An update to this story from almost a year ago. It was reported by the NY Times that Latinos born near the border to midwives were having their citizenship challenged.
Well some good news for us on this front from the ACLU:
Pending court approval, DOS will train its staff on how to fairly weigh all the evidence provided in passport applications and how to avoid improperly subjecting people whose births were assisted by midwives in Texas and along the U.S.-Mexico border to heightened scrutiny in reviewing their passport applications.
All denials will be automatically reviewed by a three-member panel comprised of experienced DOS staff members, and if that panel also denies an application, DOS must communicate the specific reasons for the denial to the applicant. The applicant can then challenge the denial and ask DOS to reconsider its decision.
Additionally, anyone birthed by a midwife who has filed an application for a passport between April 2003 and September 15, 2008 and, with a few exceptions, whose application was not expressly “denied,” can re-apply for free. DOS will be setting up mobile units across the border on specific dates to assist those reapplying.
Via Latina Lista

Well, at least sometime there are bits of good news.
I was born at home by a midwife in Kansas in 1981 and have been told that I have to provide a slew of extra documentation because I was not born in a hospital.
I also had my daughter in a birthing center with a midwife and am worried if we will be able to get passports. Has anyone been through this? If so, what did you provide? I don’t have any of the documents they are requesting (prenatal records, church records, etc.)
My husband was born at home by a midwife…..he has been rejected three times…… the first one on sep 2008, the second on oct 2009, and the last one may 2011……..we don’t know what to do, it is not true that the government approved this…..