology is almost certainly higher than the cost to maintain the current technology in more widespread use for several more years. It's not common to see a multi-site government technology transition where having two kinds of system pieces in place for even a handful of months is cheaper in the short and medium term than not having any transition; that is unless the legacy system is non-functional or plagued with highly frequent, mass level critical failures. This is why the "returns" from government projects in this area usually rely upon other things to try to justify the expenditures to perform a technology change. But toss in the word "security" and money just flows despite the questionable returns on the expenditure.

The legacy printing system for current generation passport issuing is not plagued with highly frequent, mass level critical failures. [Hint: Get on the trail of where the phased-out system equipment ends up still in use in 2023 and beyond.]

If the increased fee comes into place for the government's 2022 fiscal year, then how much in additional fees it brings in during October 2021- September 2022 is going to be in large part tied to how many people apply for US passports in that period. It seems that whomever that report relied upon for that estimated $318 million figure has a different idea of what to expect in numbers than some others. With the estimated additional $318 million dollars for October 2021-September 2022, will US citizens be getting $318 million additional dollars of security for it? I doubt it.

What's interesting is how much more expensive the next generation US passports will cost holders than foreign passports with comparable security features in other countries cost their holders. In Sweden -- a high-labor cost country and one without the benefit of the economies of scale that the US can get -- "the next generation" type passport fee for its citizens is about $40 (although only valid for 5 years at most) per passport. The US wants what? $100-$130 per passport. I'd rather have a lower fee and the current generation passport than the next generation passport. Unfortunately, US citizens aren't given the option to get more value for the money paid in fees by being able to select to stick with what already works.

The notion of "these are just user fees covering the cost of use" and "we are giving you better security" has negative consequences on value for money that the seekers of US passport service get.