Order Code RL32863 CRS Report for Congress .Received through the CRS Web Homeland Security Department: FY2006 Appropriations Updated June 29, 2005 Jennifer E. Lake and Blas Nuñez-Neto, Coordinators Analysts in Domestic Security Domestic Social Policy Division Congressional Research Service ˜ The Library of Congress The annual consideration of appropriations bills (regular, continuing, and supplemental) by Congress is part of a complex set of budget processes that also encompasses the consideration of budget resolutions, revenue and debt-limit legislation, other spending measures, and reconciliation bills. In addition, the operation of programs and the spending of appropriated funds are subject to constraints established in authorizing statutes. Congressional action on the budget for a fiscal year usually begins following the submission of the President’s budget at the beginning of each annual session of Congress. Congressional practices governing the consideration of appropriations and other budgetary measures are rooted in the Constitution, the standing rules of the House and Senate, and statutes, such as the Congressional Budget and Impoundment Control Act of 1974. This report is a guide to one of the regular appropriations bills that Congress considers each year. It is designed to supplement the information provided by the House and Senate Appropriations Subcommittees on Homeland Security. It summarizes the status of the bill, its scope, major issues, funding levels, and related congressional activity, and is updated as events warrant. The reports lists the key CRS staff relevant to the issues covered and related CRS products. Note: A web version of this document with active links is available to congressional staff at [http://www.crs.gov/products/appropriations/apppage.shtml]. Homeland Security Department: FY2006 Appropriations Summary This report describes the FY2006 appropriations for the Department of Homeland Security (DHS). The report includes tables that compare the FY2005 appropriations for the programs and activities of DHS, and the President’s FY2006 request. The President’s budget request for FY2006 was submitted to Congress on February 7, 2005. The Administration is requesting a net appropriation of $30.6 billion in net budget authority for FY2006, of which $29.6 billion is discretionary budget authority, and $1 billion is mandatory budget authority. Both the House passed and Senate reported versions of H.R. 2360 provide a net appropriation of $31.9 billion for DHS and $30.8 billion in discretionary budget authority. The President’s request for appropriations includes the following break out of net budget authority for the four Titles of the DHS appropriation bill: (I) Departmental Management and Operations, $748 million; (II) Security, Enforcement and Investigations, $20,566 million; (III) Preparedness and Response, $6,710 million; and (IV) Research and Development, Training, Assessments, and Services, $2,546 million. The House-passed version of H.R. 2360 would provide the following amounts for each title: (I) $561 million; (II) $21,988 million; (III) $6,688 million; and (IV) $2,522 million. The Senate-reported version of H.R. 2360 would provide the following amounts for each title: (I) $647 million; (II) $22,191 million; (III) $6,336 million; and (IV) $2,686 million. The requested net appropriation, amounts in House-passed H.R. 2360 (in parentheses), and amounts in Senate-reported H.R. 2360 [in brackets] for major components of the department include the following: $5,575 ($5,785) [$5,998] million for Customs and Border Protection (CBP); $3,648 ($3,830) [$3,806] million for Immigration and Customs Enforcement (ICE); $1,641 ($3,263) [$3,065] million for the Transportation Security Administration (TSA); $7,962 ($7,458) [$7,780] million for the U.S. Coast Guard; $1,204 ($1,232) [$1,192] million for the Secret Service; $3,565 ($3,665) [$3,493] million for the Office of State and Local Government Preparedness (SLGCP); $3,135 ($3,013) [$2,838] million for the Emergency Preparedness and Response Directorate (EPR); $80 ($120) [$80] million for Citizenship and Immigration Services (USCIS); $873 ($853) [$871] million for Information Analysis and Infrastructure Protection (IAIP); and $1,368 ($1,290) [$1,453] million for the Science and Technology Directorate (S&T). Both the House and Senate denied the President’s proposal to raise TSA fees. The main differences between the House passed and Senate reported versions of H.R. 2360 are: the Senate version provides more funding to the Coast Guard’s Deepwater program, to CBP for construction of tactical infrastructure, and to S&T; the House version provides more funding to TSA for aviation security, to SLGCP for grants to first responders, and to EPR for disaster mitigation. This report will be updated as events warrant. Key Policy Staff: Homeland Security Area of Expertise Name Phone E-mail Coordinator Jennifer E. Lake 7-0620 jlake@crs.loc.gov Coordinator Blas Nuñez-Neto 7-0622 bnunezneto@crs.loc.gov Title I, Departmental Management and Operations General Management Harold C. Relyea 7-8679 hrelyea@crs.loc.gov Personnel Policy Barbara L. Schwemle 7-8655 bschwemle@crs.loc.gov Procurement Policy Elaine Halchin 7-0646 ehalchin@crs.loc.gov Title II, Security, Enforcement, and Investigation Coast Guard John Frittelli 7-7033 jfrittelli@crs.loc.gov Customs Issues Jennifer E. Lake 7-0620 jlake@crs.loc.gov Ruth Ellen Wasem 7-7342 rwasem@crs.loc.gov Alison Siskin 7-0260 asiskin@crs.loc.gov Lisa M. Seghetti 7-4669 lseghetti@crs.loc.gov Border Patrol Blas Nuñez-Neto 7-0622 bnunezneto@crs.loc.gov Secret Service Fred Kaiser 7-8682 fkaiser@crs.loc.gov Transportation Security Administration Bartholomew Elias 7-7771 belias@crs.loc.gov U.S. VISIT Program Lisa M. Seghetti 7-4669 lseghetti@crs.loc.gov Immigration Issues Title III, Preparedness and Recovery Biodefense/Bioshield Frank Gottron 7-5854 fgottron@crs.loc.gov Disaster Relief Keith Bea 7-8672 kbea@crs.loc.gov Emergency Preparedness and Response Keith Bea 7-8672 kbea@crs.loc.gov Firefighter Assistance Lennard G. Kruger 7-7070 lkruger@crs.loc.gov First Responders, Domestic Preparedness Shawn Reese 7-0635 sreese@crs.loc.gov Public Health Programs, MMRS, EMS Sarah Lister 7-7320 slister@crs.loc.gov Title IV, Research and Development, Training, Assessments, and Services Citizenship and Immigration Services Ruth Ellen Wasem 7-7342 rwasem@crs.loc.gov Information Analysis Todd M. Masse 7-2393 tmasse@crs.loc.gov Infrastructure Protection John D. Moteff 7-1435 jmoteff@crs.loc.gov Science and Technology Daniel Morgan 7-5849 dmorgan@crs.loc.gov Contents Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Senate Reports H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 House Passes H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 President’s FY2006 Budget Submitted . . . . . . . . . . . . . . . . . . . . . . . . . 1 Note on Most Recent Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 302(a) and 302(b) Allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Budget Authority, Obligations, and Outlays . . . . . . . . . . . . . . . . . . . . . . . . . 3 Discretionary and Mandatory Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Offsetting Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Appropriations for the Department of Homeland Security . . . . . . . . . . . . . . . . . . 7 Title I: Departmental Management and Operations . . . . . . . . . . . . . . . . . . . . . . 10 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Personnel Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 President’s Budget Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Title II: Security, Enforcement, and Investigations . . . . . . . . . . . . . . . . . . . . . . 16 Office of Screening Operations (SCO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Customs and Border Protection (CBP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Immigration and Customs Enforcement (ICE) . . . . . . . . . . . . . . . . . . . . . . 25 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 House-Passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Senate-Reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 State and Local Law Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Transportation Security Administration (TSA) . . . . . . . . . . . . . . . . . . . . . . 30 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 United States Coast Guard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 United States Secret Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Title III: Preparedness and Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Office for State and Local Government Coordination and Preparedness (SLGCP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 House-Passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Senate-Reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Emergency Preparedness and Response (EPR) . . . . . . . . . . . . . . . . . . . . . . 47 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 National Preparedness System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Title IV: Research and Development, Training, Assessments, and Services . . . 53 Citizenship and Immigration Services (USCIS) . . . . . . . . . . . . . . . . . . . . . 55 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Senate-reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Federal Law Enforcement Training Center (FLETC) . . . . . . . . . . . . . . . . . 57 President’s Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 House-passed H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Senate Reported H.R. 2360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Information Analysis and Infrastructure Protection (IAIP) . . . . . . . . . . . . . 58 Management and Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Assessments and Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Science and Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 FY2006 Budget Resolution, S.Con.Res. 18/H.Con.Res 95 . . . . . . . . . . . . . 65 FY2005 Supplemental Appropriations for Iraq and Afghanistan, Tsunami Relief, and Other Activities . . . . . . . . . . . . . . . . . . . . . . . . . 65 Appendix I — DHS Appropriations in Context . . . . . . . . . . . . . . . . . . . . . . . . . 67 DHS Appropriations and Federal Homeland Security Spending . . . . . . . . . 67 Appendix II — Disaster Relief Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 List of Tables Table 1. Legislative Status of Homeland Security Appropriations . . . . . . . . . . . . 2 Table 2. FY2006 302(b) Discretionary Allocations for DHS . . . . . . . . . . . . . . . . 3 Table 3. FY2006 Request: Moving From Gross Budget Authority to Net Appropriation: Fee Accounts, Offsetting Fees, and Trust and Public Enterprise Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Table 4. DHS: Summary of Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Table 5. Title II: Security, Enforcement, and Investigations . . . . . . . . . . . . . . . 17 Table 6. Title III: Preparedness and Response . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Table 7. SLGCP Program Level Details, FY2005-2006 . . . . . . . . . . . . . . . . . . . 43 Table 8. Title IV: Research and Development, Training, Assessments, and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Table 9: IAIP Account Level Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Table 10. Science and Technology Directorate Accounts and Activities, FY2005-FY2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Table 11. Federal Homeland Security Funding by Agency, FY2002-FY2006 . . 68 Table 12. Disaster Relief Fund, FY1974-FY2005 . . . . . . . . . . . . . . . . . . . . . . . 69 Department of Homeland Security: Appropriations for FY2006 Most Recent Developments Senate Reports H.R. 2360. On June 16, 2006 the full Senate Appropriations Committee reported H.R. 2360 with an amendment in the nature of a substitute. The Senate-reported version of H.R. 2360 recommends a net appropriation of $31.9 billion for DHS for FY2006. This amount includes $30.8 billion in discretionary budget authority. This amount represents an increase of $1.3 billion or 4% compared to the FY2005 enacted level; and an increase of $1.2 billion or nearly 4% compared to the FY2006 request. House Passes H.R. 2360. On May 17, 2005, the House passed H.R. 2360 424-1. The bill provides a net appropriation of $31.9 billion for DHS. This amount includes $30.8 billion in discretionary budget authority, which represents an increase of $1.3 billion, or 4%, compared to the baseline FY2005 enacted level (without advance or emergency appropriations); and an increase of $1.2 billion, or nearly 4%, compared to the FY2006 request. President’s FY2006 Budget Submitted. The President’s budget request for FY2006 was submitted to Congress on February 7, 2005. The Administration requested $41.1 billion in gross budget authority for FY2006 (including mandatories, fees, and funds). The Administration is requesting a net appropriation of $30.6 billion in net budget authority for FY2006, of which $29.6 billion is discretionary budget authority, and $1 billion is mandatory budget authority. The FY2005 enacted net appropriated budget authority for DHS was $40.2 billion, including an advance appropriation of $2.058 billion for Bioshield and $7.145 billion in emergency appropriations; without Bioshield or the emergency appropriations, the FY2005 net appropriated budget authority for DHS was $30.6 billion. Without including Bioshield, the FY2006 request for an appropriation of $30.6 in net budget authority represents no increase over the FY2005 enacted amount. Table 1 summarizes the legislative status of DHS appropriations for FY2006. CRS-2 Table 1. Legislative Status of Homeland Security Appropriations Subcommittee Markup House Report House Senate 109-79 05/04 (vv) 06/14 (vv) 05/10 (vv) House Passage 05/17 (424-1) Conference Report Approval Senate Report Senate Confer. 109-83 Passage Report House Senate 06/16 (28-0) — — — — Public Law — Note: vv = voice vote Note on Most Recent Data. Data used in this report include data from the President’s Budget Documents, the FY2006 DHS Congressional Budget Justifications, the FY2006 DHS Budget in Brief, and the House Appropriations Committee Homeland Security tables of May 20, 2005. Data used in Table 3 and Table 12 are taken from various sections of the FY2006 President’s Budget. These amounts do not correspond to amounts presented in Tables 4-11, which are based on data from tables supplied by the Appropriations Subcommittees and from the FY2006 DHS Congressional Budget Justifications in order to best reflect the amounts that will be used throughout the congressional appropriations process. The most recent update of this report uses amounts contained in the House- passed version of H.R. 2360, and the attached report (H.Rept. 109-79); and in the Senate-reported version of H.R. 2360, and the attached report (S.Rept. 109-83).. Background This report describes the President’s request for funding for DHS programs and activities, as submitted to Congress on February 7, 2005. This report compares the enacted FY2005 amounts to the amounts requested for FY2006. This report will also track legislative action and congressional issues related to the FY2006 DHS appropriations bill, with particular attention paid to discretionary funding amounts. However, this report does not follow specific funding issues related to mandatory funding — such as retirement pay — nor does the report systematically follow any legislation related to the authorization or amendment of DHS programs. 302(a) and 302(b) Allocations The maximum budget authority for annual appropriations (including DHS) are determined through a two-stage congressional budget process. In the first stage, Congress sets overall spending totals in the annual concurrent resolution on the budget. Subsequently, these amounts are allocated among the various appropriations committees, usually through the statement of managers for the conference report on the budget resolution. These amounts are known as the 302(a) allocations. They include discretionary totals available to the House and Senate Committees on Appropriations for enactment in annual appropriations bills through the subcommittees responsible for the development of the bills. In the second stage of the process, the appropriations committees allocate the 302(a) discretionary funds CRS-3 among their subcommittees for each of the appropriations bills. These amounts are known as the 302(b) allocations. These allocations must add up to no more than the 302(a) discretionary allocation, and form the basis for enforcing budget discipline, since any bill reported with a total above the ceiling is subject to a point of order. 302(b) allocations may be adjusted during the year as the various appropriations bills progress towards final enactment. The Senate budget resolution, S.Con.Res. 18 was introduced on March 11, 2005, and passed the Senate on March 17, 2005. S.Con.Res. 18 provides $848.8 billion in discretionary spending. The House budget resolution, H.Con.Res. 95, was introduced on March 11, 2005, and passed the House on March 17, 2005. H.Con.Res. 95 proposed $843 billion in discretionary budget authority. On April 28, 2005 the conference committee reported, and both the House and Senate passed, H.Rept. 109-62 providing $843 billion in discretionary budget authority for FY2006. The House Appropriations Committee adopted its 302(b) allocations on May 10, 2005, which allocates $30.8 billion in discretionary budget authority for homeland security. The Senate Appropriations Committee adopted its 302(b) allocation on June 9, 2005, and reported S.Rept. 109-77 which allocates $30.8 billion in discretionary budget authority for DHS. Table 2. FY2006 302(b) Discretionary Allocations for DHS (budget authority in billions of dollars) FY2005 Comparable FY2006 Request Comparable FY2006 House Allocation FY2006 Senate Allocation FY2006 Enacted Comparable 32,000 29,554 30,846 30,846 — Source: House Appropriations Committee tables of March 15, 2005; House Appropriation Committee 302(b) table of May 10, 2005; and Senate Appropriations Committee 302(b) allocations in S.Rept. 109-77. Budget Authority, Obligations, and Outlays1 Federal government spending involves a multi-step process that begins with the enactment of a budget authority by Congress in an appropriations act. Federal agencies then obligate funds from the enacted budget authority to pay for their activities. Finally, payments are made to liquidate those obligations; the actual payment amounts are reflected in the budget as outlays. Budget authority is established through appropriations acts or direct spending legislation and determines the amounts that are available for federal agencies to spend. The Antideficiency Act2 prohibits federal agencies from obligating more funds than the budget authority that was enacted by Congress. Budget authority may 1 Prepared with assistance from Bill Heniff Jr., Analyst in American National Government, Government and Finance Division. 2 31 U.S.C. §§1341, 1342, 1344, 1511-1517. CRS-4 be indefinite, however, when Congress enacts language providing “such sums as may be necessary” to complete a project or purpose. Budget authority may be available on a one-year, multi-year, or no-year basis. One-year budget authority is only available for obligation during a specific fiscal year; any unobligated funds at the end of that year are no longer available for spending. Multi-year budget authority specifies a range of time during which funds can be obligated for spending; no-year budget authority is available for obligation for an indefinite period of time. Obligations are incurred when federal agencies employ personnel, enter into contracts, receive services, and engage in similar transactions in a given fiscal year. Outlays are the funds that are actually spent during the fiscal year.3 Because multiyear and no-year budget authorities may be obligated over a number of years, outlays do not always match the budget authority enacted in a given year. Additionally, budget authority may be obligated in one fiscal year but spent in a future fiscal year; especially with certain contracts. In sum, budget authority allows federal agencies to incur obligations and authorizes payments, or outlays, to be made from the Treasury. Discretionary agencies and programs, and appropriated entitlement programs, are funded each year in appropriations acts. Discretionary and Mandatory Spending4 Gross budget authority, or the total funds available for spending by a federal agency, may be composed of discretionary and mandatory spending. Of the $41 billion gross budget authority requested for DHS in FY2006, 83% is composed of discretionary spending and 17% is composed of mandatory spending. Discretionary spending is not mandated by existing law and is thus appropriated yearly by Congress through appropriations acts. The Budget Enforcement Act5 of 1990 defines discretionary appropriations as budget authority provided in annual appropriation acts and the outlays derived from that authority, but it excludes appropriations for entitlements. Mandatory spending, also known as direct spending, consists of budget authority and resulting outlays provided in laws other than appropriation acts and is typically not appropriated each year. However, some mandatory entitlement programs must be appropriated each year and are included in the appropriations acts. Within DHS, the Coast Guard retirement pay is an example of appropriated mandatory spending. 3 Appropriations, outlays and account balances for government treasury accounts can be viewed in the end of year reports published by the U.S. Treasury titled Combined Statement of Receipts, Outlays, and Balances of the United States Government. The DHS portion of the report can be accessed at [http://fms.treas.gov/annualreport/cs2004/c18.pdf]. 4 Prepared with assistance from Bill Heniff, Jr., Analyst in American National Government. 5 P.L. 101-508, Title XIII. CRS-5 Offsetting Collections6 Offsetting funds are collected by the federal government, either from government accounts or the public, as part of a business-type transaction such as offsets to outlays or collection of a fee. These funds are not counted as revenue. Instead, they are counted as negative outlays. DHS net discretionary budget authority, or the total funds that are appropriated by Congress each year, is composed of discretionary spending minus any fee or fund collections that offset discretionary spending. Some collections offset a portion of an agency’s discretionary budget authority. Some of these fees offset spending at the account level and are subtracted from the Appropriations Committee tables directly below the program they offset. An example of this is the Federal Protective Service, which is immediately offset in the appropriations tables by an intergovernmental transfer from the General Services Administration. Other discretionary fees offset spending at the agency level and are thus subtracted from the discretionary budget authority of the agency to arrive at the actual appropriated level. An example of this is the Immigration Inspection fee, which is collected at Ports of Entry by CBP personnel and is used to offset both the CBP and ICE appropriations. Other collections offset an agency’s mandatory spending. They are typically entitlement programs under which individuals, businesses, or units of government that meet the requirements or qualifications established by law are entitled to receive certain payments if they establish eligibility. The DHS budget features two mandatory entitlement programs: the Secret Service and Coast Guard retired pay accounts (pensions). Some entitlements are funded by permanent appropriations, others by annual appropriations. The Secret Service retirement pay is a permanent appropriation and as such is not annually appropriated, while the Coast Guard retirement pay is annually appropriated. In addition to these entitlements, the DHS budget contains offsetting Trust and Public Enterprise Funds. These funds are not appropriated by Congress; they are available for obligation and included in the President’s budget to calculate the gross budget authority. Table 3 tabulates all of the offsets within the DHS budget as enacted for FY2005 and in the FY2006 request. Table 3. FY2006 Request: Moving From Gross Budget Authority to Net Appropriation: Fee Accounts, Offsetting Fees, and Trust and Public Enterprise Accounts (budget authority in millions of dollars) Account/Agency Account Name DHS gross budget authority (gross discretionary + fees+ mandatory + funds) FY2005 41,018 FY2006 41,067 Account level discretionary offset 6 Prepared with assistance from Bill Heniff, Jr., Analyst in American National Government. CRS-6 Account/Agency Account Name FY2005 FY2006 TWIC 50 245 Hazmat 17 44 Registered traveler — 23 Federal Protective Service 478 487 a 3,670a 113 124 5 5 -2,486 -4,598 429 465 6 6 28 30 COBRA 318 334 APHIS 200 204 Puerto Rico 89 98 Immigration inspection 90 92 SEVIS 40 67 Breached bond detention fund 70 71 TSA Aviation security capital fund 250 250 USCIS Immigration examination fee 1,571 1,730 44 44 Alien flight school background checks 5 10 Subtotal agency level discretionary offsets -3,140 -3,400 200 200 (1,085) (1,014) -200 -200 8 8 1,302 1,459 563 563 Operational expense limit 55 55 Interest expense limit 30 30 Boat safety 64 64 Oil spill recovery 71 121 (10,533) (10,533) Office of Screening Operations ICE TSA Aviation security fees FEMA/EPR National flood insurance fund CBP Small airports Subtotal account level discretionary offsets 1,823 Agency level discretionary offset Immigration inspection Immigration enforcement CBP ICE Land border H1b, and H1b & L fees Office of Screening Operations Mandatory budget authority Secret service Secret service retired pay b Coast guard Coast guard retired pay c Subtotal mandatory budget authority Trust funds and public enterprise funds CBP Customs unclaimed goods Claims expense Underwriting limit FEMA/EPR Coast Guard Miscellaneous revolving fund CRS-7 Account/Agency Account Name FY2005 Gift fund FY2006 1 1 -2,094 -2,301 DHS gross budget authority 41,103 41,067 Total offsetting collections (8,004) (10,499) 33,099 d 30,569 Subtotal trust and public enterprise funds DHS net appropriated BA (Mandatory + Discretionary) Source: CRS analysis of the FY2006 President’s Budget, and DHS, Budget in Brief, House Appropriation Committee tables of May 20, 2005. Note: Totals may not add due to rounding. Amounts in parentheses are non-adds. a. There is a discrepancy reported in the amount of aviation security fees collected by TSA, for both FY2005 and 2006. The enacted level aviation security fees for FY2005 was $1,823 million, and this is the amount reported in the current committee tables. The Administration FY2006 budget documents and the DHS Congressional Budget Justifications report the FY2005 amount as $2,330 million. The Administration has requested an increase in aviation security fees for FY2006, and the budget documents estimate the offsetting collections at $3,889 million. The latest committee tables show $3,670 million for FY2006 (a difference of $218 million from the President’s budget) based on estimates by the Congressional Budget Office. In order to complete the crosswalk in Table 3, we have used the enacted amount for FY2005 ($1,823) and the committee table amount ($3,670) for FY2006. b. Secret Service Retired Pay is permanently and indefinitely authorized, and as such is not annually appropriated. Therefore it is offset in Table 3. c. In contrast to Secret Service Retired Pay, Coast Guard Retired pay must be annually appropriated, and therefore is not offset in Table 3. d. This amount ($33,098 million) does not include $6,500 million in emergency disaster relief funding. For more information on those supplemental appropriations, see CRS Report RL32581, Assistance After Hurricanes and Other Disasters: FY2004 and FY2005 Supplemental Appropriations. Appropriations for the Department of Homeland Security The Homeland Security Act of 2002 (P.L. 107-296) transferred the functions, relevant funding, and most of the personnel of 22 agencies and offices to the new Department of Homeland Security (DHS) created by the act. DHS is organized into four major directorates: Border and Transportation Security (BTS); Emergency Preparedness and Response (EPR); Science and Technology (S&T); and Information Analysis and Infrastructure Protection (IAIP). BTS, the largest of the four directorates, contains three main agencies: Customs and Border Protection (CBP); Immigration and Customs Enforcement (ICE); and Transportation Security Administration (TSA). EPR is comprised primarily of the former Federal Emergency Management Agency (FEMA), and IAIP houses the Homeland Security Operations Center (HSOC), Information Analysis (IA) and the Infrastructure Protection (IP) offices. S&T is home to the Office of National Laboratories, Homeland Security Laboratories, and the Homeland Security Advanced Research Projects Agency (HSARPA). U.S. Citizenship and Immigration (USCIS), the U.S. Coast Guard, and the U.S. Secret Service are all stand-alone agencies within DHS directly under the Secretary of Homeland Security. CRS-8 Appropriations measures for DHS have been organized into four titles: Title I Departmental Management and Operations; Title II Security, Enforcement, and Investigations; Title III Preparedness and Recovery; and Title IV Research and Development, Training, Assessments, and Services. Title I contains appropriations for the Office of Management, the Office of the Secretary, the Office of the Chief Financial Officer (CFO), the Office of the Chief Information Officer (CIO), and the Office of the Inspector General (OIG). Title II contains appropriations for the Office of the Undersecretary for BTS, CBP, ICE, TSA, the Coast Guard, the Secret Service, and the newly proposed Office of Screening Operations (SCO). Title III contains appropriations for EPR and the Office of State and Local Government Coordination and Preparedness (SLGCP). Title IV contains appropriations for USCIS, IAIP, S&T, and the Federal Law Enforcement Training Center (FLETC). Table 4 is a summary table comparing the enacted appropriations for FY2005 and the requested amounts for FY2006. As shown in Table 3, the Administration requested $41.1 billion in gross budget authority (including mandatories and other non-appropriated funding) for FY2006. The Administration is requesting an appropriation of $30.6 billion in net budget authority for FY2006, of which $29.5 billion is discretionary budget authority, and $1 billion is mandatory budget authority. The FY2005 enacted net appropriated budget authority for DHS was $40.2 billion, including an advance appropriation of $2.058 billion for Bioshield and $7.145 billion in emergency appropriations; without Bioshield or the emergency appropriations, the FY2005 net appropriated budget authority for DHS was $30.6 billion. Without including Bioshield, the FY2006 request for an appropriation of $30.6 in net budget authority represents no increase over the FY2005 baseline enacted amount. Housepassed H.R. 2360 provides a net appropriation of $31.9 billion for DHS for FY2006. This amount represents a $1.3 billion increase over the FY2005 base appropriation, and a $1.2 billion, or nearly 4%, increase compared to the FY2006 request. Senatereported H.R. 2360 also recommends $31.9 billion ($30.8 billion in discretionary budget authority) for DHS for FY2006. CRS-9 Table 4. DHS: Summary of Appropriations (budget authority in millions of dollars) FY2005 FY2006 FY2006 FY2006 FY2006 Enacted Request House Senate Enacted Operational Component Title I: Departmental Management and Operations 583a 748 561b 647 10 11 9 10 340 525 411 340 5,371 5,575 5,785 5,998 3,537 3,648 3,830 3,806 — Transportation Security Administration 3,260 1,641 3,263 3,065 — U.S. Coast Guard 7,568 7,962 7,458 7,780 — U.S. Secret Service 1,175 1,204 1,233 1,192 Net subtotal: Title II 21,260 20,566 21,988 22,191 — Total fee collections -3,897 -6,099 -4,278 -4,278 Gross subtotal: Title II 25,157 26,665 26,267 26,468 — Office for Domestic Preparedness/ Office of State and Local Government Coordination and Preparedness — Counter-Terrorism Fund — Emergency Preparedness and Responsee 3,985 8 11,978 3,565 10 3,135 3,665 10 3,013 3,493 5 2,838 Net subtotal: Title III 15,971 6,710 6,688 6,336 Subtotal: Title I Title II: Security, Enforcement, and Investigations — Office of the Undersecretary for Border and Transportation Security — Screening and operations office/ Automation Modernization/US-VISITc — Customs and Border Protection — Immigration and Customs Enforcement d Title III: Preparedness and Recovery Title IV: Research and development, training, assessments, and services — Citizenship and Immigration Services 160 80 120 80 — Information Analysis and Infrastructure Protection 894 873 853 871 — Federal Law Enforcement Training Center 227 224 259 282 — Science and Technology 1,115 1,368 1,290 1,453 Net subtotal: Title IV 2,396 2,546 2,522 2,686 — Total fee collections -1,615 -1,774 -1,774 -1,774 Gross subtotal: Title IV 4,011 4,320 4,296 4,460 — — 100 (40) DHS gross budget authority 45,722 38,399 37,912 37,912 — Total fee collections -5,512 -7,873 -6,052 -6,052 40,210 30,569 31,860 31,860 2,508 — — — 7,145 — — — 30,557 30,569 31,860 31,860 Title V: General Provisions — REAL ID Grants f DHS net budget authority g — Advance appropriation h — Emergency appropriation DHS Appropriation j i CRS-10 Source: CRS analysis of the FY2006 President’s Budget, and DHS Budget in Brief, House Appropriation Committee tables of May 20, 2005, House-passed H.R. 2360 and H.Rept. 109-79; and Senate-reported H.R. 2360 and S.Rept. 109-83. Note: Totals may not add due to rounding. Amounts in parentheses are non-adds. a. Includes a $24 million rescission pursuant to P.L. 109-13. b. Includes a $7 million rescission. c. The President’s FY2006 request for DHS proposes to create the Screening and Operations Office by transferring in the following programs: FAST and NEXUS/SENTRI from CBP; Secure Flight, Crew Vetting, Credentialing Startup, TWIC, Registered Traveler, HAZMAT, and Alien Flight School from TSA. These programs are discussed in the text. The House report (H.Rept. 109-79) denies the creation of the SCO, but transfers FAST and NEXUS/SENTRI to a new office called Automation Modernization with the US-VISIT program. All other activities proposed for transfer to the SCO would remain in TSA, under the House-passed version of H.R. 2360. d. TSA appropriations estimate includes a proposed $3 increase in passenger security fees for oneway and multi-leg flights, for a total offsetting collection of nearly $3.9 billion; Congressional Budget Office (CBO) calculations place the offsetting collections from the fee increase at $3.7 billion. Throughout this report, the CBO figure will be used to calculate total appropriations. The House report (H.Rept. 109-79) denies the transfer of several TSA programs to the proposed SCO, as mentioned above in Note a, these programs would remain in TSA under House-passed H.R. 2360. e. EPR appropriations include $6.5 billion in supplemental appropriations for disaster relief. For more information on those supplemental appropriations see CRS Report RL32581, Assistance After Hurricanes and Other Disasters: FY2004 and FY2005 Supplemental Appropriations. The total also includes a 0.80% across the board rescission pursuant to P.L. 108-447, resulting in a $20 million rescission from Bioshield funding. f. The Senate-reported version of H.R. 2360 included $40 million in funding for REAL ID grants under OSLGCP. g. Net discretionary budget authority differs from the amounts listed in the President’s Budget due to the following: FY2005 includes $2.508 billion in advance appropriations for Bioshield and $1.085 in Coast Guard mandatory retirement pay. FY2006 includes $1.014 billion in Coast Guard mandatory retirement pay. h. Represents the $2.508 billion advance appropriation for Bioshield. i. Includes 6.5 billion in hurricane relief funding pursuant to P.L. 108-324, and $644 million in emergency appropriations pursuant to P.L. 109-13. j. For scorekeeping purposes, this number does not include emergency or advance appropriations (but it does include $270 million in rescissions. This allows for a better comparison of baseline appropriation numbers for DHS. Title I: Departmental Management and Operations7 President’s Request. Title I covers the general administrative expenses of DHS. It includes the Office of the Secretary and Executive Management (OS&EM), which counts the immediate Office of the Secretary and 14 entities that report directly to the Secretary; the Under Secretary for Management (USM) and its components, such as offices of the Chief Procurement Officer, Chief Human Capital Officer, and Chief Administrative Officer; the Office of CIO; the Office of the Chief Financial Officer (OCFO); and OIG. FY2006 requests relative to comparable FY2005 enacted appropriations: OS&EM, $195.8 million, an increase of $110.8 million (+130%); USM, $146.6 million, a decrease of $4.5 million (-3%); OCIO, $303.7 million, an increase of $28.4 million (+10%); OCFO, $18.5 million, an 7 Prepared by Harold C. Relyea, Specialist in American National Government, Government and Finance Division. CRS-11 increase of $5.5 million (+42%); and OIG, $83 million, an increase of $700,000 (+1%). Table 4 shows appropriations for FY2005 and congressional action on the requests for FY2006. The total FY2006 request for Title I is $748 million. This represents a 28% increase over the FY2005 enacted level. House-passed H.R. 2360. Unhappy and otherwise frustrated with “the Department’s inability to respond quickly, or at all, to items of Congressional interest or direction,” “extremely concerned by the Department’s inability to submit reports on a timely basis,” and “very concerned about the results of the 2004 financial audit,” among other complaints, House appropriators slashed $62.6 million from the OS&EM request, recommending $133.2 million, which is $48.2 million above the amount provided in FY2005.8 Among the entities bearing the brunt of this cut were the Office of Security (-$10 million), which was criticized for not assuring that unclassified information was clearly marked and distinguished from classified and other security sensitive information within DHS documents; the Operation Integration Staff (-$1.9 million), which was left to continue to rely upon a half staff of detailees from other components within DHS; and Regions (-$49.8 million), which, with regional structure still under internal DHS review, was considered to be “premature” for any funding at the present time. Senate-reported H.R. 2360. Senate appropriators chopped $71.2 million from the OS&EM request, recommending $124.6 million. Among the entities hardest hit by this cut were the Office of Security (-$6 million); the Executive Secretary (-$1.3 million); the new Office of Policy, Planning, and International Affairs (OPPIA) (-$1.5 million); the Office of Public Affairs (-$1 million); the Operation Integration Staff (-$9.4 million), due to its integration and coordination functions being assumed by OPPIA; and the Regions Initiative (-$49.8 million), due to the lack of a required consolidation and collocation plan. In brief, no funding was recommended for the latter two accounts.9 Issues for Congress. Within the OS&EM account, the House approved $8.7 million for the new OPPIA, which had been proposed in the DHS budget justification. Immediately assisting the Secretary, OPPIA would be headed by an Assistant Secretary for Policy and Planning and would include other related staff now located within the Office of the Under Secretary for BTS, as well as such existing entities as the Office of International Affairs, the Deputy Chief of Staff for Policy, the Homeland Security Advisory Council, and USM. Senate appropriators reduced the OPPIA allotment and indicated an expectation that it would assume the role of the Operation Integration Staff. A similar DHS restructuring was discussed at a January 26, 2005, oversight hearing conducted by the Senate Committee on Homeland Security and 8 U.S. Congress, House Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2006, a report to accompany H.R. 2360, 109th Cong., 1st sess., H.Rept. 109-79 (Washington: GPO, 2005), pp. 5, 7-9, 14. Hereafter cited as H.Rept. 109-79. 9 U.S. Congress, Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2006, a report to accompany H.R. 2360, 109th Cong., 1st sess., S.Rept. 109-83 (Washington: GPO, 2005), pp. 9-11. CRS-12 Governmental Affairs. Participating was one of the authors of a December 2004 Heritage Foundation report, DHS 2.0: Rethinking the Department of Homeland Security, which had recommended (1) eliminating the DHS management directorate and USM, but relocating the chief management officers to the office of the Deputy Secretary; and (2) establishing an Under Secretary for Policy, who would be assisted by a unified policy planning staff.10 It was thought that the first reform would eliminate an unnecessary layer of bureaucracy and otherwise strengthen the roles of the chief management officers, and that the second reform would bring unity to DHS through the development of proactive, strategic homeland security policy and plans. Indications were that these reforms, among others, would be considered for inclusion in subsequent legislation reauthorizing DHS programs within the jurisdiction of the Senate committee. A DHS authorization bill (H.R. 1817) recently reported from the House Committee on Homeland Security (H.Rept. 109-71), however, made no mention of these particular suggested reforms. The House also approved a new general provision to ensure that the DHS Privacy Officer will report privacy abuses to Congress and have access to all documents and information necessary to carry out statutory responsibilities. The provision was added in committee because it was thought that the Privacy Officer “should provide Congress, and thus the public, an unfettered view into the operations of the Department and its impact on personal privacy.”11 Personnel Issues.12 In addition to the policy and planning issues, and the reorganization issues, several personnel issues may be of interest to Congress during the current appropriations cycle. The Office of the Chief Human Capital Officer (CHCO). This Office (also referred to in the budget justification as the Office of Human Resources) establishes policy and procedures and provides oversight, guidance, and leadership for human resources management (HRM) functions within the DHS. It is organized into three major components as follows. Human Capital Innovation is responsible for designing and implementing the department’s new HRM system, referred to as Max-HR,13 including human capital strategic planning efforts and HR information 10 James Jay Carafano, and David Heyman, DHS 2.0: Rethinking the Department of Homeland Security, Heritage Special Report (Washington: Dec. 13, 2004). 11 H.Rept. 109-79, p. 7. 12 Personnel Issues section prepared by Barbara Schwemle, Analyst in American National Government, Government and Finance Division. 13 On February 1, 2005, DHS and the Office of Personnel Management jointly published final regulations in the Federal Register to implement Max-HR. (U.S. Department of Homeland Security and U.S. Office of Personnel Management, “Department of Homeland Security Human Resources Management System,” Federal Register, vol. 70, no. 20, Feb. 1, 2005, pp. 5271-5347.) The regulations provide new policies on position classification, pay, performance management, adverse actions and appeals, and labor-management relations for DHS employees. Max-HR will cover about 110,000 of the department’s 180,000 employees and will be implemented in phases. The performance management process is scheduled to begin in Fall 2005, and the first conversion of employees to the pay (continued...) CRS-13 technology components, including payroll modernization. The activities associated with the new system’s regulatory process and the design and contract management processes also are part of the Innovation component. Human Capital Policy and Programs is responsible for establishing corporate human resources policy, including training and development programs, in support of headquarters and department-wide initiatives. This component manages program and policy development and execution for HRM at DHS, including workforce planning, corporate talent, executive resources, recruitment and branding, benefits, and work life programs. Human Capital Operational Services, newly established in FY2005, provides comprehensive human resources services for all headquarters organizations and manages the process of optimizing shared human capital services within DHS. The principal human capital officers from each component of the department comprise a Human Resources Council which coordinates activities across DHS. The Office of the CHCO reports to the Undersecretary for Management and its appropriation is included in that of the Undersecretary. For FY2005, the Office of the CHCO received an appropriation of $43.2 million and a staffing level of 49 full-time equivalent employees (FTEs). Of this total, $7.2 million funded HR operations14 and $36 million (non-recurring) funded the development and implementation of MaxHR. Twelve of the FTEs were attached to Max-HR. President’s Budget Proposal. The President’s FY2006 budget proposes an appropriation of $61.996 million and 50 FTEs for the Office of the CHCO. The request represents an increase of $18.796 million and one FTE over the FY2005 appropriation.15 Especially noteworthy in the budget proposal are the funding 13 (...continued) system is scheduled to commence in early 2006. (See, CRS Report RL32261, Homeland Security: Final Regulations on Classification, Pay, and Performance Management Compared With Current Law, by Barbara L. Schwemle; and CRS Report RL32255, Homeland Security: Final Regulations for the Department of Homeland Security Human Resources Management System (Subpart E) Compared With Current Law, by Jon O. Shimabukuro.) In early May 2005, the National Treasury Employees Union released the results of a series of focus group meetings on the design and implementation of the new payfor-performance system. According to the union, issues that concern non-managerial employees include fair administration, sufficient funding, and accountability of the pay system. (The National Treasury Employees Union, “Front-Line Homeland Security Employees and Managers Alike Raise Concerns About Pay-For-Performance,” News Release, May 9, 2005. Available on the Internet at [http://www.nteu.org], visited June 7, 2005. DHS conducted the surveys at 10 locations with some 289 employees from February 24 through March 18, 2005.) 14 The $7.2 million appropriation was allocated as follows: salaries and benefits ($4,118,516), travel ($46,370), printing ($9,515), advisory and assistance services — portion not Max-HR ($1,053,683), other services ($854,731), purchase from government accounts ($487,399), operation and maintenance of equipment ($15,623), supplies and materials ($48,104), and equipment ($566,058). 15 The following amounts are requested for FY2006 (unless otherwise noted, the increases result from pay raises or inflation): $5,446,048 for salaries and benefits (includes $180,000 for one new FTE), $47,205 for travel, $9,687 for printing, $54,372,649 for advisory and assistance services (includes increases of $17 million for Max-HR and $300,000 for other (continued...) CRS-14 requests of $593,000 for the Office of the CHCO and $53 million for Max-HR as discussed below. Workforce Strategies and DHS Employee Surveys. The proposed increase of $593,000 is allocated as follows. For workforce strategies, $180,000 for one new FTE is requested. The additional FTE will “analyze the impact of current and/or potential occupational or skill gaps, and develop various human capital strategies and plans related to recruiting, retention, learning and development interventions needed to close these gaps.”16 The National Defense Authorization Act for FY2004 mandates an annual assessment of employees and the organization. To fund the employee survey and analysis of the results, $413,000 is requested.17 Max-HR. An appropriation of $53 million is requested for the department’s new HRM system, an increase of $17 million over the FY2005 funding.18 The Office of the CHCO serves as the “command center” for Max-HR. Twelve FTEs continue to staff Max-HR. House-passed H.R. 2360. The Appropriations Committee tables that accompany the House-passed bill show an appropriation of $61.951 million for the Office of the CHCO. This amount would be allocated as $8.951 million for salaries and expenses ($45,000 below the President’s request of $8.996 million) and $53 million for Max-HR (the same amount as the President’s request).19 According to the committee, however, amendments agreed to by the House would reduce the funding for the Office of the Under Secretary for Management by $96.1 million, thereby resulting in reductions, not yet specified, in the Under Secretary accounts. Full year 15 (...continued) HRM initiatives), $983,116 for other services (includes an increase of $113,000 for programs), $496,172 for purchase from government accounts, $15,905 for operation and maintenance of equipment, $48,970 for supplies and materials, and $576,248 for equipment. 16 U.S. Department of Homeland Security, Fiscal Year 2006 Congressional Justification, p. USM-17. 17 Of the $413,000, $300,000 is included under advisory and assistance services and $113,000 is included under other services. 18 The requested amount is allocated as follows: $10 million for training for the department’s executives, managers, supervisors, and human resources professionals; $18 million for detailed systems design and implementation (for access to experts who are assisting in designing the performance management, job evaluation, and compensation systems and pay and performance linkages, and developing and documenting competencies for DHS positions); $10 million for the conversion of Phase One employees (in DHS headquarters, IAIP, S&T, EPR, and FLETC) from the General Schedule to newly created market-based pay ranges; $9 million for program management to manage appropriate cost, schedule, and control activities at the departmental level to ensure good management of the personnel system; and $6 million for the Homeland Security Labor Relations Board (HSLRB) and Mandatory Removal Offense (MRO) Panel. The HSLRB, established in FY2005 as an independent entity that reports to the DHS Secretary, resolves labormanagement disputes. The MRO is a separate entity and adjudicates appeals of employees who have been removed from their positions for engaging in mandatory removal offenses. 19 H. Rept 109-79, pp. 13-14. CRS-15 funding would be denied for the one new FTE in the Office of the CHCO requested by the President. The committee assumes that the “new staff will be on board beginning in the second quarter of FY2006.”20 Opposition to any change in the funding for Max-HR was stated by the Office of Management and Budget, DHS itself, and Senator George Voinovich, with particular emphasis on the adverse impact on managerial and supervisory training.21 The National Treasury Employees Union supports the reduction, saying that $18 million would have funded contractors working on the design of the performance management component and $6 million would have funded the establishment of internal labor relations boards at DHS.22 Section 516 of the House-passed bill would continue to authorize transfer from the Office of Personnel Management (OPM) to DHS the authority to conduct personnel security and suitability background investigations, update investigations, and periodically re-investigate applicants for, or appointees in certain DHS positions.23 Senate-reported H.R. 2360. The Senate version of H.R. 2360, as reported, would provide the Office of the CHCO with the appropriation requested by the President.24 The Senate Appropriations Committee report accompanying the bill states that of the $53 million: $18 million is for detailed systems design and implementation support; $10 million is for training and communication; $9 million is for program management, oversight, and evaluation; $10 million is for initial personnel conversion from the General Schedule; and $6 million is for the Homeland 20 H. Rept 109-79, p. 14. 21 U.S. Executive Office of the President, Office of Management and Budget, Statement of Administration Policy, H.R. 2360 — Department of Homeland Security Appropriations Bill, FY2006, May 17, 2005, p. 2. David McGlinchey, “Homeland Security Appeals for Personnel Funding,” Government Executive, May 24, 2005. Available on the Internet at [http://www.govexec.com], visited June 7, 2005. Letter from Senator Voinovich, Chairman, Oversight of Government Management Subcommittee to Senator Judd Gregg, Chairman, Homeland Security Subcommittee provided to CRS by subcommittee staff on May 31, 2005. 22 The National Treasury Employees Union, “Kelley Welcomes Shift of Substantial DHS Funding Away From Implementing New and Unnecessary Personnel System,” News Release, May 20, 2005. Available on the Internet at [http://www.nteu.org], visited June 7, 2005. 23 The positions would be in the Office of the Secretary and Executive Management, the Office of the Under Secretary for Management, the Bureau of Immigration and Customs Enforcement, the Directorate of Science and Technology, and the Directorate of Information Analysis and Infrastructure Protection. Upon DHS’ request, OPM would cooperate with and assist DHS in any investigation or reinvestigation. The authorization would cease to be effective once the President has selected a single agency to conduct security clearance investigations and that agency has reported to Congress that the agency selected is capable of conducting all necessary investigations in a timely manner or has authorized the entities within DHS covered by Section 516 to conduct their own investigations. This latter provision was added by Amendment No. 139 offered by Representative Tom Davis and agreed to by the House by voice vote on May 17, 2005. According to Representative Davis, the amendment provides that “the Congressionally mandated oversight authority will be responsible for ensuring that investigations for DHS security clearances are done in the most timely and efficient manner once the 9/11 Act reforms take effect.” (Congressional Record, daily edition, vol. 151, no. 65, May 17, 2005, pp. H3394-H3395.) 24 S. Rept 109-83, p. 101. CRS-16 Security Labor Relations Board. DHS is directed to report to the committee by February 18, 2006, on implementation progress, improved mission effectiveness, and projected costs for each fiscal year over the life of Max HR.25 The Senate version does not include the general provision on background security investigations. Title II: Security, Enforcement, and Investigations Title II funds Security, Enforcement, and Investigations. The largest component of Title II is the Directorate of Border and Transportation Security (BTS). BTS is comprised of the Office of the Under Secretary for BTS, CBP, ICE, and TSA. For FY2006, the Administration has proposed the creation of SCO within BTS, that would coordinate the passenger (and to some extent the cargo) screening operations of BTS. Also included in Title II (though they are not operationally a part of the BTS Directorate) are the U.S. Coast Guard, and the U.S. Secret Service. Table 5 shows the FY2005 enacted and FY2006 requested appropriations for Title II. The Administration has requested an appropriation of $20.6 billion in net discretionary budget authority for Title II for FY2006. This amount represents a decrease of $13 million or less than 1% decrease compared to the FY2005 enacted total of $20.7 billion.26 While almost every account in Title II is up, the gross increase of $2,138 million from FY2005 to FY2006 is more than offset by the total increase in offsetting collections of $2,202 million in Title II; $1,780 million of which would be the result of the proposed fee increase within TSA. For the FY2006 request, the BTS Directorate accounts for 67% of total appropriated DHS budget authority, while Title II accounts for 69% of total appropriated DHS budget authority. House-passed H.R. 2360 provides a net appropriation of nearly $22 billion for activities and agencies of Title II. This amount represents a $1.4 billion or nearly 7% increase over the President’s requested level for FY2006, and a $728 million or 3% increase over the FY2005 enacted level (including supplemental appropriations). H.Rept. 109-79 does not approve the TSA security fee increase requested by the Administration. House-passed H.R. 2360 therefore shows an increased appropriation, as compared to the Administration’s request (see footnote 21). Housepassed H.R. 2360 provides $22 billion for Title II, which accounts for 69% of total DHS budget authority. Senate-reported H.R. 2360 would provide $22.2 billion for the activities of Title II. This amount would represent an increase of $1,625 million or 7% as compared to the President’s request, an increase of $203 million or 1% as compared to the House-passed amount; and an increase of $931 million or 4% as compared to the FY2005 enacted amount. The $22.2 billion that would be provided by the Senatereported version of H.R. 2360 would account for 70% of total DHS budget authority in FY2006. 25 26 S.Rept. 109-83, p. 13. This number does not include the FY2005 supplemental appropriation for Title II in P.L.109-13. CRS-17 Table 5. Title II: Security, Enforcement, and Investigations (budget authority in millions of dollars) Operational Component Office of the under secretary for border and transportation security FY2005 FY2006 FY2006 FY2006 FY2006 Enacted Request House Senate Enacted 10 11 9 10 340 390 390 340 — 135 21 — — Fee accounts — 321 — — Gross total 340 846 411 340 — Offsetting collections — -321 — — 340 525 411 340 4,658 -139 450 258 144 1,079 6,450 -1,079 5,371 4,730 — 458 293 93 1,142 6,717 -1,142 5,575 4,886 — 458 348 93 1,142 6,927 -1,142 5,785 4,922 -14 458 321 311 1,142 7,140 -1,142 5,998 2,893 663 478 2,892 689 487 3,064 699 487 3,050 679 487 40 40 40 50 26 200 -85 4,215 -478 -200 3,537 27 229 — 4,364 -487 -229 3,648 27 229 — 4,546 -487 -229 3,830 27 229 — 4,522 -487 -229 3,806 4,324 48 — 67 14 178 520 250 4,735 32 — — 21 — 524 250 4,592 36 84 180 21 — 520 250 4,452 36 75 180 21 — 470 250 Screening and operations officea — US-VISITb — Other programs c Net total a Customs & border protection — Salaries and expensesd — rescissionse — Automation modernization — Air and Marine Operations — Constructionf — Fee accountsg Gross total — Offsetting collections Net total Immigration & Customs Enforcement — Salaries and expenses constructionh — Federal Air Marshals — Federal Protective Services (FPS) — Automation & infrastructure modernization — Construction — Fee accountsi — Rescissionj Gross total — Offsetting FPS fees — Offsetting collections Net total Transportation Security Administrationa — Aviation security (gross funding) — Surface Transportation Security — Credentialing activities (appropriation)k — Credentialing/Fee accountsk — Intelligence — Research and developmentl — Administration — Aviation security mandatory spendingm CRS-18 Operational Component Gross total — Offsetting collectionsn — Credentialing/Fee accounts — Aviation security mandatory spending Net total U.S. Coast Guard — Operating expenseso — Environmental compliance & restoration — Reserve training — Acquisition, construction, & improvements p —— Recission q — Alteration of bridges — Research, development, tests, & evaluation r — Retired pay (mandatory, entitlement) Gross total FY2005 FY2006 FY2006 FY2006 FY2006 Enacted Request House Senate Enacted 5,401 -1,823 -67 -250 3,260 5,562 -3,670 — -250 1,641 5,683 -1,990 -180 -250 3,263 5,484 -1,990 -180 -250 3,065 5,303 5,547 5,500 5,459 17 113 12 119 12 119 12 119 1,031 -16 16 1,269 — — 798 — 15 1,225 -83 15 — 19 1,085 7,568 1,014 7,962 — 1,014 7,458 19 1,014 7,780 — Salaries and expenses; construction 1,175 1,204 1,233 1,192 Net total 1,175 1,204 1,233 1,192 Gross Budget Authority: Title II 25,157 26,665 26,267 26,468 — Total offsetting collections: Title II -3,897 -6,099 -4,278 -4,278 Net Budget Authority: Title II 21,260 20,566 21,988 22,191 U.S. Secret Service Source: CRS analysis of the FY2006 President’s Budget, and DHS Budget in Brief, House Appropriation Committee tables of May 20, 2005, House-passed H.R. 2360 and H.Rept. 109-79; and Senate-reported H.R. 2360 and S.Rept. 109-83. Note: Totals may not add due to rounding. Amounts in parentheses are non-adds. a. DHS is proposing to create this new office, which would combine the following programs and fees: US-VISIT; FAST and NEXUS/SENTRI from CBP; and Secure Flight, Crew Vetting, Credentialing Startup, TWIC, Registered Traveler, HAZMAT, and Alien Flight School from TSA. The House Appropriation Committee denies the creation of the SCO. However, H.R. 2360 does move FAST and NEXUS/SENTRI from CBP to the BTS management level, and combines these two programs with USVISIT in a new Automation Modernization office. Programs from TSA proposed for transfer to SCO would remain in TSA under H.R. 2360. The Senate-reported version of H.R. 2360 would also deny the creation of the SCO, and would also leave funding for FAST and NEXUS/SENTRI in CBP, and funding for the TSA programs proposed for transfer to the SCO would remain in TSA. b. United States Visitor & Immigrant Status Indicator Project. c. Fees included TWIC, HAZMAT, Registered Traveler, and Alien Flight School Checks. Both the House-passed and Senate-reported versions of H.R. 2360 would leave these programs and their fees in TSA. d. Includes $124 million in funding provided by P.L.109-13, the Emergency Supplemental Appropriations Act. e. Includes a $63 million rescission in P.L.108-11 and a $76 million rescission in P.L.109-13 from the CBP salaries and expenses account. CRS-19 f. Includes $52 million in supplemental funding provided by P.L.109-13. g. Fees included COBRA, Land Border, Immigration Inspection, Immigration Enforcement, and Puerto Rico. h. Includes $454 million in supplemental funding provided by P.L.109-13. i. Fees included Exam, Student Exchange and Visitor Fee, Breached Bond, Immigration User, Land Border. j. Reflects the $85 million rescission from ICE in P.L.109-13. k. Fees included TWIC, HAZMAT, Registered Traveler, and Alien Flight School Checks, which were included in the proposed SCO in the President’s request, but would be retained in TSA as recommended by H.Rept. 109-79. l. DHS is proposing to transfer the Research and Development account from TSA to the Directorate of S&T. m. Aviation Security Capital Fund, used for installation of Explosive Detection Systems at airports. n. In FY2006, DHS proposes a $3 increase in the passenger security fee for one-way and multi-leg flights, generating $1.56 billion in new revenue. There is a discrepancy between the Administration’s budget documents and the Committee tables concerning the aviation security fee offset amount. The Administration’s budget documents report the FY2005 enacted amount as $2,330 million, while the Committee tables report the FY2005 enacted amount as $1,890 million. For FY2006, with the requested fee increase the Administration shows $3,889 million in offsetting aviation security fees, while the Committee tables show $3,670 million, as scored by CBO. The House Appropriations Committee did not approve the proposed fee increase, and recommends an offset of $1,990 million, and a net appropriation of $3,263 million for TSA. Table 5 reflects the amounts contained on the Committee tables. o. Includes $112 million in supplemental funding provided by P.L.109-13. p. Does not Include an additional $34 million transfer of funds from the Department of Defense to the Coast Guard pursuant to P.L. 108-287. Includes $49 million in supplemental funding provided by P.L.109-13. q. $16 million rescission pursuant to P.L. 108-334. r. DHS is proposing to transfer the Research, Development, Tests and Evaluation account from the Coast Guard to the S&T Office. Office of Screening Operations (SCO)27 As a part of the FY2006 request, the Administration is proposing to create a new SCO which will coordinate DHS’ efforts to screen people (and to some extent cargo) as they enter and move throughout the country. Programs proposed to be moved to this office include the US Visitor and Immigrant Status Indicator Project (USVISIT); Free and Secure Trade (FAST) and NEXUS/SENTRI, from CBP; Secure Flight, Transportation Worker Identification Credential (TWIC), Registered Traveler, Hazardous Materials (HAZMAT) background checks, and the Alien Flight School background checks program from TSA. President’s Request. The Administration has requested $846 million in gross budget authority for SCO for FY2006. The request includes $390 million for the US-VISIT program28 (an increase of $50 million over the enacted FY2005 amount), $94 million for Secure Flight29 (an increase of $49 million over the enacted 27 Section prepared by Jennifer E. Lake, Analyst in Domestic Security, Domestic Social Policy Division. 28 For more information on US-VISIT, see CRS Report RL32234, U.S. Visitor and Immigrant Status Indicator Technology (US-VISIT) Program, by Lisa Seghetti and Stephen R. Viña. 29 See CRS Report RL32082, Homeland Security: Air Passenger Prescreening and (continued...) CRS-20 FY2005 amount), $7 million for the driver registration component of FAST, $14 million for NEXUS/SENTRI, and $20 million for the stand up of the Credentialing coordination office. In addition to appropriated activities, SCO will oversee several fee funded activities including $245 million for TWIC and other TSA credentialing activities; $23 million for the Registered Traveler program; $44 million for HAZMAT checks; and $10 million for Alien Flight School background checks. The net requested appropriation for SCO is $525 million. House-passed H.R. 2360. The Committee notes that while the SCO office “may have merit,” a broader justification is required for it than what was given by the Department. The Committee therefore denies this consolidation and appropriates no funds for SCO. Instead, the Committee establishes a new Office of Transportation Vetting and Credentialing within TSA to oversee the Secure Flight, Crew Vetting, Registered Traveler, TWIC, HAZMAT, and Alien Flight School programs. USVISIT, FAST, and NEXUS/SENTRI are funded within a new BTS Automation Modernization office.30 Senate-reported H.R. 2360. The Senate-reported version of H.R. 2360 would also deny the creation of the SCO. In contrast to the House-passed version of H.R. 2360, the Senate-reported version would leave funding for the FAST and NEXUS/SENTRI programs within CBP rather than placing them within a new BTS Automation Modernization office. The Senate-reported version of the bill would, like the House-passed version, leave funding for the TSA programs proposed for transfer to the SCO within TSA. Customs and Border Protection (CBP)31 CBP is responsible for security at and between ports-of-entry along the border. Since 9/11, CBP’s primary mission is to prevent the entry of terrorists and the instruments of terrorism. CBP’s on-going responsibilities include inspecting people and goods to determine if they are authorized to enter the United States; interdicting terrorists and instruments of terrorism; intercepting illegal narcotics, firearms, and other types of contraband; interdicting unauthorized travelers and immigrants; and enforcing more than 400 laws and regulations at the border on behalf of more than 60 government agencies. CBP is comprised of the inspection functions of the legacy Customs Service, Immigration and Naturalization Service (INS), and the Animal and Plant Health Inspection Service (APHIS); the Office of Air and Marine Interdiction; and the Border Patrol. President’s Request. The Administration has requested an appropriation of $6,717 million in gross budget authority for CBP in FY2006. This represents a 4% increase over the enacted FY2005 level (including supplemental appropriations) 29 (...continued) Counterterrorism, by Bart Elias and William Krouse. 30 31 H.Rept. 109-79, p. 23 and 52. Section prepared by Jennifer E. Lake and Blas Nuñez-Neto, Analysts in Domestic Security, Domestic Social Policy Division. CRS-21 of $6,450 million. The Administration is requesting an appropriation of $5,575 million in net budget authority for CBP, representing a 4% increase over the FY2005 enacted level of $5,371 million. The request includes the following program increases (which are discussed later in this report): ! ! ! ! ! ! ! ! ! ! ! ! $125 million for weapons of mass destruction (WMD) detection technology; $37 million for Border Patrol staff; $31.7 million for long range radar for Air and Marine Operations; $20 million for Border Patrol aircraft replacement; $19.8 million for the America Shield Initiative; $8.2 million for the Customs-Trade Partnership Against Terrorism (C-TPAT); $5.4 million for the Container Security Initiative (CSI); $5.4 million for enhancements to the Automated Targeting System (ATS); $3.2 million for the Homeland Security Data Network; $3 million for IDENT/IAFIS; $2 million for the Immigration Advisory Program (IAP); and $1 million for the Arizona Border Control Initiative (ABCI). House-passed H.R. 2360. The House Appropriators added $210 million to both the gross and net budget authorities for CBP in order to cover a range of programs. The House-passed H.R. 2360 provides a net appropriation for CBP is $5.785 billion, an 8% increase over the FY2005 enacted level and a 4% increase over the President’s FY2006 request.32 House-passed H.R. 2360 fully funds all of the above listed requested increases, and provides an additional $150 million above the request for Border Patrol staffing. However, the House makes unavailable the $1 million requested increase for the IAP until CBP submits the report on the program that has been overdue since January 1. Senate-reported H.R. 2360. The Senate-reported version of H.R. 2360 provides a net appropriation of $ 5,998 million for CBP, representing an increase of $213 million or nearly 4% compared to the amount provided by the House in H.R. 2360; an increase of $423 million or nearly 8% as compared to the FY2006 request; and an increase of $627 million or nearly 12% as compared to the FY2005 enacted level. The Senate-reported version of H.R. 2360 funds the $125 million requested increase for radiation portal monitors (RPMs) under the S&T Directorate, rather than under CBP; and provides an additional $241 million for Border Patrol staffing. Amounts provided for CBP in Senate-reported H.R. 2360 include $21 million in FAST and NEXUS/SENTRI funding that had been requested for transfer to the Administration proposed SCO (the House-passed version of H.R. 2360 placed this funding in a new BTS-level Automation Modernization Account). Issues for Congress. Potential CBP issues for Congress include cargo and container security; targeting and risk assessments; cargo inspection technology; air 32 U.S. Congress, House Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2006, 109th Cong., 1st Sess., H.Rept. 109-79, p. 142. CRS-22 and marine operations; the number of border patrol agents; IDENT/IAFIS integration; ABCI; and the America Shield Initiative. Cargo and Container Security. CBP’s cargo security strategy includes two significant programs: the CSI, and C-TPAT. CSI is a CBP program that stations CBP officers in foreign sea ports to target marine containers for inspection before they are loaded onto U.S.-bound vessels. The FY2006 request includes an additional $5.4 million for CSI to support the expansion of CSI activities in seven new ports in seven countries. House-passed H.R. 2360 fully funds the requested increase, recommending a total of nearly $139 million for CSI in FY2006. However, the House Committee notes that it has not yet received a report detailing the spending and planning projections for CSI for FY2005-2009, and directs CBP to submit the report as soon as possible. The Committee also includes a provision in H.R. 2360 withholding $70 million until this report is submitted as directed by H.Rept. 108-541. House-passed H.R. 2360 fully funds the request for CSI. The Senate Committee fully funds the request for CSI, but notes its concern about CSI host-country cooperation and directs CBP to submit a report to the Committee no later than February 18, 2006, detailing specific steps the Department is taking to address any reluctance on the part of foreign countries to fully cooperate. C-TPAT is a public-private partnership aimed at securing the supply chain from point of origin through entry into the United States. The FY2006 request includes an increase of $8.2 million for C-TPAT to be used for travel and the purchase of equipment and supplies for Supply Chain Specialists to conduct an increased number of C-TPAT security profile validations. House-passed H.R. 2360 fully funds the request for C-TPAT. The Senate-reported version of H.R. 2360 fully funds the request for C-TPAT. S.Rept. 109-83 directs CBP to submit a report by February 18, 2006, providing detailed performance measures, human capital plans, and any plans or actions taken that would address the recommendations made by GAO’s recent report on the program. Cargo Inspection Technology. The FY2006 Administration request for CBP includes an increase of $125 million for technology to detect WMD. This request includes $77 million for the purchase of additional radiation portal monitors (RPMs), and the purchase of next generation RPMs. House-passed H.R. 2360 fully funds the $188 million request for cargo inspection technology. H.Rept. 109-79 directs CBP to submit two reports no later than January 16, 2006: (1) detailing the current status and investment plan for RPMs through FY2010; and (2) detailing the projected spending, maintenance and replacement of large-scale non-intrusive inspection (NII) equipment (for example, truck x-ray machines, and vehicle and cargo inspection systems) for FY2006-2010. Senate-reported H.R. 2360 fully funds the requested increase of $125 million for RPMs, but funds the request under the S&T Directorate rather than under CBP, as the Committee believes that S&T is the appropriate organization to test, pilot, and direct procurement of RPMs. Air and Marine Operations (AMO). With the FY2005 Appropriation, AMO was transferred to CBP, where it is now located. The FY2006 request includes an increase of $31.7 million for long range radar (LRR) coverage for AMO. This increase is requested to finance a 50% share of the cost (the other 50% share to be covered by the Department of Defense) of a primary Federal Aviation Administration CRS-23 (FAA) LRR feed that FAA intends to discontinue using. House-passed H.R. 2360 fully funds the request for AMO, and provides an additional $60 million above the request for AMO: $14 million for the acquisition of manned covert surveillance aircraft, $15 million for the acquisition and deployment of palletized sensor packages for the P-3 Slick aircraft, $16 million for the P-3 service-life extension program, and $5 million for additional staff and equipment. The Senate-reported version of H.R. 2360 would fully fund the requested increase for AMO, and provide an additional $33 million in total for AMO: $5 million for staff for the fourth Northern Border airwing base in Great Falls, Montana; $13 million for the operations of the fourth Northern Border airwing base; and $15 million for the P-3 Slick palletized sensor packages. Increase in Border Patrol Agents. CBP is proposing to add 210 agents to the USBP workforce in FY2006 to backfill positions vacated along the Southwest border. These vacancies were the result of agents being transferred from the Southwest border in order to fulfill the requirement enacted in the USA PATRIOT Act (P.L. 107-56, §402) to triple the number of agents assigned to the Northern border. This increase is well below the 2,000 additional agents authorized by the Intelligence Reform and Terrorism Prevention Act of 2004 (P.L. 108-458, §5202). Given the disparity between the authorization and the President’s request, a possible issue for Congress may be what the appropriate level of staffing for the Border Patrol is in order to achieve its mission of detecting and interdicting the entry of terrorists, WMD, and unauthorized aliens between ports of entry. House Appropriators have addressed this issue by adding $150 million to the President’s request, which, combined with the $124 million available in the FY2005 supplemental appropriation (P.L. 109-13), will allow the Border Patrol to add 1,500 agents to its workforce by the end of FY2006.33 The Senate Appropriations Committee concurs with the House in adding 1,500 agents to the USBP in FY2006 and increases the President’s request by $241 million.34 IDENT/IAFIS. According to CBP, the integration of the Border Patrol’s Automated Biometric Identification System (IDENT) and the Federal Bureau of Investigation’s Integrated Automated Fingerprint Identification System (IAFIS) is progressing and interoperable IDENT/IAFIS workstations have been deployed to all USBP stations. This would seem to address some of the concerns about the slow pace of the integration project raised by House Appropriators in FY2005.35 The president’s request includes an increase of $3 million for the system and notes that BTS has assumed ownership for the integration project. While the integration of the two biometric databases has given USBP agents access to the FBI’s criminal records, leading to an 8.5% increase in the identification of criminal aliens, a possible issue for Congress may be the USBP’s apparent lack of access to the name-based Terrorist Watchlist at their stations. This may be of concern due to recent Congressional 33 H.Rept. 109-79, p. 24. 34 S.Rept. 109-83, p. 24. 35 U.S. Congress, House Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2005, report to accompany H.R. 4567, 108th Cong., 2nd sess., H.Rept. 108-541 (Washington, GPO, 2004), pp. 18-19. CRS-24 testimony by DHS acting Secretary Admiral James Loy that Al-Qaeda is considering infiltrating the Southwest border due to a belief that “illegal entry is more advantageous than legal entry for operational security reasons.”36 House Appropriators expressed frustration with CBP that the report they requested in the FY2005 appropriation bill on the IDENT/IAFIS integration project has not been delivered yet. They direct DHS to submit the report by July 1, 2005. The Senate Appropriation Committee funds the President’s request and directs DHS to submit the report on the project that was requested in FY2005 which continues to be outstanding.37 Arizona Border Control Initiative (ABCI). In response to the continuing high levels of apprehensions in the Tucson sector, the Arizona Border Control (ABC) initiative was launched on March 16, 2004. ABC is a multi-disciplinary initiative that seeks to coordinate federal, state, and local authorities to control the Arizona border. ABC is specifically aimed at stopping cross-border smuggling operations by detecting, arresting, and deterring all groups seeking to bring people, drugs, weapons, and other merchandise into the country illegally. 200 additional permanent border patrol agents and 60 special operations agents trained for search and rescue operations were assigned to the Tucson sector over the summer of 2004, bringing the total number of agents there to approximately 2,000. According to DHS, in the first six months of the ABC, apprehension of unauthorized aliens increased 56% from apprehension during the same period of the previous year. From March 16, 2004 to September 7, 2004, 351,700 unauthorized aliens were apprehended compared to 225,108 unauthorized aliens during the same period in 2003. CBP proposes an increase of $1 million to continue this multi-disciplinary program in FY2006, though most funding for the program will come from ICE. House Appropriators support this multi-agency approach to protecting the border and fund the President’s request and direct CBP to work closely with the Tohono O’odham Nation along the Arizona border to ensure that the Nation is fully aware of CBP’s actions on their territory.38 The Senate Appropriations Committee fully funds the President’s request. America Shield Initiative. CBP proposes an increase of $19.8 million for the America Shield Initiative (ASI), formerly known as the Integrated Surveillance Intelligence System (ISIS). ASI integrates Remote Video Surveillance camera systems, sensors, and the Integrated Computer Assisted Detection (ICAD) database into a multi-faceted network capable of detecting illegal entries in a wide range of climate conditions. The requested FY2006 funding will be used to deploy surveillance assets to high-priority areas such as Tucson, Yuma, and El Paso on the southwest border, and Blaine, Spokane, Buffalo, and Swanton (Vermont) on the northern border. House Appropriators fully fund the President’s request and, citing concerns with the contracting problems identified in the ISIS program by the General Services Administration Inspector General, request a report by January 16, 2006 on these problems and the specific measures taken by CBP to address them. A report 36 U.S. Congress, Senate Select Committee on Intelligence, National Security Threats to the United States, 109th Cong., 1st sess., Feb. 16, 2005. 37 S.Rept. 109-83, p. 19. 38 H.Rept. 109-79, p. 28. CRS-25 on the specific performance metrics used by the ASI program is also requested by January 16, 2006.39 The Senate Appropriations Committee fully funds the President’s request and encourages program managers to explore off-the-shelf solutions as they develop the program. Construction. The President requested $93 million for this account, which covers the construction of the tactical infrastructure that provides physical impediments to illegal entry. Construction under this account includes the erection of lights, fences, and vehicle barriers, as well as the creation of access roads. The House Appropriations Committee fully funds the President’s request. The Senate Appropriations Committee increases the President’s request by $218 million, to $311 million. Included in this increase is $82 million for the construction of facilities to accomodate the 1,500 additional USBP agents, as well as $55 million to complete the fence in the San Diego Sector and $55 million to expand the USBP tactical infrastructure in the Tucson Sector.40 Immigration and Customs Enforcement (ICE)41 ICE focuses on enforcement of immigration and customs laws within the United States. ICE develops intelligence to reduce illegal entry into the United States, and is responsible for investigating and enforcing violations of the immigration laws (e.g., alien smuggling, hiring unauthorized alien workers). ICE is also responsible for locating and removing aliens who have overstayed their visas, entered illegally, or have become deportable by committing a crime. In addition, ICE develops intelligence to combat terrorist financing and money laundering, and to enforce export laws against smuggling, fraud, forced labor, trade agreement noncompliance, and vehicle and cargo theft. Furthermore, this bureau oversees the building security activities of the Federal Protective Service, formerly of the General Services Administration; and the Federal Air Marshals Service (FAMS).42 The Office of Air and Marine Interdiction was transferred from ICE to CBP, and therefore the totals for ICE do not include Air and Marine Interdiction funding which is included under CBP. President’s Request. The Administration has requested an appropriation of $4,364 million in gross budget authority for ICE in FY2006. This represents a 4% increase over the enacted FY2005 level (including supplemental appropriations) of $4,215 million. The Administration is requesting an appropriation of $3,648 million in net budget authority for ICE in FY2006, representing a 3% increase over the FY2005 enacted level of $3,537 million. The request includes the following program increases: ! $105 million for the Office of Investigations; 39 H.Rept. 109-79, pp. 27-28. 40 S.Rept. 109-83, p. 30. 41 Section prepared by Blas Nuñez-Neto, Analyst in Domestic Security, and Alison Siskin, Analyst in Social Legislation, Domestic Social Policy Division. 42 FAMS transferred to ICE from TSA in August of 2003. CRS-26 ! ! ! ! ! ! ! ! ! ! ! ! $90 million for custody management and detention bedspace; $43.7 million for ICE’s Organized Crime and Drug Enforcement Task Force (OCDETF) activities; $25 million for ABCI and Interior Repatriation; $24 million for detention and removal; $18 million for temporary worker worksite enforcement; $11.3 million for the Homeland Security Data Network; $9.9 million for the Federal Air Marshals (FAMS); $8.8 million for Fugitive Operations; $5.6 million for Institutional Removal Program (IRP); $5.4 million for Alternatives to Detention; $5 million for Visa Security; and $3.5 million for legal resources. House-Passed H.R. 2360. House-passed H.R. 2360 provides $3,830 million for ICE, an increase of $182 million, or 5% from the President’s FY2006 request and $243 million, or 8% above FY2005 enacted. Of the appropriated amount, $5 million is to be used to implement §287(g) of the Immigration and Nationality Act (INA),43 which allows the Attorney General44 to enter into agreements with states and local governments to allow their employees perform functions of immigration officers; and $11.2 million is designated to fund or reimburse other federal agencies for the cost of care, and repatriation of smuggled aliens. In addition, House-passed H.R. 2360 would withhold $20 million of the money appropriated to DHS’ Office of the Secretary and Executive management until the Secretary of DHS submits a report to the Appropriations Committee outlining an immigration enforcement strategy to reduce the number of unauthorized aliens in the United States by 10% each year. Additionally, H. Rept 109-79 recommends fully funding the President’s requests and recommends an additional: ! ! ! ! ! ! ! $90 million for 1,920 detention beds; $16 million for 60 fugitive operations team positions;45 $18 million for 100 Institutional Removal Program agents; $10 million for 49 Alternatives to Detention positions; $19 million for 150 criminal investigators; $18 million for 200 Immigration Enforcement Agents; and $800,000 for the Cyber Crimes Center. Senate-Reported H.R. 2360 . Senate-reported H.R. 2360 provides $3,806 million for ICE. Of the appropriated amount,$11.2 million is designated to fund or 43 44 45 8 U.S.C. §§1101 et seq. 8 U.S.C. §1357(g) This provision is now being administered by the Secretary of Homeland Security. The Office of Detention and Removal’s National Fugitive Operations Program (NFOP) seeks to apprehend, process, and remove aliens who have failed to comply with removal orders, giving priority to apprehending aliens convicted of crimes. CRS-27 reimburse other federal agencies for the cost of care, and repatriation of smuggled aliens. Additionally, S. Rept 109-83 recommends an increase of: ! ! ! ! ! ! ! ! ! $77.4 million for 32 positions (16 FTEs) for Custody Management; $4.8 million for the Visa Security Program; $24.9 million for 60 fugitive operations team positions (30 FTEs); $23.4 million for 136 Institutional Removal Program agents (69 FTEs); $15.4 million for 62 Alternatives to Detention positions (31 FTEs); $37 million for 300 investigator positions for immigration investigations (150 FTEs); $18 million for 200 (100 FTEs) Immigration Enforcement Agents; $25 million for the Arizona Border Control Initiative; and $3.5 million for additional attorney personnel. Financial Management at ICE. ICE inherited its financial organization and systems from the former INS. An independent audit of ICE’s financial statements concluded that the agency’s accounting records were inadequately maintained during FY2004. The report noted that ICE had served as the accounting services provider for several other DHS agencies46 while simultaneously experiencing significant turnover among its financial management staff. This led the agency to fall “seriously behind in basic accounting functions, such as account reconciliations, analysis of material abnormal balances, and proper budgetary accounting.” Additionally, serving as the accounting provider for other agencies led ICE to experience budget shortfalls due to tardy reimbursements for expenses it provided to cover other agencies’ costs. This budget shortfall forced the agency into a freeze on hiring and non-mission critical expenditures, including training. The auditors concluded that DHS should immediately address the “void in ICE’s financial management infrastructure.”47 ICE recently requested a $500 million reprogramming for FY2005 to cover funding shortfalls within the agency.48 House Appropriators expressed concern and disappointment over the continuing financial troubles at ICE. The Committee notes that the agency has been forced to employ drastic cost-cutting measures that the Committee believes adversely limited ICE’s operations. The Committee directs DHS to provide monthly reports on ICE’s financial condition.49 Office of Investigations/Immigration Functions. The Office of Investigations (OI) in ICE focuses on a broad array of criminal and civil violation affecting national security such as illegal arms exports, financial crimes, commercial 46 Among others, ICE serves as the accounting service provider for CIS, S&T, IAIP, DHS Management, and BTS Headquarters. These agencies include parts of 10 of the 22 legacy agencies that were transferred to DHS and account for roughly 20% of total DHS FY2004 budget authority. 47 Department of Homeland Security, Office of the Inspector General, Independent Auditors’ Report on DHS FY2004 Financial Statements, OIG-05-05, Dec. 2004, pp. 320-333. 48 U.S. Congress, House Appropriations Committee, Subcommittee on Homeland Security, Fiscal Year 2006 Department of Homeland Security Appropriations, Mar. 15, 2005. 49 H.Rept. 109-79, pp. 33-34. CRS-28 fraud, human trafficking, narcotics smuggling, child pornography/exploitation, worksite enforcement, and immigration fraud. ICE special agents also conduct investigations aimed at protecting critical infrastructure industries that are vulnerable to sabotage, attack or exploitation.50 The Homeland Security Act of 2002 (P.L. 107296) abolished the INS and the United States Customs Service, and transferred most of their investigative functions to ICE effective March 1, 2003. There are investigative advantages to combining the INS and Customs Services as those who violate immigration laws often are engaged in other criminal enterprises (e.g., alien smuggling rings often launder money). Nonetheless, concerns have been raised that not enough resources have been focused on investigating civil violations of immigration law, and that ICE resources have been focused on terrorism and the types of investigations performed by the former Customs Service.51 The Intelligence Reform and Terrorism Prevention Act of 2004 (P.L. 108-458, §5203) authorized for FY2006, subject to appropriations, the addition of at least 800 new investigators to investigate violations of immigration law. The $1,496 million requested in the President’s budget for the OI includes increases in the base funding for two groups responsible for immigration enforcement, the Visa Security Unit (VSU)52 and Temporary Worker Worksite Enforcement, and includes a total of 148 new positions for these units. The President’s budget requests an additional $18 million for temporary worker worksite enforcement to add 143 positions responsible for investigating and prosecuting violations under existing immigration law for hiring unauthorized aliens, and supporting and implementing the provisions of possible temporary worker legislation. The President’s request also includes an increase of $5 million to add five new officers to the VSU, open a new overseas location, and expand training programs. H.Rept 109-79 recommends $19 million to expand the Visa Security Program, and S. Rept.109-83 recommends an additional $4.8 million for 9 positions for an additional VSU. Furthermore, H.Rept 109-79 recommends an addition $18 million over the President’s request for 200 new Immigration Enforcement Agents (IEAs).53 H.Rept 109-79 also recommends $19 million for an additional 150 criminal investigators.54 S.Rept. 109-83 recommends an additional $37 million for 300 new immigration investigations positions, and $18 million for 200 IEAs, but does not provide a funding increase for temporary workers worksite enforcement. 50 For more information see [http://www.ice.gov/graphics/investigations/index.htm]. 51 Based on CRS discussions with ICE personnel in New York City, Aug. 27, 2003. 52 Officers of the VSU are assigned to consular posts to conduct law-enforcement reviews of visa applications, and provide advice and training to consular officers. For more information on visa issuance see CRS Report RL31512, Visa Issuance: Policy, Issues, and Legislation, by Ruth Ellen Wasem. 53 The Conference Report (H.Rept 109-72) for the Supplemental Appropriations Act (P.L. 109-13)provides funding for an additional 168 IEAs and detention officers. 54 The Conference Report (H.Rept 109-72) for the Supplemental Appropriations Act (P.L. 109-13) contains funding for 50 new criminal investigators. Nonetheless, it is unknown to which types of cases the new criminal investigators will be assigned. CRS-29 Detention and Removal Operations. Detention and Removal Operations (DRO) in ICE provide custody management of aliens who are in removal proceedings or who have been ordered removed from the United States.55 DRO is also responsible for ensuring that aliens ordered removed actually depart from the United States. Many contend that DRO does not have enough detention space to house all those who should be detained. A study done by DOJ’s Inspector General found that almost 94% of those detained with final orders of removal were deported while only 11% of those not detained who were issued final orders of removal left the country.56 Concerns have been raised that decisions on which aliens to release and when to release the aliens may be based on the amount of detention space, not on the merits of individual cases, and that the amount of space may vary by area of the country leading to inequities and disparate policies in different geographic areas. The Intelligence Reform and Terrorism Prevention Act of 2004 (P.L. 108-458, §5204) authorized, subject to appropriations, an increase in DRO bed space of 8,000 beds for each year, FY2006-FY2010. The President’s budget requests an increase for FY2006 of $90 million for 1,920 new beds. H.Rept 109-79 recommends $90 million for 1,920 new beds,57 and House-passed H.R. 2360 would withhold $50 million of the appropriated funds for ICE salaries and expenses until the Assistant Secretary of ICE submits to the Appropriations Committee a national detention management plan. S.Rept. 109-83 recommends $77.4 million for 32 positions for Custody Management and 2,240 new beds. Alternatives to Detention. Due to the cost of detaining aliens, and the fact that many non-detained aliens with final orders of removal do not leave the country, there has been interest in developing alternatives to detention for certain types of aliens who do not require a secure detention setting. In 2004, ICE began a pilot program, the Intensive Supervision Appearance Program, for low-risk, non-violent offenders.58 H.Rept 109-79 recommends $10 million for 49 new positions for this program, and S.Rept. 109-83 recommends $15.4 million and 32 new positions. Interior Repatriation. ICE proposes a $25 million increase for the Interior Repatriation program. On June 9, 2004 the White House announced it had reached agreement with the Mexican government to begin piloting the Interior Repatriation Program, which aims to reduce the number of aliens who immediately try to cross back into the United States by flying them into the interior of Mexico. Due to 55 For more information on detention issues see CRS Report RL32369, Immigration-Related Detention: Current Legislative Issues, by Alison Siskin. Under the INA aliens can be removed for reasons of health, criminal status, economic well-being, national security risks and others that are specifically defined in the act. 56 Department of Justice, Office of the Inspector General, The Immigration and Naturalization Service’s Removal of Aliens Issued Final Orders, Report I-2003-004, Feb. 2003. 57 The Conference Report (H.Rept 109-72) for the Supplemental Appropriations Act (P.L. 109-13) contains funding for an additional 1950 beds. 58 Department of Homeland Security, U.S. Immigration and Customs Enforcement, “Public Security: ICE Unveils New Alternative to Detention,” Inside ICE, vol. 1, no. 5, June 21, 2004. Available at [http://www.ice.gov/graphics/news/newsreleases/insideice/ insideice_062104_web3.htm]. CRS-30 constitutional constraints in Mexico, the apprehended aliens’ return to the interior must be strictly voluntary and the willingness of their participation is certified by Mexican consular officers.59 In order to continue the program in FY2006, the Administration is requesting $39.3 million; $25 million for Custody Management and $14.3 for Transportation and Removal. This represents a $25 million increase from the $14 million spent on the pilot program in FY2005. H.Rept 109-79 directs the Commissioner of CBP to report no later than January 16, 2006 on the performance of the Interior Repatriation Program. State and Local Law Enforcement.60 Currently the INA provides limited avenues for state enforcement of both its civil and criminal provisions. One of the broadest grants of authority for state and local immigration enforcement activity stems from INA §287(g), which authorizes the Attorney General to enter into a written agreement with a State, or any political subdivision to allow an officer or employee of the State or subdivision, to perform a function of an immigration officer in relation to the investigation, apprehension, or detention of aliens in the United States. The enforcement of immigration by state and local officials has sparked debate among many who question what the proper role of state and local law enforcement officials should be in enforcing federal immigration laws. Many have expressed concern over proper training, finite resources at the local level, possible civil rights violations, and the overall impact on communities. Some localities, for example, even provide “sanctuary” for illegal aliens and will generally promote policies that ensure such aliens will not be turned over to federal authorities. Nonetheless, some observers contend that the federal government has scarce resources to enforce immigration law and that state and local law enforcement entities should be utilized. Unlike Senate-reported H.R. 2360, House-passed H.R. 2360 would appropriate $5 million to implement INA §287(g). Transportation Security Administration (TSA)61 The TSA was created by the Aviation and Transportation Security Act (ATSA, P.L. 107-71), and was charged with protecting U.S. air, land, and rail transportation systems to ensure freedom of movement for people and commerce. In 2002, the TSA was transferred to DHS with the passage of the Homeland Security Act (P.L. 107296). TSA’s responsibilities include protecting the aviation system against terrorist threats, sabotage, and other acts of violence through the deployment of: passenger and baggage screeners; detection systems for explosives, weapons, and other contraband; and other security technologies. TSA also has certain responsibilities for marine and land modes of transportation. TSA is further charged with serving as the 59 U.S. Department of Homeland Security, Bureau of Customs and Border Protection, Office of the Press Secretary, “Department of Homeland Security to Begin Pilot Program for Voluntary Interior Repatriation of Mexican Nationals,” press release, June 29, 2004. 60 This section adapted from CRS Report RL32270, Enforcing Immigration Law: The Role of State and Local Law Enforcement, by Lisa M. Seghetti, Stephen R. Vina, and Karma Ester. 61 Section prepared by Bartholomew Elias, Specialist in Aviation Safety, Security, and Technology; and John Frittelli, Specialist in Transportation, Resources, Science and Industry Division. CRS-31 primary liaison for transportation security to the law enforcement and intelligence communities, and with conducting research and development to improve security technologies. President’s Request. The President has requested an appropriation of $5,562 million in gross budget authority for TSA in FY2006, a net increase of $162 million, or 3%, over the enacted FY2005 level of $5,400 million.62 However, in comparing the FY2006 budget request to prior year levels, it is important to note that the President is requesting to transfer a large portion of TSA’s research and development functions — totaling $109 million in FY2005 appropriated amounts — to the S&T Directorate, and a transfer of a variety of functions — totaling $142 million in FY2005 — to the proposed Office of Screening Coordination and Operations (SCO). Functions that would be transferred to the SCO under the proposal include Secure Flight ($35 million); Crew Vetting ($10 million); Credentialing Startup Costs ($10 million); Transportation Worker Identification Card (TWIC, $50 million); Registered Traveler ($15 million); HAZMAT Driver Security Threat Assessments ($17 million); and Alien Flight School Applicant Security Threat Assessments ($5 million). Adjusting for these transfers and other miscellaneous factors, the requested increase to the TSA budget totals $415 million, roughly a 7.7% increase over FY2005 enacted levels (see P.L. 108-334). Almost 90% of the TSA’s proposed budget is designated for aviation security functions. Key aviation security initiatives proposed include: ! ! ! ! ! developing and testing emerging checkpoint explosives technologies; realigning the screener workforce and providing funds needed to maintain an authorized level of 45,000 full-time equivalents (FTEs); deploying high-speed Internet connections at airport screening checkpoints and baggage screening areas; providing mandated training for flight and cabin crews and conducting semiannual requalification for armed pilots; and conducting mandated security inspections of foreign airline repair stations and inspections at domestic repair stations. In an effort to approach full cost recovery from user fees for aviation security screening, the President has proposed an increase in passenger security fees. The proposal would raise the fee from its current level of $2.50 per flight segment, with a maximum fee of $5.00 per one-way trip, to $5.50 per segment, with a maximum of $8.00 per one-way trip. The Administration anticipates that this proposed fee increase coupled with a return to pre-9/11 passenger volume will result in an increase in fee collections from an estimated $2.652 billion in FY2005 to $4.1 billion in FY2006. This increase is projected to offset roughly 82% of the proposed $4.985 62 The amount for FY2005 listed here includes $250 million for the Aviation Security Capital Fund, and $5 million for Alien Flight School Background Checks; and the amount for FY2006 includes $250 million for the Aviation Security Capital Fund. These amounts are listed as non-adds in Table 5, and are not included in the committee tables. CRS-32 billion budget for aviation security. In contrast, aviation security fees collected in FY2004 offset only 41% of expenditures for aviation security.63 For surface transportation security, the President requests $32 million, which includes $8 million for hiring and deploying 100 rail and transit inspectors. These inspectors will be deployed at significant rail and mass transit points across the United States to perform compliance reviews, audits, and enforcement actions pertaining to security measures. House-passed H.R. 2360. House-passed H.R. 2360 provides a gross total of $5,683 million (net total of $3,263 million) for the TSA. This total includes $264.3 million for Transportation Vetting and Credentialing which the President’s request proposed to transfer to the SCO. For aviation security activities H.R. 2360 provides $143.2 million less than the President’s request but is $268.1 million more than FY2005 enacted levels.64 There are several key differences between H.R. 2360 and the President’s request regarding aviation security. Funding for private screening contracts at airports is $6.5 million less than the requested level. The House Committee on Appropriations found that the full request was not justified because of a lack of interest in the federal screening opt-out program due to lingering concerns over airport liability and other aspects of the program. The Committee also found a lack of justification for the proposed increases in aviation regulation and law enforcement recommending that the TSA trim staffing levels in this program element, and the House agreed to a funding level $9.8 million below the President’s request. Similarly, the Committee expressed concerns over staffing levels in airport management, information technology and support, and the House agreed to fund this component of the TSA budget at a level $108.2 million below the President’s request. The Committee also did not agree with the President’s request for increased funding for the Federal Flight Deck Officer Program, citing high unobligated balances as evidence that this program does not need additional funds. The House agreed to $25 million for this program, the same as what was appropriated in FY2004 and FY2005. In keeping with previous year trends, the House agreed to larger funding amounts for air cargo security, providing $60 million, $20 million more than the President’s request. This includes an additional $10 million to hire 100 new air cargo inspectors, plus increased funding for travel for inspectors, enhancements to the known-shipper database, and security threat assessments. Additionally, the House passed two general provisions calling for more thorough screening of shipments on all-cargo and passenger aircraft by March 1, 2006 (Sec. 522), and requiring the TSA, to the greatest extent practicable, to use checked baggage equipment and screeners to screen cargo carried on passenger aircraft (Sec. 523). 63 U.S. Department of Homeland Security, Transportation Security Administration, Statement of David M. Stone, Assistant Secretary Before the Committee on Commerce, Science & Transportation, United States Senate, Feb. 15, 2005. (Hereafter cited as Statement of David M. Stone). 64 H.Rept. 109-79, p. 42. CRS-33 Consistent with the President’s request and prior year appropriations language, the House agreed to keep screener staffing at or below the 45,000 full-timeequivalent (FTE) cap. The Committee believes that efficiencies gained through new technologies and increased use of in-line explosives detection systems (EDS) can greatly reduce the need for baggage screeners. The House agreed to additional funding of in-line EDS, proposing a total of $75 million for this purpose — $61 million above President’s request — in addition to the $250 million mandatory deposit into the Aviation Security Capital Fund. While the Committee agreed with the President’s request to limit the federal share at the 8 existing airports with letters on intent (LOIs) to 75% , rather than the 90% authorized for large airports in Vision 100 (P.L. 108-176), this measure was stricken by a point of order because it sought to modify existing law. H.R. 2360 provides additional funding for the purchase of EDS and explosive trace detection (ETD) equipment, providing $40 million above the $130 million included in the President’s request for this purpose. In an effort to further increase the availability of funds for EDS, the House agreed to language directing the TSA to spend any recovered or deobligated funds appropriated for aviation security or TSA administration exclusively on EDS procurement and installation (Sec. 530). For surface transportation security, the House agreed to $36 million, which is $4 million more than the President’s request. The House agreed with the President’s request that $8 million of this total be designated for federal rail security inspectors. The House also provided $4 million for a hazardous materials truck tracking program. Senate-reported H.R. 2360. The Senate Committee on Appropriations recommends a gross total of $5,055 million (net total of $3,065 million) for the TSA, not including the $250 million in direct funding to the Aviation Security Capital Fund. This total includes $255 million for Transportation Vetting and Credentialing which the President’s request proposed to transfer to the SCO. For aviation security, the Senate committee recommends $4,452 million, $129 million more than the FY2005 appropriation, but $283 million less than the budget request and $139 million less than the House-passed bill. Unlike the budget request and the House-passed bill, the bill under consideration in the Senate contains no specific cap on the number of screeners but, like the House bill, increases funding for screening technologies in a move to rapidly shift away from a workforce-intensive use of resources. The Senate bill endeavors to do this, in part, by increasing the TSA’s flexibility to transfer monies from screener workforce accounts to accounts for procuring screening equipment. The Senate committee recommends $180 million for EDS and ETD procurement with the stipulation that at least $50 million be used for acquiring next-generation EDS equipment. The Senate proposal makes more modest reductions in the budget request for airport management, staff, information technology, and support, recommending $748 million for this function, $10 million less than the budget request but $103 million above the House-passed amount. In contrast to the fiscal concerns expressed by the House committee, the Senate committee noted that increased funding for information technology is imperative for maintaining real-time intelligence and operational effectiveness and efficiency. CRS-34 The Senate recommendation of $50 million for air cargo security lies directly between the budget request of $40 million and the House-passed level of $60 million. The $10 million above the request offered in the Senate proposal includes $7 million for hiring additional inspectors and $3 million for increased inspections of both international flights and domestic passenger flights. The Senate proposal would also direct the TSA to continue coordination of “known-shipper” and Customs-Trade Partnership Against Terrorism (C-TPAT) programs and move toward the goal of screening 100 percent of cargo carried on passenger airplanes. With regard to surface transportation security, the Senate proposal is in full agreement with the House-passed amount and use of funds. Also, the Senate proposal is in concordance with the House-passed plan to keep transportation vetting and credentialing functions within the TSA, but recommends direct funding for credentialing activities at a level $9 million less than the House-passed amount. Issues for Congress. The President’s proposal to increase airline passenger security fees has been a contentious issue. Financially strapped airlines — still recovering from the economic impact of the 9/11 attacks and now facing rising fuel costs — argue that they will likely have to absorb some of the cost of these fee increases by reducing ticket prices.65 Some Members of Congress have also voiced concern that the proposed fee increase could cut into the revenues of the airlines, and could have a greater impact on rural airline customers who would pay proportionately more in per-segment fees because fewer direct flights are available to these customers.66 The Administration, on the other hand, argues that increased fees could help reduce a funding deficit by generating additional revenue to offset expenditures for aviation security, or could free up general tax revenues for spending on broader homeland security needs. The Administration also contends that increasing fees to offset costs is in line with long-standing transportation infrastructure policy to fund these services largely through user fees, as well as its assessment of the original intent of these passenger security fees established under ATSA (P.L 107-71).67 However, some opponents of aviation security fees contend that aviation security, particularly since September 11, 2001, is vital to national security, and therefore, like defense spending, is the responsibility of all taxpayers. The House Committee on Appropriations noted that amending the statutory fee structure falls under the jurisdiction of the Homeland Security Committee and did not include the proposed fee increases in its bill. An amendment to the FY2006 DHS Authorization Act (H.R. 1817) prohibiting an increase in airline ticket taxes for aviation security was agreed to by a large majority in the House, despite opposition by Aviation Subcommittee Chairman John Mica. While the Senate committee also did not recommend any passenger fee increases, language in S.Rept. 109-83 directs the TSA to use its available authority to collect about $448 million from aviation security infrastructure fees paid directly by the airlines. This is the amount determined by a 65 Air Transport Association of America, Inc., Statement for the Record to the Committee on Commerce, Science & Transportation, United States Senate Hearing on Fiscal Year 2006 Budget Transportation Security Administration, Feb. 15, 2005. 66 Sara Kehaulani Goo, “Senate Turbulence Greets Plan to Raise Airline Ticket Security Fees,” The Washington Post, Feb. 16, 2005, p. A2. 67 See Statement of David M. Stone. CRS-35 GAO audit that TSA should be collecting annually. However, the TSA has been collecting only about $318 million in these fees, despite assuming that collections would total $750 million for FY2005, thus creating a projected shortfall of more than $400 million. Another key issue for the TSA is the proposed creation of SCO. With the proposed transfer of programs related to credentialing and vetting of passengers and transportation workers, several potential issues regarding coordination of effort between the TSA and the proposed SCO arise. The Administration has offered few details regarding how the proposed SCO would interface with the TSA on several high-profile programs such as Secure Flight and the TWIC program. Citing concerns over disrupting work on these key programs, the House language has taken a different tack that would integrate these various programs, but keep them within the TSA under a new Office of Transportation Vetting and Credentialing. Another potential issue that may arise during the appropriations process is coordination between TSA and S&T in light of the proposal to transfer the TSA’s research and development activities. One particular issue would be how aviation security research needs will be prioritized given that S&T is more broadly focused on all homeland security research and development activities. There may be some concern that aviation security projects could take a back seat to other high-profile initiatives — such as nuclear, biological, and chemical weapon countermeasures — that have been the primary focus of S&T to date. Also, while consolidating research and development on explosives and chemical weapons detection — the primary focus of aviation security-related research and development — may help leverage resources for other DHS components, these projects could potentially lose some of the aviation security-specific focus that they currently have under the auspices of the TSA. Consequently, Congress may focus on what coordination and interaction between TSA and S&T will be established under the proposed transfer to ensure that aviation security research and development needs are adequately addressed.68 The House Committee on Appropriations has proposed to task the S&T Directorate with carrying out air cargo research and development pilot programs initiated by the TSA, but expressed frustration over the lack of progress in this area commenting that “...high unobligated balances give the impression that the TSA does not view air cargo as a serious aviation security vulnerability.”69 Consequently, the committee directed the TSA to develop protocols and standards for emerging new technologies to screen cargo, noting past deployment delays because such coordination was lacking. 68 Further information and analysis of transportation security issues before Congress are provided in CRS reports at [http://www.congress.gov/erp/legissues/html/istrn5.html]. 69 H.Rept. 109-79, p. 48. CRS-36 United States Coast Guard70 The Coast Guard is the lead federal agency for the maritime component of homeland security. As such, it is the lead agency responsible for BTS as it applies to U.S. ports, coastal and inland waterways, and territorial waters. The Coast Guard also performs missions that are not related to homeland security, such as maritime search and rescue, marine environmental protection, fisheries enforcement, and aids to navigation. The Coast Guard was transferred from the Department of Transportation to the DHS on March 1, 2003. The law that created the DHS (P.L. 107-296) directed that the Coast Guard be maintained as a distinct entity within DHS and that the Commandant of the Coast Guard report directly to the Secretary of DHS. Accordingly, the Coast Guard exists as a distinct agency within DHS and is not part of DHS’s BTS, although it does work closely with that directorate. President’s Request. For FY2006 the President requested an appropriation of $7,961 million in net budget authority for the Coast Guard, which is a 5.21% increase over the enacted FY2005 level of $7,567 million. The Coast Guard’s budget is divided into seven categories. The President requested increases in three of these categories and decreases or zero funding in the four remaining categories. Among the categories with increased funding, the largest increase in percentage terms is in acquisition, construction, and improvements (the agency’s physical equipment), which would increase by 23.08% to $1,269.2 million. Operating expenses would increase by 4.62% to $5,547.4 million and reserve training would increase by 5.31% to $119.0 million. The President requested zero funds for the Coast Guard’s bridge alteration program which funds alterations to the understructure of bridges that are obstructing navigational waterways. Congress provided $15.9 for this program in FY2005. The President also requested zero funds for Coast Guard research and development; transferring and consolidating this account under the DHS S&T Directorate. Congress provided $18.5 million for Coast Guard R&D in FY2005. The two other budget categories that the President would reduce funding for are Coast Guard environmental compliance and restoration, which would decrease by 29.41% to $12 million and retired pay, which would decrease by 6.54% to $1,014.1 million. House-passed H.R. 2360. House-passed H.R. 2360 provides $7,458 million, $503 million or 6% less than the President’s request and $109 million or 1% less than FY2005 enacted. H.R. 2360 provides $798 million for acquisitions, construction, and improvements, which is about $471 million less than the President requested. Most of this difference has to do with the Coast Guard’s Deepwater program, which is explained further below. For operating expenses, the House bill provides $5,500 million which is $47 million less than the President’s request. For 70 Section prepared by John Frittelli, Specialist in Transportation, Resources, Science and Industry Division. Further information and analysis of the Coast Guard’s role in maritime security is provided in CRS Report RS21125, Homeland Security: Coast Guard Operations — Background and Issues for Congress, by Ronald O’Rourke; and CRS Report RL31733, Port and Maritime Security: Background and Issues for Congress, by John Frittelli. CRS-37 alteration of bridges, the House bill provides $15 million versus the President’s request of no funds. For environmental compliance and restoration, reserve training, and retired pay, the House bill would provide the same amounts that the President requested. The House bill also agrees with the President’s request to transfer the Coast Guard’s research and development funds to the DHS S&T Directorate. The House Committee on Appropriations’ report states that the Committee “is extremely frustrated in the Coast Guard’s apparent disregard for Congressional direction” and cites the Deepwater plan and other reprogramming submissions as examples.71 Senate-reported H.R. 2360. Senate-reported H.R. 2360 provides $7,780 million, $322 million or 4% more than the House. Senate-reported H.R. 2360 provides $1,225 million for acquisitions, construction, and improvements, which is $427 million more than the House. As indicated below, most of the $427 million difference between the House and Senate concerns the Deepwater program. Senatereported H.R. 2360 provides $5,459 million for operating expenses, which is $41 million less than the House. For environmental compliance and restoration, reserve training, and alteration of bridges, Senate-reported H.R. 2360 provides the same amount as the House. Senate-reported H.R. 2360 does not agree with the House and the President’s request to transfer the Coast Guard’s R&D funds to the DHS S&T Directorate; it provides $19 million to the Coast Guard for R&D. Issues for Congress. Increased duties in the maritime realm related to homeland security have added to the Coast Guard’s obligations and increased the complexity of the issues it faces. Congress is concerned with how the agency is operationally responding to these demands, including its plans to replace many of its aging vessels and aircraft. Deepwater Program.72 The Deepwater program is a planned 22-year, multibillion dollar project to replace or modernize 93 aging Coast Guard ships and 207 aging Coast Guard aircraft. It is the largest and most complex acquisition ever undertaken by the Coast Guard. The Deepwater program is a subset of the agency’s acquisition, construction, and improvements budget category. For FY2006, the President requested $966 million for the Deepwater program which is $242 million more than Congress provided in FY2005. The House bill provides $500 million for the Deepwater program, which is $466 million less than the President’s request. The House bill also would withhold $50 million of this amount until the Appropriations Committee receives a new Deepwater program baseline that reflects revised, post September 11th mission requirements. Senate-reported H.R. 2360 provides $906 million for Deepwater and the Committee’s report states that it “is extremely disappointed with the poor congressional justifications accompanying the President’s budget request,” and directs the Coast Guard to update the Deepwater plan the agency submitted to Congress on May 31, 2005. 71 72 H.Rept. 109-79, p. 57. Further information and analysis of the Deepwater program is provided in CRS Report RS21019, Coast Guard Deepwater Program: Background and Issues for Congress, by Ronald O’Rourke. CRS-38 Maritime Security Mission. The Deepwater program will help the Coast Guard achieve its many missions, including maritime security, which is another Coast Guard issue of keen interest to Congress. The President’s FY2006 request includes $2,219.4 million for port waterways and coastal security, an increase of $127.9 million from FY2005. Maritime Domain Awareness (MDA) is a central element of the Coast Guard’s security mission. MDA can be described as the Coast Guard’s ability to know all that is happening in the maritime environment — to understand normal activity, in order to spot suspicious activity. One objective of MDA is to increase the transparency of ship movements in U.S. coastal areas. Using Automatic Identification Systems (AIS) technology, the Coast Guard expects to be able to track ships in coastal waters. For FY2006, the President requested $29.1 million for AIS which is $5.1 million more than Congress provided in FY2005. In FY2005, Congress expressed disappointment that only nine seaports would be able to receive AIS signals and therefore increased funding from the requested $5 million to $24 million to achieve nationwide coverage. The President’s FY2006 request indicates that nationwide implementation of AIS is the Administration’s objective. Another area of maritime security that Congress has expressed particular interest in is the security of LNG (liquefied natural gas) tankers. The President’s FY2006 request includes $11 million for additional boat crews and screening personnel at U.S. LNG shoreside facilities. Rising natural gas prices are expected to increase the demand for imported natural gas, most of which will be transported by LNG tankers. For the security mission, the House Appropriations Committee report recommends $20 million for area security maritime exercises, and $5 million for enhanced radiological and nuclear detection. The Committee also requests that the Coast Guard take action regarding credentialing of merchant mariners, and submit a plan regarding Maritime Safety and Security Teams. Senate-reported H.R. 2360 provides $12 million for restructuring the merchant marine credentialing program, $22 million for MDA, and provides no additional funds for AIS, noting that this program has significant unobligated funds from prior years. United States Secret Service73 The United States Secret Service performs two broad missions in homeland security: criminal investigations and protection.74 Criminal investigations cover financial crimes, identify theft, counterfeiting, computer fraud, and computer-based attacks on the nation’s financial, banking, and telecommunications infrastructure, among other areas. The protection mission is most prominent for the President, Vice President, their families, and candidates for those offices, along with the White House and the Vice President’s residence. Protection duties also extend to foreign missions in the District of Columbia; other designated individuals, such as the 73 Prepared by Frederick M. Kaiser, Specialist in American National Government, Government and Finance Division. 74 U.S. Department of Homeland Security, United States Secret Service, Fiscal Year 2006, Congressional Justification (Washington: DHS, 2005), p. SS-1. CRS-39 Secretary of DHS and visiting foreign dignitaries; and National Special Security Events (NSSE), which include the political party national nominating conventions as well as various international conferences and other major designated events in the United States. President’s Request. For FY2006, the President’s budget requests an appropriation of $1,204 million for the protection and criminal investigation missions of the Secret Service, an increase of $29 million (2%) over the FY2005 total of $1,175 million.75 Within the FY2006 amount are requests for certain specific matters: $100,000 to assist foreign law enforcement organizations in counterfeit investigations; $2.1 million for forensic and related support for investigations of missing and exploited children; and $5 million for a grant for activities related to the investigations of missing and exploited children. In addition, the budget submission directs that “up to $18 million provided for protective travel shall remain available until September 30, 2007” and that “not less than $5,000,000 solely for the unanticipated costs related to security operations for National Special Security Events.”76 House-passed H.R. 2360. The House Appropriations Committee recommends an appropriation of nearly $1,233 million, an increase of almost $29 million, or 2%, above the President’s request and almost $58 million, or 5%, above the FY2005 appropriation.77 The House-passed version of H.R. 2360 included additional amounts above the President’s request of: $5 million for NSSEs; $23 million to support protective operations, investigations, foreign field offices, and technical support functions; and $1 million for support to the National Center for Mission and Exploited Children.78 Senate-reported H.R. 2360. The Senate-reported version of H.R. 2360 wold provide $1,192 million for the Secret Service, a decrease of $41million, or 3%, compared to the House-passed amounts; a decrease of $12 million, or 1%, as compared to the requested amount; and an increase of $17 million compared to the FY2005 enacted amount. The Senate Committee does not provide the requested $5 million for the NSSE fund, because of unobligated balances remaining in the account.79 The Senate Committee also did not continue general provision bill language “regarding maintaining the Service as a distinct entity within” DHS.80 75 Ibid., and U.S. Office of Management and Budget, Budget of the United States Government, Fiscal Year 2006, Appendix (Washington: GPO, 2005), p. 485. 76 U.S. Office of Management and Budget, Fiscal Year 2006 Budget for the United States Government (Washington: GPO, Feb. 2005), p. 485. (Hereafter cited as OMB, FY2006 Budget.) 77 H.Rept. 109-79, pp. 155-156. 78 H.Rept. 109-79, pp. 70-71. 79 S.Rept. 109-83, p. 63. 80 S.Rept. 109-83, p. 64. CRS-40 Issues for Congress. Developments in the contemporary era, particularly after the 2001 terrorist attacks, have added to the Secret Service’s roles and responsibilities. Even though its two primary missions remain the same as they have for the past 100 years, the actual assignments, activities, duties, and functions have been expanded and have become more complex and sophisticated than before. The resulting issues for Congress (and the executive) range from the sufficiency of USSS resources to meet its new obligations to the adequacy of interagency cooperation. The former involves not just facilities, equipment, and personnel levels but also training, language skills, and protective research. The latter involves coordination not just with entities inside the Department but also with organizations outside it: i.e., in other federal departments and agencies, State and local governments, foreign governments, and the private sector. Along with this are occasional requests from subnational governments for the Secret Service (or DHS) to reimburse them for their expenses associated with specific USSS protective operations within their jurisdictions. Another matter extends to the capability of the Secret Service to maintain its traditional role in the enforcement of certain financial crimes, such as anti-counterfeiting. Such criminal conduct has also become more sophisticated and complex. And combating it may now have to compete with new higher priorities and expanded duties in other fields, most markedly in anti-terrorism. Title III: Preparedness and Response Title III Preparedness and Response, provides funding for the Office of State and Local Government Coordination and Preparedness (SLGCP), which includes the Office for Domestic Preparedness. In addition, Title III funds the Emergency Preparedness and Response (EPR) Directorate. Table 6 shows the FY2005 enacted and FY2006 requested appropriations for Title III. The Administration has requested an appropriation of $6,710 million in net budget authority for Title III for FY2006. This amount represents an 4% decrease compared to the FY2005 enacted total of $6,963 million (not including $2,508 million for Bioshield).81 For the FY2006 request, Title III accounts for 22% of requested net appropriated DHS budget authority; 10% for EPR, and 12% for SLCGP. The House-passed version of H.R. 2360 provides an appropriation of $6,688 million in net budget authority for Title III. This represents a $21 million or less than 1% decrease compared to the President’s request. The Senate-reported version of H.R. 2360 would provide $6,336 million for the activities of Title III. This amount represents a decrease of $374 million or nearly 6% compared to the FY2006 request; and a decrease of $352 million or 5% as compared to House-passed H.R. 2360. 81 The FY2005 enacted net budget authority of $6,963 million does not include a $2,508 million Bioshield obligation limitation, nor does it include the $6.5 billion in supplemental disaster relief funding. For more information on the supplemental appropriations, see CRS Report RL32581, Assistance After Hurricanes and Other Disasters: FY2004 and FY2005 Supplemental Appropriations, by Keith Bea and Ralph M. Chite. CRS-41 Table 6. Title III: Preparedness and Response (budget authority in millions of dollars) Operational Component Office for Domestic Preparedness/Office of state and local government coordination and planning — State and local programs — Salaries and Expenses — Emergency management planning grants — Firefighter assistance grants Net subtotal Counter-Terrorism fund Emergency Preparedness and Response — Office of Under Secretary EPR — Admin; regional operations — Operating expenses (rescission) — Prepare, mitigation, response & recovery —— rescission — Public health programs a — Biodefense countermeasures (obligation limitation) b — Disaster relief c — Flood map modernization fund — Radiological preparedness d — National flood insurance fund e — National flood mitigation f — Pre-disaster mitigation fund — Emergency food and shelter — Disaster assistance direct loan account Net subtotal Net budget authority subtotal: Title III FY2005 FY2006 FY2006 FY2006 FY2006 Enacted Request House Senate Enacted 3,086 4 180 715 3,985 8 2,891 4 170 500 3,565 10 2,831 4 180 650 3,665 10 2,694 4 180 615 3,493 5 4 203 -5 239 — 34 4 218 — 235 — 34 2 225 — 249 — 34 4 216 — 203 -10 34 2,508 8,542 200 -1 — — 100 153 1 11,978 — 2,140 200 -1 — — 150 153 1 3,135 — 2,000 200 -1 — — 150 153 1 3,013 — 2,000 200 -1 — — 37 153 1 2,838 15,971 6,710 6,688 6,336 Source: CRS analysis of the FY2006 President’s Budget, and DHS Budget in Brief, House Appropriation Committee tables of May 20, 2005, House-passed H.R. 2360 and H.Rept. 109-79; and Senate-reported H.R. 2360 and S.Rept. 109-83. Note: Totals may not add due to rounding. a. Total amount funds the National Disaster Medical System (NDMS), a system of health workers and emergency transport to provide medical care during disasters. b. Includes $20 million rescission from Bioshield (biodefense countermeasures) enacted by the Consolidated Appropriations Act of 2005 (P.L. 108-447). c. FY2005 totals include $6.5 billion in disaster relief funding enacted by P.L. 108-324. For more information on those supplemental appropriations, see CRS Report RL32581, Assistance After Hurricanes and Other Disasters: FY2004 and FY2005 Supplemental Appropriations. d. Radiological Emergency Preparedness funds are provide through reimbursements and are not actually appropriated funds. The Administration projects that funding obtained from other sources will exceed estimated BA needs by $17 million in FY2005, and $18 million in FY2006. CRS-42 e. Amounts available in the National Flood Insurance Fund are derived through premiums and are not appropriated. These amounts are completely offset in the Committee tables, in the amount of $113 million for FY2005, and $124 million in FY2006. f. Amounts for National Flood Mitigation are offset by a transfer from the National Flood Insurance Fund, $20 million in FY2005, and $28 million in FY2006. Office for State and Local Government Coordination and Preparedness (SLGCP) The SLGCP is the single point of contact within DHS for facilitating and coordinating departmental state and local programs. SLGCP provides information to states and localities on best practices and federal homeland security activities. Within SLGCP, the Office for Domestic Preparedness (ODP) administers federal homeland security assistance programs for states and localities. To assist state and local homeland security efforts, ODP administers formula and discretionary grants and training, exercise, and technical assistance programs. President’s Request. The FY2006 budget request proposes the following amounts for the SLGCP homeland security assistance programs: — — — — — Emergency Management Performance Grants (EMPG) . . $ 170 million; Citizen Corps Programs (CCP) . . . . . . . . . . . . . . . . . . . . . $ 50 million; State Homeland Security Grant Program (SHSGP) . . . . . . $1,020 million;82 Urban Area Security Initiative (UASI) . . . . . . . . . . . . . . . $1,020 million; Targeted Infrastructure Protection Program (TIPP) (a new program) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600 million; — Assistance to Firefighters Program (FIRE) . . . . . . . . . . . . $ 500 million.83 House-Passed H.R. 2360. The House passed the following amounts for the SLGCP homeland security assistance programs: — — — — — — Emergency Management Performance Grants . . . . . . . . . $ 180 million Citizen Corps Programs . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40 million; State Homeland Security Grant Program . . . . . . . . . . . . . $ 750 million; Urban Area Security Initiative . . . . . . . . . . . . . . . . . . . . . $1,215 million;84 Assistance to Firefighters Program . . . . . . . . . . . . . . . . . . $ 600 million.85 Metropolitan Medical Response System . . . . . . . . . . . . . . $ 10 million Senate-Reported H.R. 2360. The Senate Appropriations recommends the following amounts for the SLGCP homeland security Assistance programs: 82 The $1,020 million provided for each of the SHSGP and UASI programs includes $200 million (for a total of $400 million) for the Law Enforcement Terrorism Prevention Program (LETPP). Table 7 shows these amounts broken out: $800 million each for SHSGP and UASI, and $400 million for LETPP. 83 OMB, FY2006 Budget, p. 478. 84 Includes funding for port, rail, and infrastructure security. 85 House Appropriations Committee Homeland Security tables of March 15, 2005. CRS-43 — — — — — — Emergency Management Performance Grants . . . . . . . . . $ 180 million Citizen Corps Programs . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25 million; State Homeland Security Grant Program . . . . . . . . . . . . . $ 425 million; Urban Area Security Initiative . . . . . . . . . . . . . . . . . . . . . $1,093 million; Assistance to Firefighters Program . . . . . . . . . . . . . . . . . . $ 615 million. Metropolitan Medical Response System . . . . . . . . . . . . . . $ 40 million Table 7 provides program level details for SLGCP. Table 7. SLGCP Program Level Details, FY2005-2006 (budget authority in millions of dollars) FY2005 enacted FY2006 request FY2006 House FY2006 Senate Office of state and local government coordination and preparedness 3,985 3,565 3,665 3,493 — State homeland security grant program 1,100 820 750 425 — Urban area security initiative 885 820 850 1,093 15 50 40 25 — Emergency management performance grants 180 170 180 180 — Firefighters assistance 715 500 650 615 55 83 65 55 400 400 400 400 — Technical assistance 30 8 20 20 — National exercise program 52 52 52 52 — Evaluations program 14 14 14 14 315 600 365 365 4 48 54 4 50 — — 50 — National domestic preparedness consortium 135 — 125 145 — Metropolitan medical response system 30 — 40 10 5 — 10 — — Commercial equipment direct assistance program — — 50 — — REAL ID Implementation — — — 40 Operational component — Citizen corps program — State and local training program — Law enforcement terrorism prevention — Transportation and infrastructure program (TIPP) — Management and administration — Technology transfer — Rural domestic preparedness consortium F2006 Conf. CRS-44 Source: Conference Report (H.Rept. 108-774) accompanying P.L. 108-334 (FY2005 DHS Appropriations); OMB, FY2006 Budget, Appendix, p. 478; House Appropriation Committee tables of May 20, 2005, introduced H.R. 2360 and H.Rept. 109-79. Issues for Congress. The budget request raises policy questions because it proposes to reduce the overall level of funding for assistance to state and local preparedness programs, gives new emphasis to assistance for the protection of port, transit, and other infrastructure; and changes the grant allocation formula for one of the grants administered by ODP. Reduction in Funding. In FY2005, Congress appropriated approximately $3.99 billion for SLGCP and state and local homeland security assistance.86 In the FY2006 budget request, the Administration proposes a total of $3.57 billion for SLGCP and federal homeland security assistance, a reduction of $420 million from FY2005 funding. Additionally, the FY2006 budget request provides no line item funding for the Law Enforcement Terrorism Prevention Program (LETPP). It proposes, however, to direct states and localities to allocate no less than 20% of SHSGP and UASI funding for LETTP activities.87 Apparently, this is a reduction in SHSGP and UASI funding for equipment, training, exercises, and planning, which states and localities were authorized to fund with 100% of their allocated amount in FY2005. One could argue that the overall funding reduction of $420 million and the Administration’s requirement of states and localities allocating no less than 20% of their SHSGP and UASI funding for LETPP activities represents a further reduction of funding for federal homeland security assistance. The House passed H.R. 2360 proposes a total of $3.67 billion for SLGCP and federal homeland security assistance, a reduction of $320 million from FY2005 funding. This proposed reduction includes $350 million less for SHSGP than was appropriated in FY2005.88 The Administration’s budget proposal requests $500 million for FIRE in FY2006, a cut of 23% from the FY2005 appropriated level. Priority would be given to grant applications enhancing counter-terrorism capabilities. Activities such as prevention, public fire safety education and awareness, and fire code enforcement would be funded under a separate fire prevention and firefighter safety grant program. For FY2006, the Administration is requesting no funding of the SAFER grants, which provide assistance to fire departments for hiring personnel.89 After House Amendment 134 was adopted during floor debate, House-passed H.R. 2360 included $650 million for firefighter assistance, including $575 million for fire grants and $75 million for SAFER Act grants. The Committee does not agree with the Administration’s proposal to shift the program’s priority to terrorism or to limit the list of eligible activities. 86 P.L. 108-334, Title III, FY2005 DHS appropriations. 87 OMB, FY2006 Budget, p. 478. 88 House Appropriations Committee Homeland Security tables of March 15, 2005. 89 This information provided by Len Kruger, Research, Science, and Industry Division. CRS-45 On June 16, 2005, the Senate Appropriations Committee approved $615 million for firefighter assistance, including $550 million for fire grants and $65 million for SAFER Act grants. The Committee report states that DHS should “continue the present practice of funding applications according to local priorities and those established by the United States Fire Administration.” The Senate reported H.R. 2360 proposes $3.49 billion for SLGCP and federal homeland security-assistance, a reduction of $492 million from FY2005 funding. This proposed reduction includes $350 million less for SHSGP than was appropriated in FY2005. Public Health and Medical Programs in SLGCP.90 SLGCP grant programs include the Metropolitan Medical Response System (MMRS) and several grants that fund EMS Services. (In addition, the “Public Health Programs” budget line under Emergency Preparedness and Response funds the National Disaster Medical System, a system of health workers and emergency transport to provide medical care during disasters.) The Metropolitan Medical Response System (MMRS) is a program of contracts with major cities to coordinate multiple local government agencies in emergency planning. The program was transferred to the EPR Directorate at DHS from the Department of Health and Human Services in the Homeland Security Act, and subsequently was transferred to SLGCP from the EPR Directorate in the FY2005 Homeland Security appropriations bill. Congress appropriated $30 million for the program in FY2005, which was decreased from $50 million in FY2004. MMRS is slated for elimination in the FY2006 budget proposal, as it has been in each budget proposal since it was transferred to DHS. The Administration proposes that ongoing municipal emergency planning activities be supported at the discretion of states, using funds from the Homeland Security and Urban Areas Security Initiative Grants programs. The House Appropriations Committee does not agree with the Administration’s proposal to eliminate this program and recommends an appropriation of $40 million for MMRS.91 The Senate Appropriations Committee recommends an appropriation of $10 million for MMRS.92 Members of the Emergency Medical Services (EMS) community are considered first responders but are not given funding priority in any sizeable homeland security grant programs. A few small grant programs are available through the National Highway Traffic Safety Administration (NHTSA), though they are not specifically designed for homeland security activities. EMS providers are also eligible for preparedness funds through DHS first responder grants (SHSGP, UASI and FIRE) and through the hospital preparedness program at the Department of Health and Human Services (HHS). But a recent report found that while EMS providers may represent one-third of traditional first-responders, they have received only 4% of the preparedness funds available through DHS, and 5% of funds available through 90 Prepared by Sara Lister, Specialist in Social Legislation, Domestic Social Policy Division. 91 H.Rept. 109-79, pp. 82-83. 92 S.Rept. 109-83, p. 68. CRS-46 HHS.93 In its report on homeland security appropriations for FY2006, the House Committee on Appropriations directs that no less than 10% of SHSGP and UASI funds must be provided to EMS providers, to better train and equip them to provide critical life-saving assistance when responding to a chemical, biological, radiological or explosive event.94 The Senate Committee on Appropriations encourages the Department of Homeland Security to require that states include EMS representatives in planning efforts.95 Port, Rail, and Infrastructure Security. In FY2005 Congress appropriated $150 million for port security and $150 million for rail security (both part of UASI).96 The Administration, in the FY2006 budget request, proposes the establishment of a new state and local homeland security assistance program, TIPP, and requests $600 million for the program. TIPP would provide funding to enhance the security of ports, transits systems, and other infrastructure, as determined by the DHS Secretary.97 The budget request, however, does not specify how much funding would be allocated for port security, or transit systems. Since the Administration proposes TIPP as a discretionary grant program, one could argue that there is no way to determine the amount that would be allocated for port and rail security which have been congressional priorities. The House passed H.R. 2360 proposes $365 million for port, rail, and infrastructure security, however, the Committee does not agree with the Administration in establishing a separate grant program for these security activities.98 The Senate reported H.R. 2360 recommends $365 million for port, rail, and infrastructure security and for the grants to be administered separately from UASI. Formula Changes. The Administration proposes to change the formula for ODP’s SHSGP. The FY2006 budget request proposes $1.02 billion for SHSGP to be allocated based on risks, threats, vulnerabilities, and unmet first responder capabilities, provided each state and territory is allocated no less than 0.25% of total funds appropriated for this program. There is no proposed formula change for UASI, CCP, EMPG, or FIRE. The Administration does, however, propose that FIRE applications to enhance terrorism response capabilities be given priority.99 It can be argued that the proposed formula change for SHSGP does not fully support the National Commission on Terrorist Attacks Upon the United States’ (9/11 Commission) recommendation of providing federal homeland security assistance 93 New York University, Center for Catastrophe Preparedness and Response, Emergency Medical Services: The Forgotten First Responder, April 2005, at [http://www.nyu.edu/ccpr/index.html]. 94 H.Rept. 109-79, p. 85. 95 S.Rept. 109-83, p. 68. 96 P.L. 108-334, Title III. 97 OMB, FY2006 Budget, p. 478. 98 House Appropriations Committee Homeland Security tables of March 15, 2005 99 Ibid., pp. 478-480. CRS-47 strictly based on threat and risk,100 because of the Administration’s proposed state and territory guaranteed minimum of 0.25%. The House report (H.Rept. 109-79) accompanying H.R. 2360 states that the Committee recognizes pending legislation to modify state formula grants and presumes ODP would distribute funds based on any successor legislation to Section 1014 of the USA PATRIOT Act (P.L. 107-56). Provided no succeeding legislation to the USA PATRIOT Act is enacted, the Committee directs ODP to assess each state’s threat, risk, and need to determine their minimum essential preparedness capability levels and allocate remaining funds to address those identified gaps in preparedness.101 Senate reported H.R. 2360 recommends $425 million to be allocated to states in the same manner as amounts distributed to states in FY2005. All remaining funds would be allocated to states at the discretion of the DHS Secretary based on risks, threats, vulnerabilities, unmet essential capabilities, and cooperation of multiple jurisdictions in preparing domestic preparedness plans.102 Emergency Preparedness and Response (EPR)103 President’s Request. Few substantive changes are proposed in the FY2006 budget justification for the EPR accounts. The disaster relief funding request submitted by the Administration is similar to the amount requested in previous fiscal years. Funding for two hazard mitigation programs would increase under the proposal; an increase of $50 million ($100 million appropriated for FY2005) is proposed for pre-disaster mitigation grants awarded on a competitive basis, and an increase of $8 million ($20 million authorized to be transferred in each previous year) for flood mitigation assistance. Post-disaster mitigation grants, however, would continue to be funded at a lower level than historically provided. Issues for Congress. The House Committee on Appropriations reported legislation that differs in certain respects from the Administration request and raises issues to be addressed. In short, the committee has recommended the following, or directs that action occur in the following areas: (1) a reduction of $2 million for the Office of the Under Secretary for Emergency Preparedness and Response in light of a “lack of cooperation received from EP&R, specifically regional and field offices;”104 (2) increased funding of $10 million to further development of the 100 National Commission on Terrorist Attacks Upon the United States, The 9/11 Commission Report (Washington: GPO, Aug. 2004), p. 396. 101 102 H.Rept. 109-79, p. 77. S.Rept. 109-83, p. 66. 103 Prepared by Keith Bea, Specialist in American National Government, Government and Finance Division. 104 H.Rept. 109-79, p. 85-86. CRS-48 national preparedness system;105 (3) completion of a report by EPR (March 15, 2006) on disaster relief overpayments made over the past four years; and (4) mitigation assistance higher than that proposed by the Administration. The bill reported from the Senate Committee differs from that approved by the House. The Senate reported version (1) provides the requested funding for the Office of the Under Secretary, (2) does not include $15 million requested for the national preparedness system and rescinds almost $10 million in unobligated funds, (3) does not address disaster relief overpayments, and (4) recommends mitigation funding below that requested and the amount approved by the House. The Senate report includes an increase of $23 million to support Urban Search and Rescue teams, along with a requirement for a report on costs of the teams, and support for the National Dam Safety Program. Regional Office Actions. One of the management issues confronting DHS officials and Congress concerns the establishment of regional offices. FEMA, like other legacy agencies incorporated into DHS, had established a network of regional offices to coordinate operations with state and local governments.106 In order to stimulate consideration of the need to evaluate the spectrum of regional offices, Congress required the development of a plan by the Secretary of DHS for “consolidating and co-locating” regional or field offices within one year of enactment.107 The report, issued in February 2004, summarized the efforts taken as of that date and the “proposed approach to develop a comprehensive consolidation/collocation plan...”108 Considerations noted in the report include real estate and facilities management, linking the planning process to the strategic vision of the department, and primarily, mission effectiveness. DHS concluded that up to two years would be required to complete the study of regional office consolidation. To the extent known, no further reports or plans have been released by DHS on this issue. The House Committee on Appropriations reported concern with the failure of regional and field offices to cooperate with Congress, specifically by adjusting “their interpretation of Committee report language in several instances in an apparent attempt to avoid execution.”109 Should the expected realignment of DHS regional offices occur, it might have a bearing on further consideration of this funding reduction by the House. The Senate reported version did not address this issue, and recommended funding for administrative and regional operations slightly less than the amount requested to reflect the consolidation of funding for the Homeland Secure Data Network in the DHS Office of the Chief Information Officer. National Preparedness System. As directed by Congress in Title V of the Homeland Security Act of 2002 (P.L. 107-296) and by the President in Homeland 105 H.Rept. 109-79, p. 89. 106 Ten regional and two area offices implement EPR programs throughout the nation and in the insular areas and commonwealths. See “FEMA Regional Offices,” at [http://fema.gov/regions/index.shtm], visited Feb. 9, 2005. 107 Sec. 706 of P.L. 107-296 108 Letter from Pamela J. Turner, Assistant Secretary for Legislative Affairs, Department of Homeland Security, to the Honorable Christopher Cox, Chairman, House Select Committee on Homeland Security, Feb. 4, 2004. 109 H.Rept. 109-79, p. 88. CRS-49 Security Presidential Directive 5 (HSPD 5), DHS has developed documents, systems and procedures to improve the nation’s readiness for catastrophes. The House Committee on Appropriations commended EPR on development of the National Incident Management System (NIMS), the National Preparedness Goal, and the National Response Plan.110 The establishment of federal preparedness standards, the use of those standards as touchstones to assess whether state or local government financial assistance should be conditioned, and the relationship of those standards to the strategic plan for DHS might be examined by Congress.111 The Senate committee did not include $15 million in funding for NIMS and rescinded $9.6 billion that remained unobligated. The Senate report does not provide information on these reductions. Disaster Relief Expenditures. Congress appropriates money to the Disaster Relief Fund (DRF) to ensure that federal assistance is available to help individuals and communities stricken by severe disasters. Funds appropriated to the DRF remain available until expended. DHS allocates money from the DRF to provide assistance to individuals, families, state and local governments, and certain nonprofit organizations, as authorized by the Stafford Act.112 Stafford Act aid is available after the President issues a declaration that federal assistance is needed to supplement the resources of states and localities that are overwhelmed by catastrophes. Federal assistance supported by DRF money is used by states, localities, individuals, and certain non-profit organizations for mass care, restoration of damaged or destroyed facilities, clearance of debris, and certain uninsured needs. Appropriations to, and the operations of the DRF generally evoke little controversy. However, questions have been raised concerning the distribution of aid in Florida after the hurricanes of 2004. Congress has previously explored the issue of rising federal disaster assistance costs and reliance upon supplemental appropriations.113 In light of concerns about funding decisions after the hurricanes, and the rising deficit, Members of the 109th Congress might elect to consider means of controlling costs or establishing alternative funding mechanisms. As shown in Table 12 in Appendix II DRF obligations have increased considerably since 1990 in comparison to those recorded in previous decades. 110 H.Rept. 109-79, p. 89. 111 For more information see CRS Report RL32803, The National Preparedness System: Issues in the 109th Congress, by Keith Bea. 112 The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §5121 et seq. 113 U.S. Congress, Senate Bipartisan Task Force on Funding Disaster Relief, Federal Disaster Assistance, S.Doc. 104-4, 104th Cong., 1st sess., (Washington: GPO, 1995). The House convened a task force that issued an unpublished report. Following completion of the task force efforts, some Members introduced a concurrent resolution (H.Con.Res. 39, 104th Congress) seeking a “fundamental overhaul of federal disaster policies.” See also U.S. Congress, House Committee on the Budget, Task Force on Budget Process, Budgetary Treatment of Emergencies, hearing, 105th Cong., 2nd sess., June 23, 1998 (Washington: GPO, 1998). CRS-50 The cause of the increase in federal expenditures since 1990 has been the subject of some debate. A report issued by the OIG for FEMA concluded that the increase in federal disaster costs since 1989 “is due to a greater number and magnitude of disasters, expansion of the law and eligibility for assistance, and interpretation of the law and regulations.”114 Some contend that other factors, notably political considerations, contribute to the costs of disaster relief as well. The author of one study reportedly analyzed data from the insurance industry, climatic study organizations, and DHS, and concluded that “electoral motivations ... had a dramatic effect on which states were granted disaster declarations.”115 More specifically, and less dramatically, the author reports in a published summary of his work: “The best predictor of a disaster declaration, bar none, is actual need. The question arises in these marginal cases, when it’s unclear whether to give or not.”116 On the other hand, a study issued by GAO also considered the effects of politics on disaster declarations but arrived at a different conclusion. After examining presidential declaration data from the perspective of the party affiliation of governors and members of state congressional delegations, the authors concluded that there “were no indications that party affiliation affected White House major disaster declaration decisions.”117 In considering a gubernatorial request for disaster relief, the President evaluates a number of factors, including the cause of the catastrophe, damages, needs, certification by state officials that state and local governments will comply with cost sharing and other requirements, and official requests for assistance. Neither the Stafford Act nor implementing regulations provide for a congressional role in the declaration process.118 The level of expenditures from the DRF fluctuates from year to year primarily as a consequence of three factors — the number of disaster declarations issued, the extent of destruction caused by the disasters, and the amount of uninsured losses that result from declared disasters. Discussions in Congress on the escalating disaster relief costs move between two policy concerns — the need to control federal costs, particularly at a time of significant deficits, and the need of constituents who have suffered devastating losses. 114 U.S. Federal Emergency Management Agency, at [http://www.fema.gov/library/pp2man.shtm], visited Nov. 19, 2004. 115 For a summary see Andrew Reeves, “Plucking Votes from Disasters,” Los Angeles Times, May 12, 2004, p. A19. 116 Brian Tarcey, “Flooding the Ballot Box: The Politics of Disaster,” Harvard Magazine, at [http://www.harvard-magazine.com/on-line/030492.html], visited May 21, 2004. 117 U.S. General Accounting Office, Disaster Assistance: Timeliness and Other Issues Involving the Major Disaster Declaration Process, GAO/RCED-89-138, May 25, 1989, pp. 1, 4. 118 For regulations on the request and declaration process, see 44 CFR §§206.35-206.39. CRS-51 Members of the 109th Congress may wish to evaluate several options in balancing the needs of disaster stricken areas with budgetary constraints. These options include and are not limited to the following approaches.119 119 ! Amend the Stafford Act to determine whether existing statutory declaration criteria are appropriate. Reducing the categories or narrowing their scope would result in cost savings as fewer disasters would trigger federal assistance. Such changes, however, would result in greater financial burdens for individuals and communities in distress. ! Modify how Congress and the President budget for emergencies. Currently, Congress provides additional funds during the fiscal year, usually in supplemental appropriations, to respond to specific natural disasters and other emergency, or unanticipated, situations. Congress and the President usually designate the additional spending as an “emergency requirement,” effectively exempting it from budget constraints associated with the annual budget resolution. Some believe this practice of budgeting for emergencies might lead to unnecessary or wasteful spending. In addition, some believe that the existing budgetary treatment of emergency spending provides an incentive to designate non-emergency spending as an emergency requirement in order to circumvent the existing budgetary constraints. To address these concerns, some have proposed the following two reforms, establishment of a reserve fund or criteria for the designation of an emergency, as follows. ! Establish a reserve fund for disaster assistance. Proponents of a reserve fund for disaster assistance argue that the average annual amount of overall emergency spending can be projected based on past experience, even though specific emergencies cannot be predicted. Therefore, they further argue that an expected amount of disaster assistance spending should be incorporated into the overall amount of spending in the President’s budget and the budget resolution. Proponents of such a reserve fund generally suggest that an historical average of actual disaster assistance spending would provide sufficient funds to meet specific emergencies as they arise. Legislation pending before Congress (S. 24) would establish such a fund in the Treasury. ! Establish criteria for emergency spending. Proponents of emergency spending criteria argue that any spending for disasters and other emergencies should meet specific criteria to be considered outside the constraints associated with the budget resolution and outside the regular annual appropriations process. Past budget resolutions have required that spending designated as an “emergency requirement” Contributions on emergency funding provided by Bill Heniff, Jr., Analyst in American National Government, Government and Finance Division. CRS-52 meet criteria such as the “underlying situation poses a threat to life, property, or national security” and is sudden, urgent, unforeseen, and temporary (for example, see the budget resolution considered by the 108th Congress, S.Con.Res. 95, H.Rept. 108-498). Proponents, however, suggest that such criteria should be statutory.120 Hazard Mitigation Assistance. Federal hazard mitigation assistance is provided through several grant-in-aid programs. Since 1988 hazard mitigation funds have been authorized by Section 404 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; the Section 404 program is also referred to as the Hazard Mitigation Grant Program (HMGP). 121 Such grants are provided in states in which major disaster declarations have been issued. HMGP funding derives from the DRF, not line item appropriations. Section 404 funds have been used to help communities and property owners improve buildings to withstand earthquake shaking, purchase hurricane shutters, and relocate buildings from flood-prone areas. Some debate might occur on the maximum amount of HMGP awards to be given to each state. From 1993 until 2004 the maximum grant that could be provided to a state equaled 15% of the eligible disaster relief provided under the Stafford Act. In 2004 Congress reduced by half the maximum contribution to be provided through HMGP, from 15% of major disaster assistance to 7.5%.122 The FY2006 budget requests maintains the ceiling at the lower level. Members of the 109th Congress might elect to consider legislation to return to the higher level. Such legislation was approved by the House during the 108th Congress (H.R. 3181) but not acted upon by the Senate. In addition to HMGP, Congress has authorized mitigation assistance through the pre-disaster mitigation program (PDM) and the flood mitigation assistance program (FMA). Authority for the former expires at the end of calendar year 2005. Congress might consider legislation to reauthorize the program. The House Committee expressed support for the PDM program by recommending an appropriation of $150 million in FY2006, slightly below the amount requested but $50 million more than appropriated in FY2005. The Senate Committee, by comparison, recommends funding much lower than the amount requested for PDM ($37 million) due to the amount available for carry over from previous fiscal years. Similarly, the House Committee expressed support for the FMA program by recommending for FY2006 twice the amount provided in FY2005 and previous fiscal years ($20 million). The $20 million increase would fund the new program established by the 108th Congress 120 For example, the state of Louisiana defines “emergency,” for the purpose of appropriating emergency funds, as “an event or occurrence not reasonably anticipated by the legislature. ‘An event not reasonably anticipated’ shall be one not considered and rejected, in the same relative form or content, by the legislature during the preceding session either by specific legislative instrument or amendment thereto on the floor of either house or by a committee thereof.” See La. Rev. Stat. Title 39, §461.1.A.(2). 121 The HMGP grants are authorized in Section 404 of the Stafford Act, 42 U.S.C. §5170c. 122 Section 417, P.L. 108-7, 117 Stat. 525. CRS-53 to address repetitive flood loss properties.123 The Senate committee echoed the administration request for the transfer of $28 million to the National Flood Mitigation Fund. Debate may also take place on an incentive enacted in the Disaster Mitigation Act of 2000, P.L. 106-390. The provision authorizes the President to increase the HMGP ceiling to 20% of the total assistance provided under the Stafford Act if a state meets certain requirements, including adoption of an enhanced mitigation plan.124 The FY2006 request provides that HMGP grants for states with enhanced plans be 12.5%, not 20%, of the total assistance provided. Members of the 109th Congress might elect to debate whether states with enhanced plans should receive the full 20% authorized in the statute. The House Appropriations Committee did not recommend language pertaining to enhanced mitigation plans and referred such authorization action to the Committee on Transportation and Infrastructure.125 Title IV: Research and Development, Training, Assessments, and Services Activities funded by Title IV include the Bureau of Citizenship and Immigration Services (USCIS), IAIP, FLETC, and the S&T. Table 8 shows the FY2005 enacted and FY2006 requested appropriations for Title IV. The Administration has requested an appropriation of $4,320 million in gross budget authority for Title IV in FY2006. This represents an 8% increase over the enacted FY2005 level of $4,011 million. The Administration is requesting an appropriation of $2,546 million in net budget authority for Title IV in FY2006, representing a 6% increase over the FY2005 enacted level of $2,392 million. Of the requested net appropriation for DHS for FY2006: USCIS accounts for less than 1%; IAIP accounts for 3%; S&T accounts for 5%; FLETC accounts for less than 1%; and all Title IV accounts combined account for 8% of requested net appropriated DHS budget authority. House-passed H.R. 2360 provides a net appropriation of $2,522 million in net budget authority for Title IV in FY2006. This amount represents a $126 million or nearly 5% increase as compared to the FY2005 enacted amount; and a $24 million or 1% decrease as compared to the FY2006 request. The Senatereported version of H.R. 2360 would provide $2,686 million for the activities of Title IV. This amount represents an increase of $140 million, or 5%, compared to the FY2006 request; an increase of $164 million, or 7%, compared to the amount provided in the House-passed version of H.R. 2360; and an increase of $290 million, or 12%, compared to the FY2005 enacted amount. 123 P.L. 108-264, 42 U.S.C. 4102a. 124 “... the President may increase to 20%...” 42 U.S.C. §5165(e). 125 H.Rept. 109-79, p. 93. CRS-54 Table 8. Title IV: Research and Development, Training, Assessments, and Services (budget authority in millions of dollars) Operational component FY2005 enacted FY2006 request FY2006 House FY2006 Senate FY2006 Conf. Citizenship and immigration services (direct appropriation) Gross subtotal 1,775 1,854 1,894 1,854 -1,615 -1,774 -1,774 -1,774 160 80 120 80 — Management and administration 132 204 190 169 — Assessments and evaluation 762 669 663 702 Net subtotal 894 873 853 871 Federal law enforcement training center 227b 224 259 282 69 81 81 81 — Research, development, acquisition, and operations b 1,047 1,287 1,209 1,372 Net subtotal 1,115 1,368 1,290 1,453 Gross budget authority: Title IV 4,011 4,320 4,296 4,460 -1,615 -1,774 -1,774 -1,774 2,396 2,546 2,522 2,686 a — Offsetting fees Net subtotal Information analysis and infrastructure protection Science and technology — Management and administration — Offsetting collections: Title IV Net budget authority: Title IV Source: CRS analysis of the FY2006 President’s Budget, and DHS Budget in Brief, House Appropriation Committee tables of May 20, 2005, House-passed H.R. 2360 and H.Rept. 109-79; and Senate-reported H.R. 2360 and S.Rept. 109-83. Note: Totals may not add due to rounding. a. Fees included Immigration Examination Fund; H-1b Visa Fee; and the Fraud Prevention and Detection fee. b. Includes $4 million in supplemental appropriations provided by P.L.109-13. c. DHS is proposing to consolidate the department’s Research and Development efforts by transferring the Research and Development functions of CBP, ICE, TSA, and the Coast Guard to the Directorate of S&T. CRS-55 Citizenship and Immigration Services (USCIS)126 There are three major activities that dominate the work of the U.S. Citizenship and Immigration Services (USCIS): the adjudication of immigration petitions (including nonimmigrant change of status petitions, relative petitions, employmentbased petitions, work authorizations, and travel documents); the adjudication of naturalization petitions for legal permanent residents to become citizens; and the consideration of refugee and asylum claims, and related humanitarian and international concerns. USCIS funds the processing and adjudication of immigrant, nonimmigrant, refugee, asylum, and citizenship benefits largely through monies generated by the Examinations Fee Account.127 Last year, the Administration increased the fees charged to U.S. citizens and legal permanent residents petitioning to bring family or employees into the United States and to foreign nationals in the United States seeking immigration benefits.128 In FY2004, 86% of USCIS funding came from the Examinations Fee Account. In FY2005, USCIS has budget authority for $1.571 billion from the Examinations Fee Account.129 Congress provided a direct appropriation of $160 million in FY2005. The House report language emphasized that $160 million should be available to reduce the backlog of applications and to strive for a six-month processing standard for all applications by FY2006.130 Title IV of P.L. 108-447, the Consolidated Appropriations Act for FY2005, also required the Secretary of Homeland Security to impose a fraud prevention and detection fee of $500 on H-1B (foreign temporary professional workers) and L (intracompany business personnel) petitioners. The statute requires that the H-1B and L fraud prevention and detection fee be divided equally among DHS, the Department of State (DOS) and Department of Labor (DOL) for use in combating fraud in H-1B and L visa applications with DOS and H-1B and L petitions with USCIS and in carrying out DOL labor attestation 126 Section prepared by Ruth Ellen Wasem, Specialist in Immigration Policy, Domestic Social Policy Division. For further information see, CRS congressional distribution memorandum, FY2006 Funding for U.S. Citizenship and Immigration Services, by Ruth Ellen Wasem. 127 §286 of the Immigration and Nationality Act, 8 U.S.C. §1356. 128 For example, the I-130 petition for family members went from $130 to $185, the I-140 petition for LPR workers went from $135 to $190, the I-485 petition to adjust status went from $255 to $315, and the N-400 petition to naturalize as a citizen went from $260 to $320. Federal Register, vol. 69, no. 22, Feb. 3, 2004, pp. 5088-5093. 129 130 P.L. 108-334, Conference Report to accompany H.R. 4567, H.Rept. 108-774. U.S. Congress, House Committee on Appropriations, Department of Homeland Security Appropriations Bill, 2005, report to accompany H.R. 4567, 108th Cong., 2nd sess., H.Rept. 108-541 (Washington: GPO 2004). The President’s Budget request for FY2002 proposed a five-year, $500 million initiative to reduce the processing time for all petitions to six months. Congress provided $100 in budget authority ($80 direct appropriations and $20 million from fees) for backlog reduction in FY2002. P.L. 107-77, Conference report to accompany H.R. 2500, U.S. Congress, House Committee of Conference, Making Appropriations for the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies for the Fiscal Year Ending September 30, 2002, and for Other Purposes, H.Rept. 107-278 (Washington: GPO 2001). CRS-56 enforcement activities.131 DHS also receives 5% of the H-1B education and training fees in the Nonimmigrant Petitioner Account.132 President’s Request. For FY2006, the Administration is seeking an increase of $79 million for USCIS. The Administration is requesting a total of $1,854 million for USCIS, (an increase of 4% over the enacted FY2005 level of $1,775 million) the bulk of the funding coming from increased fees paid by individuals and businesses filing petitions (Table 8). For FY2006, USCIS expects to receive a total of $1,774 million from the various fee accounts, most of which ($1,730 million) would be coming from the Examinations Fee Account. According to the USCIS Congressional Justification documents, funds from the Examinations Fee Account alone comprise 93% of the total USCIS FY2006 budget request. The FY2006 Budget also includes $13 million from the H-1B Nonimmigrant Petitioner Account133 and $31 million from the H-1B and L Fraud Prevention and Detection Account.134 The Administration proposes to use the $31 million generated from the new fee on H-1B and L petitions to expand its Fraud Detection and National Security Office.135 In terms of direct appropriations, the Administration is requesting $80 million — a decrease of $80 from FY2005 (Table 8) and a decrease of $155 million from the $235 million Congress appropriated in FY2004. House-passed H.R. 2360. House-passed H.R. 2360 povides an increase of $40 million above the President’s request for a total of $120 million, which is $40 million less than the FY2005 enacted appropriation. Senate-reported H.R. 2360. Senate-reported H.R. 2360 would provide $80 million for USCIS in direct appropriations fully funding the President’s request, but recommending $40 million less than provided in House-passed H.R. 2360, and $80 million less than enacted in FY2005. Issues for Congress. Many in Congress have expressed concern and frustration about the processing delays and pending caseload. Congress has already enacted statutory requirements for backlog elimination and has earmarked funding backlog elimination for the past several years.136 The number of pending immigration and naturalization petitions has decre ased by 21.5% from 6.0 million at the close of FY2003 to 4.7 million at the close of FY2004. Nonetheless, this figure remains 25.7% greater than the 3.7 million pending cases at the close of FY2000. USCIS hopes to achieve the six-month petition processing time by FY2006. 131 §426(b) of P.L. 108-447. 132 §286(s) of INA; 8 U.S.C. §1356(s). 133 §286(s) of INA; 8 U.S.C. §1356(s). 134 §286(v) of INA; 8 U.S.C. §1356(v). 135 USCIS added a Fraud Detection and National Security Office to handle duties formerly done by the INS’s enforcement arm, which is now part of DHS’s ICE Bureau. 136 For example, see §§451-461 of the Homeland Security Act of 2002 (P.L. 107-296). CRS-57 Another matter that may arise in the appropriations debate is the coordination and duplication of efforts between USCIS and ICE in the area of fraud and national security investigations. GAO has reported: “The difficulty between USCIS and ICE investigations regarding benefit fraud is not new ... as a result, some USCIS field officials told us that ICE would not pursue single cases of benefit fraud. ICE field officials who spoke on this issue cited a lack of investigative resources as to why they could not respond in the manner USCIS wanted.”137 USCIS has established the Office of Fraud Detection and National Security to work with the appropriate law enforcement entities to handle national security and criminal “hits” on aliens and to identify systemic fraud in the application process. Federal Law Enforcement Training Center (FLETC)138 The Federal Law Enforcement Training Center provides training on all phases of law enforcement instruction, from firearms and high speed vehicle pursuit to legal case instruction and defendant interview techniques, for 81 Federal entities with law enforcement responsibilities, State and Local law enforcement agencies, and international law enforcement agencies. Training policies, programs, and standards are developed by an interagency Board of Directors, and focus on providing training that develops the skills and knowledge needed to perform law enforcement functions safely, effectively, and professionally. FLETC maintains four training sites throughout the United States and has a workforce of over 900 employees. In FY2004, FLETC trained almost 44,781 law enforcement students. President’s Request. The FY2006 request for FLETC is $224 million, an decrease of $3 million, and 1%, from the FY2005 enacted appropriation (including supplemental appropriations). FLETC’s FY2006 request includes only one program change, an increase of $2.7 million for Simulation Training Technology. This technology will be used to simulate weather, light, urban, and traffic conditions during high-speed pursuits, allowing the agency to increase their students’ proficiency at making rapid decisions during critical law enforcement situations. House-passed H.R. 2360. House-passed H.R. 2360 allots $259 million for FLETC in FY2006, $35 million, or 16%, more than the President’s request and $32 million, or 14% more than the agency’s FY2005 appropriation. This increase is intended to cover the increased training needs that will be engendered by new Border Patrol agents and ICE investigators added by the House Committee.139 Senate Reported H.R. 2360. The Senate Appropriations Committee recommends $282 million for FLETC in FY2006, $58 million more than the President’s request and $55 million, or 24% more than the agency’s FY2005 appropriation. The bulk of this increase is in the construction account in order to 137 GAO, Management Challenges Remain in Transforming Immigration Programs, GAO-05-81, Oct. 2004, available at [http://www.gao.gov/new.items/d0581.pdf]. 138 Prepared by Blas Nuñez-Neto, Analyst in Domestic Security, Domestic Social Policy Division. 139 H.Rept. 109-79, pp.100-101. CRS-58 cover the expansion and maintenance of training facilities to accommodate the increase in Border Patrol agents and ICE investigators.140 Information Analysis and Infrastructure Protection (IAIP)141 The mission of the DHS IAIP, in short, is to: ! ! ! integrate and analyze terrorist threat information; map threat information against physical and cyber vulnerabilities of the Nation’s critical infrastructure and key assets; and implement and/or recommend actions that protect the lives of the American people and ensure the national and economic security of the United States. The IAIP appropriation is divided into two primary accounts: Management and Administration, and Assessments and Evaluations. Management and Administration includes budgets for the Office of the Under Secretary and Other Salaries and Expenses. The latter (Other Salaries and Expenses) includes all the personnel costs of the Directorate. The Assessment and Evaluations budget supports the Directorate’s activities. These activities have been divided into 12 programs. Each program contains one or more projects. Projects are defined with varying degrees of specificity. The Directorate’s budget justification document breaks funding down to the program level. It is beyond the scope of this report to discuss in much detail the specific activities associated with each of these programs. The President’s FY2006 IAIP request was $873 million, a decrease of 2.3% from the amounted enacted for FY2005. The House approved $853 million for IAIP, about $20 million below what the Administration requested. The Senate Appropriations Committee recommended $871 million for IAIP. Table 9 summarizes the President’s request and Congressional action for each account and program. Management and Administration. The President’s FY2006 request for the M&A account was $204 million, an increase of $72 million, or 55%. Of the $72 million increase requested for the Management and Administration account, $69.1 million are programmatic changes: $11.7 million to increase staffing (146 new positions, funded for half a year),142 $38 million to upgrade and expand facilities and equipment for the Directorate (including security upgrades), and $19.4 million to construct a Homeland Secure Data Network, to accommodate the automated access 140 S.Rept. 109-83, pp. 81-82. 141 Prepared by John Moteff, Specialist in Science and Technology Policy, Resources, Science and Industry Division; and Todd Masse, Specialist in Domestic Intelligence and Counterterrorism, Domestic Social Policy Division. 142 The majority of these positions (100) would go toward the Infrastructure Vulnerability and Risk Assessment program involved in studying the tactics and capabilities of terrorist groups and liaising with the Intelligence Community. Another 26 people would be hired for the Threats Determination and Assessment program to do more strategic level threat assessments. CRS-59 and sharing of classified information within the Directorate. Adjustments to the FY2005 base ($2.8 million) account for the balance.143 The House approved $190.2 million for this account, $13.8 million less than what was requested. The House cut $5.8 million from the amount requested for additional positions. The House report noted that IAIP has still not filled its currently authorized FTE positions and that the Committee would like a review of the mission and function of IAIP in light of the Intelligence Reform and Terrorism Prevention Act and the formation of the National Counter Terrorism Center and the Terrorist Screening Center.144 The House also approved a floor amendment to reduce the M&A account by another $8 million (in undisclosed reductions). The Senate Appropriations Committee also recommended less funding for the M&A account ($168.7 million). It recommended denying all of the requested funds for extra FTE positions and included a base reduction due to continued hiring difficulties.145 Like the House, the Committee called for a review of IAIP staffing requirements. The Committee also recommended that no funds be made available for the Homeland Secure Data Network through the M&A account. The Committee recommended funding this program through the Chief Information Officer’s budget, located elsewhere in the DHS budget. The Committee did allow increases for pay and non-pay inflationary costs and other efficiencies. Assessments and Evaluations. The President’s request for FY2006 in the A&E account was $669 million, a decrease of $92.4 million, or 12% from FY2005. The reduction is the net result of a number of programmatic increases, decreases, and transfers. The IAIP Directorate proposes transferring two activities to other DHS components. One proposal is to transfer support for state and local assistance to help create Buffer Zone Protection Plans around critical assets to the SLGCP, as part of the latter’s new $600 million initiative (TIPP). The other proposal is to transfer support for the National Control Systems Test Center (a test bed for analyzing and fixing vulnerabilities in computer control systems) to the S&T Directorate. The Cyber Security program has been supporting the Center. These adjustments to the enacted FY2005 A&E account bring the FY2006 base to $624 million. Requested program enhancements for the A&E account total $49 million. Of the $49 million, the A&E program with the largest increase ($26 million, or 53%) is the Homeland Security Operations Center (HSOC). Major programmatic increases within HSOC include $13.4 million for hardware, software, and support for extending the Homeland Security Information Network146 to localities and relevant 143 Adjustments to base are changes made to the prior year’s enacted appropriation and generally include transfers of funds from one program to another, or technical adjustments for salaries and other management efficiencies. 144 145 146 H.Rept. 109-79, pp.101-102. S.Rept. 109-83, p. 83. DHS and the IA/IP view the Homeland Security Information Network as the primary portal for communicating with states, localities, and the private sector. Connectivity via the (continued...) CRS-60 private sector entities; and $12.9 million to purchase, upgrade, and support additional information and communications hardware and software to improve the HSOC capabilities to acquire, manipulate, store and disseminate greater amounts of information. Other programmatic increases in the A&E account include $5 million to support expanded capabilities and operations of the United States Computer Emergency Response Team within the Cyber Security program; $5.5 million to primarily provide for additional contractor support of the Protected Critical Infrastructure Information project (within the Critical Infrastructure Outreach and Partnerships program);147 $3.0 million within the Critical Infrastructure Outreach and Partnerships program to support implementation and oversight of the National IP Plan; and $5.5 million to hire contractors to better define policy, procedures and processes governing information sharing between DHS and its partners, to draft technical and operational needs statements, and to analyze new requirements. The IAIP budget justification provides less detail about the programmatic decreases in FY2006, totaling approximately $146 million (including the transfer of the National Control Systems Test Center). The Critical Infrastructure Outreach and Partnerships program decrease includes a $35 million reduction associated with no longer hosting some Departmental applications as directed by the Department’s CIO. Some of the increases and decreases within specific programs are the result of the transfer of projects between programs. For example, some Threat Determination and Assessment activities were transferred to the Infrastructure Vulnerability and Risk Assessment program. The budget request also estimates approximately $3.0 million in savings due to management and technology efficiencies. The A&E program with the highest ($100 million) adjustment to its base is the Protective Actions program. This program assists federal, state, local, tribal, and private sector organizations in identifying vulnerabilities, and devising protection strategies and local protective programs to surround select infrastructure assets. Of the $100 million adjustment, the Buffer Zone Protection Plans (BZPP) project was reduced by $53 million associated with the transfer of assistance to the new TIPP, administered by SLGCP. Another $42 million of the $100 million adjustment was a decrease for Emerging Pilot Projects and Technology Application Pilots. This effort will now be funded within the DHS S&T. The House approved $663 million for the A&E account, making a few modifications to specific programs, as noted in Table 9. It reduced the Critical Infrastructure and Outreach program request by $5 million because it did not receive a report on Information Sharing and Analysis Centers, which it said it needed to assess funding levels for them. The House reduced the Homeland Security Operations Center request by $5 million because it did not receive a five-year implementation plan for the Center. The House reduced the Biosurveillance request 146 (...continued) Network has been established with all 50 states and many law enforcement entities. The FY2006 increase is to extend connectivity to 1800 other sites. 147 The Protected Critical Infrastructure Information program implements Title II, Subtitle B of the Homeland Security Act, which, among other protections, exempted information voluntarily provided to DHS, and certified as critical infrastructure information by DHS, from the Freedom of Information Act. CRS-61 by $1 million because it did not receive a classified report on the program’s scope, costs, schedules, and key milestones. The House increased the Critical Infrastructure Identification and Evaluation program by $5 million to expand IAIP Comprehensive Reviews of selected infrastructure sectors. The House commended IAIP on its Review of the nuclear reactor and fuel storage facilities and would like to see similar Reviews of the chemical and liquified natural gas sectors.148 The Senate Appropriations Committee recommended $702 million for the A&E account, making different modifications to specific programs from those approved by the House. The Committee nearly doubled the Critical Infrastructure Outreach and Partnerships program request to $126.6 million, maintaining that program at FY2005 levels plus increasing funds for the National Center for Critical Information Processing and Storage by $20 million. The Committee also increased the request for the National Infrastructure Simulation and Analysis Center by $5 million ($1 million above its FY2005 appropriation), and increased the Biosurveillance program request by $7 million, for a total of $18 million. The Committee recommended reducing the Critical Infrastructure Identification and Evaluation program request by $12.3 million. It also recommended reducing the Homeland Security Operations Center request by $21.1 million and denied funding for the new Information Sharing and Collaboration program. The Committee’s report language, however, stated that its recommendation for the Operations Center included funding for the 10 additional FTEs requested for that program. This is at odds with its earlier language denying all additional FTE increases.149 Table 9: IAIP Account Level Funding (budget authority in millions of dollars) FY2005 enacted FY2006 request 132.0 204.0 190.2 168.8 5.8 6.9 6.9 6.9 126.2 197.1 191.3 161.9 — — 8 — 761.7 669.2 663.2 701.8 Critical infrastructure identification and evaluation 77.9 72.2 77.2 59.9 National infrastructure simulation and analysis center 20.0 16.0 16.0 21.0 11.0 11.1 10.1 18.1 191.6 91.4 91.4 91.4 106.6 67.2 62.2 126.6 67.4 73.3 73.3 73.3 Account (program) Management and administration Office of the under secretary Other salaries and expenses Unspecified reduction Assessments and evaluations Biosurveillance Protective actions Critical infrastructure outreach and partnerships Cyber security 148 149 H.Rept. 109-79, 103-108. See S.Rept. 109-83, pp. 83 and 86. FY2006 House FY2006 Senate FY2006 Conf. CRS-62 FY2005 enacted FY2006 request 140.8 142.6 142.6 142.6 Threat determination and assessment 21.9 19.9 19.9 19.9 Infrastructure vulnerability and risk assessment 71.1 74.3 74.3 74.3 Competitive analysis and evaluation 4.0 — — — Evaluations and studies 14.4 34.5 34.5 34.5 35.0 61.1 56.1 40.0 — 5.5 5.5 — 893.7 873.2 853.4 870.6 Account (program) National security/emergency preparedness telecommunications Homeland Security Operations Center Information sharing and collaboration Total IAIP FY2006 House FY2006 Senate FY2006 Conf. Source: CRS analysis of the FY2006 President’s Budget, and DHS, Budget in Brief, House Appropriation Committee tables of May 20, 2005, introduced H.R. 2360 and H.Rept. 109-79, Senate Appropriations Committee tables of June 16, 2005, S.Rept. 109-83 to accompany H.R. 2360. Note: Totals may not add due to rounding. Science and Technology150 The requested FY2006 budget for Science and Technology (S&T) is $1,368 million. (For details see Table 10.) For the first time, all R&D funding for the department is included in this request. Compared with the enacted FY2005 funding for the S&T Directorate alone ($1,115 million) the FY2006 request is a 23% increase. However, if one includes the enacted FY2005 funding for R&D programs formerly funded elsewhere in the department, the requested increase in DHS-wide R&D funding is 4%. The House provided $1,290 million, a reduction of $78 million from the request.151 The Senate committee recommended $1,453 million, or $85 million more than the request. R&D programs currently in the TSA and Coast Guard, together with some other smaller programs, would be consolidated into the S&T Directorate under the proposed FY2006 budget. This move reflects direction originally given in the FY2004 appropriations conference report (H.Rept. 108-280). Consolidating the Coast Guard R&D program was also proposed last year in the FY2005 budget request, but the change was controversial, and Congress did not approve it. This is 150 Prepared by Daniel Morgan, Analyst in Science & Technology, Resources, Science, and Industry Divison. 151 The House committee recommended $1,340 million, but a floor amendment by Rep. Obey reduced this by $50 million to fund state conformance with drivers’ license standards under the REAL ID Act of 2005 (P.L. 109-13). CRS-63 the first budget to propose consolidation for the TSA R&D program, because the Homeland Security Act, which established DHS, required that TSA be maintained as a single distinct entity until November 2004 (P.L.107-296, §424). The House funded the consolidated programs as requested. The Senate committee rejected consolidation of Coast Guard R&D activities ($17 million), but funded the other consolidated programs as requested. The request for the newly created Domestic Nuclear Detection Office (DNDO) is $227 million. Although funded under S&T, DNDO has been made a freestanding office that reports directly to the Secretary. Noting this fact, the House report provided $100 million less than was requested and stated that “DHS still needs to clarify its role in regard to other federal agencies . . . that have similar and more mature programs.” The Senate committee, stating that it was “troubled by the manner in which this initiative has been handled,” also recommended $100 million less than requested for DNDO, and recommended restricting the obligation of all but $15 million until further details are provided to the appropriations committees. Some DNDO activities were formerly funded by the S&T Directorate’s radiological and nuclear countermeasures program, whose FY2006 request is $19 million, down from $123 million. The House provided the requested amount for radiological and nuclear countermeasures, while the Senate committee recommended an increase to $226 million, including $125 million requested under CBP for testing, development, and deployment of radiation portal monitors at ports of entry. Although the proposed total R&D budget for DHS would change by less than in any other year since the department’s creation, the request makes substantial changes in several existing programs, not just the new DNDO. Chemical countermeasures, support for other department components, and efforts to counter the threat from MANPADs (portable ground-to-air missiles) would also all roughly double. Meanwhile, funding for rapid prototyping (to accelerate the adaptation or development of technologies that can be deployed in the near term) would drop from $76 million to $21 million, and the consolidated R&D activities currently conducted by TSA would drop from $178 million to $109 million. The House and the Senate committee broadly accepted these proposals, with some modifications, and made various other changes to the request, such as increasing funding for explosives countermeasures. See Table 10 for details. The FY2006 budget justification for the S&T Directorate presents program-level data on the directorate’s actual FY2004 expenditures, as compared with the program allocations specified in the FY2004 appropriations conference report. These data show substantial reprogramming. For example, actual expenditures on biological countermeasures in FY2004 were $455 million, versus the enacted level of $197 million. Actual funding for construction of the National Biodefense Analysis and Countermeasure Center was $4 million, versus $88 million enacted. University centers and efforts to counter MANPADs, two items that were of particular congressional interest and received more FY2004 funding than had been requested, had actual expenditures of $22 million and $17 million respectively, versus $69 million and $60 million enacted. As Congress considers appropriations for FY2006, these FY2004 data may raise questions about how the S&T Directorate establishes priorities among its programs and how it handles changes in those priorities after funding decisions have been made. CRS-64 Table 10. Science and Technology Directorate Accounts and Activities, FY2005-FY2006 (budget authority in millions of dollars) Account/Activity Science and Technology Directorate Salaries and expenses R&D, acquisition, and operations — biological countermeasures — National Biodefense Analysis and Countermeasures Center — chemical countermeasures — explosives countermeasures — radiological/nuclear countermeasures — Domestic Nuclear Detection Office — threat and vulnerability testing and assessment — critical infrastructure protection — cyber security — standards — support of DHS components — university and fellowship programs — emerging threats — rapid prototyping — counter MANPADs — SAFETY Act — Office of Interoperability and Compatibility — R&D consolidation — technology development and transfer — general reduction TSA R&D a U.S. Coast Guard RDT&E a CBP R&D a DHS TOTAL R&D FY2005 enacted 1,115.4 68.6 1,046.8 362.6 FY2006 request 1,368.4 81.4 1,287.0 362.3 FY2006 House 1,290.0 81.4 1,208.6 360.0 FY2006 Senate 1,453.5 81.1 1,372.4 384.3 35.0 53.0 19.7 — 102.0 14.7 — 90.0 54.7 — 100.0 33.9 122.6 19.1 19.1 226.0 — 227.3 127.3 127.3 65.8 27.0 18.0 39.7 54.6 47.0 20.8 16.7 35.5 93.6 47.0 35.8 16.7 35.5 80.0 40.0 13.8 16.7 35.5 74.7 70.0 10.8 76.0 61.0 10.0 63.6 10.5 20.9 110.0 5.6 63.6 10.5 30.0 110.0 10.0 63.6 5.3 20.9 110.0 5.6 21.0 — 20.5 116.9 41.5 116.9 15.0 99.9 — — 178.0 18.5 1.4 1,313.3 — — — — — 1,368.4 10.0 — 50.0 — — — 1,290.0 — — — — — 1,453.5 FY2006 Conf. Source: CRS analysis of the FY2006 President’s Budget; DHS, Budget in Brief; House Appropriations Committee tables of May 20, 2005; House-passed H.R. 2360; and H.Rept. 109-79. Note: Totals may not add due to rounding. a. The TSA, Coast Guard, and CBP R&D amounts are included for FY2005 to provide a total comparable with the FY2006 request for S&T, which consolidates all R&D funding for the Department. CRS-65 Related Legislation FY2006 Budget Resolution, S.Con.Res. 18/H.Con.Res 95 The annual concurrent resolution on the budget sets forth the congressional budget. The Senate budget resolution, S.Con.Res. 18 was introduced on March 11, 2005, and passed the Senate on March 17, 2005. S.Con.Res. 18 provides $848.8 billion in discretionary spending. The House budget resolution, H.Con.Res. 95, was introduced on March 11, 2005, and passed the House on March 17, 2005. H.Con.Res. 95 proposes $843 billion in discretionary budget authority. On April 28, 2005 the conference committee reported, and both the House and Senate passed, H.Rept. 109-62 providing $843 billion in discretionary budget authority for FY2006.152 FY2005 Supplemental Appropriations for Iraq Afghanistan, Tsunami Relief, and Other Activities153 and On February 14, 2005, the President submitted an $81.9 billion request for supplemental FY2005 funding for military operations, international affairs, intelligence, and homeland security activities. The request includes an additional $161 million for the Coast Guard to offset the costs of operations in Iraq. The request for Coast Guard includes $111 million for operations in support of Operation Iraqi Freedom and Operation Enduring Freedom, including port security and law enforcement capabilities; strategic waterside security teams; and funding of active duty and mobilized reserve personnel. The request further includes $49 million for the retrofit, renovation and subsystem replacement of Coast Guard 110-foot patrol boats. The supplemental request also includes $110 million for the Department of Energy’s Megaports Initiative. This initiative provides for the deployment of radiation detection technology and law enforcement personnel to foreign ports (in this case the funding would be for four specific ports) to detect, deter, and interdict nuclear and other radioactive material. Though this request is for the DOE, the Megaports Initiative supports CBP’s CSI program. H.R. 1268 was introduced on March 11, 2005, and passed the House March 16, 2005. The bill passed the Senate on April 21, 2005. The conference committee reported the conference report (H.Rept. 109-72) was filed on May 3, 2005. H.Rept. 109-72 was agreed to in the House on May 5, 2005; and was agreed to in the Senate on May 10, 2005. The President signed H.R. 1268 on May 11, 2005, and the bill became P.L. 109-13. 152 For more information see CRS Report RL32812 The Budget for FY2006, by Philip D. Winters. 153 For more information see CRS Report RL32783 FY2005 Supplemental Appropriations for Iraq and Afghanistan, Tsunami Relief, and Other Activities, by Amy Belasco and Larry Nowels. CRS-66 Within DHS, P.L. 109-13 provides: CBP with an additional $125 million for 500 new Border Patrol agents above the FY2005 enacted level, and with $52 million in additional construction funding; ICE with an additional $454 million for additional investigators, enforcement agents, detention officers and detention bedspace; Coast Guard with an additional $161 million as requested (see above); and FLETC with an additional $4 milllion. As enacted, P.L. 109-13 also includes the REAL ID Act of 2005.154 154 For more information see CRS Report RL32754 Immigration: Analysis of the Major Provisions of H.R. 418, the REAL ID Act of 2005, by Michael John Garcia, Margaret Mikyung Lee, Todd Tatelman, and Larry M. Eig. CRS-67 Appendix I — DHS Appropriations in Context DHS Appropriations and Federal Homeland Security Spending Since the terrorist attacks of September 11, 2001, there has been an increasing interest in the levels of funding available for homeland security efforts. The Office of Management and Budget, as originally directed by the FY1998 National Defense Authorization Act, has published an annual report to Congress on combating terrorism. Beginning with the June 24, 2002 edition of this report, homeland security was included as a part of the analysis. In subsequent years, this homeland security funding analysis has become more refined, as distinctions (and account lines) between homeland and non-homeland security activities have become more precise. This means that while Table 11 is presented in such a way as to allow year to year comparisons, they may in fact not be strictly comparable due to the increasing specificity of the analysis, as outlined above. With regard to DHS funding, it is important to note that DHS funding does not comprise all federal spending on homeland security efforts. In fact, while the largest component of federal spending on homeland security is contained within DHS, the DHS homeland security request for FY2006 accounts for approximately 54% of total federal funding for homeland security. The Department of Defense comprises the next highest proportion at 19% of all federal spending on homeland security. The Department of Health and Human Services at 8.8%, the Department of Justice at 6.2% and the Department of Energy at 3.3% round out the top five agencies in spending on homeland security. These five agencies collectively account for nearly 95% of all federal spending on homeland security. It is also important to note that not all DHS funding is classified as pertaining to homeland security activities. The legacy agencies that became a part of DHS also conduct activities that are not homeland security related. Therefore, while the FY2006 requests a total homeland security budget authority of $27.3 billion for DHS, the requested gross budget authority is reported as $41.1 billion. The same is true of the other agencies listed in the table. CRS-68 Table 11. Federal Homeland Security Funding by Agency, FY2002-FY2006 (budget authority in millions of dollars) FY06 as % of total FY02 FY03 FY04 FY05 FY06 est. 17,380 23,063 22,923 24,887 27,333 54.1% Department of Defense (DOD) 5,159 8,442 7,024 8,570 9,514 19.0% Department of Health and Human Services (HHS) 1,913 4,144 4,062 4,231 4,407 8.8% Department of Justice (DOJ) 2,143 2,349 2,180 2,678 3,104 6.2% Department of Energy (DOE) 1,220 1,408 1,364 1,562 1,666 3.3% Department of State (DOS) 477 634 696 824 938 1.9% Department of Agriculture (AG) 553 410 411 600 704 1.4% 1,419 383 284 182 192 0.4% 260 285 340 342 344 0.7% 2,357 1,329 1,550 2,129 1,741 3.5% 32,881 42,447 40,834 46,005 49,943 100% Department Department of Homeland Security (DHS) Department of Transportation (DOT) National Science Foundation (NSF) Other Agencies Total Federal Budget Authority Source: CRS analysis of data contained in “Section 3. Homeland Security Funding Analysis,” and Appendix K of the Analytical Perspectives volume of the FY2006 President’s Budget (for FY2004FY2006); Section 3. “Homeland Security Funding Analysis,” of Analytical Perspectives volume of the FY2005 President’s Budget (for FY2003); and Office of Management and Budget, 2003 Report to Congress on Combating Terrorism, Sept. 2003, p. 10. Note: Totals may not add due to rounding. FY totals shown in this table include enacted supplemental funding. Year to year comparisons using particularly FY2002 may not be directly comparable, because as time has gone on agencies have been able to distinguish homeland security and non-homeland security activities with greater specificity. CRS-69 Appendix II — Disaster Relief Fund Table 12. Disaster Relief Fund, FY1974-FY2005 (millions of dollars, 2002 constant dollars) FY 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total a Req. 100 100 187 100 150 200 194 375 400 325 0 100 194 100 125 200 270 270 f 184 292 i 1,154 320 320 320 m 2,708 o 2,566 2,780 2,909 u 1,369 1,843 1,956 2,151 24,240 Appropriations (available funds) Total appropriations Outlays Orig. Supp. Nominal Constant Nominal Constant 200 233 433 1,412 250 816 150 50 200 591 206 609 187 0 187 517 362 999 100 200 300 770 294 754 115 300 415 997 461 1,108 200 194 358 302 130 0 100 100 120 120 100 98 0 185 292 226 320 222 l 1,320 320 p 1,214 r 2,780 300 664 800 1,800 2,042 16,360 194 870 0 0 0 0 0 250 b 0 0 d 1,108 e 1,150 0 4,136 2,000 j 4,709 k 3,275 k 3,275 l 3,300 n 1,600 q 1,130 0 s, t v 7,008 1,426 x 2,275 x 8,500 48,988 w 394 1,064 358 302 130 0 100 350 120 c 120 1,208 1,248 0 g 4,321 h 2,292 4,935 3,595 k 3,497 4,620 1,920 2,344 2,780 t 5,890 v 12,160 w 2,199 x 2,042 10,542 72,099 876 2,175 668 526 217 0 156 533 178 173 1,674 1,668 0 5,429 2,816 5,935 4,235 4,042 5,248 2,155 2,597 3,019 6,249 12,677 2,255 y 2,068 z 10,542 84,455 277 574 401 115 202 243 192 335 219 187 140 1,333 552 902 2,276 3,743 2,116 2,233 2,551 1,998 3,746 2,628 3,217 3,947 8,541 y 3,044 y 3,363 50,648 616 1,173 746 201 337 391 299 511 325 269 194 1,781 711 1,134 2,796 4,502 2,492 2,581 2,898 2,242 4,149 2,853 3,413 4,114 8,761 y 3,082 y 3,363 60,224 Sources: U.S. President annual budget documents; appropriations legislation; U.S. FEMA budget justifications. Constant dollar amounts based on CRS calculations based on GDP (chained) price CRS-70 index in U.S. President (Bush), Historical Tables, Budget of the United States Government, Fiscal Year 2005 (Washington, 2004), pp. 184-185. Table prepared by Keith Bea, Specialist in American National Government, Government and Finance Division. a. Data in the request column generally represent the first budget request submitted by the Administration each year and do not include amended or supplemental requests. Note, however, additional detail in this column. b. In Feb. 1987, a total of $57.5 million was rescinded and transferred from the DRF to the Emergency Food and Shelter Program account (P.L. 100-6). That amount was returned to the fund the same year in supplemental appropriations legislation enacted in July 1987 (P.L. 10071). c. P.L. 100-202, the Continuing Appropriations Act for FY1988, appropriated $120 million for disaster relief. According to FEMA, the original appropriation for that fiscal year was $125 million, but $5 million was transferred to the Department of Labor for “low income agriculture workers.” d. Supplemental funds were included in P.L. 101-100, continuing appropriations legislation enacted after Hurricane Hugo struck in Sept. 1989. According to FEMA, this amount was “referred to as a supplemental but was an increase in the original appropriation during a continuing resolution.” e. P.L. 101-130, enacted after the Loma Prieta earthquake, appropriated $1.1 billion in supplemental funding for FY1990. In addition, $50 million was appropriated in P.L. 101-302, dire emergency supplemental appropriations legislation. Table 12 does not reflect a $2.5 million transfer from the President’s unanticipated needs fund. f. FY1992 request does not include the budget amendment of $90 million submitted by the Administration. g. Appropriations for FY1992 included a $943 million dire emergency supplemental in P.L. 102-229, enacted in fall 1991 after Hurricane Bob; $300 million after the Los Angeles riots and flooding in Chicago (spring 1992) in P.L. 102-302; and $2.893 billion in P.L. 102-368 after Hurricanes Andrew and Iniki, Typhoon Omar, and other disasters. h. Total for FY1993 includes the $2 billion supplemental approved after the Midwest floods in 1993 (P.L. 103-75). i. The original FY1994 budget request was $292 million. On July 29, 1993, a supplemental request of $862 million was sent by President Clinton to Congress. j. Supplemental appropriations for FY1994 enacted after the Northridge earthquake struck Los Angeles (P.L. 103-211). k. Additional supplemental appropriation approved for Northridge earthquake costs (P.L. 104-19) for FY1995, with the same amount ($3.275 billion) reserved for a contingency fund for FY1996. However, $1 billion of the contingency fund was rescinded in FY1996 omnibus appropriations, P.L. 104-134. In the same legislation, another $7 million was also appropriated to other FEMA accounts for costs associated with the bombing of the Alfred P. Murrah federal building in Oklahoma City. l. The FY1998 budget appendix (p. 1047) noted a transfer of $104 million from the disaster relief fund in FY1996. In the FY1997 appropriations act (P.L. 104-204), $1 billion that had been rescinded in FY1996 (P.L. 104-134) was restored, and $320 million in new funds were appropriated. Supplemental appropriations of $3.3 billion were approved in P.L. 105-18 after flooding in the Dakotas and Minnesota, and after storms in other states were declared major disasters. The legislation specified, however, that of the total, $2.3 billion was to be available in FY1998 only when FEMA submitted a cost control report to Congress. This requirement was met, and the funding was made available in FY1998. m. The FY1998 request consisted of a $320 million base amount plus $2.388 billion “to address actual and projected requirements from 1997 and prior year declarations.” (Budget Appendix FY1998, p. 1047). Does not include $50 million requested for the DRF for mitigation activities. n. Supplemental appropriations legislation (P.L. 105-174) for FY1998 approved for flooding associated with El Niño and other disasters. o. The FY1999 request consisted of $307.8 million for the DRF and an additional $2.258 billion in contingency funding to be available when designated as an emergency requirement under the Balanced Budget Act of 1985, as amended. p. The FY1999 omnibus appropriations act (P.L. 105-277, 112 Stat. 2681-579) included $906 million for costs associated with Hurricane Georges, flooding associated with El Niño, and other disasters. CRS-71 q. Emergency supplemental appropriations for FY1999 (P.L. 106-31) included $900 million for tornado damages as well as $230 million for unmet needs, subject to allocation directions in the conference report (H.Rept. 106-143). r. FY2000 appropriations act (P.L. 106-74, 113 Stat. 1085) included disaster relief funding as follows: $300 million in regular appropriations and $2.480 billion designated as emergency spending for costs associated with Hurricane Floyd and other disasters. In addition, the Consolidated Appropriations Act (P.L. 106-113) authorized the Director of FEMA to use up to $215 million in disaster relief funds appropriated in P.L. 106-74 for the purchase of residences flooded by Hurricane Floyd, under specified conditions. s. Supplemental appropriations legislation (P.L. 106-246) authorized that $77 million from the DRF to be used for buyout and relocation assistance for victims of Hurricane Floyd. The act also appropriated $500 million in a separate account for claim compensation and administrative costs associated with the Cerro Grande fire that destroyed much of Los Alamos, New Mexico. t. P.L. 107-38 appropriated $40 billion in response to the terrorist attacks of Sept. 11, 2001. Pursuant to the statute, these funds for FY2001 were allocated by the Office of Management Budget from the Emergency Response Fund (ERF). Of the total appropriated in P.L. 107-38 after the Sept. 11 attacks, $4.4 billion were allocated for FY2001 through P.L. 107-117 (115 Stat. 2338). The total available for obligation for FY2001 ($5.9 billion) taken from FEMA Justification of Estimates, FY2003, p. DR-2. u. Request for FY2002 did not include funding for the Disaster Relief Contingency Fund. v. Congress appropriated a total of $7.008 billion for FY2002 in P.L. 107-117 and P.L. 107-206 to meet additional needs associated with the terrorist attacks. Total funds available ($12.16 billion) include a transfer from TSA, $1 billion released from the Emergency Contingency Fund, and other sources. See DHS, Emergency Preparedness and Response Directorate, Justification of Estimates, FY2004, p. DR-2. w. Includes $442 million in P.L. 108-69 and $938 million in P.L. 108-83 to meet needs associated with tornadoes, winter storms, the recovery of wreckage of the Space Shuttle Columbia and other disasters. Also, funds appropriated in these measures and in the FY2004 appropriations act for DHS (P.L. 108-90) have been used for costs associated with Hurricane Isabel. Total of $2.199 billion available taken from: DHS, Emergency Preparedness and Response Directorate, Justification of Estimates, FY2005, p. FEMA-18. x. P.L. 108-106 which primarily addressed reconstruction costs in Iraq and Afghanistan also contained an appropriation of $500 million for needs arising from disasters in fall 2003, including Hurricane Isabel and the California fires. Section 4002 of the act designates the funds an emergency requirement pursuant to the budget resolution adopted by Congress (H.Con.Res. 95), but the Consolidated Appropriations Act for FY2004 (Section 102(a), Division H, P.L. 108-199) rescinded $225 million of the $500 million appropriated in P.L. 108-106. Total of $2.043 billion taken from: DHS, Emergency Preparedness and Response Directorate, Justification of Estimates, FY2005, p. FEMA-18. P.L. 108-303, enacted after Hurricanes Charley and Frances struck Florida, appropriated $2 billion to the DRF and gave discretion to DHS to transfer $300 million to the Small Business Administration for disaster loans. P.L. 108324, Division B of the Military Construction Appropriations Act for FY2005, appropriated an additional $6.5 billion to the DRF. y. Outlay data and constant dollar calculations based on estimates. z. Funds presented in current dollars.