You use the paper temporary ID till your card comes in. If you do not get the real ID it says it is only a state ID when you get it. You have to have "real" ID for identification to get into anything that is a federal agency. So if you have a passport or military ID, you don't have to get it and if you get it when you are not renewing then it's cheaper. You have till 2023 to get it.
No, you get a temporary ID and your real ID is mailed to you later.. I am not sure what limitations the temporary ID has.
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