Requires the Secretary, acting through the Under Secretary, to evaluate and prioritize grant applications, considering factors such as threats to the population, specific economic sectors, major communications nodes and transportation systems, specific elements of the food supply, the water and energy supplies, civic infrastructure and emergency response capabilities, and specific structures of symbolic national importance.

Bars the use of grant funds to supplant State or local funds that would otherwise be available for homeland security or first responder projects.

Directs the Secretary to: (1) establish the Advisory Council on First Responders, which shall report to the Secretary through the head of the Office of State and Local Government Coordination; and (2) revise the Homeland Security Advisory System to require that any designation of a threat level or other warning be accompanied by a designation of the geographic regions and economic sectors to which it applies.

Directs the Under Secretary for Science and Technology to conduct a study of whether there is a need to assign additional bands of frequencies of electromagnetic spectrum to assist first responders.

Directs the Secretary to ensure that such capabilities meet specified objectives for specificity (with respect to the training, planning, personnel, and equipment that different types of communities should possess based on the most current risk assessment), flexibility (to allow State and local officials to set priorities based on particular needs, while reaching nationally determined terrorism preparedness levels), and measurability (of progress towards preparedness goals). Directs the Secretary to consider specifically the variables of threat, vulnerability, and consequences with respect to the Nation's population and critical infrastructure.

Directs the Secretary to establish the Task Force on Essential Capabilities for First Responders to report, every three years, recommendations for the essential capabilities that all State and local government first responders should have to enhance terrorism preparedness, including to: (1) prevent a terrorist attack; (2) protect persons and critical infrastructure against attack; and (3) enhance terrorism response and mitigation capabilities. Directs the Task Force to consider specifically the specified critical infrastructure sectors and the threats to populations in all areas of the Nation, including biological, nuclear, radiological, incendiary, chemical and cyber threats, explosives, suicide bombers, and any other threats based on proximity to specific past acts of terrorism or the known activity of any terrorist group.

Makes any State or region eligible to apply for a covered grant (i.e., any grant provided by the Department to improve the ability of first responders to prevent, prepare for, respond to, or mitigate threatened or actual terrorist attacks, including any grant under the State Homeland Security Grant Program or under the Urban Area Security Initiative). Directs the Secretary, in awarding such grants, to assist States and local governments in achieving the essential capabilities. Directs the Secretary to require that any State applying for a covered grant submit a three-year State homeland security plan. Requires the Secretary to establish a First Responder Grants Board to evaluate and annually prioritize all pending applications for covered grants based upon the degree to which they would lessen the threat to, vulnerability of, and consequences for persons and critical infrastructure.

Authorizes the use of grant funds for activities including: (1) the purchasing or upgrading of equipment to enhance terrorism preparedness and response; (2) training for preparedness for attacks involving weapons of mass destruction; (3) establishing or enhancing mechanisms for sharing terrorism threat information; (4) additional personnel costs resulting from elevations in the threat alert level; (5) educational curricula development for first responders; and (6) training and exercises for public elementary and secondary school programs to prepare for and respond to an act of terrorism. Lists prohibited uses of covered grant funds.

Provides the Secretary with certain flexibility in the use of unspent homeland security grant funds. Directs the Secretary to require a State recipient to make available to local governments, first responders, and other local groups not less than 80 percent of the grant funds and/or equivalent resources. Authorizes the Secretary to reduce or terminate payments to a State recipient that fails to pass through such funds or resources.

Directs the Secretary to support the development of, promulgate, and update as necessary national voluntary consensus standards for: (1) the performance, use, and validation of first responder equipment that focuses on maximizing interoperability, interchangeability, durability, flexibility, efficiency, efficacy, portability, sustainability, and safety; and (2) first responder training that will enable State and local government first responders to achieve optimal levels of terrorism preparedness as quickly as practicable.

(Sec. 4) Directs the Secretary to: (1) revise the Homeland Security Advisory System to require that any designation of a threat level or other warning specify the geographic regions or economic sectors to which the designation applies; and (2) report to Congress annually regarding the geographic region- and economic sector-specific warnings issued and the bases for such warnings.

(Sec. 5) Includes among the responsibilities of the Special Assistant to the Secretary coordinating industry efforts to identify private sector resources and capabilities that could be effective in supplementing Federal, State, and local government agency efforts to prevent or respond to a terrorist attack.

(Sec. 6) Provides that this Act supersedes provisions of the USA PATRIOT Act dealing with the grant program for State and local domestic preparedness support.

(Sec. 7) Expresses the sense of Congress that: (1) the development of interoperable emergency communications systems that meet national voluntary consensus standards for use by the first responder community is of national importance; and (2) individual Citizen Corps councils should seek to enhance the preparedness and response capabilities of all participating organizations, including by providing funding promote local terrorism preparedness programs.

(Sec. 9) Directs the Secretary to study study and report to Congress on whether it is cost-effective, efficient, or feasible to establish and implement an emergency telephonic alert notification system to alert persons of imminent or current hazardous events caused by acts of terrorism and provide information regarding appropriate measures to alleviate or minimize threats posed by such events.

(Sec. 10) Authorizes the appropriation of $3.4 billion for covered grants for FY 2006.

Directs the Secretary to ensure that essential capabilities are provided promptly to Congress and to the States (which shall make such capabilities available to local governments) and that such capabilities meet objectives for: (1) specificity regarding the training, planning, personnel, and equipment that different types of communities should have to meet DHS's goals for terrorism preparedness based upon the most current terrorism risk assessment available; (2) flexibility to allow State and local government officials to set priorities based on particular needs, while reaching nationally determined terrorism preparedness levels within a specified time period; and (3) measurability of progress towards specific terrorism preparedness goals.

Directs the Secretary, in establishing essential capabilities, to specifically consider the variables of threat, vulnerability, and consequences with respect to the Nation's population and critical infrastructure based upon the most current terrorism risk assessment available by the Directorate for Information Analysis and Infrastructure Protection. Directs the Secretary to specifically consider terrorism threats against the following U.S. critical infrastructure sectors: (1) agriculture; (2) banking and finance; (3) chemical industries; (4) the defense industrial base; (5) emergency services; (6) energy; (7) food; (8) government; (9) postal and shipping; (10) public health; (11) information and telecommunications networks; (12) transportation; and (13) water.

Makes any State or region eligible to apply for a covered grant. Directs the Secretary, in awarding covered grants, to assist States and local governments in achieving the essential capabilities for first responders.

Directs the Secretary to require that any State applying for a covered grant submit a three-year State homeland security plan that: (1) demonstrates the extent to which the State has achieved, and what is still needed for the State to achieve, the applicable essential capabilities; (2) includes a prioritization of such additional needs based on threat, vulnerability, and consequence assessment factors; (3) describes how the State intends to address such additional needs at the city, county, regional, State, and interstate level, with particular emphasis on regional planning and cooperation within its jurisdictional borders and with neighboring States; and (4) is developed in consultation with and subject to appropriate comment by local governments.

Prohibits the Secretary from awarding any covered grant to a State unless the Secretary has approved its homeland security plan. Directs the Secretary to ensure that each covered grant is used to supplement and support the State's homeland security plan.

Sets forth application requirements and deadlines and requirements regarding equipment standards.

Directs the Secretary to establish a First Responder Grants Board, consisting of: (1) the Secretary; (2) the Under Secretaries for Emergency Preparedness and Response, Border and Transportation Security; Information Analysis and Infrastructure Protection, and Science and Technology; and (3) the Director of the Office for Preparedness. Designates the Secretary as Chairman of the Board. Directs the Board to evaluate and annually prioritize all pending applications for covered grants based upon the degree to which they would lessen the threat to, vulnerability of, and consequences for persons and critical infrastructure.

Specifies uses of covered grants, including: (1) equipment and exercises to strengthen terrorism preparedness and response; (2) training for prevention, preparedness for, or response to attacks involving weapons of mass destruction; (3) response plans; (4) mechanisms for sharing terrorism threat information; (5) strategy formulation and strategic planning and prototype development for terrorism preparedness and response purposes; (6) additional personnel costs resulting from elevations in the Homeland Security Advisory System threat alert level; (7) enhancing facilities to serve as operations centers or hardening critical infrastructure against potential attack; (8) commercially available interoperable communications equipment best suited to facilitate coordination and integration among emergency communications systems; (9) educational curricula development for first responders; and (10) training and exercises to assist public elementary and secondary schools in developing and implementing terrorism response programs. Prohibits funds from being used: (1) to supplant State or local funds for traditional missions of State and local law enforcement, firefighters, emergency medical services, or public health agencies; (2) to construct buildings or other physical physical facilities; (3) to acquire land; or (4) for any State or local government cost-sharing contribution.

Prohibits the Secretary from requesting that equipment paid for with covered grant funds be made available for responding to emergencies in surrounding States, regions, and localities, unless the Secretary pays the costs of transporting and operating such equipment.

Allows the Secretary to authorize a covered grant recipient, upon request, to transfer grant funds from uses specified in the grant agreement to other uses authorized in this Act if such transfer is in the interests of homeland security.

Directs the Secretary to require a recipient that is a State to make available to local governments, first responders, and other local groups, to the extent required under the State homeland security plan, not less than 80 percent of the grant funds, equivalent resources purchased with the grant funds, or a combination thereof within 45 days after receiving the grant funds.

Limits the Federal share of the cost of an activity carried out with a covered grant to a State or region to 100 percent with respect to grants awarded within two years after this Act's enactment or 75 percent with respect to grants awarded thereafter. Allows each recipient to meet the matching requirement by making in-kind contributions of goods or services that are directly linked with the grant's purpose. Requires any State recipient to certify to the Secretary, within 30 days, that it has made the required amount of grant funds available to local governments, groups, and first responders.

Sets forth reporting requirements by recipients on homeland security spending, including for restricted annexes (for sensitive but unclassified information). Requires the Secretary to ensure that each report is provided to the Under Secretary for Emergency Preparedness and Response and the Director of the Office for Domestic Preparedness.

Authorizes the Secretary, if a State recipient fails to pass through funds or resources to local governments, groups, or first responders within 45 days after receiving grant funds, to: (1) reduce grant payments; (2) transfer payment of funds directly to local first responders; or (3) impose additional restrictions on the State's use of grant funds. Authorizes the Governor of a State to request and the Secretary to grant a 15-day extension of such 45-day period if the resulting delay will not have a significant detrimental impact on terrorism preparedness efforts. Authorizes the Secretary to pay a local government, upon request, a portion of the amount awarded to a State for such government to use to expedite planned terrorism preparedness enhancements if the State has failed to pass through funds or resources.

Requires the Secretary to submit an annual report to Congress by December 31 of each year on the amount of Federal funds provided as covered grants to each State and region, the use of such grant funds, and the extent to which essential capabilities were created or enhanced or remain unmet, and an estimate of Federal, State, and local expenditures required to attain such capabilities across the United States.

Directs the Secretary to support the development of, promulgate, and update national voluntary consensus standards for: (1) the performance, use, and validation of first responder equipment, which shall be consistent with existing standards, take into account new types of terrorism threats, and focus on maximizing interoperability, interchangeability, durability, flexibility, efficiency, efficacy, portability, sustainability, and safety; and (2) first responder training under covered grant programs that will enable State and local government first responders to achieve optimal levels of terrorism preparedness as quickly as practicable. Lists required categories of first responder equipment. Requires the Secretary to include the following categories of first responder activities: (1) regional planning; (2) joint exercises; (3) intelligence collection, analysis, and sharing; (4) emergency notification of affected populations; and (5) detection of biological, nuclear, radiological, and chemical weapons of mass destruction. Directs the Secretary, in establishing such training standards, to: (1) consult with relevant public and private sector groups, including the International Safety Equipment Association; and (2) coordinate with the Secretary of Health and Human Services regarding first responder equipment or training that involve or relate to public health professionals.

Amends the Homeland Security Act of 2002 to include within the definition of "emergency response providers" non-governmental, as well as governmental, personnel, agencies, and authorities.

(Sec. 4) Directs the Secretary to: (1) revise the Homeland Security Advisory System to require that any designation of a threat level or other warning indicate the geographic regions or economic sectors to which the designation applies; and (2) report to Congress by December 31 each year regarding the geographic region-specific warnings and economic sector-specific warnings issued under the System and the bases for such warnings.

(Sec. 5) Amends the Homeland Security Act to make the Special Assistant to the Secretary responsible for coordinating industry efforts with respect to DHS functions to identify private sector resources and capabilities that could be effective in supplementing Federal, State, and local government agency efforts to prevent or respond to a terrorist attack.

(Sec. 6) Provides that this Act supersedes provisions of the USA PATRIOT Act regarding the allocation of grant funds for State and local domestic preparedness support.

(Sec. 7) Expresses the sense of Congress that: (1) interoperable emergency communications systems and radios should be deployed as soon as practicable for use by the first responder community and upgraded and new digital communications systems and new digital radios must meet prevailing national voluntary consensus standards for interoperability; and (2) individual Citizen Corps councils should seek to enhance the preparedness and response capabilities of all organizations participating in the councils, including by providing funding to as many of their participating organizations as practicable to promote local terrorism preparedness programs.

(Sec. 9) Directs the Secretary to study and report to Congress on the feasibility of establishing an emergency telephonic alert notification system that will alert persons about imminent or current hazardous events caused by acts of terrorism and about appropriate measures to take for their safety.

(Sec. 10) Authorizes appropriations to the Secretary for FY 2006 for making covered grants. Allows such appropriations to also be used for the Metropolitan Medical Response System.

Directs the Secretary of Homeland Security, in coordination with the heads of other appropriate Federal agencies and in consultation with State and local governments, to develop a national domestic all-hazards preparedness goal by February 28, 2005, which shall: (1) establish measurable readiness priorities and targets that appropriately balance the potential threat and magnitude of major disasters and emergencies, including those caused by terrorist attacks, with the resources required to prevent, respond to, and recover from such disasters and emergencies; (2) include readiness metrics and measures, including standards for preparedness assessments and strategies, and a system for assessing the Nation's overall preparedness to respond to major disasters and emergencies; and (3) be consistent with the National Response Plan and National Incident Management System.

Requires Federal agencies to work to achieve the national preparedness goal by: (1) providing for effective, efficient, and timely delivery of Federal preparedness assistance to State and local governments; and (2) supporting efforts to ensure first responders are prepared to respond to major disasters and emergencies.

Directs the Secretary: (1) by February 28, 2005, to establish guidance that clearly defines the essential capabilities for State and local government preparedness for major disasters and emergencies; and (2) to ensure that the guidance is provided promptly to the States and to Congress. Requires the States to make the guidance available as necessary and appropriate to local governments.

Requires the Secretary to ensure that the guidance meets the following objectives: (1) specificity (describing the training, planning, personnel, and equipment that different types of communities in the Nation should possess, or to which they should have access, to meet the Department of Homeland Security's (DHS) national preparedness goals); (2) flexibility (sufficiently flexible to allow State and local government officials to set priorities based on particular needs, while achieving nationally determined preparedness levels within a specified period); and (3) measurability (designed to enable measurement of progress towards specific preparedness levels). Requires the Secretary to consider the variables of risk, threat, vulnerability, and consequences regarding the Nation's population (including transient commuting and tourist populations) and critical infrastructure.

Directs the Secretary to specifically consider risks to the following critical infrastructure sectors in all areas of the Nation: (1) agriculture; (2) banking and finance; (3) chemical industries; (4) the defense industrial base; (5) emergency services; (6) energy; (7) food; (8) government; (9) information and telecommunications networks; (10) postal and shipping; (11) public health; (12) transportation; and (13) water.

Requires the Secretary to promulgate and update national voluntary consensus standards for first responder equipment intended for use in the field. Requires such standards to: (1) support nationwide interoperability and other capabilities consistent with the national preparedness goal, including the safety and health of first responders; (2) be consistent with any existing voluntary consensus standards; (3) utilize technologies already certified by other U.S. departments and agencies; (4) take into account threats that may not have been contemplated when existing standards were developed; and (5) be focused on maximizing interoperability, interchangeability, durability, flexibility, efficiency, efficacy, portability, sustainability, and safety.

Directs the Secretary to consider the first responder equipment for: (1) thermal imaging; (2) radiation detection and analysis; (3) biological detection and analysis; (4) chemical detection and analysis; (5) decontamination and sterilization; (6) personal protection; (7) respiratory protection; (8) interoperable communications; (9) explosive mitigation, detection, and analysis; (10) containment vessels; and (11) contaminant-resistant vehicles. Requires the Secretary to promulgate initial standards by September 30, 2005.

Directs the Secretary to support the development of, promulgate, and regularly update national voluntary consensus standards for first responder training carried out with amounts provided under covered grant programs (i.e., the State Homeland Security Grant Program or the Urban Area Security Initiative of DHS or any successor programs) that will enable State and local government first responders to achieve optimal levels of preparedness as quickly as practicable. Directs that such standards give priority to providing training in those areas where the Secretary has identified significant need, including training to: (1) prevent, prepare for, respond to, and mitigate threats from chemical, biological, and radiological materials and explosive devices capable of inflicting significant human casualties; and (2) familiarize first responders with the proper use of equipment, including software, developed pursuant to the standards. Requires the Secretary to include the following categories of first responder activities: (1) regional planning; (2) joint exercises; (3) intelligence collection, analysis, and sharing; (4) emergency notification of affected populations; and (5) detection of biological, nuclear, radiological, and chemical weapons of mass destruction. Directs the Secretary to promulgate initial standards by September 30, 2005. Directs the Secretary, in establishing such training standards, to consult with relevant public and private sector groups.

Conditions the receipt of a covered grant after September 30, 2005, on the Secretary requiring that a State develop a statewide comprehensive all-hazards preparedness strategy that: (1) is consistent with the national preparedness goal and the State response plan; (2) demonstrates the extent to which the State has achieved, and the additional needs to achieve, essential capabilities; (3) includes a prioritization of such additional needs based on risk, threat, vulnerability, and applicable consequence assessment factors; (4) describes how the State intends to address such additional needs at the city, county, tribal, regional, State, and interstate level, how the State intends to use available Federal, State, and local resources, and how the State intends to give particular emphasis to regional planning and cooperation, including the activities of multi-jurisdictional planning agencies governed by local officials, both within its borders and with neighboring States; and (5) is developed in consultation with and subject to appropriate comment by local, regional, and tribal governments.

Provides that, beginning in FY 2006, any State shall be eligible to apply for a covered grant. Directs the Secretary, in awarding such grants, to carry out the national preparedness goal and assist State, tribal, and local governments in achieving essential capabilities for first responders in accordance with guidance developed under this Act.

Sets forth grant application requirements, including, at a minimum: (1) a statewide preparedness strategy approved by the Secretary; (2) descriptions of the purpose for which the State seeks covered grant funds, the reasons why the State needs the grant to meet the essential capabilities for preparedness, and how the allocation of grant funding proposed would assist in fulfilling the essential capabilities specified in the State's statewide preparedness strategy; (3) a statement of whether a mutual aid agreement applies to the use of all or any portion of the covered grant funds; (4) a capital budget showing how the State intends to allocate and expend the covered grant funds; and (5) a statement of how the State intends to meet any applicable matching requirement.

Sets forth provisions regarding consistency with State plans, equipment standards, and deadlines for awarding grants. Requires the Secretary to award to: (1) each State not less than .55 percent of the total amount made available for covered grants for a fiscal year; and (2) each of the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, not less than .18 percent of such amount. Directs the Secretary to prioritize applications, in allocating remaining amounts, based on the degree to which a grant to a State will: (1) lessen the risk, threat, vulnerability, and consequences of a major disaster or emergency; and (2) enhance or achieve the essential capabilities of first responders in the State in accordance with the guidance developed under this Act. Requires the Secretary to publish annually the basis on which funds are awarded.

Sets forth permissible uses of covered grants, including for: (1) purchasing specified commercially available equipment that complies with national voluntary consensus standards and that facilitates integration between emergency communications systems; (2) purchasing or upgrading equipment to enhance preparedness and response; (3) conducting exercises to strengthen preparedness and response; (4) training for prevention or detection of, preparedness for, or response to attacks involving weapons of mass destruction; (5) developing or updating response plans; (6) establishing or enhancing mechanisms for sharing terrorism threat information; and (7) paying additional personnel costs resulting from elevations in the threat alert level of the Homeland Security Advisory System.

Prohibits the use of funds provided under a covered grant: (1) to supplant, State, tribal, or local funds; (2) to construct buildings or other physical facilities, with an exception; (3) to acquire land; or (4) for any State, tribal, or local government cost-sharing contribution. Prohibits the Secretary from requesting that equipment paid for with funds provided under a covered grant be made available for responding to emergencies in surrounding States, reservations and tribal lands regions, and localities unless the Secretary undertakes to pay the costs directly attributable to transporting and operating such equipment.

Allows the Secretary to authorize the State, upon request, to transfer all or part of funds provided from uses specified in the grant agreement to other uses authorized under this Act in furtherance of the statewide preparedness strategy.

Directs the Secretary to require a State to make available to tribal and local governments, first responders, and other local groups, to the extent required under the statewide preparedness strategy specified in the grant application, not less than 80 percent of the grant funds or purchased resources not later than 60 days afterreceipt. Sets forth requirements regarding certifications of distribution of grant funds to local governments.

Sets forth reporting requirements regarding: (1) preparedness spending; and (2) the Federal cost share (limited to 75 percent for an activity carried out with a covered grant to a State awarded after two years, but 100 percent for such activity within the two-year period, except for construction or enhancement of facilities for emergency operations centers). Sets forth restrictions on existing programs. Authorizes appropriations.

Directs the Secretary to ensure that there is effective and ongoing coordination of Federal preparedness and response efforts for major disasters and emergencies among the divisions of DHS, including the Emergency Preparedness and Response Directorate and the Office of State and Local Government Preparedness and Coordination. Sets forth annual reporting requirements on the Nation's level of preparedness, including State capabilities, the readiness of Federal civil response assets, and the utilization of mutual-aid agreements.

(Sec. 5) Amends the Homeland Security Act of 2002 to require the Secretary of DHS to require that any threat level or other warning be accompanied by a designation of the geographic regions or economic sectors to which the warning applies. Directs the Secretary to report to Congress annually by December 31 each year regarding the geographic region-specific and economic sector-specific warnings issued during the preceding fiscal year under the System. Directs that the report be submitted in unclassified form but permits inclusion of a classified annex.

(Sec. 6) Provides for coordination of industry efforts to identify private sector resources and capabilities that could be effective in supplementing Federal, State, and local government agency efforts to prevent or respond to a terrorist attack.

(Sec. 7) Expresses the sense of Congress that: (1) it is of national importance that interoperable emergency communications systems that meet national voluntary consensus standards be developed and promulgated as soon as practicable for use by the first responder community; and (2) Citizen Corps councils should seek to enhance the preparedness and response capabilities of all organizations participating in the councils, including by providing funding to as many of their participating organizations as practicable to promote local terrorism preparedness programs.

(Sec. 9) Directs the Secretary of DHS to conduct a study to determine whether it is cost-effective, efficient, or feasible to establish and implement an emergency telephonic alert notification system that will: (1) alert persons in the United States of imminent or current hazardous events caused by acts of terrorism; and (2) provide information to individuals regarding appropriate measures that may be undertaken.

(Sec. 10) Expresses the sense of Congress that for purposes of emergency planning: (1) lack of sufficient bandwidth can have detrimental consequences for State and local governments during times of crisis; (2) such governments should understand how communication networks will perform in emergencies by analyzing the experience of end users; and (3) such governments should look into expanding bandwidth efficiency by using cost effective means such as incorporating bandwidth allocation tools into their networks to ensure proper communication is available during times of crisis.

Defines "directly eligible tribe" to mean any Indian tribe or consortium of tribes that: (1) meets the criteria to participate in self-governance set forth in the Indian Self-Determination and Education Assistance Act; (2) employs at least ten full-time personnel in a law enforcement or emergency response agency with the capacity to respond to calls for law enforcement or emergency services; and (3) is located on or within five miles of an international border or waterway, within five miles of a facility within a critical infrastructure sector, or within or contiguous to one of the 50 largest metropolitan statistical areas, or has more than 1,000 square miles of Indian country.

Directs the Secretary to ensure that essential capabilities are provided promptly to Congress and to the States (which shall make such capabilities available to local governments) and that such capabilities meet objectives for: (1) specificity regarding the training, planning, personnel, and equipment that different types of communities should have to meet DHS's goals for terrorism preparedness based upon the most current terrorism risk assessment available; (2) flexibility to allow State and local government officials to set priorities based on particular needs, while reaching nationally determined terrorism preparedness levels within a specified period; and (3) measurability of progress towards specific terrorism preparedness goals.

Directs the Secretary, in establishing essential capabilities, to specifically consider the variables of threat, vulnerability, and consequences with respect to the Nation's population and critical infrastructure based upon the most current terrorism risk assessment available by the Directorate for Information Analysis and Infrasturcture Protection. Directs the Secretary to specifically consider terrorism threats against the following U.S. critical infrastructure sectors: (1) agriculture; (2) banking and finance; (3) chemical industries; (4) the defense industrial base; (5) emergency services; (6) energy; (7) food; (8) government; (9) postal and shipping; (10) public health; (11) information and telecommunications networks; (12) transportation; (13) water; and (14) courts and justice facilities.

Directs the Secretary to establish the Task Force on Essential Capabilities for First Responders. Requires the Task Force to submit to the Secretary triennial reports on essential capabilities of State and local government responders regarding terrorism preparedness, prevention, protection, response, and mitigation. Directs the Task Force to specifically consider critical infrastructure sectors and threats, including: (1) biological, nuclear, radiological, incendiary, chemical, and cyber threats; (2) explosives; (3) suicide bombers; and (4) any other threats based on proximity to specific past acts of terrorism or the known activity of any terrorist group.

Makes any State, region, or directly eligible tribe eligible to apply for a covered grant. Directs the Secretary, in awarding covered grants, to assist States and local governments in achieving the essential capabilities for first responders. Directs that for purposes of awarding covered grants, credibility of the threat shall be weighted more than population concentration, critical infrastructure, or any other consideration.

Directs the Secretary to require that any State applying for a covered grant submit a three-year State homeland security plan that: (1) demonstrates the extent to which the State has achieved, and what is still needed for the State to achieve, the applicable essential capabilities; (2) describes the extent to which the State used a specified methodology to evaluate the level of its essential capabilities; (3) includes a prioritization of such additional needs based on threat, vulnerability, and consequence assessment factors; (4) describes how the State intends to address such additional needs at the city, county, regional, State, and interstate level (and with respect to any Indian tribes within its boundaries), with particular emphasis on regional planning and cooperation within its jurisdictional borders and with neighboring States; and (5) is developed in consultation with and subject to appropriate comment by local governments.

Prohibits the Secretary from awarding any covered grant to a State unless the Secretary has approved its homeland security plan. Directs the Secretary to ensure that each covered grant is used to supplement and support the applicable State's homeland security plan.

Sets forth application requirements and deadlines and requirements regarding equipment standards. Limits the Secretary to making covered grants directly to not more than 20 directly eligible tribes per fiscal year.

Directs the Secretary to establish a First Responder Grants Board, consisting of: (1) the Secretary; (2) the Under Secretaries for Emergency Preparedness and Response, Border and Transportation Security, Information Analysis and Infrastructure Protection, and Science and Technology; and (6) the Director of the Office for Preparedness. Designates the Secretary as Chairman of the Board. Directs the Board to evaluate and annually prioritize all pending applications for covered grants based upon the degree to which they would lessen the threat to, vulnerability of, and consequences for persons and critical infrastructure, and to ensure that, for each fiscal year: (1) the States, the District of Columbia, and the Commonwealth of Puerto Rico each receive no less than .25 percent of the funds available for covered grants for implementing its homeland security plan in accordance with the prioritization of additional needs; (2) the U.S. Virgin Islands, American Samoa, Guam, and the Northern Mariana Islands each receive no less than .08 percent of the funds available for covered grants for such purposes; and (3) directly eligible tribes collectively receive no less than .25 percent of the funds available for covered grants for purposes of addressing needs identified in their applications, consistent with the homeland security plan of each State within which any part of any such tribe is located.

Specified used of covered grants, including: (1) equipment and exercises to strengthen terrorism preparedness and response; (2) training for prevention of, preparedness for, or response to attacks involving weapons of mass destruction; (3) response plans; (4) mechanisms for sharing terrorism threat information; (5) strategy formulation and strategic planning and prototype development for terrorism preparedness and response purposes; (6) additional personnel costs resulting from elevations in the Homeland Security Advisory System threat alert level; (7) enhancing facilities to serve as operations centers or hardening critical infrastructure against potential attack; (8) commercially available equipment that facilitates coordination and integration between emergency communications systems; (9) educational curricula development for first responders; and (10) training and exercises to assist public elementary and secondary schools in developing and implementing terrorism response programs. Prohibits funds from being used: (1) to supplant State or local funds for traditional missions of State and local law enforcement, firefighters, emergency medical services, or public health agencies; (2) to construct buildings or other physical physical facilities; (3) to acquire land; or (4) for any State or local government cost-sharing contribution.

Prohibits the Secretary from requesting that equipment paid for with covered grant funds be made available for responding to emergencies in surrounding States, regions, and localities, unless the Secretary pays the costs of transporting and operating such equipment.

Allows the Secretary to authorize a covered grant recipient, upon request, transfer grant funds from uses specified in the grant agreement to other uses authorized in this Act if such transfer is in the interests of homeland security.

Directs the Secretary to require a recipient that is a State to make available to local governments, first responders, and other local groups, to the extent required under the State homeland security plan, not less than 80 percent of the grant funds, equivalent resources purchased with the grant funds, or a combination thereof within 45 days after receiving the grant funds.

Limits the Federal share of the cost of an activity carried out with a covered grant to a State or region to 100 percent with respect to grants awarded within two years after this Act's enactment or 75 percent with respect to grants awarded thereafter. Allows each recipient to meet the matching requirement by making in-kind contributions of goods or services that are directly linked with the grant's purpose. Requires any State recipient to certify to the Secretary, within 30 days, that it has made the required amount of grant funds available to local governments, groups, and first responders.

Sets forth annual reporting requirements by recipients on homeland security spending, including restricted annexes (for sensitive but unclassified information). Requires: (1) each recipient of a covered grant that is a directly eligible tribe to simultaneously submit its report to each State within which any part of such tribe is located; and (2) the Secretary to ensure that each report is provided to the Under Secretary for Emergency Preparedness and Response and the Director of the Office for Domestic Preparedness.

Authorizes the Secretary, if a State recipient fails to pass through funds or resources to local governments, groups, or first responders within 45 days after receiving grant funds, to: (1) reduce grant payments; (2) transfer payment of funds directly to local first responders; or (3) impose additional restrictions on the State's use of grant funds. Authorizes the Governor of a State to request and the Secretary to grant a 15-day extension of such 45-day period if the resulting delay will not have a significant detrimental impact on terrorism preparedness efforts. Authorizes the Secretary to pay a local government, upon request, a portion of the amount awarded to a State for such government to use to expedite planned terrorism preparedness enhancements if the State has failed to pass through funds or resources.

Requires the Secretary to submit an annual report to Congress by December 31 of each year on the amount of Federal funds provided as covered grants to each State and region, the use of such grant funds, and the extent to which essential capabilities were created or enhanced or remain unmet, and an estimate of Federal, State, and local expenditures required to attain such capabilities across the United States.

Directs the Secretary to support the development of, promulgate, and update national voluntary consensus standards for: (1) the performance, use, and validation of first responder equipment, which shall be consistent with existing standards, take into account new types of terrorism threats, and focus on maximizing interoperability, interchangeability, durability, flexibility, efficiency, efficacy, portability, sustainability, and safety; and (2) first responder training under covered grant programs that will enable State and local government first responders to achieve optimal levels of terrorism preparedness as quickly as practicable. Lists required categories of first responder equipment. Requires the Secretary to include the following categories of first responder activities: (1) regional planning; (2) joint exercises; (3) intelligence collection, analysis, and sharing; (4) emergency notification of affected populations; and (5) detection of biological, nuclear, radiological, and chemical weapons of mass destruction. Directs the Secretary, in establishing such training standards, to consult with relevant public and private sector groups, including the International Safety Equipment Association.

Includes within the definition of "emergency response providers" fire personnel, agencies, and authorities.

(Sec. 4) Directs the Secretary to: (1) revise the Homeland Security Advisory System to require that any designation of a threat level or other warning indicate the geographic regions or economic sectors to which the designation applies; and (2) report to Congress by December 31 each year regarding the geographic region-specific warnings and economic sector-specific warnings issued under the System and the bases for such warnings.

(Sec. 5) Amends the Homeland Security Act to make the Special Assistant to the Secretary responsible for coordinating industry efforts, with respect to DHS functions, to identify private sector resources and capabilities that could be effective in supplementing Federal, State, and local government agency efforts to prevent or respond to a terrorist attack.

(Sec. 6) Provides that this Act supersedes provisions of the USA PATRIOT Act regarding the allocation of grant funds for State and local domestic preparedness support.

(Sec. 7) Expresses the sense of Congress that: (1) interoperable emergency communications systems and radios should be deployed as soon as practicable for use by the first responder community, and upgraded and new digital communications systems and new digital radios must meet prevailing national, voluntary consensus standards for interoperability; and (2) individual Citizen Corps councils should seek to enhance the preparedness and response capabilities of all organizations participating in the councils, including by providing funding to as many of their participating organizations as practicable to promote local terrorism preparedness programs.

(Sec. 9) Directs the Secretary to study and report to Congress on the feasibility of establishing an emergency telephonic alert notification system that will alert persons about imminent or current hazardous events caused by acts of terrorism and appropriate measures to take for their safety.

(Sec. 10) Authorizes appropriations to the Secretary for FY 2006 for making covered grants.

(Sec. 11) Authorizes the Secretary to: (1) enter into contracts with certified contractors for security enhancements and technical assistance for high-risk nonprofit organizations; and (2) issue Federal loan guarantees to financial institutions in connection with loans made to nonprofits for security enhancements and technical assistance. Permits the Secretary to guarantee loans under this section only to the extent provided for in advance by appropriations Acts and only to the extent such loans have favorable repayment terms.

Directs the Secretary to designate nonprofits as high-risk eligible for contracts or loans based on the vulnerability of the specific site of the nonprofit to international terrorist attacks. Sets guidelines for vulnerability determinations, including the symbolic value of the site as a highly recognized U.S. cultural or historical institution that renders the site a possible target of international terrorism or the role of the nonprofit in responding to international terrorist attacks. Requires the nonprofit to provide the Secretary with documentation that it: (1) hosted a gathering of at least 100 or more persons at least once each month at the nonprofit site during the preceding 12 months; or (2) provides services to at least 500 persons each year at that site.

Allows funds borrowed from lending institutions, which are guaranteed by the Government, to be used for technical assistance and security enhancements. Requires a nonprofit desiring assistance to submit a separate application for each specific site needing security enhancements or technical assistance. Authorizes joint applications.

Allows each State to establish a State Homeland Security Authority to carry out this section. Sets forth requirements regarding application submission, evaluation, and appeal.

Directs the Secretary to select applications for execution of security enhancement and technical assistance contracts, or issuance of loan guarantees, giving preference to the nonprofits determined to be at greatest risk of attack.

Authorizes the Secretary to provide grants to local governments to offset incremental costs associated with law enforcement in areas where there is a high concentration of nonprofits.

Establishes within DHS the Office of Community Relations and Civic Affairs to: (1) administer grant programs for nonprofits and local law enforcement assistance; (2) coordinate community relations efforts of DHS; (3) serve as the official liaison of the Secretary to the nonprofit, human and social services, and faith-based communities; and (4) assist in coordinating the needs of those communities with the Citizen Corps program.

Authorizes appropriations for FY 2005 through 2007 to DHS: (1) to carry out the nonprofit program; (2) for local law enforcement assistance grants; (3) for the Office of Community Relations and Civic Affairs; and (4) for amounts required under the Federal Credit Act with respect to Federal loan guarantees authorized by this Act, subject to a specified limitation.