The Bureau of Alcohol, Tobacco, Firearms and
Explosives (ATF): Budget and Operations
William J. Krouse
Specialist in Domestic Security and Crime Policy
June 16, 2009
Congressional Research Service
7-5700
www.crs.gov
RL34514
CRS Report for Congress
P
repared for Members and Committees of Congress
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
Summary
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the lead federal law
enforcement agency charged with administering and enforcing federal laws related to the
manufacture, importation, and distribution of firearms and explosives. Congress transferred ATF’s
enforcement and regulatory functions for firearms and explosives from the Department of the
Treasury to the Department of Justice as part of the Homeland Security Act (P.L. 107-296). ATF
is also responsible for investigating arson cases with a federal nexus, as well as criminal
violations of federal laws governing the manufacture, importation, and distribution of alcohol and
tobacco.
From FY1999 to FY2008, Congress increased ATF appropriations from $541.6 million to nearly
$1.012 billion, an increase of 87%. The FY2008 appropriation initially included $984.1 million
for salaries and expenses and $23.5 million for construction. For the same 10 years, with some
fluctuation, ATF staffing increased from 3,969 to 4,880 full-time equivalent (FTE) positions, a
23% increase. Despite increased funding, the then acting ATF Director, Michael Sullivan,
testified before Congress that ATF had been operating under a $37 million shortfall for FY2008,
as funding for ATF salaries and expenses had not been increased. For FY2008, Congress provided
another $4 million in the Supplemental Appropriations Act, 2008 (P.L. 110-252) for ATF
operations in Iraq. Congress provided an additional $10 million in FY2008 funding for a
Southwest border anti-gun trafficking initiative known as “Project Gunrunner” in the American
Recovery and Reinvestment Act of 2009 (P.L. 111-5), but as this is one-time, economic stimulus
funding, it is not included in the FY2008 total above.
The Omnibus Appropriations Act, 2009 (P.L. 111-8) included $1.054 billion for ATF, an amount
that was equal to the House-reported bill (H.R. 7322), almost 1.1% more than the Senate-reported
bill (S. 3182), and 2.6% more than the FY2009 request. The enacted FY2009 appropriation is a
4% increase more than the total amount appropriated for FY2008. The 2009 appropriation
includes at least $5 million for Project Gunrunner. The House-passed FY2009 war supplemental
(H.R. 2346) includes $4 million for ATF; the Senate-passed bill (S. 1054) includes $14 million. A
conference agreement (H.Rept. 111-151) on the supplemental would provided the Senate amount.
For FY2010, the Administration has requested $1.121 billion and 5,025 full-time equivalent
(FTE) positions for ATF, or $66.6 million and 68 FTE positions more than the amounts
appropriated for FY2009 ($1.054 billion and 4,957). Of the difference, $23.6 million and 22 FTE
positions are base adjustments. For Southwest border enforcement, the FY2009 request includes a
budget enhancement of $17.9 million to support Project Gunrunner and $25 million for the new
National Center for Explosives Training and Research Center (NCETR). Compared to the enacted
FY2009 level of funding, the FY2010 request would provide a 6% increase. A House-reported
bill (H.R. 2847) would provide ATF with $1.106 billion for FY2010, or a 5% increase.
On the Southwest border with Mexico, firearms violence has spiked sharply in recent years as
drug trafficking organizations have reportedly vied for control of key smuggling corridors into the
United States. In March 2008, President Felipe Calderón called on the United States to increase
its efforts to suppress gun trafficking from the United States into Mexico. In the 110th Congress,
the House passed a bill (H.R. 6028) that would have authorized to be appropriated over three
years, for FY2008 through FY2010, a total of $73.5 million to increase ATF resources dedicated
to stemming illegal gun trafficking into Mexico. Similar authorizations are included in the
Southwest Border Violence Reduction Act of 2008 (S. 2867, H.R. 5863, and H.R. 5869). In the
111th Congress, bills with similar authorizations have been introduced (S. 205, H.R. 495, H.R.
1448, and H.R. 1867). This report will be updated as needed.
Congressional Research Service
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
Contents
ATF Mission ............................................................................................................................... 1
FY2010 Appropriations............................................................................................................... 2
House-Reported FY2010 CJS Appropriations Bill ................................................................. 2
Administration’s FY2010 Request......................................................................................... 2
FY2009 Appropriations............................................................................................................... 3
FY2009 Supplemental Appropriation .................................................................................... 3
Omnibus Appropriations Act, 2009 ....................................................................................... 4
House- and Senate-Reported FY2009 CJS Appropriations Bill .............................................. 4
Administration’s FY2009 Request......................................................................................... 5
FY2008 Appropriations............................................................................................................... 5
Economic Stimulus Funding ................................................................................................. 5
FY2008 Iraq Supplemental Appropriation ............................................................................. 5
Consolidated Appropriations Act, 2008 ................................................................................. 6
House- and Senate-Passed FY2008 CJS Appropriations Bills ................................................ 6
Administration’s FY2008 Request......................................................................................... 7
Funding and Staffing, FY1999-FY2009....................................................................................... 7
Firearms Budget Program ........................................................................................................... 8
Violent Crime and Gangs ...................................................................................................... 8
Compliance Inspections of Licensed Gun Dealers ................................................................. 9
Project Gunrunner ............................................................................................................... 10
Arson and Explosives Budget Program...................................................................................... 13
Alcohol and Tobacco Budget Program ...................................................................................... 14
Tables
Table 1. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Appropriations for
Salaries and Expenses, FY1999-FY2009 .................................................................................. 7
Contacts
Author Contact Information ...................................................................................................... 14
Congressional Research Service
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
his report provides an overview of the Bureau of Alcohol, Tobacco, Firearms and
Explosives (ATF) budget and operations. It will be updated as needed to reflect
T congressional action on the FY2010 Commerce, Justice, Science (CJS), and Related
Agencies Appropriations bill, the appropriations bill that includes the ATF account.
ATF Mission
Located in the Department of Justice (DOJ), the ATF is the lead federal law enforcement agency
charged with administering and enforcing federal laws related to the manufacture, importation,
and distribution of firearms and explosives. As part of the Homeland Security Act, Congress
transferred ATF’s enforcement and regulatory functions for firearms and explosives to the DOJ
from the Department of the Treasury, adding “explosives” to ATF’s title.1 ATF is also responsible
for investigating arson cases with a federal nexus, as well as criminal violations of federal laws
governing the manufacture, importation, and distribution of alcohol and tobacco. The regulatory
aspects of those alcohol and tobacco laws are the domain of the Tax and Trade Bureau (TTB),
which was established at Treasury following ATF’s transfer to DOJ.2
As a law enforcement agency within the DOJ, ATF’s first priority is preventing terrorist attacks
within the United States.3 ATF is responsible for countering the illegal use and trafficking of
firearms and explosives, and the criminal diversion of alcohol and tobacco products as an illegal
source of funding for terrorist activities. In criminal investigations, ATF agents have reportedly
uncovered foreign terrorists and their supporters bootlegging cigarettes as part of larger terrorist-
financing operations in the United States.4 With those responsibilities, ATF special agents are
partners on DOJ’s Joint Terrorism Task Forces.5
As shown below, however, the lion’s share of ATF’s resources are allocated to its firearms
compliance and investigations program. While the ATF periodically checks the records of
federally licensed gun dealers, the major focus of the firearms program is the reduction of
firearms-related violence.
1 P.L. 107-296, 116 Stat. 2135.
2 ATF was originally established as a separate bureau in the Department of the Treasury (DOT) in 1972 by Treasury
Department Order No. 120-1. While ATF traces its origins back to the first federal tax on distilled spirits in 1791, its
firearm regulatory responsibilities can largely be traced back to the 1934 National Firearms Act (NFA). As the NFA is
essentially a tax law, it was administered initially by the Department of the Treasury’s Bureau of Internal Revenue
(BIR) and its Miscellaneous Tax Unit. In 1942, the firearm enforcement duties were transferred to BIR’s Alcohol Tax
Unit (ATU). In 1952, the BIR was reorganized and renamed the Internal Revenue Service (IRS) and the firearm and
tobacco programs were transferred to ATU, which was renamed, the Alcohol and Tobacco Tax Division (ATTD).
Following the Gun Control Act of 1968, the ATTD was given responsibility for explosives as well, and was renamed
the Alcohol, Tobacco and Firearms Division (ATFD). See George Thomas Kurian, Editor in Chief, A Historical Guide
to the U.S. Government, Vicki Herrmann, “Alcohol, Tobacco and Firearms, Bureau of,” (New York, 1998), pp. 39-41.
3 U.S. Department of Justice, Office of the Attorney General, Stewards of the American Dream: FY 2007—FY 2012
Strategic Plan, available at http://www.usdoj.gov/jmd/mps/strategic2007-2012/index.html, last accessed on May 13,
2008.
4 Sari Horwitz, “Cigarette Smuggling Linked to Terrorism,” Washington Post, June 8, 2004, p. A1.
5 U.S. Department of Justice, Office of the Inspector General, The Department of Justice’s Terrorism Task Forces, I-
2005-007, June 2005.
Congressional Research Service
1
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
FY2010 Appropriations
Congress appropriates funding for ATF annually in the Commerce, Justice, Science, and Related
Agencies (CJS) appropriations act.
House-Reported FY2010 CJS Appropriations Bill
On June 9, 2009, the House Appropriations Committee ordered reported an FY2010 CJS
appropriations bill. On June 12, 2009, the bill and report were filed (H.R. 2847; H.Rept. 111-
149). This bill would provide ATF with $1.106 billion for FY2010, or an increase of 4.9% more
than the FY2009 enacted level, but 1.3% less than the FY2010 request. Report language indicates
that this amount includes the following budget increases: nearly $19 million to combat gun
trafficking on the Southwest border and $10 million for ATF Violent Crime Impact Teams, which
are ATF-lead inter-agency task forces dedicated to reducing violent crime and illegal gang
activity. However, the committee recommendation does not include $15 million for Phase Two of
the National Center for Explosives Training and Research (NCETR) project. Although the
committee supports this endeavor, fiscal constraints prompted the committee to dedicated limited
resources to Southwest border, anti-gun trafficking efforts.6
Administration’s FY2010 Request
For FY2010, the Administration has requested $1.121 billion for ATF, or a proposed 6.3%
increase compared to the FY2009 enacted appropriation. This amount is projected to fund 5,025
full-time equivalent (FTE) positions and 5,101 permanent positions. Compared to the FY2009
enacted level, the FY2010 request includes a net increase of $66.6 million, 68 FTE positions, and
93 permanent positions.7 This proposed increase includes
• $23.6 million, 22 FTE positions, and 1 permanent position base adjustments;8
• $17.9 million, 46 FTE positions,9 and 92 permanent positions (including 34
agents) to support “Project Gunrunner,” an initiative focused on stemming illegal
firearms trafficking to Mexico from the United States; and
6 U.S. House of Representatives, Committee on Appropriations, Commerce, Justice Science, and Related Agencies
Appropriations Bill, 2010, H.Rept. 111-149, p. 66.
7 U.S. Department of Justice, Justice Management Division, FY2010 Budget and Performance Summary, (May 2009),
p. 139. Available at http://www.usdoj.gov/jmd/2010summary/.
8 For most DOJ agencies, the Bush Administration often proposed “base adjustments” to the number of FTE and
permanent positions that were considered “authorized” (funded or appropriated for) as part of estimating an agency’s
base budget. For FY2010, the Obama Administration has proposed making a similar adjustment to the ATF base
budget, as described above. The base budget essentially represents an estimated level of resources that an agency would
need to provide the anticipated level of services for the current fiscal year in the next fiscal year. In the past, base
budgets did not include adjustments to the number of permanent positions, and the number of “authorized” permanent
positions was generally static, unless changed by Congress by increasing or decreasing funding associated with those
positions. As happened in the FY2008 budget cycle, the Administration has periodically (about every 10 years)
proposed eliminating “hollow” positions, for which the modular costs and underlying assumptions are no longer
sufficient to fund those positions. Authorized or funded positions are generally displayed by job series in a “Table of
Organization” in the agency’s budget submissions to Congress.
9 New permanent positions are usually funded at half the FTE positions for the first year, as the positions will be filled
incrementally and will not include a full-year’s funding. If funded for the following fiscal year, it is usually necessary
(continued...)
Congressional Research Service
2
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
• $25 million for NCETR facility outfitting and expanded training. 10
According to ATF, the FY2010 request would be allocated among ATF budget decision units in
the following amounts:
• $802.6 million (72%) for firearms compliance and investigations,
• $289.8 million (26%) for arson and explosives investigations, and
• $22.3 million (2%) for alcohol and tobacco diversion.11
As described above, the Administration’s budget request includes increases for specific purposes
by decision unit. Although Congress does not appropriate monies for the ATF (or any other DOJ
agency) by decision unit, the appropriators often address whether such increases are to be
provided in report language and more rarely in the bill language for the salaries and expenses
account itself. As a consequence, the requested amounts for decision units are binding in the
sense that the appropriators are aware of the increases that were provided for and how they would
affect the decision unit totals. In addition, if funding is shifted from one decision unit to another,
statutory budget reprogramming requirements are usually triggered, under which the DOJ and its
agencies are required to notify and seek the approval of the Appropriations Committees. ATF
budget decision units, or budget programs, are described in greater detail below.
FY2009 Appropriations
On March 11, 2009, President Barrack Obama signed into law the Omnibus Appropriations Act,
2009 (P.L. 111-8), providing ATF with its regular FY2009 appropriation. In the absence of such
an enacted FY2009 appropriation at the end of FY2008, then-President George W. Bush signed a
continuing resolution (CR) (P.L. 110-329) on September 30, 2008, that funded ATF, like most
other DOJ agencies, at their FY2008 levels through March 6, 2009. On March 6, 2009, President
Obama extended this CR through March 11, 2009, signing another resolution into law (P.L. 111-
6; H.J.Res. 38). While both the House and Senate Appropriations Committees reported FY2009
CJS appropriations bills, neither bill was consider on the House or Senate floor. As described
below, Congress is considering a FY2009 supplemental appropriations bill that includes
additional FY2009 funding for ATF.
FY2009 Supplemental Appropriation
On May 14, 2009, the House passed an FY2009 supplemental appropriations bill (H.R. 2346;
H.Rept. 111-105) that would provide $4 million for ATF to continue to deploy explosives
enforcement officers to Iraq to provide training to U.S. government personnel on post-blast
investigation and render safe procedures. On the same day, the Senate Appropriations Committee
reported its own version of the bill (S. 1054; S.Rept. 111-20). The Senate passed its version of
(...continued)
to annualize those positions so that the number of FTE positions are roughly equal with the number of permanent
positions.
10 U.S. Department of Justice, Justice Management Division, FY2010 Budget and Performance Summary, (May 2009),
p. 139.
11 Ibid., p. 141.
Congressional Research Service
3
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
this bill on May 21, 2005 (S. 1054; S.Rept. 111-20). The Senate-passed bill would provide $14
million for ATF. This amount includes (1) $4 million to support ATF’s role in the global war on
terror in Iraq and Afghanistan, (2) $4 million to upgrade and share ballistic imaging technology
with the Government of Mexico, and (3) $6 million for other ongoing efforts focused on
stemming illegal gun trafficking to Mexico under Project Gunrunner.
On June 12, 2009, the House Committee on Appropriations filed a conference report on the
supplemental (H.R. 2346; H.Rept. 111-151) that would provide $14 million for ATF for the same
purposes as outlined in the Senate-passed bill’s report language. The House passed this measure
on June 16, 2009.
Omnibus Appropriations Act, 2009
In the Omnibus Appropriations Act, 2009 (P.L. 111-8), Congress provided ATF with its regular
annual appropriation of $1.054 billion for FY2009, a 4.2% increase over the FY2008 enacted
level, and a 2.6% increase over the Administration’s request. This amount is projected to fund
4,957 FTE and 5,008 permanent positions, or a net increase of 77 FTE and 52 permanent
positions. As described below, the FY2009 appropriation is equal to the recommended level in the
House-reported bill (H.R. 7322) and almost 1.1% more than the recommended level in the
Senate-reported bill (S. 3182). Of the FY2009 appropriation, DOJ budget documents indicated
that the Administration plans to allocate the following amounts to ATF’s three budget decision
units:
• $759.0 million (72%) towards firearms compliance and investigations,
• $274.1 million (26%) towards arson and explosives investigations, and
• $21.1 million (2%) towards alcohol and tobacco diversion efforts.12
House- and Senate-Reported FY2009 CJS Appropriations Bill
By comparison, the House-reported bill (H.R. 7322; H.Rept. 110-919) would have provided
$1.054.2 billion for ATF, $70 million (4.6%) more than the FY2008 enacted level (including
$23.5 million for construction) and $26 million (2.6%) more than the FY2009 request. House
report language indicated that the House bill would have provided an increase of $5 million for
Project Gunrunner.
The Senate-reported bill (S. 3182; S.Rept. 110-397) would have provided $1,042.8 million, $35
million (3.5%) more than the FY2008 enacted level and $15 million (1.5%) over the FY2009
request. Senate report language indicated that the Senate bill would have provided an increase of
$15 million to expand ATF’s Violent Crime Impact Teams (described below).
Both House and Senate report language expressed the Appropriations Committees’ continued
support of ATF’s National Integrated Ballistic Information Network (NIBIN). Through NIBIN,
federal, state, and local law enforcement agencies are able to image markings on bullets and
12 Due to rounding, these amounts do not total precisely to $1.054 billion. U.S. Department of Justice, Justice
Management Division, FY2010 Budget and Performance Summary, (May 2009), available at http://www.usdoj.gov/
jmd/2010summary/.
Congressional Research Service
4
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
cartridge cases and compare crime firearms evidence. The FY2006 budget for NIBIN was $22.8
million.
Administration’s FY2009 Request
For FY2009, the Administration had requested $1.028 billion for ATF, including 4,942 FTE
positions and 4,978 permanent positions, or $44 million, 62 FTE positions, and 22 permanent
positions more than the amounts appropriated for FY2008.13 Of the difference, $42.8 million, 56
FTE positions, and 10 permanent positions were base adjustments.14 For Southwest border
enforcement, the FY2009 request included a budget enhancement of $948 thousand and 6 FTE
positions and 12 permanent positions.
FY2008 Appropriations
In the Consolidated Appropriations Act, 2008 (P.L. 110-161), Congress provided ATF with its
regular FY2008 appropriation. Congress also provided ATF with additional FY2008 funding in
economic stimulus legislation and an Iraq war supplemental appropriation bills.
Economic Stimulus Funding
Congress also appropriated $10 million in economic stimulus funding in the American Recovery
and Reinvestment Act of 2009 (ARRA; P.L. 111-5), as part of $40 million that was provided for
grants to state and local law enforcement along the southern border or in High-Intensity Drug
Trafficking Areas. These amounts are considered FY2008 funding. As one-time, economic
stimulus funding, the $10 million for ATF is not considered as part of ATF’s FY2008 base
funding.
FY2008 Iraq Supplemental Appropriation
In the Supplemental Appropriations Act, 2008 (P.L. 110-252; H.R. 2642), Congress provided $4
million for ATF operations in Iraq (H.R. 2642).15 According to DOJ, ATF was in the process of
13 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2009, (February 2008), Exhibit B—Summary of Requirements.
14 For most DOJ agencies, the current Administration has often made “base adjustments” to the number of FTE and
permanent positions that were considered “authorized” (funded or appropriated for) as part of estimating an agency’s
base budget. The base budget essentially represents an estimated level of resources that an agency would need to
provide the anticipated level of services for the current fiscal year in the next fiscal year. In the past, base budgets did
not include adjustments to the number of permanent positions, and the number of “authorized” permanent positions
was generally static, unless changed by Congress by increasing or decreasing funding associated with those positions.
As happened in the FY2008 budget cycle, the Administration has periodically (about every 10 years) proposed
eliminating “hollow” positions, for which the modular costs and underlying assumptions are no longer sufficient to
fund those positions. Authorized or funded positions are generally displayed by job series in a “Table of Organization”
in the agency’s budget submissions to Congress.
15 For further information, see CRS Report RL34451, FY2008 Spring Supplemental Appropriations and FY2009 Bridge
Appropriations for Military Operations, International Affairs, and Other Purposes (P.L. 110-252), by Stephen Daggett
et al.
Congressional Research Service
5
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
establishing an attache office in the U.S. Embassy in Baghdad.16 This office has been charged
with a threefold mission to
• create an Iraq Weapons Investigation Cell to investigate and account for U.S.
government-issued munitions;
• establish an ATF Combined Explosives Cell, which will seek to identify the
source countries for explosives recovered in Iraq; and
• engage in targeted investigations of cigarette theft and other diverted contraband
throughout the country.17
Since December 2003, ATF has also been providing post-blast explosives investigative training to
Iraqi police forces.18 A Senate-passed version of H.R. 2642 included $15 million for Project
Gunrunner; however, this funding was not included in the enacted supplemental appropriation.
Consolidated Appropriations Act, 2008
For FY2008, Congress appropriated $1.008 billion for ATF’s regular appropriation, including
$23.5 million for construction in the Consolidated Appropriations Act, 2008 (P.L. 110-161). The
FY2008 appropriation for ATF salaries and expenses was $988.1 million, an amount that
supported 4,880 FTE and 4,956 permanent positions. Although this amount was $23.5 million
greater than the FY2007 appropriation, it was $6.4 million less than the amount proposed in the
FY2008 budget request.
House- and Senate-Passed FY2008 CJS Appropriations Bills
The House-passed bill (H.R. 3093) would have provided almost $1.014 billion for ATF, an
amount equal to the FY2008 request, and similarly included specified amounts to be directed at
the same initiatives found in the request for the Firearms Trafficking/Gun Runner Program,
PSN/Firearms Violence Reduction program, and the National Gang Targeting Enforcement and
Coordination Center (GangTECC). In addition, the House bill would have directed ATF to submit
a report on recommended improvements to upgrade its information technology systems and the
bill included $1.0 million for this purpose.
The Senate-passed bill (also H.R. 3093) would have provided almost $1.049 billion for ATF, an
increase of $35.0 million over the Administration’s FY2008 budget request as well as $64.9
million over the FY2007 appropriation. The Senate-passed bill directed that $35 million of the
ATF FY2008 appropriation would have been provided for the construction of the National Center
for Explosives Training and Research.
Conference negotiations on H.R. 3093 broke down, however. In lieu of further action on that bill,
congressional leaders opted to use the Department of State, Foreign Operations, and Related
Appropriations bill, 2008 (H.R. 2764), as a vehicle for the CJS appropriations, as well as the
other 10 remaining appropriations bills, in addition to emergency spending for military operations
16 U.S. Department of Justice, “Fact Sheet: Department of Justice Efforts in Iraq,” February 13, 2008.
17 Ibid.
18 Ibid.
Congressional Research Service
6
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
in Iraq and Afghanistan. On December 17-19, 2007, Congress completed action on H.R. 2764
through an exchange of amendments between the two chambers. President Bush signed H.R.
2764 into law on December 26, 2007 (P.L. 110-161).
Administration’s FY2008 Request
The FY2008 request included $1.014 billion for ATF, including 4,933 FTE and 5,032 permanent
positions. This amount was $29.9 million more than the FY2007 appropriation of $984.1 million.
The request included $10 million for the Arson and Explosives decision unit to make up for a
previous budget reduction; $6.3 million to expand ATFs domestic firearms trafficking
enforcement efforts nationwide; $2.2 million for the Project Safe Neighborhoods (PSN) initiative
to expand gang and firearms enforcement efforts nationally; and $400 thousand for ATF agents
dedicated to GangTECC.
Funding and Staffing, FY1999-FY2009
From FY1999 to FY2008, Congress increased ATF appropriations from $541.6 million to nearly
$1.012 billion, an increase of 87%. The FY2008 funding includes $988.1 million for salaries and
expenses and $23.5 million for construction. Congress appropriated the latter amount for the
construction of an ATF National Center for Explosives Training and Research. As Table 1 shows,
for the same 10 years, with some fluctuation, ATF staffing increased from 3,969 to 4,880 FTE
positions, a 23% increase.19
Table 1. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Appropriations
for Salaries and Expenses, FY1999-FY2009
Salaries and Expenses
Fiscal
Appropriation
Full-Time Equivalent (FTE)
Permanent
Year
(in $000)
Positionsa
Positions
1999 $541,574
3,969
N/A
2000 $565,959
4,221
4,492
2001 $771,143
4,643
5,049
2002 $823,316
5,029
5,143
2003 $826,801
5,111
5,231
2004 $827,289
4,735b 4,862b
2005 $878,465
4,885
5,073
2006 $911,817
5,040
5,128
2007 $984,097
5,053
5,128
2008 $988,097c 4,880d 4,956d
2009 $1,054,215
4,957
5,008
19 These staffing amounts do not reflect FTE positions provided for law enforcement availability pay (LEAP), overtime
pay, or FTE positions funded with reimbursable resources.
Congressional Research Service
7
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
Source: CRS presentation of ATF funding and staffing data presented in Department of Justice budget
submissions to Congress for FY2003-FY2009.
a. A ful -time equivalent (FTE) position represents the amount of funding necessary to provide for a single
position for an entire year. Not all positions (new, temporary, and part-time) are fully funded for the entire
year. New positions, for example, are often partially funded, as such positions are filled incrementally and at
some point during the fiscal year. Hence, they do not require ful funding for the first year.
b. The decrease of 376 FTE positions and 369 permanent positions for FY2004, as compared with FY2003,
reflects the funding that remained at the Department of the Treasury for the regulatory components of
ATF, which were designated the Trade and Tax Bureau, when the ATF enforcement components were
transferred to the Department of Justice as the Bureau of Alcohol, Tobacco, Firearms and Explosives,
pursuant to the Homeland Security Act (P.L. 107-296).
c. For FY2008, Congress also appropriated an additional $23.5 million for the ATF construction account,
which is not included in this amount as such funding is usually not associated with FTE or funding positions.
Nor, is the $10 million provided in the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) for
ATF included in this amount.
d. The decrease of 173 FTE positions and 172 permanent positions for FY2008, as compared with FY2007,
reflects adjustments to base and other technical adjustments to the ATF budget that were made to
eliminate “hollow” or “unfunded” positions.
Since its transfer to the DOJ in FY2003, ATF has also reported permanent positions, in addition
to FTE positions. The FY2008 appropriation provided for 4,956 permanent positions, including
2,428 special agents (SAs), 773 industry operations investigators (IOIs, formerly inspectors) and
investigative research specialists (IRIs), and 1,755 “other” positions.20
For FY2009, Congress appropriated $1.054 billion for ATF. As compared to the FY1999 enacted
appropriation, this amount represents a 94.6% increase. This amount also provides for 5,008
permanent positions, including 2,450 SAs, 789 IOIs and IRIs, and 1,769 other positions.21 In
addition, for FY2008 and FY2009, 55 ATF permanent positions (54 SAs and one other position)
have been funded through reimbursable resources.22
Firearms Budget Program
ATF’s firearms budget program funds activities related to administering and enforcing federal
laws related to the manufacture, importation, and distribution of firearms. The principal focus of
ATF’s firearms-related activities, however, is the reduction of firearms-related violence. As part
of this focus, the ATF has dedicated increased resources in recent years toward investigating the
criminal activities of violent street gangs, ensuring that federally licensed gun dealers comply
with the law, and suppressing gun trafficking.
Violent Crime and Gangs
As a full partner in the President’s Project Safe Neighborhoods (PSN), which was initiated in
FY2001, ATF has joined with DOJ attorneys and other federal law enforcement agencies, along
with state, local, and tribal authorities, to investigate and prosecute offenders, with a particular
20 Ibid., Exhibit I—Detail of Permanent Positions by Category.
21 U.S. Department of Justice, Justice Management Division, FY2010 Budget and Performance Summary, (May 2009),
Exhibit I—Detail of Permanent Positions by Category.
22 Ibid., Exhibit H—Summary of Reimbursable Resources.
Congressional Research Service
8
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
focus on armed violent and career criminals. ATF also leads the Attorney General’s Violent Crime
Impact Teams (VCITs) in 29 cities23 in an effort to reduce the number of homicides and other
violent crimes committed with firearms.24 According to ATF, the VCITs assist state and local
authorities by
• systematically investigating all firearms-related leads;
• responding to all street recoveries of firearms and interviewing those involved to
determine the source of the firearms;
• targeting and investigating violent and career criminals, and removing them from
the streets;
• infiltrating criminal groups through undercover operations and confidential
informants;
• tracing all recovered guns used in crime to determine their origin;
• imaging and storing all ballistic evidence in the National Integrated Ballistic
Information Network (NIBIN); and
• inspecting and, when appropriate, investigating corrupt federal firearms
licensees.25
Under the VCIT initiative, defendants referred by ATF for prosecution in gang-related
investigations have increased from 403 in FY2000 to 4,381 in FY2007, nearly a tenfold
increase.26
Compliance Inspections of Licensed Gun Dealers
ATF inspects federal firearms licensees (FFLs) to monitor their compliance with the Gun Control
Act (GCA)27 and to prevent the diversion of firearms from legal to illegal channels of commerce.
In the past, despite its crime-fighting mission, ATF’s business relationships with the firearms
industry and larger gun-owning community have been a perennial source of tension, which from
time to time has been the subject of congressional oversight.28 Nevertheless, under current law,
23 Those cities are Albuquerque, NM; Atlanta, GA; Baltimore, MD; Baton Rouge, LA; Birmingham, AL; Camden, NJ;
Columbus, OH; Fresno, CA; Greensboro, NC; Hartford, CT; Houston and Laredo, TX; Las Vegas, NV; Los Angeles,
CA; Mesa, AZ; Miami, FL; Milwaukee, WI; Minneapolis, MN; New Orleans, LA; Orlando, FL; Philadelphia and
Pittsburgh, PA; Richmond, VA; San Bernadino, CA; San Juan, PR; Tampa, FL; Tucson, AZ; Tulsa, OK; and
Washington, D.C.
24 U.S. Department of Justice, Bureau of Alcohol, Tobacco, and Firearms, “ATF Fact Sheet: ATF-Led Violent Crime
Impact Teams Initiative,” May 2007.
25 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2007 (February 2006), p. 47.
26 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2009 (February 2008), p. 22.
27 18 U.S.C. Chapter 44, §921 et seq.
28 For example, in the 109th Congress, the House Judiciary Crime subcommittee held two oversight hearings examining
ATF firearms enforcement operations at gun shows in Richmond, Virginia, in 2005. ATF agents reportedly provided
state and local law enforcement officers with confidential information from background check forms (ATF Form
4473s), so that those officers could perform residency checks on persons who had otherwise legally purchased firearms
at those gun shows. Questions were also raised as to whether ATF agents had profiled gun purchasers at those gun
shows on the basis of race, ethnicity, and gender. See U.S. Congress, House of Representatives, Committee on the
(continued...)
Congressional Research Service
9
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
ATF Special Agents (SAs) and Industry Operations Investigators (IOIs) are authorized to inspect
or examine the inventory and records of an FFL without search warrants under three scenarios:29
• in the course of a reasonable inquiry during the course of a criminal investigation
of a person or persons other than the FFL;
• to ensure compliance with the record keeping requirements of the GCA—not
more than once during any 12-month period, or at any time with respect to
records relating to a firearm involved in a criminal investigation that is traced to
the licensee; or
• when such an inspection or examination is required for determining the
disposition of one or more firearms in the course of a criminal investigation.
By inspecting the firearms transfer records that FFLs are required by law to maintain, ATF
investigators able to trace crime guns from their domestic manufacturer or importer to the first
retail dealer that sold those firearms to persons in the general public, generating vital leads in
homicide and other criminal investigations. In addition, by inspecting those records, ATF
investigators are often able to uncover evidence of corrupt FFLs transferring firearms “off the
books,” straw purchases, 30 and other patterns of suspicious behavior.
In July 2004, the DOJ Office of Inspector General (OIG) reported on ATF inspections of FFLs.
Among other things, the OIG reported that ATF inspected the operations of 4.5% of the 104,000
FFLs in FY2002.31 Since then, according to ATF, 10,106 firearms compliance inspections were
conducted in FY2007, covering about 9.3% of the nearly 109,000 FFLs in that fiscal year,32 and
11,169 firearms compliance inspections were conducted in FY2008, covering nearly 10% of the
111,600 FFLs in that fiscal year.33
Project Gunrunner
On the Southwest border with Mexico, firearms violence has reportedly spiked sharply in recent
years as drug trafficking organizations (DTOs) have competed for control of key smuggling
(...continued)
Judiciary, Subcommittee on Crime, Terrorism, and Homeland Security, Oversight Hearing on the Bureau of Alcohol,
Tobacco, Firearms, and Explosives (BATFE) Parts I & II: Gun Show Enforcement, February 15 and 28, 2006. Also see
Department of Justice, Office of the Inspector General, The Bureau of Alcohol, Tobacco, Firearms and Explosives’
Investigative Operations at Gun Shows, I-2007-007, June 2007.
29 18 U.S.C. § 923(g)(1)(B).
30 A “straw purchase” occurs when a person, who is otherwise eligible to purchase a firearm, purchases a firearm from
a federally licensed dealer for another person, who is either prohibited from possessing a firearm or does not want a
paper trail linking him to the purchased firearm. Under 18 U.S.C. § 922(a)(6), it is illegal to a make a false statement to
a federally licensed firearms dealer. Both the dealer and the buyer are required to fill out an ATF Form 4473, on which
the buyer (transferee) attests to the dealer (transferor) that he is buying the firearm for himself and that he is not
otherwise prohibited from possessing a firearm. Knowingly making a false statement on a ATF Form 4473 is
punishable under 18 U.S.C. § 924(a)(2) by a fine or imprisonment for 10 years or both.
31 U.S. Department of Justice, Office of the Inspector General, Inspections of Firearms Dealers by the Bureau of
Alcohol, Tobacco, Firearms and Explosives, Report Number I-2004-005, (July 2004), p. xi.
32 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2008, (February 2007), p. 29.
33 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2010, May 2009, p. 5.
Congressional Research Service
10
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
corridors into the United States.34 Beginning in December 2006, Mexican President Felipe
Calderón responded by deploying elements of the Mexican Army and federal police to trouble
spots around Mexico, including on the northern frontier.35 The DTO’s, however, are reportedly
buying semiautomatic versions of AK-47 and AR-15-style assault rifles, other military style
firearms, and .50 caliber sniper rifles in the United States.36 With those rifles and other small
arms, the DTOs are reportedly achieving parity in terms of firepower in shootouts with the
Mexican Army and law enforcement.37 In March 2008, President Calderón called upon the United
States to increase its efforts to suppress the flow of U.S. firearms into Mexico.38
ATF reports that there are 6,647 FFLs in the United States operating in the Southwest border
region of Texas, New Mexico, Arizona, and California.39 Moreover, ATF reports that DTOs are
increasingly using surrogates (straw purchasers) in the United States to buy 10 to 20 military-
style firearms at a time from FFLs. These firearms are reportedly routinely smuggled into Mexico
in smaller shipments of four or five firearms as part of a process known as the “ant run.”40
During FY2006 and FY2007, ATF dedicated approximately 100 SAs and 25 IOIs to a Southwest
border initiative known as “Project Gunrunner” to disrupt the illegal flow of guns from the United
States to Mexico. In FY2007, ATF agents investigated 187 firearms trafficking cases and
recommended 465 defendants for prosecution.41 By the end of FY2008, ATF had deployed 146
SAs and 68 IOIs to the Southwest border to bolster that initiative at a conservatively estimated
cost of $32.2 million.42
The ATF FY2009 budget request included $948,000 to fund 12 industry operations investigator
positions to bolster efforts already underway as part of Project Gunrunner.43 This was the only
program increase/budget enhancement in the ATF FY2009 budget request. As described above,
House reported language accompanying the FY2009 CJS appropriations bill indicated that the
House bill (H.R. 7322; H.Rept. 110-919) included $5 million for Project Gunrunner.
Corresponding report language accompanying a Senate bill (S. 3182; S.Rept. 110-397) was silent
as to whether such an increase would be provided under that bill. The Senate, however, had
included $15 million for Project Gunrunner in the FY2008 supplemental appropriations bill (H.R.
2642), but that funding was not included in the enacted appropriation (P.L. 110-252). As
described above, the Omnibus Appropriations Act, 2008 (P.L. 111-8) included $1.054 billion for
ATF, including an increase of not less than $5 million for Project Gunrunner. In addition, to ramp
34 Anna Gilmour, “Gulf War—Pressure Mounts on Mexico’s Gulf Cartel,” Jane’s Intelligence Review, December 3,
2007.
35 Ibid.
36 Sara Miller Llana, “US Guns Arm Mexico’s Drug Wars,” Christian Science Monitor, July 19, 2007, p. 1.
37 Oscar Becera, “Firing Line—Tracking Mexico’s Illegal Weapons,” Jane’s Intelligence Review, April 28, 2008.
38 Ibid.
39 ATF briefing provided to CRS on May 5, 2008.
40 Oscar Becera, “Firing Line—Tracking Mexico’s Illegal Weapons,” Jane’s Intelligence Review, April 28, 2008.
41 Statement of William Hoover, Assistant Director for Field Operations, Bureau of Alcohol, Tobacco, Firearms and
Explosives, before the Subcommittee on the Western Hemisphere, Committee on Foreign Affairs, House of
Representatives, concerning “U.S. Obligations under the Mérida Initiative,” February 7, 2008.
42 CRS conversations with Bureau of Alcohol, Tobacco, Firearms and Explosives, Office of Legislative Affairs, May
14, 2008.
43 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2009 (February 2008), Exhibit C—Program Increases/Offsets by Decision Unit.
Congressional Research Service
11
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
up Gunrunner, the American Recovery and Reinvestment Act (ARRA; P.L. 111-5) included $10
for ATF and $30 million to assist state and local law enforcement with counter-narcotics efforts in
FY2008 funding.
The ATF FY2010 budget request includes $1.121 billion for ATF, or a proposed 6.4% increase
compared to the FY2008 enacted appropriation. This proposed amount includes $17.9 million and
92 permanent positions (including 34 SAs) to support Project Gunrunner.44 The House-reported
FY2010 Commerce, Justice, Science, and Related Agencies appropriations bill (H.R. 2847;
H.Rept. 111-149) would provide ATF with the requested $17.9 million. According to the House
Committee, such an increase would bring total funding for Southwest border firearms trafficking
efforts to $59.9 million, but this amount includes one-time, stimulus funding of $10 million
provided in the American Recovery and Reinvestment Act (ARRA; P.L. 111-5) for FY2008.45
ATF also maintains a foreign attache in Mexico City to administer an Electronic Trace
Submission System (ETSS), also known as the eTrace program, for Mexican law enforcement
authorities. From FY2005 through FY2007, ATF traced just over 11,700 firearms recovered by
Mexican authorities, and approximately 90% of those firearms were traced back to the United
States.46 Caution should be exercised when drawing conclusions from ATF firearm trace data.
Although it is valid to say that 90% of traced firearms originated in the United States, it would be
incorrect to conclude that 90% of all guns used in crime in Mexico originated in the United
States. Although crime gun trace data are useful measurements of crime gun trends, in most cases
the issues of consistent, random, and unbiased data collection have not been adequately addressed
through comprehensive tracing and other controls. Hence, it is often not possible to test for
statistical significance. Nevertheless, even though a statistically valid percent estimate of U.S.-
sourced firearms used in crime in Mexico cannot be made based on trace data, criminal
investigations have documented that there is great demand for certain firearms that are available
in normal (non-military) commercial channels in the United States and that those firearms have
been illegally trafficked to Mexico in large numbers.
Moreover, successful firearm traces are instrumental in developing investigative leads in
homicide and gun trafficking cases. According to ATF, some of those cases uncover corrupt FFLs
who were involved in larger criminal conspiracies to smuggle firearms into Mexico.47 In January
2008, ATF announced that e-Trace technology would be deployed to an additional nine U.S.
consulates in Mexico (Mérida, Juarez, Monterrey, Nogales, Hermosillo, Guadalajara, Tijuana,
Matamoros, and Nueva Laredo).48 The number of traces performed by ATF for Mexican
authorities during FY2008 increased markedly. During FY2008, ATF traced 7,743 firearms
recovered by Mexican authorities, as compared with the 11,700 firearms traced over a three-year
period, FY2005-FY2007.49 Of those firearms, 63.5% were determined to have been manufactured
44 U.S. Department of Justice, Justice Management Division, FY2010 Budget and Performance Summary, (May 2009),
p. 139. Available at http://www.usdoj.gov/jmd/2010summary/.
45 U.S. Congress, House Committee on Appropriations, Subcommittee on Commerce, Justice, Science, and Related
Agencies, Commerce, Justice, Science, and Related Agenciies Appropriations Bill, 2010, To accompany H.R. 2847,
111th Cong., 1st sess., June 12, 2009, H.Rept. 111-149, p. 66.
46 ATF briefing provided to CRS on May 5, 2008.
47 Ibid.
48 Bureau of Alcohol, Tobacco, Firearms and Explosives, Office of Public Affairs, “ATF Expands Efforts to Combat
Illegal Flow of Firearms to Mexico,” January 16, 2008.
49 ATF briefing provided to CRS on April 16, 2009.
Congressional Research Service
12
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
in the United States and 29.5% were determined to have been manufactured abroad, but imported
into the United States.50 Consequently, 93% of firearms traced by ATF during FY2008 for
Mexican authorities were either made in, or imported to, the United States.51
In the 110th Congress, the House Committee on Foreign Affairs ordered reported the Mérida
Initiative to Combat Illicit Narcotics and Reduce Organized Crime Authorization Act of 2008
(H.R. 6028; H.Rept. 110-673) on May 14, 2008. This bill would have authorized to be
appropriated over three years, for FY2008 through FY2010, a total of $73.5 million to increase
the number of ATF positions dedicated to Project Gunrunner ($45 million) and assign ATF agents
to Mexico ($28.5 million). The House passed this bill on June 10, 2008, by a roll call vote of 311
to 106 (Roll no. 393). Similar authorizations are included in the Southwest Border Violence
Reduction Act of 2008 (S. 2867, H.R. 5863, and H.R. 5869). In the 111th Congress, similar bills
have been introduced (S. 205, H.R. 495, H.R. 1448, and H.R. 1867).
Arson and Explosives Budget Program
ATF’s arson and explosives budget program covers activities related to administering and
enforcing federal laws governing the manufacture, importation, and distribution of explosives, as
well as investigating arson cases with a federal nexus. Among law enforcement agencies, the ATF
is recognized for its investigative expertise in responding to both arson and explosive incidents.
The Attorney General (AG), for example, made the ATF responsible for maintaining a
consolidated database of all arson and explosive incidents that occur in the United States.
Reportedly, as part of the department’s law enforcement information-sharing program, this and
other databases are to be linked and made Web-accessible, and first responders anywhere in the
United States are to have access to critical information about arson and explosive cases
nationwide.52
Congress made ATF responsible for more closely regulating the explosives industry in the United
States under the Safe Explosives Act.53 The Act made ATF responsible for fully investigating all
explosive thefts and losses, as well as providing background checks for licensees and permittees
to prevent prohibited persons from acquiring explosives. This Act also requires ATF to inspect
explosive licensees and permittees every three years to ensure that all explosive materials are
properly stored and accounted for. ATF reports that there are about 12,000 licensees and
permittees nationwide, so that to comply with the Act, about 4,000 inspections would need to be
conducted by ATF annually.54 According to ATF, 3,291 explosives compliance inspections were
conducted in FY2007, or about 28% of licensees/permittees.55 The FY2009 budget requests
included no new resources for this program, as compared with FY2008.
50 Ibid.
51 Ibid.
52 The Federal Bureau of Investigation reportedly continues to maintain its own bomb data center despite the AG’s
memorandum. See Jerry Markon, “FBI, ATF Battle for Control of Cases: Cooperation Lags Despite Merger,”
Washington Post, May 10, 2008, p. A1.
53 P.L. 107-296, 116 Stat. 2280.
54 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2007 (February 2006), p. 53.
55 U.S. Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Congressional Budget
Submission, Fiscal Year 2009 (February 2008), p. 48.
Congressional Research Service
13
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations
In March 2005, the DOJ OIG reported that ATF could improve its implementation of the Safe
Explosives Act. The OIG also found “critical deficiencies” in the background check and clearance
process designed to prevent prohibited persons from gaining access to explosives.56
Alcohol and Tobacco Budget Program
The ATF alcohol and tobacco budget program covers expenses related to agency efforts to
counter a rising trend in the illegal diversion of tobacco products, as well as the illegal movement
of distilled alcohol products. According to the General Accounting Office (now the Government
Accountability Office), the illegal diversion and smuggling of cigarettes in the United States
results in an unknown but significant loss in tax revenues.57 In addition, ATF criminal intelligence
indicates that cigarette bootlegging is a lucrative criminal venture that terrorist groups have used
and would possibly use in the future to finance their activities.58 The FY2009 budget request
includes no new resources for this program, as compared with FY2008.
Author Contact Information
William J. Krouse
Specialist in Domestic Security and Crime Policy
wkrouse@crs.loc.gov, 7-2225
56 U.S. Department of Justice, Office of the Inspector General, Review of the Bureau of Alcohol, Tobacco, Firearms
and Explosives’ Implementation of the Safe Explosives Act, Report Number I-2005-005, (March 2005), p. 37.
57 U.S. General Accounting Office, Cigarette Smuggling: Federal Law Enforcement Efforts and Seizures Increasing,
GAO-04-641 (May 2004), p. 7.
58 Ibid., p. 7.
Congressional Research Service
14