Department of Homeland Security Appropriations: A Summary of Congressional Action for FY2013

Contents

• Overview
• Reductions from the Stated Funding Levels in P.L. 113-6 and the Accompanying Senate Explanatory Statement
• Sequestration
• Across-the-Board Cuts
• DHS Appropriations: Comparing the Components
• DHS Appropriations Compared to the Total DHS Budget
• Trends in Legislative Timing
• FY2013 Appropriations by Title
• Title I: Departmental Management and Operations
• Title II: Security, Enforcement and Investigations
• Title III: Protection, Preparedness, Response, and Recovery
• Title IV: Research and Development, Training, and Services
• Title V: General Provisions

Summary

The Department of Homeland Security (DHS) appropriations bill includes funding for all components and functions of DHS, including Customs and Border Protection (CBP); Immigration and Customs Enforcement (ICE); the Transportation Security Administration (TSA); Coast Guard (USCG); Secret Service (USSS); the National Protection and Programs Directorate (NPPD), which includes Infrastructure Protection and Information Security (IPIS) and the Federal Protective Service (FPS); the Office of Health Affairs (OHA); the Federal Emergency Management Agency (FEMA); United States Citizenship and Immigration Services (USCIS); the Federal Law Enforcement Training Center (FLETC); the Science and Technology directorate (S&T); the Domestic Nuclear Detection Office (DNDO); departmental management, Analysis and Operations (A&O), and the Office of the Inspector General (OIG).

For FY2013, the Administration requested $39.510 billion in adjusted net discretionary budget authority for DHS, as part of an overall budget of $59.501 billion (including fees, trust funds, and other funding that is not appropriated or does not score against the budget caps). H.R. 5855, the House-passed DHS appropriations bill in the 112^th Congress, would have provided $39.114 billion in adjusted net discretionary budget authority, while S. 3126, its Senate-reported counterpart in the 112^th Congress, would have provided $39.514 billion.

Congress did not enact final FY2013 appropriations legislation prior to the end of FY2012. From October 1, 2012, through March 26, 2013, the federal government (including DHS) operated under the terms of P.L. 112-175, a part-year continuing resolution. While operating under this resolution, two major events impacted the DHS budget. First, Hurricane Sandy struck the east coast of the United States, which started a legislative process that resulted in enactment of legislation that provided $50.7 billion in disaster relief and emergency appropriations, including $12.072 billion for DHS, and $9.7 billion in additional borrowing authority for the National Flood Insurance Program. Weeks later, On March 1, 2013, an across-the-board reduction in budget authority, or sequestration, was ordered as required under the terms of the Budget Control Act (P.L. 112-25). The Office of Management and Budget's sequestration report indicated that DHS would lose $3.191 billion as a result of sequestration.

On March 26, 2013, the President signed into law P.L. 113-6, the FY2013 Consolidated and Further Continuing Appropriations Act. Division D of that act is the Department of Homeland Security Appropriations Act, 2013, which includes $39.646 billion in adjusted net discretionary budget authority for DHS. Two across-the-board cuts unrelated to the March 1 sequestration that were included in the final legislation to ensure the bill complies with discretionary budget caps reduced this by $54 million to $39.592 billion.

The above enacted funding levels for FY2013 are subject to sequestration cuts. As the federal government was operating under a continuing resolution at the time sequestration was ordered, the final budget impact cannot be authoritatively stated until the Office of Management and Budget provides further information.

This report will be updated as events warrant.

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Department of Homeland Security Appropriations: A Summary of Congressional Action for FY2013

Overview

The Department of Homeland Security (DHS) appropriations bill includes funding for all components and functions of the Department of Homeland Security. Table 1 includes a summary of funding included in the FY2012 regular DHS appropriations bill, the Administration's FY2013 appropriations request, the House-passed and Senate-reported versions of the FY2013 appropriations bill broken down by title, and the final DHS appropriations legislation included in Division D of P.L. 113-6, prior to the impact of sequestration.

Reductions from the Stated Funding Levels in P.L. 113-6 and the Accompanying Senate Explanatory Statement

Sequestration

The Budget Control Act (BCA)¹ tasked a Joint Select Committee on Deficit Reduction to develop a federal deficit reduction plan for Congress and the President to enact by January 15, 2012. Because deficit reduction legislation was not enacted by that date, an automatic spending reduction process established by the BCA was triggered; this process consists of a combination of sequestration and lower discretionary spending caps, initially scheduled to begin on January 2, 2013. The "joint committee" sequestration process for FY2013 required the Office of Management and Budget (OMB) to implement across-the-board spending cuts at the account and program level to achieve equal budget reductions from both defense and nondefense funding at a percentage to be determined after enactment, under terms specified in the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA),² as amended by the BCA. For further information on the Budget Control Act, see CRS Report R41965, The Budget Control Act of 2011, by [author name scrubbed], [author name scrubbed], and [author name scrubbed].

The American Taxpayer Relief Act (ATRA),³ enacted on January 2, 2013, made a number of significant changes to the procedures in the BCA that will take place during FY2013. First, the date for the joint committee sequester to be implemented was delayed for two months, until March 1, 2013. Second, the dollar amount of the joint committee sequester was reduced by $24 billion. Third, the statutory caps on discretionary spending for FY2013 (and FY2014) were lowered.⁴

Pursuant to the BCA, as amended by ATRA, President Obama ordered that the joint committee sequester be implemented on March 1, 2013.⁵ The accompanying OMB report indicated a dollar amount of budget authority to be canceled to each account containing non-exempt funds.⁶ The sequester will ultimately be applied at the program, project, and activity (PPA) level within each account.⁷ Because the sequester was implemented at the time that a temporary continuing resolution was in force, the reductions were calculated on an annualized basis and will be apportioned throughout the remainder of the fiscal year.⁸ Although full year FY2013 funding has been enacted, the effect of these reductions on the budgetary resources that will ultimately be available to an agency at either the account or PPA level remain unclear until further guidance is provided by OMB as to how these reductions should be applied.

Across-the-Board Cuts

Taken together, Sections 3001 and 3004 of P.L. 113-6 are intended to eliminate any amount by which the new budget authority provided in the act exceeds the FY2013 discretionary spending limits in Section 251(c)(2) of the Balanced Budget and Emergency Deficit Control Act, as amended by the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012. As enacted, Section 3001 provides two separate across-the-board rescissions—one for "nonsecurity" budget authority and one for "security" budget authority⁹—to be applied at the program, project, and activity level. DHS falls under the "security" category, and therefore receives a 0.1% across-the-board cut. This across-the-board cut was made to bring the bill's budget authority as calculated by the Congressional Budget Office in line with the FY2013 discretionary spending limits.

However, the Office of Management and Budget is the final arbiter of whether those spending limits have been exceeded. Therefore, Section 3004 provides two other separate across-the-board rescissions—again, one for nonsecurity budget authority and one for security budget authority—to be applied at the program, project, and activity level. The section requires the percentages to be increased if OMB estimates that additional rescissions are needed to avoid exceeding the limits. Subsequent to the enactment of P.L. 113-6, OMB calculated that additional rescissions of 0.032% of "security" budget authority (which would apply to DHS) and 0.2% of "nonsecurity" budget authority would be required.¹⁰

Since these cuts were intended to reduce the amount of discretionary budget authority in the bill, funding that is not included in that total—specifically funding for Overseas Contingency Operations/Global War on Terror and funding designated as being for disaster relief under the Budget Control Act—are not subject to the across-the-board cuts. All tables and references to funding levels in this report include CRS calculations of the effect of both these across-the-board cuts.

DHS Appropriations: Comparing the Components

Unlike some other appropriations bills, breaking down the DHS bill by title does not provide a great deal of transparency into where DHS's appropriated resources are going. The various components of DHS vary widely in the size of their appropriated budgets. Figure 1 shows DHS's pre-sequester discretionary budget authority for FY2013 broken down by component, from largest to smallest. The left column shows discretionary budget authority as scored against the bill's budget allocation, while the right column shows that plus resources available under adjustments to the allocation allowed under the Budget Control Act (P.L. 112-25). For the purposes of this report, funding provided under these adjustments is not treated as appropriations.

Figure 1. Department of Homeland Security Appropriations by Component, FY2013 (Pre-Sequester) (in millions of dollars discretionary budget authority, rounded)

Source: H.R. 5855, H.Rept. 112-492, S.Rept. 112-169, and CRS analysis of P.L. 113-6 and accompanying Senate explanatory statement. Chart Abbreviations: CBP, Customs and Border Protection; USCG, U.S. Coast Guard; ICE, Immigration and Customs Enforcement; TSA, Transportation Security Administration; FEMA, Federal Emergency Management Administration; USSS, U.S. Secret Service; NPPD, National Protection and Programs Directorate; S&T, Science and Technology Directorate; DNDO, Domestic Nuclear Detection Office; A&O, Analysis and Operations; FLETC, Federal Law Enforcement Training Center; OHA, Office of Health Affairs; OIG, Office of the Inspector General; USCIS, U.S. Citizenship and Immigration Services; DBA, discretionary budget authority; Adj, adjustments to the discretionary budget caps established by the Budget Control Act. Note: Totals may not add due to rounding. Does not include funding provided through general provisions or rescissions of prior-year budget authority.

DHS Appropriations Compared to the Total DHS Budget

It is important to note that the above figure, even with its accounting for discretionary cap adjustments, does not tell the whole story about the resources available to individual DHS components. Some components, such as TSA, rely on fee income or offsetting collections to support a significant amount of their activities. Less than 4% of the budget for CIS is provided through direct appropriations—the rest relies on fee income.

Detailed numbers on the individual components that reflect both appropriations and other budgetary resources appear later in the report. Figure 2 presents a comparison of the Administration's FY2013 budget request and the enacted budget for FY23013 prior to the impact of the sequester, showing the discretionary appropriations, mandatory appropriations, and adjustments under the Budget Control Act, in the context of the total amount of budgetary resources available to DHS. The enacted graphic also includes funding provided through P.L. 113-2, the Disaster Relief Appropriations Act, 2013. The amount shown in the left graph was derived from the Administration's budget request documents, and therefore does not exactly mirror the data presented in congressional documents, which are the source for the other data presented in the report.

Figure 2. DHS Gross Budget Breakdown: FY2013 Request v. FY2013 Total Enacted (Pre-Sequester) (millions of dollars in budget authority, rounded)

Source: CRS analysis of DHS FY2013 Budget Request, P.L. 113-2, P.L. 113-6 and the accompanying Senate explanatory statement. Notes: Totals may not add due to rounding. Includes rescissions of prior year budget authority.

Trends in Legislative Timing

The House Appropriations Committee's full committee markup of H.R. 5855 was the second earliest in the history of the DHS appropriations bill. The Senate Appropriations Committee's full committee markup of S. 3216 was the earliest the Senate has ever marked up the DHS appropriations bill. Enactment of the FY2013 DHS appropriations legislation was the second latest that final appropriations action was taken for the department. Figure 3 shows the history of the timing of the DHS appropriations bills as they have moved through various stages of the legislative process.

Figure 3. DHS Appropriations Legislative Timing

Source: CRS analysis. Notes: Final action on the FY2011 appropriation for DHS did not occur until April 2011. Final action on the FY2013 appropriation for DHS did not occur until March 2013.

FY2013 Appropriations by Title

Title I: Departmental Management and Operations

Title I of the DHS appropriations bill provides funding for the department's management activities, Analysis and Operations (A&O) account, and the Office of the Inspector General (OIG). The Administration requested $1,279 million for these accounts in FY2013, an increase of $147 million above the enacted level. The House-passed bill would have provided $1,020 million, a decrease of 20.2% from the requested level and 9.9% below FY2012. The Senate-reported bill would have provided $1,102 million, 13.8% below the request and 2.7% below FY2012.

After the across-the-board cuts but prior to applying sequestration, P.L. 113-6 provides $1,086 million, a decrease of 15.1% from the requested level and 4.1% below FY2012.

Table 2 lists the enacted amounts for the individual components of Title I for FY2012 (as of May 31, 2012), the Administration's request for these components for FY2013, the House-passed and Senate-reported appropriations for the same, and the pre-sequester level of funding provided through P.L. 113-6, taking into account the across-the-board cuts.

Title II: Security, Enforcement and Investigations

Title II of the DHS appropriations bill, which includes over three-quarters of the budget authority provided in the legislation, contains the appropriations for U.S. Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement (ICE), the Transportation Security Administration (TSA), the U.S. Coast Guard (USCG), and the U.S. Secret Service (USSS). The Administration requested $30,759 million for these accounts in FY2013, a decrease of $768 million below the enacted level. The House-passed bill provides $30,946 million, an increase of 0.6% from the requested level and 1.8% below FY2012. The Senate-reported bill provides $30,974 million, 0.7% above the request and 1.8% below FY2012.

After the across-the-board cuts but prior to applying sequestration, P.L. 113-6 provides $31,267 million, an increase of 1.7% from the requested level and 0.8% below FY2012.

Table 3 lists the enacted amounts for the individual components of Title II for FY2012 (as of May 31, 2012), the Administration's request for these components for FY2013, the House-passed and Senate-reported appropriations for the same, and the pre-sequester level of funding provided through P.L. 113-6, taking into account the across-the-board cuts.

Title III: Protection, Preparedness, Response, and Recovery

Title III of the DHS appropriations bill contains the appropriations for the National Protection and Programs Directorate (NPPD), the Office of Health Affairs (OHA), and the Federal Emergency Management Agency (FEMA). The Administration requested $5,911 million for these accounts in FY2013, an increase of $231 million above the enacted level. The House-passed bill would have provided $5,930 million, an increase of 0.3% above the requested level and 4.4% above FY2012. The Senate-reported bill would have provided $5,971 million, 1% above the request and 5.1% above FY2012. In addition, both House-passed and Senate-reported versions of this title also would have included a requested $5,481 million for disaster relief that is offset by an adjustment under the Budget Control Act (BCA). The adjustment would have been $919 million smaller than the adjustment provided in the FY2012 Disaster Relief Appropriations Act (P.L. 112-77).

After the across-the-board cuts but prior to applying sequestration, P.L. 113-6 provides $5,920 million, an increase of 0.2% from the requested level and 4.3% above FY2012. The act also included $6,400 million for disaster relief that is offset by an adjustment under the (BCA).

Table 4 lists the enacted amounts for the individual components of Title III for FY2012 (as of May 31, 2012), the Administration's request for these components for FY2013, the House-passed and Senate-reported appropriations for the same, and the pre-sequester level of funding provided through P.L. 113-6, taking into account the across-the-board cuts.

Title IV: Research and Development, Training, and Services

Title IV of the DHS appropriations bill contains the appropriations for U.S. Citizenship and Immigration Services (USCIS), the Federal Law Enforcement Training Center (FLETC), the Science and Technology directorate (S&T), and the Domestic Nuclear Detection Office. The Administration requested $1,561 million for these accounts in FY2013, a decrease of $229 million below the enacted level. The House-passed bill provides $1,510 million, a decrease of 3.3% from the requested level and 13.4% above FY2012. The Senate-reported bill provides $1,535 million, 1.7% below the request and 15.2% above FY2012.

After the across-the-board cuts but prior to applying sequestration, P.L. 113-6 provides $1,520 million, a decrease of 0.5% from the requested level and 2.2% above FY2012.

Table 5 lists the enacted amounts for the individual components of Title IV for FY2012 (as of May 31, 2012), the Administration's request for these components for FY2013, the House-passed and Senate-reported appropriations for the same, and the pre-sequester level of funding provided through P.L. 113-6, taking into account the across-the-board cuts.

Title V: General Provisions

Title V of the DHS appropriations bill contains the general provisions for the bill. General provisions typically include rescissions of funding from previous years that partially offset the score of the bill. Occasionally appropriations for special initiatives are found here as well. The Administration generally requests rescissions in the accounts where they are made, and requested no funding through general provisions for FY2013. The House-passed bill for FY2013 includes $292 million in rescissions, all of which reduce the net scoring of the bill. Those are the only provisions in this title that impact the score of the bill. On the other hand, the Senate-reported bill includes $192 million in rescissions, as well as several other provisions that impact the scoring of the bill, including appropriations and changes in fee programs. Taken together, these Senate bill provisions offset its cost by $68 million.

After the across-the-board cuts but prior to applying sequestration, CRS estimates based on CBO data that Title V of Division D of P.L. 113-6 includes $307 million in rescissions and $104 million of provisions that require discretionary budget authority, for a net reduction in the cost of the act of $203 million.

Acknowledgments

[author name scrubbed]'s work on the Financial Services and General Government appropriations bill inspired the structure of this survey report. Amber Wilhelm designed and produced the graphics contained in the report.

Key Policy Staff

Footnotes

1.	P.L. 112-25.
2.	Title II of P.L. 99-177, 2 U.S.C. 900-922
3.	P.L. 112-240
4.	For further information on the changes to BCA procedures made by ATRA, see CRS Report R42949, The American Taxpayer Relief Act of 2012: Modifications to the Budget Enforcement Procedures in the Budget Control Act, by [author name scrubbed]
5.	White House, President Obama, Sequestration Order for Fiscal Year 2013 Pursuant to Section 251A of the Balanced Budget and Emergency Deficit Control Act, As Amended, March 1, 2013, available at http://www.whitehouse.gov/sites/default/files/2013sequestration-order-rel.pdf.
6.	Executive Office of the President, Office of Management and Budget, OMB Report to the Congress on the Joint Committee Sequestration for Fiscal Year 2013, March 1, 2013, available at http://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/fy13ombjcsequestrationreport.pdf.
7.	Ibid., pp. 11, 13.
8.	Ibid, p. 5. For general information on continuing resolutions, see CRS Report R42647, Continuing Resolutions: Overview of Components and Recent Practices, by [author name scrubbed].
9.	As defined in Section 250(c)(4)(A) and (B) for the Balanced Budget and Emergency Deficit Control Act of 1985 as amended.
10.	OMB determined that these two additional rescissions would be necessary on April 4, 2013. The OMB Director is required to submit a report to the appropriations committees specifying the amount of the reduction at the account level by April 26, 2013. For further information, see OMB, "Consolidated and Further Continuing Appropriations Act, 2013," Budget Enforcement Act (7-Day-After Reports), April 4, 2013, p. 54, available at http://www.whitehouse.gov/sites/default/files/omb/assets/legislative_reports/7_day_after/bea_report_hr933_04-04-13.pdf.