Identification Security Enhancement Act of 2006 - Repeals title II of the Real ID Act of 2005.
Directs the Secretary of Homeland Security to: (1) establish by regulation minimum standards for acceptance of state-issued driver's licenses and personal identification cards by federal agencies; (2) establish a negotiated rulemaking process before publishing such standards; and (3) award grants to states to assist them in conforming to such standards.
Prohibits federal agencies from accepting state-issued driver's licenses and personal identification cards after specified deadlines unless such identification conforms to the minimum standards promulgated under this Act.