Contents

• DHS Appropriations Overview and Context
• Note on FY2013 and Sequestration
• DHS Appropriations: Comparing the Components
• DHS Appropriations Compared to the Total DHS Budget
• DHS Appropriations Trends: Size
• DHS Appropriations Trends: Timing
• Major Developments
• April 10, 2013—President's FY2014 Budget Request Submitted
• June 6, 2013—House Passes H.R. 2217
• July 18, 2013—Senate Appropriations Committee Reports H.R. 2217
• October 1, 2013—Lapse in Appropriations
• October 17, 2013—P.L. 113-46, Continuing Appropriations Act, 2014 Passed and Enacted
• January 14-15, 2014—P.L. 113-76, Short-Term Continuing Resolution
• January 17, 2014—President Signs the FY2014 Consolidated Appropriations Act
• DHS Appropriations Funding Summary 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
• Provisions That Directly Affect the Cost of the Bill

Summary

This report provides a brief outline of the FY2014 appropriations legislation for the Department of Homeland Security (DHS). The Administration requested $39.0 billion in adjusted net discretionary budget authority for DHS for FY2014, as part of an overall budget of $60.0 billion (including fees, trust funds, and other funding that is not appropriated or does not score against the budget caps).

Congress did not enact annual FY2014 appropriations legislation prior to the beginning of the new fiscal year. From October 1, 2013, through October 16, 2013, the federal government (including DHS) operated under an emergency shutdown furlough due to the expiration of annual appropriations for FY2014. More than 31,000 DHS employees were furloughed. Tens of thousands of others that were excepted from furlough, and those whose salaries were paid through annual appropriations, worked without pay until the lapse was resolved by passage of a short-term continuing resolution. From October 17, 2013, to January 17, 2014, the federal government operated under the terms of two consecutive continuing resolutions: P.L. 113-46, which lasted until its successor was enacted on January 15, 2014; and P.L. 113-73, which lasted until the Omnibus Appropriations Act, 2014 (P.L. 113-76), was enacted on January 17, 2014.

Division F of P.L. 113-76 is the Homeland Security Appropriations Act, 2014, which includes $39,270 million in adjusted net discretionary budget authority for DHS. This is $922 million more than DHS reportedly received in its annual appropriation for FY2013 after taking into account the impact of sequestration. The act also included an additional $5.6 billion requested by the Administration for FEMA in disaster relief funding as defined by the Budget Control Act, and an additional $227 million for the Coast Guard to pay the costs of overseas contingency operations. Those additional costs are compensated for by adjustments in the discretionary spending limits outlined through the Balanced Budget and Emergency Deficit Control Act as amended.

For a more detailed discussion of policy matters and legislative details beyond funding levels, see CRS Report R43147, Department of Homeland Security: FY2014 Appropriations, coordinated by [author name scrubbed].

This report will be updated as events warrant.

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Department of Homeland Security Appropriations: FY2014 Overview and Summary

This report provides an overview of appropriations for the Department of Homeland Security (DHS). The first portion of this report provides an overview and historical context for reviewing DHS appropriations, highlighting various aspects including the comparative size of DHS components, the amount of non-appropriated funding the department receives, and trends in the timing and size of the department's appropriations legislation. The second portion of this report outlines the legislative chronology of major events in funding the department for FY2014. The third portion of this report provides detailed information on DHS appropriations.

DHS Appropriations Overview and Context

The DHS appropriations bill includes funding for all components and functions of the department. For FY2013, pre-sequester DHS discretionary appropriations were $46.2 billion, with $12.1 billion in supplemental appropriations (see Table 1). For FY2014, the total request was $44.7 billion. House-passed and Senate-reported DHS appropriations legislation had similar total funding levels, $44.6 billion and $44.7 billion, respectively. Totals represent net discretionary budget authority, taking into account impacts of rescissions, and include emergency spending and disaster relief. Analyses that include the impact of fees and mandatory spending are found later in this report.

Note on FY2013 and Sequestration

Past CRS reports on DHS appropriations have carried detailed comparisons with previous years' funding levels.¹ However, due to the impact of sequestration on budget authority available to the federal government under P.L. 113-6 and the Disaster Relief Appropriations Act of 2013 (P.L. 113-2), official post-sequestration numbers are not available at the program, project, and activity level that would be directly comparable to the data provided in previous and future years' reports. While DHS released an FY2013 Post-Sequestration Operating Plan on April 26, 2013, that report did not include the funding provided through P.L. 113-2, and press reports have indicated that reprogramming and transfer activity took place to address the impact of the nearly across-the-board cut administered through the sequestration process on priority programs.²

As there is no detailed comprehensive statement of post-sequestration resources available, the charts in this report contain information on pre-sequester funding levels for FY2013. In all cases, the data from P.L. 113-6 account for the two across-the-board cuts included in the general provisions of the act.

DHS Appropriations: Comparing the Components

Breaking down the DHS bill by title provides limited transparency into how DHS's appropriated resources are being used. Thus, looking at funding by component can be more instructive. The components of DHS vary widely in the size of their appropriated budgets. The largest component is Customs and Border Protection (CBP), with an FY2014 request of $10,833 million and final appropriation of $10,420 million. Table 2 and Figure 1 show DHS's discretionary budget authority broken down by component, from largest to smallest.³

Table 2 presents the raw numbers, while Figure 1 presents the same data in a graphic format, with additional information on the disaster relief adjustment to the allocation allowed under the Budget Control Act (P.L. 112-25).⁴ For each set of appropriations shown in Figure 1, the left column shows discretionary budget authority provided through the legislation, while the right column shows that amount plus resources available under the adjustments. This comparison looks only at the new budget authority requested or provided—not budget authority rescinded to offset the cost of the bill—so the totals will differ from Table 1, which includes the impact of prior-year rescissions.

Figure 1. DHS Discretionary Appropriations by Component, FY2014 (millions of dollars, rounded)

Source: H.R. 2217, H.Rept. 113-91, S.Rept. 113-77, P.L. 113-76 and its accompanying explanatory statement. Notes: Totals may not add due to rounding. Figure does not display rescissions and other general provisions, or reflect non-appropriated resources available to DHS components. CBP = Customs and Border Protection; USCG = U.S. Coast Guard; ICE = Immigration and Customs Enforcement; TSA = Transportation Security Administration; FEMA = Federal Emergency Management Agency; 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.

DHS Appropriations Compared to the Total DHS Budget

Figure 1, even with its accounting for discretionary cap adjustments, does not tell the whole story about the resources available to individual DHS components. Much of DHS's budget is not derived from discretionary appropriations. Some components, such as the Transportation Security Administration (TSA), rely on fee income or offsetting collections to support a substantial portion of their activities. U.S. Citizenship and Immigration Services (USCIS), for example, obtains less than 4% of its funding through direct appropriations—the bulk of the component's funding is derived from fee income.

Figure 2 highlights how much of the DHS budget is not funded through discretionary appropriations. It presents a breakdown of the FY2014 budget request, showing the proposed discretionary appropriations, mandatory appropriations, and adjustments under the Budget Control Act, in the context of the total amount of budgetary resources available to DHS, as well as other non-appropriated resources. For FY2014, 67% of the proposed DHS gross budget was funded through discretionary appropriations. The remainder of the proposed budget was funded through fees, mandatory appropriations, BCA adjustments, and other non-appropriated resources.

The amounts shown in this graph are derived from the Administration's budget request documents, and therefore do not exactly mirror the data presented in congressional documents, which are the source for the other data presented in the report, including Table 2 and Figure 1.

Figure 2. DHS Gross Budget Breakdown: FY2014 Request (millions of dollars in budget authority, rounded)

Source: DHS FY2014 Budget Request. Notes: Budget numbers provided by OMB differ from congressional budget calculations due to a variety of factors, including recalculations of fee income, availability of prior-year rescissions, reprogrammings, transfers, and other factors. Totals may not add due to rounding.

DHS Appropriations Trends: Size

Table 3 presents DHS discretionary appropriations, as enacted, for FY2004 through FY2014. Generally speaking, annual appropriations for DHS rose from the establishment of the department, peaking in FY2010. However, the structural changes effected by the Budget Control Act that allowed disaster funding to be included in regular appropriations bills without being scored against the bill's allocation altered the downward trend as funding that might have been provided in a supplemental appropriations bill now was provided in the annual process. Without the impact of disaster relief funding, the nominal level of annual appropriations for the department declined each year since the FY2010 peak, until increasing in FY2014. Supplemental funding, which frequently addressed congressional priorities such as disaster assistance and border security, varies widely from year to year and as a result distorts year-to-year comparisons of total appropriations for DHS.

Note the table includes two lines for FY2013. The first line for FY2013, in italics, describes pre-sequester resources provided to DHS. The second FY2013 line is derived from the post-sequester operating plan for the department, which examined only what was provided through the annual appropriations bill for DHS included in P.L. 113-6. CRS does not have post-sequester totals for what was provided in P.L. 113-2.

DHS Appropriations Trends: Timing

Figure 3 shows the history of the timing of the DHS appropriations bills as they have moved through various stages of the legislative process. Initially, DHS appropriations were enacted relatively promptly, as stand-alone legislation. However, the bill is no longer an outlier from the consolidation and delayed timing that has affected other annual appropriations legislation.

Figure 3. DHS Appropriations Legislative Timing

Source: CRS analysis. Note: Final action on the annual appropriation for DHS for FY2011, FY2013, and FY2014 did not occur until after the beginning of the new calendar year.

Major Developments

April 10, 2013—President's FY2014 Budget Request Submitted

For FY2014, the Administration requested $39.028 billion in adjusted net discretionary budget authority for DHS, as part of an overall budget request of $60.0 billion (including fees, trust funds, and other funding that is not appropriated or does not score against the overall discretionary spending caps budget allocation for the bill).⁵

June 6, 2013—House Passes H.R. 2217

On June 6, 2013, the House passed H.R. 2217 with several amendments by a vote of 245-182. This report uses House-passed H.R. 2217 and the accompanying report (H.Rept. 113-91) as the source for House-passed appropriations numbers. After floor action the House bill carried a net discretionary appropriation of $38.991 billion for DHS for FY2014. Several House-adopted floor amendments used management accounts as offsets, leaving funding for those activities 40% below the requested level. Increases approved by the House above the committee-recommended level for DHS activities included Customs and Border Protection's Border Security Fencing, Infrastructure, and Technology account; Coast Guard's Operating Expenses account; the Federal Emergency Management Agency's Urban Search and Rescue Response activities; and grant programs.

July 18, 2013—Senate Appropriations Committee Reports H.R. 2217

On July 17, the Senate Appropriations Committee reported out H.R. 2217 with an amendment by a vote of 21-9. The Senate-reported bill carried a net discretionary appropriation of $39.1 billion for DHS for FY2014.

October 1, 2013—Lapse in Appropriations

Late on September 30, 2013, the Office of Management and Budget (OMB) gave notice to federal agencies that an emergency shutdown furlough would be put in place as a result of the failure to enact appropriations legislation for FY2014. On September 27, 2013, DHS released its "Procedures Relating to a Federal Funding Hiatus,"⁶ which included details on how DHS planned to determine who was required to report to work, ceasing unexempted⁷ government operations, recalling certain workers in the event of an emergency, and restarting operations once an accord was reached on funding issues. More than 31,000 DHS employees were furloughed, and tens of thousands of others that were excepted from furlough and whose salaries were paid through annual appropriations worked without pay until the funding lapse was resolved.

For a broader discussion of a federal government shutdown, see CRS Report RL34680, Shutdown of the Federal Government: Causes, Processes, and Effects, coordinated by [author name scrubbed].

October 17, 2013—P.L. 113-46, Continuing Appropriations Act, 2014 Passed and Enacted

On October 17, 2013, the Senate passed and the House of Representatives passed, and the President signed into law, a Senate-amended version of H.R. 2775 which carried a short term continuing resolution (CR) which funds government operations at a rate generally equivalent to FY2013 post-sequestration levels through January 15, 2014. The Senate passed the amended bill by a vote of 81-18, while the House passed it 285-144. This act temporarily resolved the lapse in funding, ending the emergency furlough, returning federal employees to work, and retroactively authorizing pay for both excepted and unexcepted employees for the duration of the funding lapse. Although a handful of legislative provisions are included to extend expiring authorities for the department and provide some flexibility for Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) in operating under the constraints of the CR, as is usually the case with this type of legislation, account-level direction for funding is not provided, and no explanatory statement of congressional intent (such as a committee report) exists.

January 14-15, 2014—P.L. 113-76, Short-Term Continuing Resolution

On January 14, 2014, the House passed by voice vote H.J.Res. 106, a short term continuing resolution, that would allow for three days of continued funding under the same terms as P.L. 113-46. On January 15, the joint resolution passed the Senate by a vote of 86-14, and was signed into law that same day, becoming P.L. 113-73 and preventing an additional lapse in appropriations funding while a consolidated appropriations act for FY2014 completed the legislative process.

January 17, 2014—President Signs the FY2014 Consolidated Appropriations Act

On January 17, 2014, the President signed into law the Consolidated Appropriations Act, 2014, which included annual appropriations legislation covering the entire discretionary budget for the federal government for FY2014. Division F of P.L. 113-76 is the Homeland Security Appropriations Act, 2014, which includes $39,270 million in adjusted net discretionary budget authority for DHS. This amount is $922 million more than DHS reportedly received in its annual appropriation for FY2013 after taking into account the impact of sequestration. The act also included an additional $5.6 billion requested by the Administration for FEMA in disaster relief funding as defined by the Budget Control Act, and an additional $227 million for the Coast Guard to pay the costs of overseas contingency operations. Those additional costs are compensated for by adjustments in the discretionary spending limits outlined through the Balanced Budget and Emergency Deficit Control Act, as amended.

DHS Appropriations Funding Summary 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 $1,239 million for these accounts in FY2014. The House-passed bill would have provided $883 million in Title I, a decrease of 28.0% from the requested level. The Senate-reported bill would have provided $1,054 million in Title I, 14.9% below the requested level. Division F of P.L. 113-76 included $1,037 million in Title I, 16.3% below the requested level.⁸

Table 5 lists the pre-sequester enacted amounts for the individual components of Title I for FY2013, the Administration's request for these components for FY2014, and the House-passed appropriations for the same. The heavy lines in this table and in similar ones later in the report serve as a reminder that direct comparisons between the pre-sequester FY2013 funding and FY2014 proposals are not comparisons of current levels of actual spending and proposals for the coming fiscal year, as one would normally see in this type of report.

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 $30,283 million for these accounts in FY2014. The House-passed bill would have provided $30,768 million under Title II, an increase of 1.60% from the requested level. The Senate-reported bill would have included $30,289 million in Title II, an increase of less than 0.1% from the requested level. Division F of P.L. 113-76 included $30,877 million in Title II, 2.1% above the requested level. Both the Senate-reported bill and the enacted annual appropriations act also included an additional $227 million in funding for overseas contingency operations of Coast Guard, compensated for by an adjustment in the discretionary spending limits outlined through the Balanced Budget and Emergency Deficit Control Act, as amended. Table 6 lists the enacted amounts for the individual components of Title II for FY2013, the Administration's request for these components for FY2014, the House-passed and Senate-reported appropriations for the same, and the annual appropriation enacted through Division F of P.L. 113-76.

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 $5,383 million for these accounts in FY2014. The House-passed bill would have provided $5,928 million, an increase of 10.1% above the requested level.⁹ The Senate-reported bill would have provided $5,955 million, an increase of 10.6% above the requested level. Division F of P.L. 113-76 included $5,952 million in Title III, 10.6% above the requested level. In addition, all three versions of this title also include a requested $5,626 million for disaster relief that is offset by an adjustment under the Budget Control Act. Table 7 lists the enacted amounts for the individual components of Title III for FY2013, the Administration's request for these components for FY2014, the House-passed and Senate-reported appropriations for the same, and the annual appropriation enacted through Division F of P.L. 113-76.

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 $2,214 million for these accounts in FY2014. The House-passed bill would have provided $1,890 million, a decrease of 14.7% below the requested level. The Senate-reported bill would have provided $1,885 million, a decrease of 15.0% below the requested level. Division F of P.L. 113-76 included $1,878 million in Title IV, 15.2% below the requested level. Table 8 lists the enacted amounts for the individual components of Title IV for FY2013, the Administration's request for these components for FY2014, the House-passed and Senate-reported appropriations for the same, and the annual appropriation enacted through Division F of P.L. 113-76.

Title V: General Provisions

Title V of the DHS appropriations bill contains the general provisions for the bill. These typically include a variety of provisions that apply generally to the bill, as opposed to a single appropriation. However, general provisions may carry additional appropriations, rescissions of prior-year appropriations, limitations on the use of funds, or permanent legislative language as well.

The Administration's request was made in relation to the general provisions for DHS included in the FY2012 appropriations act (Division D of P.L. 112-74), as the FY2013 appropriations process had not been concluded while the FY2014 request was being developed.

The Administration proposed dropping 36 general provisions, most of which they had proposed eliminating in FY2013. Eleven of those were already eliminated in the final FY2013 appropriations bill. The Administration also proposed adding 10 provisions and modifying 10 others.

While many of those modifications were simple date changes, one represented a significant change from previous practices. The Administration proposed modifying Section 503, which governs reprogramming of funds, to provide transfer authority that would allow funds to be moved between appropriations accounts within DHS to expedite response to a catastrophic event.

The House concurred with the Administration's request to drop three general provisions beyond the 11 that were dropped from the FY2013 DHS appropriations act. The House Appropriations Committee did not add any of the general provisions requested by the Administration—with the exception of a rescission provision that it modified¹⁰—and rejected the expansion of reprogramming authority. H.R. 2217 as reported to the House had 65 general provisions. The House added 19 general provisions to the bill during floor action, bringing the total number of general provisions in its version of H.R. 2217 to 84. Eighteen of these newly added general provisions prohibit the use of funds provided in the bill for specific activities.

The Senate Appropriations Committee chose to drop a provision that the House retained,¹¹ kept four proposed for removal that the House did not,¹² and added several other provisions. It added two provisions requested by the Administration—one authorizing the use of reimbursable fee agreements to fund CBP services,¹³ and a modified provision allowing DHS to receive donations to construct, alter, operate, or maintain land ports of entry.¹⁴ The Senate-reported bill includes 72 general provisions in all.

Division F of P.L. 113-76 included 77 general provisions in all. Seven provisions of the 74 general provisions carried in the FY2013 Homeland Security Appropriations Act were dropped, and ten were added. Section 559 of the act included a modified version of the Administration's requested authority to enter into reimburseable fee agreements and to receive donations. The act did not include the requested expansion of reprogramming authority.

Provisions That Directly Affect the Cost of the Bill

House-passed H.R. 2217 included $460 million in rescissions in Title V, while the Senate-reported version included $241 million in rescissions. Division F of P.L. 113-76 included $693 million in Title V. These provisions reduce the net score of the act.

The House-passed bill would have provided $34 million for DHS's data center consolidation effort through a general provision, while the Senate-reported bill would have provided $54 million in the same fashion, as well as $43 million for DHS headquarters consolidation at St. Elizabeths. These are cross-cutting initiatives which have been funded in the past in the general provisions of the legislation. The Senate-reported bill also included legislative language to allow DHS to use fee revenues collected as a result of lifting a fee exemption, which adds $110 million to the overall cost of the legislation. Division F of P.L. 113-76 included $3 million for a USCIS immigrant integration grant program, as well as $42 million for data center migration, $35 million for DHS headquarters consolidation, and $30 million for financial systems modernization. The division also includes the legislative language concerning fees as proposed by the Senate.

These are the only provisions in this title that impact the score of the act.

Footnotes

1.	See, for example, CRS Report R41189, Homeland Security Department: FY2011 Appropriations.
2.	See, for example, Hicks, Josh, "How Much Money Did Customs and Border Protection Need to Avoid Furloughs," Washington Post, Federal Eye blog, June 21, as downloaded from http://www.washingtonpost.com/blogs/federal-eye/wp/2013/06/20/how-much-money-did-customs-and-border-protection-need-to-avoid-furloughs/, June 21, 2013.
3.	Components are arranged based on the size of their House-passed funding level.
4.	For the purposes of this report, funding provided under these adjustments is not treated as appropriations.
5.	Department of Homeland Security, Congressional Budget Justifications, Budget Tables and Explanation of Changes for General Provisions, FY2014, p. 1.
6.	Available at http://www.dhs.gov/sites/default/files/publications/dhs-lapse-contingency-plan-09-27-2013.pdf. The Office of Management and Budget has assembled a complete list of such plans at http://www.whitehouse.gov/omb/contingency-plans.
7.	Some agencies use the term "excepted" rather than "exempted" to describe activities that would continue—the terms are interchangeable. This report generally uses "exempted" as DHS uses that term in its plan.
8.	While these accounts presented in Title I do show some reductions, some funding for activities requested in the accounts presented in Title I of the bill is provided through appropriations for other components, or through general provisions.
9.	This includes the impact of §587, a general provision added through a floor amendment which provided an additional $10 million for FEMA.
10.	H.R. 2217[rfs2], §567.
11.	Ibid., §520.
12.	H.R. 2217[rs], §522, §526, §527, and §529.
13.	Ibid., §555.
14.	Ibid., §566.