Appropriations for FY2004: Department of Homeland Security

Appropriations for FY2004: Department of Homeland Security

Order Code RL31802
CRS Report for Congress
Received through the CRS Web
Appropriations for FY2004:
Department of Homeland Security
Updated January 12, 2004
name redacted and Dennis W. Snook, Coordinators
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

Appropriations are one part of a complex federal budget process that includes budget
resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and
budget reconciliation bills. The process begins with the President’s budget request and is
bounded by the rules of the House and Senate, the Congressional Budget and Impoundment
Control Act of 1974 (as amended), the Budget Enforcement Act of 1990, and current
program authorizations.
This report is a guide to one of the 13 regular appropriations bills that Congress passes each
year. It is designed to supplement the information provided by the House and Senate
Appropriations Subcommittees on Homeland Security. It summarizes the current legislative
status of the bill, its scope, major issues, funding levels, and related legislative activity, and
will be updated as events warrant. The report lists the key CRS staff relevant to the issues
covered and related CRS products.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[http://www.crs.gov/products/appropriations/apppage.shtml].

Appropriations for FY2004:
Department of Homeland Security
Summary
This report describes the FY2004 appropriations for the Department of
Homeland Security (DHS). It summarizes the President’s FY2004 budget request
for DHS programs, as submitted to the Congress February 3, 2003, and the
congressional response to that proposal. The report includes tables that compare the
President’s FY2004 request to the FY2003 amounts for programs and activities that
were transferred to DHS after its establishment on January 24, 2003, nearly 4 months
after the start of FY2003. The report also includes amounts recommended for DHS
programs by House and Senate bills, and the final amounts approved by conferees,
as work on the final bill was completed.
DHS programs include activities formerly conducted by the Federal Emergency
Management Agency (FEMA) and the U.S. Customs Service, and most of the
activities formerly operated by the Immigration and Naturalization Service (INS).
On June 24, 2003, the House amended and passed H.R. 2555, the Department
of Homeland Security Appropriations Act, 2004. The House bill (H.Rept. 108-169)
would provide DHS with $29.4 billion in discretionary appropriations for FY2004,
compared to the current estimate of $28.9 billion for FY2003. The President’s
request was $28.4 billion.
On July 24, 2003, the Senate passed its version of H.R. 2555 (S.Rept. 108-86).
The Senate bill would provide DHS with $28.5 billion in discretionary funds for
DHS for FY2004.
On September 23, 2003, conferees on the 2 versions of the DHS appropriations
bill reported agreement (H.Rept. 108-280), and the final bill cleared both Houses the
following day. The President signed the bill as P.L. 108-90 on October 1, 2003.
The DHS bill provides total appropriations of $30.4 billion for FY2004 through
4 separate titles: Department Management and Operations ($455 million); Security,
Enforcement, and Investigations ($19.1 billion); Preparedness and Recovery ($8.4
billion); and Research and Development, Training, Assessments, and Services ($2.2
billion). Included within Title II are the major security functions of Customs and
Border Protection ($4.9 billion); Immigration and Customs Enforcement ($3.4
billion); the Transportation Security Administration ($2.5 billion); the U.S. Coast
Guard ($6.8 billion); and the U.S. Secret Service ($1.0 billion). Title II also included
$330 million to fund operations of the Visitor and Immigration Status Indicator
Technology project (VISIT) for FY2004. Title III provides $4.0 billion for the Office
of Domestic Preparedness.
This is the final version of the Congressional Research Service report on the
DHS appropriations process for FY2004.

Key Policy Staff: Homeland Security
Area of Expertise
Name
Phone E-mail
Coordinator
(name redacted)
7-.... [redacted]@crs.loc.gov
Coordinator
Dennis W. Snook
7-.... [redacted]@crs.loc.gov
Title I, Departmental Management and Operations
General Management
(name redacted)
7-.... [redacted]@crs.loc.gov
Personnel Policy
(name redacted) 7-.... [redacted]@crs.loc.gov
Title II, Security, Enforcement, and Investigation
Coast Guard
Ronald O’Rourke
7-.... [redacted]@crs.loc.gov
Customs Issues
(name redacted)
7-.... [redacted]@crs.loc.gov
Immigration Issues
Lisa M. Seghetti
7-.... [redacted]@crs.loc.gov
Secret Service
(name redacted)
7-.... [redacted]@crs.loc.gov
Transportation Security
Bartholomew Elias
7-.... [redacted]@crs.loc.gov
Administration
US VISIT project
Lisa M. Seghetti
7-.... [redacted]@crs.loc.gov
Title III, Preparedness and Recovery
Biodefense/Bioshield
( name redacted)
7-.... [redacted]@crs.loc.gov
Disaster Relief
(name redacted)
7-.... [redacted]@crs.loc.gov
Emergency Preparedness
(name redacted)
7-.... [redacted]@crs.loc.gov
and Response
Firefighter Assistance
(name redacted)
7-.... [redacted]@crs.loc.gov
First Responders/Domestic
(name redacted)
7-.... [redacted]@crs.loc.gov
Preparedness
Public Health Programs
(name redacted)
7-.... [redacted]@crs.loc.gov
Title IV, Research and Development, Training, Assessments, and Services
Citizenship and
(name redacted)
7-.... [redacted]@crs.loc.gov
Immigration Services
Information Analysis,
Todd M. Masse
7-.... [redacted]@crs.loc.gov
Domestic
Information Analysis,
Richard A. Best, Jr.
7-.... [redacted]@crs.loc.gov
Foreign
Infrastructure Protection
(name redacted)
7-.... [redacted]@crs.loc.gov
Science and Technology
(name redacted)
7-.... [redacted]@crs.loc.gov

Contents
Most Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
P.L. 108-90 Enacted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Senate Version of H.R. 2555 Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
House Version of H.R. 2555 Passed . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
President’s FY2004 Budget Submitted . . . . . . . . . . . . . . . . . . . . . . . . . 1
Department Established . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Note on Most Recent Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
302(a) and 302(b) Allocation Ceilings . . . . . . . . . . . . . . . . . . . . . . . . . 2
Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Appropriations for the Department of Homeland Security . . . . . . . . . . . . . . 4
Title I: Departmental Management and Operations . . . . . . . . . . . . . . . . . . . 6
Title II: Security, Enforcement, and Investigations . . . . . . . . . . . . . . . . . . . 6
Title III: Preparedness and Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Title IV: Research and Development, Training,
Assessments, and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Related Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Consolidated Appropriations Act, 2004, H.R. 2673 . . . . . . . . . . . . . . . . . . 10
FY2004 Budget Resolution, H.Con.Res. 95/S.Con.Res. 23 . . . . . . . . . . . . 11
FY2003 Wartime Supplemental, P.L. 108-11 (H.R. 1559) . . . . . . . . . . . . . 11
FY2003 Omnibus Appropriations, P.L. 108-7 (H.J.Res. 2) . . . . . . . . . . . . . 11
Department of Homeland Security, P.L. 107-296 (H.R. 5005) . . . . . . . . . . 12
World Wide Web Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
List of Tables
Table 1. Legislative Status of Homeland Security Appropriations, H.R. 2555 . . 1
Table 2. FY2004 302(b) Discretionary Allocations for DHS . . . . . . . . . . . . . . . . 3
Table 3. Department of Homeland Security: Summary of Appropriations . . . . . 5
Table 4. Departmental Management and Operations . . . . . . . . . . . . . . . . . . . . . . 6
Table 5. Security, Enforcement, and Investigations . . . . . . . . . . . . . . . . . . . . . . . 7
Table 6. Preparedness and Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 7. Research and Development, Training, Assessments, and Services . . . . 9

Appropriations for FY2004:
Department of Homeland Security
Most Recent Developments
P.L. 108-90 Enacted. On October 1, 2003, the Department of Homeland
Security Appropriations Act, 2004, was signed into law, as P.L. 108-90 (H.R. 2555;
conference report H.Rept. 108-280). The Act provides $29.4 billion of FY2004
discretionary appropriations for the Department of Homeland Security (DHS). If
enacted, H.R. 2673, the Consolidated Appropriations Act, 2004, would reduce these
appropriations by 0.59% (see page 10).
Senate Version of H.R. 2555 Passed. On July 24, 2003, the Senate
amended and passed H.R. 2555 (S.Rept. 108-86), on July 24, 2003. The bill would
have provided $28.5 billion in discretionary DHS appropriations.
House Version of H.R. 2555 Passed. On June 23, 2003, the House
amended and passed H.R. 2555 (H.Rept. 108-169). The bill would have provided
$29.4 billion in discretionary DHS appropriations.
President’s FY2004 Budget Submitted. On February 3, 2003, the
President submitted the FY2004 budget request to the Congress, proposing $28.4
billion in discretionary appropriations for DHS.
Department Established. The Homeland Security Act of 2002 (HSA) was
signed into law November 25, 2002, as P.L. 107-296, establishing DHS, effective
January 24, 2003. Most programs and activities were officially transferred to DHS
from other federal agencies on March 1, 2003. Relative to FY2004 appropriations,
the FY2003 discretionary total for DHS has been estimated at $28.9 billion.
Table 1 summarizes the legislative status of DHS appropriations for FY2004.
Table 1. Legislative Status of Homeland Security
Appropriations, H.R. 2555
Subcommittee
Confer.
Conference
markup
H.Rept.
House
S.Rept.
Senate
report
report approval
Public
Law
108-169 passage 108-86 passage H.Rept.
108-90
House
Senate
108-280
House
Senate
6/17/03 6/24/03 7/10/03 7/24/03
9/24/03 9/24/03
6/12/03 7/09/03
vv
425-2
29-0
93-1
9/23/03
417-8
vv
10/1/03
(a)
vv
(b)
(c)
(d)
(e)
(f)
(g)

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Note: vv = voice vote.
a House Appropriations Subcommittee for Homeland Security held a closed markup on June 12, 2003.
b H.R. 2555 was introduced, approved, and reported (H.Rept. 108-169) by the House Committee on
Appropriations on June 17, 2003.
c The House passed H.Res. 293, the rule for the floor consideration of H.R. 2555, on June 24, 2003);
see Congressional Record, Daily Edition, p. H5734-5742. The House approved the rule by a vote of
220 to 197, roll call no. 302, p. H5734. Subsequently on June 24, the House amended and passed
H.R. 2555; see Congressional Record, Daily Edition, June 24, 2003, p. H5734-95. The House
approved the bill by a vote of 425 to 2, roll call no. 310, p. H5795.
d The Senate Committee on Appropriations amended and reported H.R. 2555 (S.Rept. 108-86) on
July 10, 2003.
e The Senate amended and passed H.R. 2555; see Congressional Record, Daily Edition, July 21, 2003,
p. S9623-9629; July 22, p. S9672-9697; July 23, p. S9748-9788; July 24, S9830-9887. The Senate
approved the bill by a vote of 93 to 1, roll call no. 306, p. S9886.
f The House approved the H.R. 2555 conference report (H.Rept. 108-280); see Congressional Record,
Daily Edition, September 24, 2003, p. H8793-8802. House approval was by a vote of 417-8, roll call
no. 515, p. H8802.
g The Senate approved the H.R. 2555 conference report; see Congressional Record, Daily Edition,
September 24, 2003, p. S11891-11897, by voice vote.
Note on Most Recent Data. In this report, data are based on the H.R. 2555
conference report, H.Rept. 108-280. Since the conference report shows only the
President’s request and the conference agreement for FY2004, this report
supplements that data with amounts from the September 23, 2003 unofficial staff
table of the House Committee on Appropriations, which includes estimates for the
FY2004 House and Senate actions as well as estimated FY2003 amounts. Amounts
from committee reports on FY2004 DHS appropriations (H.Rept. 108-169, S.Rept.
108-86) were not used is this report because each of those reports used different
account arrangements.
Also, since FY2003 appropriations were enacted prior to the establishment of
DHS, funding will likely be subject to a series of adjustments beyond the end of the
2003 fiscal year. In most cases, data represent net DHS funding for specific
programs and activities, after incorporating current and forward funding,
supplemental appropriations, and advance appropriations. However, all data are
subject to additional scorekeeping decisions that can alter account totals for each
fiscal year, and as a result, affect the subtotals in various tables shown below.
302(a) and 302(b) Allocation Ceilings. The maximum budget authority
for annual DHS appropriations is determined through a two-stage congressional
budget process. In the first stage, the Congress agrees to overall spending totals in
the annual concurrent resolution on the budget. Subsequently, these amounts are
allocated among the various committees, usually through the statement of managers
for the conference report on the budget resolution. These amounts are known as the
302(a) allocations. They include the discretionary totals available to the House and
Senate Committees on Appropriations for enactment in annual appropriations. For
FY2004, the Congress agreed to the budget resolution, H.Con.Res. 95 and its
conference report, H.Rept. 108-71, on April 11, 2003. The resolution provides for
an FY2004 discretionary total of $784.5 billion. For procedural information, see
CRS Report 98-721, Introduction to the Federal Budget Process.

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In the second stage of the process, the appropriations committees allocate the
302(a) discretionary funds among their subcommittees for each of the 13 annual
appropriations bills. These amounts are known as the 302(b) allocations. These
allocations must add up to no more than the 302(a) discretionary allocation, and form
the basis for enforcing budget discipline, since any bill reported with a total above
the ceiling is subject to a point of order.
The 302(b) allocations can and often do get adjusted during the year as the
various appropriations bills progress toward final enactment. The initial 302(b)
discretionary allocations for the FY2004 appropriations bills were agreed to by the
House and Senate Committees on Appropriations on June 17, 2003, as shown in
Table 2. Comparable amounts for FY2003 and the President’s FY2004 budget are
also shown. Both the 302(a) and the 302(b) allocations regularly become contested
issues in their own right.
Table 2. FY2004 302(b) Discretionary Allocations for DHS
(budget authority in billions of dollars)
FY2004
FY2004
FY2003
request
FY2004 House
FY2004 Senate
enacted
comparable
comparable
allocation
allocation
comparable
$28.9
$28.4
$29.4
$28.5
$29.4
Source: The FY2004 House allocation is based on H.Rept. 108-228, July 22, 2003. The FY2004
Senate allocation is based on S.Rept. 108-103, July 16, 2003. Comparable amounts from the FY2003
enacted, FY2004 request, and FY2004 enacted are based on the September 23, 2003 unofficial table
of the House Committee on Appropriations.
Highlights
This report describes the President’s proposal for FY2004 appropriations for
DHS programs, as submitted to the Congress February 3, 2003, and the congressional
response to that proposal. It compares the FY2004 amounts enacted through P.L.
109-90 with the House- and Senate-passed amounts for FY2004. In addition, it
includes the President’s FY2004 request and current estimates of the FY2003
amounts for programs and activities that were transferred to DHS after its
establishment on January 24, 2003, nearly 4 months after the start of FY2003. The
report tracks legislative action and congressional issues related to the FY2004 DHS
appropriations bill, with particular attention paid to discretionary programs.
However, the report does not follow specific funding issues related to mandatory
DHS programs — such as retirement pay — nor does it systematically follow any
legislation related to the authorization or amendment of DHS programs.
The Department of Homeland Security Appropriations Act, 2004, is unique in
that it is the first ever appropriations for the new federal department. There was a
potential for being contentious because of the serious nature of the activities funded,
as well as organizational problems that may occur with the establishment of any large
organization. This bill provides all of the discretionary funds for DHS. Unlike many

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other appropriations, no related agencies are funded in this bill. Of the 13 annual
appropriations bills, the DHS bill is estimated to be the fifth largest source of
discretionary funds, accounting for approximately 3.4% of the estimated $751.8
billion total (prior to the FY2003 Wartime Supplemental, P.L. 108-11) for all federal
discretionary budget authority, as reported in Budget of the United States Government
Fiscal Year 2004, Table S-8.
Appropriations for the Department of Homeland Security
The Homeland Security Act of 2002 (P.L. 107-296) transferred the functions,
relevant funding, and most of the personnel of 22 agencies and offices to the new
Department of Homeland Security (DHS) created by the Act. The DHS was
organized in four major directorates: Border and Transportation Security;
Emergency Preparedness and Response; Science and Technology; and Information
Analysis and Infrastructure Protection.
The final bill included appropriations of $5.6 billion for biodefense
countermeasures, sometimes referred to as Project Bioshield, to remain available
until September 30, 2013. However, the bill limits the availability of these funds for
obligation, so that no more than $3.4 billion may be obligated during the next 4
years, and no more than $890 million may be obligated in FY2004. By enacting the
House provision, the FY2004 DHS bill appropriates $5.6 billion for the entire 10-
year period, but only $890 million of that is counted under FY2004 scorekeeping
conventions. This specific funding arrangement for Project Bioshield follows
Section 404 provisions of H.Con.Res. 95, the FY2004 budget resolution.
Table 3 is a summary table, comparing appropriations for FY2003, the amounts
requested for FY2004, recommended for FY2004 by separate House and Senate
actions, and amounts approved by conferees resolving the differences between the
2 bills, and which were enacted as P.L. 108-90.

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Table 3. Department of Homeland Security:
Summary of Appropriations
($ in millions)
FY2003 FY2004 FY2004 FY2004 FY2004
Operational component
Enacted Request
House
Senate
Conf.
Title I: Departmental Management and Operations
Subtotal: Title I
300
558
486
494
455
Title II: Security, Enforcement, and Investigations
Office of the Undersecretary for B&TS
—
—
—
9
8
Visitor & Immigrant Status Indicator project
—
—
—
380
330
Customs and Border Protection
5,237
5,647
5,081
4,900
4,928
Immigration and Customs Enforcement
2,444
2,487
2,997
2,888
3,425
Transportation Security Administration
5,414
2,742
3,082
3,326
2,522
U.S. Coast Guard
6,254
6,655
6,681
6,815
6,776
U.S. Secret Service
1,049
1,124
1,152
1,118
1,141
Subtotal: Title II
20,398
18,655
18,994
19,437
19,129
Title III: Preparedness and Recovery
Office of Domestic Preparedness
3,236
3,558
3,513
3,638
4,037
Counter-terrorism fund
160
40
20
20
10
Emergency Preparedness and Response
3,373
4,352
5,110
3,603
4,402
Subtotal: Title III (current year, net)
6,769
7,950
8,643
7,261
8,449
Title IV: Research and Development, Training, Assessments, and Services
Citizenship and Immigration Services
695
235
249
229
236
Inform. analysis & infrastructure protection
185
829
776
834
839
Federal Law Enforcement Training Center
170
146
169
201
193
Science and technology
552
803
900
871
918
Subtotal: Title IV
1,602
2,013
2,094
2,135
2,186
Amount in this bill, for any year
29,069
33,880
34,919
29,326
34,919
Scorekeeping adj. (rescissions; airline relief)
695
215
215
215
215
(advance appropriations)
—
-4,703
-4,703
—
-4,703
Total, Dept. of Homeland Security
29,764
29,392
30,431
29,541
30,431
discretionary (current year, this bill)
28,875
28,372
29,411
28,521
29,411
mandatory
889
1,020
1,020
1,020
1,020
Section 302(b) allocation
—
—
29,411 28,521
29,412
difference, bill and allocation
—
—
0
0
0
Note: Rounding may affect totals. Amounts for FY2004 do not include a 0.59% across-the-board
reduction called for by conferees on H.R. 2673 (Consolidated Appropriations for FY2004), to which
the House has agreed, and which awaits Senate action (see page 10).
Source: H. Rept. 108-169; S. Rept. 108-86; H. Rept. 108-280 (Conference report).

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Title I: Departmental Management and Operations
Title I covers the general administrative expenses of the new Department of
Homeland Security. Individual agencies transferred to DHS are shown in separate
titles. Table 4 shows appropriations for FY2003, and funding requested for FY2004,
recommended by each House, and approved in the enacted bill.
Table 4. Departmental Management and Operations
($ in millions)
FY2003 FY2004 FY2004 FY2004 FY2004
Operational component
Enacted Request
House
Senate
Conf.
Title I: Departmental Management and Operations
Operations (salaries and expenses)
195
294
221
251
212
Department and technological investments
63
206
206
185
185
Office of the Inspector General (net)
42
58
58
58
58
Subtotal: Title I
300
558
485
494
455
Note: Rounding may affect totals. Amounts for FY2004 do not include a 0.59% across-the-board
reduction called for by conferees on H.R. 2673 (Consolidated Appropriations for FY2004), to which
the House has agreed, and which awaits Senate action (see page 10).
Source: H. Rept. 108-169; S. Rept. 108-86; H. Rept. 108-280 (Conference report).
Title II: Security, Enforcement, and Investigations
Title II funds Security, Enforcement, and Investigations, administered primarily
by the Directorate for Border and Transportation Security. This Directorate, along
with, the U.S. Coast Guard, are responsible for the first line of defense against
terrorism, as well as for securing and managing the nation’s borders. Included in this
responsibility are the inspection, investigative and enforcement operations of the
former Immigration and Naturalization Service (INS), which had been responsible
for managing and coordinating entry into the U.S.
The Customs function, previously the responsibility of the Department of the
Treasury’s U.S. Customs Service, is also under the Directorate. The Customs
function administered by DHS, together with the U.S. Coast Guard, are expected to
effectively secure commercial traffic entering the nation’s ports. The Directorate
includes a planning office and a training activity to assist state and local entities with
homeland security objectives. The Directorate also assumes responsibility for
inspecting and monitoring plants and animals entering the U.S. to minimize the risk
that noxious pests and diseases will be introduced into the country.
Table 5 shows funding for Title II, which includes the Directorate under the
functional title of Security, Enforcement, and Investigations. The table compares
funding of Title II activities for FY2003 with amounts requested for FY2004, as well
as amounts recommended by House and Senate actions, and approved by conferees
in the bill ultimately enacted and signed by the President.

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Table 5. Security, Enforcement, and Investigations
($ in millions)
FY2003 FY2004 FY2004 FY2004 FY2004
Operational component
Enacted Request
House
Senate
Conf.
Title II: Security, Enforcement, and Investigations
Office of the Under Secretary for B&TS
—
—
—
9
8
Visitor & Immigrant Status Indicator project
—
—
—
380
330
Customs & Border Protection (net)
5,237
5,647
5,081
4,900
4,928
– Salaries and expenses; construction
4,804
5,647
4,587
4,369
4,487
– Automation modernization
433
494
494
531
441
– Fee accounts (offsetting collections)
(-817)
(-821)
(-821)
(-845)
(-845)
Immigration & Customs Enforcement (net)
2,444
2,487
2,997
2,888
3,425
– Salaries and expenses; construction
1,855
2,063
2,030
2,207
2,178
– – rescission from S&E
—
—
—
—
-54
– Federal Air Marshals
—
—
—
—
626
– Federal Protective Services
408
424
424
424
424
– Automation & infrastructure modernization
—
—
368
—
40
– Air and marine interdiction
181
—
175
257
210
– Fee accounts (offsetting collections)
(-355)
(-297)
(-297)
(-273)
(-273)
Transportation Security Administration (net)
5,414
2,742
3,082
3,326
2,522
– Aviation security (total funding)
4,486
3,617
3,659
4,524
3,733
– Emerg. Wartime Supplement (P.L. 108-11)
645
—
—
—
—
– Grants to airlines (one-time appropriation)
2,396
—
—
—
—
– Offsetting collections (estimated)
-2,650
-2,070
-2,070
-2,070
-2,070
– Reimburse. from DOT, FAA, fac. & equip.
-143
—
—
—
—
– Federal Air Marshals
—
620
635
—
—
– Maritime and land security
263
86
232
295
263
– Research & development; intelligence
109
89
140
144
169
– Administration
307
421
487
433
427
U.S. Coast Guard
6,254
6,655
6,681
6,815
6,776
– Operating expenses
4,503
4,838
4,704
4,648
4,642
– Environmental compliance & restoration
17
—
17
17
17
– Reserve training
86
—
94
95
96
– Acquisition, construction, & improvements
720
797
805
1,035
967
– Alteration of bridges
17
—
20
—
19
– Research, development, tests, & evaluation
22
—
22
—
15
– Retired pay (mandatory, entitlement)
889
1,020
1,020
1,020
1,020
U.S. Secret Service
1,049
1,124
1,152
1,118
1,141
Subtotal: Title II
20,398
18,655
18,994
19,437
19,129
Note: Rounding may affect totals. Amounts for FY2004 do not include a 0.59% across-the-board
reduction called for by conferees on H.R. 2673 (Consolidated Appropriations for FY2004), to which
the House has agreed, and which awaits Senate action (see page 10).
Source: H. Rept. 108-169; S. Rept. 108-86; H. Rept. 108-280 (Conference report).

CRS-8
Title III: Preparedness and Recovery
The DHS Emergency Preparedness and Recovery functions are intended to
improve the nation’s capability to reduce losses from all disasters, including terrorist
attacks. Table 6 includes funds expended during FY2003 for these functions, and
compares them to amounts requested for FY2004, recommended by each House, and
approved by conferees in the final version ultimately enacted.
Table 6. Preparedness and Recovery
($ in millions)
FY2003 FY2004 FY2004 FY2004 FY2004
Operational component
Enacted Request
House
Senate
Conf.
Title III: Preparedness and Recovery
Office of Domestic Preparedness
3,236
3,558
3,513
3,638
4,037
– Basic formula grants (state and local)
1,006
—
1,900
1,250
1,700
– Emerg. Wartime Supplement. (P.L. 108-11)
1,330
—
—
—
—
– St. & loc. law enforce., terrorism prevent.
—
500
500
500
500
– Firefighter assistance grants
—
500
—
750
750
– Hi-threat, hi-density urban areas
700
—
500
750
725
– Other assistance; national programs
200
2,558
613
388
362
Counter-terrorism fund
160
40
20
20
10
Emergency Preparedness and Response
3,373
4,352
5,110
3,603
4,402
– Admin; regional operations
798
165
169
—
171
– Operating expenses
—
—
—
827
—
– Prepare., mitigation, response & recovery
—
163
363
150
225
– Public health programs
498
434
484
—
484
– Biodefense countermeasure (current year)
—
890
890
—
890
– (advance appropriations)
—
(4,703)
(4,703)
—
(4,703)
– – Biodefense countermeas. (10-year total)
—
(5,593)
(5,593)
—
(5,593)
– Grant programs
169
300
200
165
180
– Emergency food and shelter
152
153
153
153
153
– Firefighter assistance grants
745
—
760
—
—
– Disaster relief
776
1,956
1,800
1,956
1,800
– National pre-disaster mitigation fund
—
—
—
—
150
– Flood map modernization fund
149
200
200
200
200
– National flood insurance fund
89
90
91
110
110
– Disaster assistance direct loan program
1
1
1
1
1
– Cerro Grande Fire claims
—
—
—
38
38
– Misc. adj.; rescissions; transfers; rounding
-4
—
—
3
—
Subtotal: Title III (current year, net)
6,769
7,950
8,643
7,261
8,449
Note: Rounding may affect totals. Amounts for FY2004 do not include a 0.59% across-the-board
reduction called for by conferees on H.R. 2673 (Consolidated Appropriations for FY2004), to which
the House has agreed, and which awaits Senate action (see page 10).
Source: H. Rept. 108-169; S. Rept. 108-86; H. Rept. 108-280 (Conference report).

CRS-9
DHS promotes the effectiveness of emergency responders; supports the Nuclear
Incident Response Team through standards, training exercises, and provision of funds
to named federal agencies; provides the federal response by managing, directing,
overseeing, and coordinating specified federal resources; aid recovery efforts; builds
an intergovernmental national incident management system to guide responses;
consolidate existing federal response plans into a single plan; and develops programs
for interoperative communications for emergency responders.
Among other activities, the EPR incorporates all activities formerly
administered by the Federal Emergency Management Agency (FEMA), with the
exception of terrorism preparedness, which was transferred to the DHS Border and
Transportation Security Directorate.
Title IV: Research and Development, Training, Assessments,
and Services
Other activities funded through Title IV of DHS appropriations include: the
Bureau of Citizenship and Immigration Services; Information Analysis and
Infrastructure Protection; Federal Law Enforcement Training Center; and Science and
Technology. Table 7 shows amounts provided for these functions in FY2003,
together with amounts requested for FY2004, recommended by House and Senate
actions, and approved by conferees as they completed action preparatory to final
passage for the President’s signature.
Table 7. Research and Development, Training, Assessments,
and Services
($ in millions)
FY2003 FY2004 FY2004 FY2004 FY2004
Operational component
Enacted Request
House
Senate
Conf.
Title IV: Research and Development, Training, Assessments, and Services
Citizenship and Immigration Services
695
235
249
229
236
– (fee accounts)
(1,427)
(1,564)
(1,564) (1,564)
(1,564)
– (subtotal; Citizenship & Immigration Serv.)
(2,122)
(1,799)
(1,813)
(1,793)
(1,800)
Inform. analysis & infrastructure protection
185
829
776
834
839
Federal Law Enforcement Training Center
170
146
169
201
193
Science and technology
552
803
900
871
918
Subtotal: Title IV
1,602
2,013
2,094
2,135
2,186
Note: Rounding may affect totals. Amounts for FY2004 do not include a 0.59% across-the-board
reduction called for by conferees on H.R. 2673 (Consolidated Appropriations for FY2004), to which
the House has agreed, and which awaits Senate action (see page 10).
Source: H. Rept. 108-169; S. Rept. 108-86; H. Rept. 108-280 (Conference report).

CRS-10
Related Legislation
Several proposals related to DHS appropriations were considered during the 1st
Session of the 108th Congress, including the FY2004 Consolidated Appropriations
Act, the FY2004 budget resolution, FY2003 emergency wartime supplemental
appropriations, and most regular FY2003 appropriations. The law establishing DHS
itself was enacted during the 2nd Session of the 107th Congress.
Consolidated Appropriations Act, 2004, H.R. 2673
The Consolidated Appropriations Act, 2004, H.R. 2673, would combine seven
regular FY2004 appropriations bills into a single act and require an “across-the-
board” reduction to various FY2004 appropriations, including those for DHS. In an
effort to meet the overall spending limitations requested by the President, the
conference version of H.R. 2673 includes two reductions in discretionary
appropriations — one for defense, the other for non-defense appropriations. These
reductions are required under Division H, “Miscellaneous Appropriations and
Offsets,” Section 168.
The House approved the H.R. 2673 conference report on December 8, 2003, by
a vote of 242 to 176 (Roll Call no. 676). In the Senate, a cloture motion to end
debate on the conference report is scheduled for January 20, 2004. For a guide to the
provisions of H.R. 2673, see CRS Report RS21684, FY2004 Appropriations Act:
Reference Guide.
The defense reduction requires a rescission of $1.8 billion from unobligated
balances that remain available from the FY2001 anti-terrorism supplemental, P.L.
107-38; the FY2002 anti-terrorism supplemental, P.L. 107-117; and unobligated
balances from any appropriations for the Department of Defense.
The non-defense reduction requires a decrease of 0.59% from most domestic
discretionary appropriations found in H.R. 2673, as well as from certain FY2004
appropriations enacted separately and advance appropriations for FY2004 enacted
in previous years. This reduction would yield an estimated $2.8 billion (see
Congressional Record, Daily Edition, December 12, 2003, p. H12812; also see CRS
Report RS21684, FY2004 Consolidated Appropriations: Reference Guide). For
such eligible appropriations, the 0.59% reduction is to be applied to “each
discretionary account and each item of budget authority” and to each program,
project, and activity within each such account or item. FY2004 supplemental
appropriation acts and discretionary amounts from FY2004 Defense and Military
Construction Appropriations Acts are excluded from the non-defense reduction, as
are advance appropriations for FY2005 or later that would be enacted through H.R.
2673. Although the exact percentage of the non-defense reduction procedure is
specified, the actual application and reductions for each account or line item would
be determined by the Office of Management and Budget (OMB) and the individual
agencies. Within 30 days of enactment of the bill, OMB would be required to report
the account and amount of each rescission.

CRS-11
The FY2004 appropriations data in this report are based on the stated funding
levels, unadjusted by the application of the proposed reduction procedures, as the
exact reduction for each project or activity is not yet known.
FY2004 Budget Resolution, H.Con.Res. 95/S.Con.Res. 23
The concurrent resolution on the budget sets forth the congressional budget for
FY2004. The resolution proposes federal budget levels for FY2004 through FY2013;
the maximum for total discretionary spending is specified within the context of the
budget resolution. As agreed to in conference, the resolution sets an FY2004 limit
of $784.5 billion in discretionary spending, compared to $840.6 billion enacted for
FY2003, according to the conference report (H.Rept. 108-71, p. 42). Typically,
budget resolutions also specify the budget reconciliation process for the modification
of mandatory spending limits and tax cut legislation, and set spending targets for
functional categories of the budget. Report language usually provides an outline of
the funding assumptions made for selected programs that might be used to reach the
spending targets. Actual FY2004 discretionary appropriations for specific
departments, agencies, and programs, however, are determined only through the
enactment of appropriations bills.
H.Con.Res. 95 (H.Rept. 108-37) was passed by the House on March 21, 2003
(roll call no. 82, 215-212). S.Con.Res. 23 (without written report) was passed by the
Senate on March 26, 2002 (roll call no. 108, 56-44), before being substituted as an
amendment to H.Con.Res. 95. The conference report for H.Con.Res. 95, H.Rept.
108-71, was agreed to on April 11, 2003, by the House (roll call no. 141, 216-211)
and by the Senate (roll call no. 34, 51-50). For additional information, see CRS
Report RL31784, The Budget for Fiscal Year 2004.
FY2003 Wartime Supplemental, P.L. 108-11 (H.R. 1559)
Following the enactment into law on February 20, 2003, of final FY2003
omnibus appropriations, the Congress agreed to additional FY2003 appropriations
to meet various special wartime needs. From the total of $79 billion enacted, $3.9
billion was designated for DHS, according to the news release of the House
Committee on Appropriations of April 12, 2003. The House passed H.R. 1559
(H.Rept. 108-55) on April 3, 2003 (roll call no. 108, 414-12). The Senate amended
and passed H.R. 1559 in lieu of S. 762 (S.Rept. 108-33, agreed to by the Senate
April 3 by roll call no. 125, 93-0). The conference report, H.Rept. 108-76, was
agreed to by the House and the Senate on April 12, and signed into law by the
President on April 16, 2003, as P.L. 108-11, the Emergency Wartime Supplemental
Appropriations Act, 2003. For additional information, see CRS Report RL31829,
Supplemental Appropriations FY2003: Iraq Conflict, Afghanistan, Global War on
Terrorism, and Homeland Security.
FY2003 Omnibus Appropriations, P.L. 108-7 (H.J.Res. 2)
FY2003 funding for DHS activities was enacted prior to the transfer of any
activity from another federal agency to DHS. Of the 13 annual appropriations for
FY2003, eight included funding for programs or activities that were to be transferred
to DHS during FY2003. These include the following:

CRS-12
! Agriculture;
! Commerce, Justice, and State;
! Defense;
! Energy and Water Development;
! Labor, Health and Human Services, and Education;
! Transportation;
! Treasury, Postal Service, Executive Office of the President, and
General Government; and
! Veterans Affairs and Housing and Urban Development.
FY2003 Defense Appropriations were enacted separately, as P.L. 107-248 (October
23, 2002); the remaining seven bills were combined into an omnibus bill, H.J.Res. 2.
The conference report on the omnibus, H.Rept. 108-10, was passed on February 13,
2003, by the House (roll call no. 32, 338-83) and by the Senate (roll call no. 34,
76-20), and signed into law by the President on February 20, 2003, as P.L. 108-7, the
Consolidated Appropriations Resolution, 2003. For information on the FY2003
defense appropriations, see CRS Report RL31305, Authorization and Appropriations
for FY2003: Defense. For a guide to the omnibus bill, see CRS Report RS21433,
FY2003 Consolidated Appropriations Resolution: Reference Guide.
Department of Homeland Security, P.L. 107-296 (H.R. 5005)
On June 6, 2002, the President called for the creation of a Department of
Homeland Security to direct or coordinate federal activities related to domestic
defense against terrorism. The proposal would have combined 22 activities from
other federal agencies. Subsequently, Congress modified and enacted legislation; the
establishment of DHS became effective January 24, 2003 (60 days after enactment).
Overall, 30 programs and other activities are transferred from other agencies.
The President submitted the DHS proposal to Congress on June 18, 2002; it was
introduced as H.R. 5005 on June 24, 2002, by request, and referred to 12 Committees
plus the new House Select Committee on Homeland Security. The bill was amended
and reported, H.Rept. 107-609, Part I, by the House Select Committee on Homeland
Security July 24, 2002, and passed the House July 26, 2002, by a vote of 295 to 132
(roll call no. 367). A Senate bill to create a DHS, S. 2452, S.Rept. 107-175, was
reported by the Senate Committee Governmental Affairs on June 24, 2002; a revised
version of S. 2452 was ordered reported July 25, 2002. H.R. 5005 was amended and
passed the Senate on November 19, 2002, by a vote of 90 to 9 (roll call no. 249). The
House agreed to the Senate amendment by unanimous consent on November 22.
H.R. 5005 — the Homeland Security Act of 2002 — was signed into law by the
President November 25, 2002, as P.L. 107-296. For additional information, see CRS
Report RL31493, Homeland Security — Department Organization and Management:
Legislative Phase, and CRS Report RL31751, Homeland Security — Department
Organization and Management: Implementation Phase.

CRS-13
World Wide Web Sites
Web sites specific to homeland security include the following:
House Select Committee on Homeland Security
[http://hsc.house.gov/]
Congressional Research Service (CRS) Issues on Homeland Security
[http://www.crs.gov/products/browse/is-homelandsecurity.shtml]
Department of Homeland Security (DHS)
[http://www.dhs.gov/dhspublic/]
[http://www.dhs.gov/dhspublic/display?theme=12]
White House
[http://www.whitehouse.gov/homeland/]
[http://www.whitehouse.gov/news/releases/2003/10/20031001-7.html]
Web sites showing general budget and appropriations information include:
House Committees
[http://www.house.gov/appropriations]
[http://www.house.gov/budget/]
Senate Committees
[http://www.senate.gov/~appropriations/]
[http://www.senate.gov/~budget/]
Congressional Budget Office (CBO)
[http://www.cbo.gov]
Congressional Research Service (CRS)
[http://www.crs.gov/products/appropriations/apppage.shtml]
General Accounting Office (GAO)
[http://www.gao.gov/]
Government Printing Office (GPO)
[http://w3.access.gpo.gov/usbudget/index.html]
Office of Management & Budget (OMB)
[http://www.whitehouse.gov/omb/budget/index.html]
[http://www.whitehouse.gov/omb/legislative/sap/index.html

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