A bill to transfer the functions of the Passport Office to a new agency of the Department of State to be known as the U.S. Passport Service, to establish a Passport Service Fund to finance the operations of the U.S. Passport Service.

Changes the name of the Passport Office to the United States Passport Service. Transfers the functions of the Passport Office to the new agency which shall be under the Department of State. Establishes a fund for the Service to be capitalized by an initial appropriation of at least $20,000,000 to be appropriated out of any money in the Treasury not otherwise appropriated. Establishes a passport service to finance the operation of the Unied States Passport Service. Increases passport and renewal fees to bring them in line with increased service cost. Provides the new passport service with its own accounting and internal audit system, under periodic audits by the General Accounting Office.