As of January 2007, a US or Canadian citizen travelling by air would need a passport to cross the border INTO the US.
As of January 2008, a US or Canadian citizen would require a passport regardless of the mode of travel (land, sea, or air) to cross INTO the US.
Someone who is not a US or Canadian citizen would require a passport regardless of mode of travel (this has not changed in ... well ... nearly forever).
If you do not have the correct documentation, the US Customs and Immigration group has the right to deny you entry to the US, even if it is your home country. It does not mean that they will ... only that they can.
If you are refused entry to the US, then yes, the Canadians can get you for illegally remaining in Canada (if you have exceeded the terms of your tourist/student/work visa).Is it true that American Citizens need a passport to return from Canada now ?
When you return to the States, you will be passing through US Immigration to get back in. Assuming you are a US citizen with proof of citizenship (US driver's license, birth certificate) you should be let back in no problem.
The issue currently has to do with flying between Canada and USA. The airlines should have told you before you left that you will need a passport to come into the US by plane if returning after January 2007. You will also need a passport to DRIVE into the US after January 2008.
If they give you a hard time at the airport because you do not have a passport, even though you are an American citizen, you will not be arrested as an illegal in Canada. Worst case scenario, you would have to rent a car or take a taxi or bus to cross the border by car, then you should be able to catch a domestic flight in USA to get all the way back home.
For example, You are in Toronto, but need to get back to Dallas. You take a taxi to the border at Buffalo, NY and get another on the other side to Buffalo Niagara International Airport, and then a flight from there to DFW or Love Field.
If you are flying (or traveling by ship) between Canada and the U.S. you will need a passport to return to the states. However, if you are driving, you are still allowed to use an original birth certificate and a state-issued driver's license to return to the U.S. This is only temporary and sooner or later will be eliminated by the U.S. State Department. They are only giving more time for U.S. and Canadian citizens to get their pssports.
If you are returning to the U.S. I don't see why Canadian immigration will hold or arrest someone who didn't have a passport or driver's license/birthc ertificate. They will most likely let U.S. Immigration take care of the situation.
Travel by air only requires a passport at this time. Steven had the info correct about how the problem could be dealt with.
Travel by land or sea (contrary to first answer) does not require a passport (for Canadian or U.S. Citizens) until Jan 2008 or later.
You can be sure that once the U.S. requires passports, Canada will act in kind and also require them. Which means you won't be leaving the country without one, so the problem of getting back in without one should not occur.
However, should you be in Canada and not have a passport, and need to come back to the U.S. after the law goes into effect, there are two possible scenario's.
1) There may be a ';grace'; period where you will be allowed in with other proof of I.D. and citizenship and given a stern lecture and a hassle at the border; or
2) you may be transported to a holding facility while things are sorted out.
http://travel.state.gov/travel/cbpmc/cbp鈥?/a>
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