You will need a passport if you are traveling by airplane. This is because international treaties on air travel state that all passengers and crew boarding an international flight must carry a valid passport booklet.
If you are traveling by boat (Cancun is a popular cruise destination), then you can get away with a passport card or "enhanced" drivers license. Crossing the US-Mexican border is also possible on foot or in a motor vehicle with only a US passport card or "enhanced" drivers license. There are no trains that cross the US-Mexican border.
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