You’d be asking businesses to get set up with every single state and territory for the purposes of identity management, and giving fraudulent folks fifty-four opportunities to defraud national businesses rather than N social security numbers. I can do the OMB analysis on your bill: 54x growth in consulting fees, billions in lost productivity forcing every system to switch to a new fifty-four jurisdiction unique identifier, etc. etc.
Ideal would be a number that fits in the same space as an SSN but can be rotated. This limits significant changes to national company systems, but means you only have a billion not-so-secure numbers to play with, so you’d have to strongly disincentivize rotations to about 2 or 3 per lifetime modulo American death rate. If we are going to disrupt extensively, let’s focus on one American system rather than fifty-four systems for no net benefit; if state-level identification was useful for this purpose, we would already be using the ones we have. We don’t.
That's the problem. It doesn't cost much, but a Social Security number costs nothing and takes nothing to get. Something is infinitely more than nothing. Passports also require a lot of paperwork and identification to get that people may not have.
I don't see how making it a state prerogative makes it easier tbh. The federal level seems appropriate for that.
Problems may arise:
1) What if you don't want an ID? Ok give them the number, skip the ID and photo, and go forth. 2) What about people who don't want to be know and forego identification? I'd say you have little choice, it's extremely hard to remain off of SOME database. 3) ID's cost money. Whose going to pay? That's a good federal grant question. Each state gets refunded for the trouble.