We need a reliable link-to-meatspace authentication provider for the consumption of government services. That's obvious.
But why are we outsourcing it to an external company, which may not be subject to the same purview as the government itself, particularly in terms of legally-mandated transparency, accountability, and universal service?
I suspect half of this is anchored in the "mark of the beast" crowd who is terrified at the thought of any sort of coherent national identity document system. After all, if we had a central "Department of Identity" already, adding some sort of account system linked to the pre-authenticated passports and driver's licenses you already have would be trivial and within their wheelhouse.