I see no issue with the government using photo ID pictures this way, just as long as they aren't using third parties to handle the technical aspect of it or allowing any of the data to be handled by any third parties (eg private corps). They would be stupid to ignore that large amount of known good data they could train their facial rec models on. Yes it sounds big and evil but that's the world we live in as long as this technology exists and you want to participate in society, I guess.
They're collecting the data already, it's being used this way already by everyone else, so why not?