For US citizens, a US Passport is required when traveling outside the United States. There is also a new Passport Card that can be used instead of a Passport for land and sea travel between the US and Canada, Mexico, the Caribbean, and Bermuda. Of course, a normal Passport can also be used for those destinations so a Passport Card isn't really that useful, it's just a smaller, more limited version of a passport.
Fees:
Passport fees are currently:
Adults (age 16 and older):
New Passport and card: $120
New Passport: $100
New Card: $45
Renew Passport and card: $95
Renew Passport: $75
Renew Card: $20
Minors (under 16 years old):
New or renew Passport and card: $95
New or renew Passport: $85
New or renew Card: $35
Where to go:
To get a new passport you'll want to go to an Acceptance facility, which are most often a post office. You'll need to check before you go about how the facility you are going to accepts payment, some will take checks, cash, or credit cards, but some won't.
Photographs:
You will also need and 2 pictures and they are very picky about the size and quality of the pictures. They need to be:
Some post offices will be able to take these photographs for you, but it is usually cheaper to have them taken on your own first. Costco and Sams Club are two low price options.
Documentation:
You will also need a couple items of documentation to prove you are who you say you are:
AND
You can find more information on passports and report lost or stolen passports here.