    [Analytical Perspectives]
    [Crosscutting Programs]
    [3. Homeland Security Funding Analysis]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 25]]

                      3. HOMELAND SECURITY FUNDING ANALYSIS

      Since the terrorist attacks of September 11, 2001, America has engaged
    in a broad, determined effort to thwart terrorism. The Administration
    has worked with the Congress to enact landmark legislation to reorganize
    the Federal Government, improve intelligence capabilities, acquire
    countermeasures to biological weapons, enhance security at our airports,
    seaports, land borders and local communities, and strengthen America's
    preparedness and response capabilities. Every level of government, the
    private sector, and individual citizens contribute to homeland
    security--the concerted national effort to prevent terrorist attacks
    within the United States, reduce America's vulnerability to terrorism,
    and minimize the damage from attacks that may occur. Since September
    11th, homeland security has become a major policy focus for all levels
    of government, and one of the President's highest priorities.
      To examine homeland security as a crosscutting Government-wide
    function, section 889 of the Homeland Security Act of 2002 requires a
    homeland security funding analysis to be incorporated in the President's
    Budget. This analysis addresses that legal requirement. It covers the
    homeland security funding and activities of all Federal agencies, not
    only those carried out by the Department of Homeland Security (DHS), and
    discusses State, local, and private sector expenditures. In addition,
    not all activities carried out by DHS constitute homeland security
    funding (e.g., Coast Guard search and rescue activities), so DHS
    estimates in this section do not represent the entire DHS budget.

                              Federal Expenditures

      The Federal spending estimates in this analysis utilize funding and
    programmatic information collected on the Executive Branch's homeland
    security efforts \1\. Throughout the budget formulation process, the
    Office of Management and Budget (OMB) collects three-year funding
    estimates and associated programmatic information from all Federal
    agencies with homeland security responsibilities. These estimates do not
    include programs or funding within the Legislative or Judicial branches.
    Information in this chapter is augmented by a detailed appendix of
    account-level funding estimates, which is available on the Analytical
    Perspectives CD ROM.
    ---------------------------------------------------------------------------
      \1\ All data in the Federal expenditures section are based on the
    President's policy for the 2005 Budget. Additional policy and baseline
    data is presented in the ``Additional Tables'' section and on the
    Analytical Perspectives CD ROM. Data in this section may not add to
    totals in other Budget volumes due to rounding.
    ---------------------------------------------------------------------------
      To compile these data, agencies report information using standardized
    definitions for homeland security. The data provided by the agencies are
    developed at the ``activity level,'' which is a set of like programs or
    projects that make up a coherent effort, at a level of detail sufficient
    to analyze governmental spending on homeland security. Agencies further
    categorize their funding data based on the critical mission areas
    defined in the National Strategy for Homeland Security: intelligence and
    warning, border and transportation security, domestic counterterrorism,
    protecting critical infrastructures and key assets, defending against
    catastrophic threats, and emergency preparedness and response. In all
    tables, classified funding for the Intelligence Community is combined
    with the Department of Defense and titled ``Department of Defense.''
      To the extent possible, this analysis maintains programmatic and
    funding consistency with previous estimates. Some discrepancies from
    data reported in earlier years arise due to agencies' improved ability
    to extract terrorism-related activities from host programs and refine
    their characterizations. In addition, the Administration may refine
    definitions or mission area estimates over time based on additional
    analysis or changes in the way specific activities are characterized,
    aggregated, or disaggregated. Activities in many of the mission areas
    are closely related. For example, information gleaned from activities in
    the intelligence and warning category may be utilized to inform law
    enforcement activities in the domestic counterterrorism category.
    Augmentation of pharmaceutical stockpiles, categorized as emergency
    preparedness and response, may address agents that represent
    catastrophic threats.

    [[Page 26]]

                                     Table 3-1.  HOMELAND SECURITY FUNDING BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture..................................        299.9        110.0         326.6        651.1
    Department of Commerce.....................................        111.6  ............        131.2        150.1
    Department of Defense......................................      8,442.0  ............      7,024.0      8,023.1
    Department of Education....................................          5.7  ............          8.0          7.7
    Department of Energy.......................................      1,246.9        161.3       1,362.5      1,496.9
    Department of Health and Human Services....................      4,002.4        142.0       4,109.0      4,276.1
    Department of Homeland Security............................     18,652.4      4,411.0   \1\ 23,492.     27,214.5
                                                                                                      3
    Department of Housing and Urban Development................          1.6  ............          1.8          1.8
    Department of the Interior.................................         47.4          7.3          67.2         49.3
    Department of Justice......................................      1,892.5        456.9   \1\ 2,165.8      2,581.1
    Department of Labor........................................         69.4  ............         52.4         68.6
    Department of State........................................        632.7          1.4         701.3        954.8
    Department of Transportation...............................        382.8  ............        283.5        242.6
    Department of the Treasury.................................         80.0  ............         90.4         87.1
    Department of Veterans Affairs.............................        154.3  ............        271.3        297.0
    Corps of Engineers.........................................         36.0         39.0         103.4         84.0
    Environmental Protection Agency............................        132.9  ............        123.3         97.4
    Executive Office of the President..........................         41.0  ............         35.0         35.0
    General Services Administration............................         67.1  ............         78.9         79.5
    National Aeronautics and Space Administration..............        205.0  ............        191.0        207.0
    National Science Foundation................................        284.6  ............        327.9        343.6
    Office of Personnel Management.............................          3.0  ............          3.0          3.0
    Social Security Administration.............................        132.0  ............        143.4        155.0
    District of Columbia.......................................         25.0  ............         19.0         15.0
    Federal Communications Commission..........................          1.0  ............          1.0  ...........
    Intelligence Community Management Account..................  ...........  ............          1.0         72.4
    National Archives and Records Administration...............         10.1  ............         12.0         14.6
    Nuclear Regulatory Commission..............................         47.0  ............         66.8         57.0
    Securities and Exchange Commission.........................          5.0  ............          5.0          5.0
    Smithsonian Institution....................................         82.8  ............         78.3         76.0
    United States Holocaust Memorial Museum....................          8.0  ............          8.0          8.0
    Corporation for National and Community Service.............         16.3  ............         22.8         31.6
                                                                ----------------------------------------------------
    Total, Homeland Security Budget Authority..................     37,118.2      5,329.0      41,307.1     47,385.7

      Less Department of Defense...............................     -8,442.0  ............     -7,024.0     -8,023.1
      Less BioShield...........................................  ...........  ............       -885.0     -2,528.0
                                                                ----------------------------------------------------
    Non-Def. Homeland Security BA excluding BioShield..........     28,676.2      5,329.0      33,398.1     36,834.6

      Less Fee-Funded Homeland Security Programs...............     -3,414.4        705.0      -3,655.1     -4,080.5
      Less Mandatory Homeland Security Programs................     -1,759.4  ............     -1,948.0     -2,261.4

                                                                ----------------------------------------------------
    Net Non-Def. Disc. Homeland Security BA excluding BioShield     23,502.4      6,034.0      27,795.0     30,492.7
                                                                ----------------------------------------------------
    Obligation Limitations
      Department of Transportation Obligation Limitation.......        567.0  ............        139.6         92.9
    ----------------------------------------------------------------------------------------------------------------
    \1\ 2004 Enacted does not include $91 million for Coast Guard and $16 million for FBI enacted as part of the FY
      2004 Iraq supplemental.

      Total funding for homeland security has grown significantly since the
    attacks of September 11, 2001. For 2005, the President's Budget includes
    $47.4 billion for homeland security activities, a $6.1 billion (15
    percent) increase over the 2004 level. This is $26.8 billion, or 130
    percent, over the government's funding level for 2002. Excluding
    mandatory and fee funding, DOD, and DHS' Project Bioshield, the 2005
    Budget provides an increase of $2.7 billion (9.7 percent) over the 2004
    level. A total of 32 Federal agencies include homeland security funding.
    Of those, five agencies--the Departments of Homeland Security (DHS),
    Defense (DOD), Health and Human Services (HHS), Justice (DOJ) and Energy
    (DOE)--account for approximately 92 percent of total Government-wide
    homeland security funding in 2005.
      The growth in Federal homeland security funding is indicative of the
    robust efforts that have been initiated to secure our Nation. However,
    it should be recognized that fully developing the strategic capacity to
    protect America into the future is a complex effort. There is a wide
    range of potential threats and risks to the Nation. To optimize the use
    of limited resources and minimize the potential social costs to our free
    and open society, homeland security activities should be prioritized
    based on the highest threats and risks. Homeland security represents a
    partnership among the Federal Government, State and local governments,
    the private sector, and individual citizens.
      The National Strategy for Homeland Security provides a framework for
    addressing these challenges. It

    [[Page 27]]

    guides the highest priority requirements for securing the Nation. As
    demonstrated below, the Federal Government has used the National
    Strategy to guide its homeland security efforts. However, the National
    Strategy is not static; it represents a dynamic effort to measure
    progress. In some cases, progress may be easily measured. In others,
    Federal agencies, along with State and local governments and the private
    sector, are working together to develop measurable goals. Finally, in
    some areas, Federal agencies and partners must work to develop a better
    understanding of risks and threats--the biological agents most likely to
    be used by a terrorist group, the highest-risk and consequence critical
    infrastructure targets--in order to develop benchmarks. The following
    table summarizes funding levels by the National Strategy's mission
    areas; more detailed analysis is provided in subsequent mission-specific
    sections.

                         Table 3-2.  HOMELAND SECURITY FUNDING BY NATIONAL STRATEGY MISSION AREA
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Intelligence and Warning...................................        125.1         86.0         268.7        474.1
    Border and Transportation Security.........................     15,170.8      1,859.0      15,322.5     17,074.6
    Domestic Counterterrorism..................................      2,509.2        522.6       2,994.1      3,419.8
    Protecting Critical Infrastructure and Key Assets..........     12,893.1        388.3      12,571.0     14,060.0
    Defending Against Catastrophic Threats.....................      2,428.4        201.1       2,827.2      3,358.2
    Emergency Preparedness and Response........................      3,873.2      2,272.0       7,132.5      8,802.4
    Other......................................................        118.3  ............        191.1        196.5
                                                                ----------------------------------------------------
      Total, Homeland Security Budget Authority................     37,118.2      5,329.0      41,307.1     47,385.7
    ----------------------------------------------------------------------------------------------------------------

    National Strategy Mission Area: Intelligence and Warning

                                      Table 3-3.  INTELLIGENCE AND WARNING FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture..................................          0.8  ............          0.8         19.8
    Department of Homeland Security............................         86.3  ............        239.9        290.3
    Department of Justice......................................         35.7         86.0          24.5         91.1
    Department of the Treasury.................................          2.3  ............          2.5          0.6
    Intelligence Community Management Account..................  ...........  ............          1.0         72.4
                                                                ----------------------------------------------------
      Total, Intelligence and Warning..........................        125.1         86.0         268.7        474.1
    ----------------------------------------------------------------------------------------------------------------

      The intelligence and warning mission area covers activities to detect
    terrorist threats and disseminate terrorist-threat information. The
    category includes intelligence collection, risk analysis, and threat-
    vulnerability integration activities for preventing terrorist attacks.
    It also includes information sharing activities among Federal, State,
    and local governments, relevant private sector entities (particularly
    custodians of critical infrastructure), and the public at large. It does
    not include most foreign intelligence collection, although this
    intelligence may inform homeland security activities. In 2005, the bulk
    of the funding for intelligence and warning is in DHS (61 percent in
    2005), primarily in the Information Analysis and Infrastructure
    Protection (IAIP) Directorate and the Secret Service. Other large
    contributors are DOJ (19 percent in 2005), primarily in the Federal
    Bureau of Investigation (FBI), and the Intelligence Community (15
    percent in 2005), for the Terrorist Threat Integration Center (TTIC).
      The major requirements addressed in the intelligence and warning
    mission area include:
        Unifying and enhancing the Government's intelligence and
              analytical capabilities to ensure officials have the
              information they need to preempt attacks.
        Implementing the Homeland Security Advisory System to allow
              Federal, State, local, and private authorities to take action
              to prevent attacks and protect potential targets.
      The Administration is addressing these homeland security requirements
    through a variety of efforts. Over the past year, significant steps have
    been taken to enhance coordination of information collection and
    analysis. The multi-agency TTIC, the Terrorist Screening Center (TSC),
    and DHS' IAIP Directorate were established. These new units are
    improving information sharing among agencies and reducing potential gaps

    [[Page 28]]

    in intelligence. They were explicitly established as ``hubs'' to receive
    and share threat information with multiple Federal agencies and other
    entities. A further example of intelligence coordination is the
    Memorandum of Agreement signed by the Secretary of Homeland Security,
    the Attorney General, and the Director of Central Intelligence to
    improve the flow of homeland security information between their
    agencies.
      Announced by the President in the 2003 State of the Union, the multi-
    agency TTIC commenced operations on May 1st, 2003. TTIC's interagency
    staff fully integrates terrorist threat-related information and
    analysis, and seeks to break down information ``stovepipes'' that have
    hindered intelligence efforts in the past. TTIC is co-located with
    counterterrorism elements from the Central Intelligence Agency and FBI
    to further improve communication and analysis.
      To complement the TTIC, the Administration initiated the TSC, which
    began operations in December 2003. The TSC was formed to consolidate
    Government watch lists and provide operational support for thousands of
    Federal screeners across the country and around the world by making this
    consolidated information accessible to Federal, State and local
    agencies. Information provided by TSC will allow Government
    investigators, screeners and agents to act quickly when a suspected
    terrorist is screened or stopped. The TSC works closely with the TTIC to
    ensure that the single, consolidated list of terrorist suspects is
    accurate and regularly updated.
      Enhancing the FBI's analytical capability has been a major priority to
    improve the Government's overall ability to deter, detect, and prevent
    terrorist attacks. The FBI has created an Office of Intelligence to
    establish intelligence requirements and coordinate information
    collection and sharing. The President's Budget requests $29 million for
    this new office.
      IAIP was established as part of DHS to fill a new and unique role:
    mapping threat information against our nation's vulnerabilities, and
    working with the Federal, State, and local government officials and
    private sector custodians of critical infrastructure to mitigate those
    vulnerabilities. Over the past year, the IAIP has made considerable
    strides by working with its partners within the intelligence community
    to become a focal point for integrating and disseminating operational
    and situational awareness information. For example, IAIP is partnering
    with homeland security directors of States and territories to establish
    joint regional information exchange systems using DHS' Homeland Security
    Operations Center. IAIP is working to not only eliminate barriers to
    information sharing but also create avenues to share information to its
    partners on specific threats, vulnerabilities, and responses to the
    threat.
      In addition, IAIP is responsible for operating the Homeland Security
    Advisory System (HSAS), which communicates threat alerts to the general
    public and government entities. IAIP is working to refine the warning
    system. For 2005, the President requests $10 million for the HSAS. The
    Federal Government is working to link other agency warning systems to
    the HSAS and to other public and private sector alert networks. DHS has
    been leading efforts to harmonize Federal systems, such as the National
    Oceanic and Atmospheric Administration's all-hazards and weather radio
    system in the Department of Commerce, and has been working with State,
    local, and private sector entities to link systems, speed notification
    processes, and allow for more targeted warnings

    National Strategy Mission Area: Border and Transportation Security

                                 Table 3-4.  BORDER AND TRANSPORTATION SECURITY FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture..................................        143.2  ............        163.1        169.2
    Department of Homeland Security............................     14,169.2      1,859.0      14,403.2     15,943.4
    Department of Justice......................................         25.4  ............         20.1         24.4
    Department of State........................................        591.8  ............        668.9        919.0
    Department of Transportation...............................        241.3  ............         67.2         18.6
                                                                ----------------------------------------------------
      Total, Border and Transportation Security................     15,170.8      1,859.0      15,322.5     17,074.6
    ----------------------------------------------------------------------------------------------------------------

      This mission area covers activities to protect border and
    transportation systems, such as screening airport passengers, detecting
    dangerous materials at ports overseas and at U.S. ports-of-entry, and
    patrolling our coasts and the land between ports-of-entry. The majority
    of funding in this mission area ($15.9 billion, or 93 percent, in 2005)
    is in DHS, largely for the U.S. Customs and Border Protection (CBP), the
    Transportation Security Administration (TSA), and the Coast Guard. Other
    DHS bureaus and other Departments, such as State and Agriculture, also
    play significant roles as well. The President's 2005 request would
    increase funding for border and transportation security activities by 11
    percent over the 2004 level.
      Securing our borders and transportation systems is a complex task. The
    Administration's ``Smart Border'' initiative targets resources toward
    the highest risks and threats while facilitating the legitimate flow of
    commerce. This is cornerstone of an effective border and transportation
    security strategy. The creation of DHS, which unified the Federal
    Government's major border and transportation security resources,
    facilitates the integration of risk targeting systems and ensures
    greater accountability in border and transportation security.

    [[Page 29]]

     Rather than having separate systems for managing the flow of goods,
    people, and agricultural products, one agency is now accountable for
    ensuring there is one cohesive border management system.
      In the area of aviation security, the Federal Government has
    implemented the Aviation and Transportation Security Act of 2001. While
    intelligence suggests that aviation remains a preferred instrument of
    terrorism, Federal actions have bolstered the Nation's defenses. The
    Federal Government funded the installation of reinforced, blast-
    resistant cockpit doors on all large commercial passenger aircraft. More
    than 7,000 screening devices have been installed in all 429 commercial
    airports. Screeners have been replaced or retrained at all airport
    checkpoints and all passengers on U.S. aircraft are pre-screened against
    terrorism watch lists. Aircraft and airport access controls have been
    tightened for all U.S. airports, and the Government is working with
    other nations to improve aviation security. DHS also recently
    implemented new air cargo security requirements so that high risk cargo
    may not be carried on passenger aircraft. The 2005 Budget supports
    substantial new investments in aviation security, including an increase
    of nearly $900 million increase over 2004 for TSA. This funding will
    help ensure strong screening system performance through more training,
    improved technology, and explosive detection system replacement at high
    volume airports. In addition, $60 million is provided to DHS to continue
    accelerated development of improved technologies to counter the threat
    of portable anti-aircraft missiles. The Budget also supports a
    regulatory enforcement program in CBP and TSA to ensure that the air
    cargo industry is complying with the higher security standards, and
    invests in research and development for better cargo screening
    technologies.
      The security of our seaports is no less critical, since terrorists may
    seek to use them to enter the country or introduce weapons or other
    dangerous materials. With 95 percent of all U.S. cargo passing through
    the Nation's 361 ports, a terrorist attack on a seaport could be
    economically devastating. The Maritime Transportation Security Act
    (MTSA) and its implementing regulations, issued by DHS in October 2003,
    require certain ports, vessels, and facilities to conduct security
    assessments. DHS will establish security standards for certain vessels
    and facilities, and require them to adopt security plans based on their
    assessments.
      The 2005 Budget provides nearly $2 billion for port security,
    including $1.7 billion for Coast Guard activities such as Maritime
    Safety and Security Teams and Sea Marshals and nearly $50 million for
    port security grants. This includes over $100 million in new funding for
    the Coast Guard to develop and approve security plans, ensure foreign
    vessels arriving in the U.S. are in compliance with the new
    international port security standards, and enhance its intelligence and
    surveillance capabilities.
      CBP is responsible for inspecting travelers at ports of entry for
    immigration, customs, and agriculture compliance, as well as
    interdicting illegal crossers between ports of entry. DHS streamlined
    border operations by merging inspection forces formerly maintained by
    the Departments of the Treasury, Justice, and Agriculture. CBP also
    includes the Border Patrol, formerly maintained by the Department of
    Justice. The merging of the agencies responsible for ensuring that all
    goods and persons entering and exiting the United States do so legally
    has improved accountability by leveraging all of our border security
    assets; creating a clear chain of command; and allowing for a
    comprehensive, cohesive border security strategy.
      To secure our borders while also maintaining openness to travel and
    trade, CBP utilizes a risk-based, layered security approach. Overall
    funding for CBP homeland security activities in 2005 would increase by
    almost $200 million over the 2004 enacted level, with enhancements
    supporting additional inspectors at ports-of-entry, additional Border
    Patrol agents, inspection equipment, enhancements to tracking and
    targeting databases, and information technology upgrades. Further,
    through its Container Security Initiative (CSI), CBP has addressed an
    area of identified risk--the security of international shipping
    containers. CSI aims to push our borders outward by screening cargo
    containers at foreign ports before the containers are placed on ships
    bound for the United States. The 2005 Budget provides $25 million in new
    funding for CSI. Another focus for CBP is new and improved inspection
    equipment. Nearly $300 million has been directed for this endeavor since
    September 11th. The new equipment affords inspectors the ability to
    examine a larger percentage of containers more easily than in the past.
    The 2005 Budget provides over $100 million to CBP for such equipment,
    including $50 million in funding to defend against radiological and
    nuclear threats by deploying next-generation radiation detection
    technologies. Additionally, CBP will continue deployments of current
    Non-Intrusive Inspection technologies to expand radiation detection
    capability across our borders.
      Another important element of a smart border strategy is managing the
    pre-entry, entry, stay, and departure of visitors. To do so, the 2005
    Budget requests $340 million in DHS' Border and Transportation Security
    Directorate to continue implementation of U.S. VISIT, an entry-exit
    control system to record the arrivals and departures of travelers. This
    program will provide specific information about who is entering the
    country and who is staying past their period of authorized admission.
      To ensure effective detention and removal of illegal aliens present in
    the U.S., the 2005 Budget also supports a nearly $100-million increase
    for the Detention and Removal Program. This includes funding to expand
    the program to apprehend alien fugitives and to increase efforts to
    ensure that aliens convicted of crimes in the U.S. are deported directly
    from correctional institutions after their time is served.

    [[Page 30]]

    National Strategy Mission Area: Domestic Counterterrorism

                                       Table 3-5.  DOMESTIC COUNTERRORISM FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Homeland Security............................      1,012.6        171.7       1,246.2      1,410.1
    Department of Justice......................................      1,455.0        350.8       1,677.7      1,938.3
    Department of Transportation...............................          1.0  ............         21.0         21.0
    Department of the Treasury.................................         40.6  ............         45.2         46.0
    Social Security Administration.............................  ...........  ............          4.0          4.4
                                                                ----------------------------------------------------
      Total, Domestic Counterterrorism.........................      2,509.2        522.6       2,994.1      3,419.8
    ----------------------------------------------------------------------------------------------------------------

      Funding in the domestic counterterrorism mission area covers Federal
    and Federally-supported efforts to identify, thwart, and prosecute
    terrorists in the United States. The Department of Justice (largely for
    the FBI) and DHS (largely for U.S. Immigration and Customs Enforcement,
    or ICE) are the largest contributors to the domestic counterterrorism
    mission, accounting for $1.9 billion (57 percent) and $1.4 billion (41
    percent) in funding for 2005, respectively. The President's 2005 request
    would increase funding for domestic counterterrorism activities by 14
    percent over the 2004 level.
      Since the attacks of September 11th, preventing and interdicting
    terrorist activity within the United States has become a priority for
    law enforcement at all levels of government. The major requirements
    addressed in the intelligence and warning mission area include:
        Developing a proactive law enforcement capability to prevent
              terrorist attacks.
        Apprehending potential terrorists.
        Improving law enforcement cooperation and information
              sharing to enhance domestic counterterrorism efforts across
              all levels of government.
      The FBI has transformed its focus into to one dedicated to preventing
    terrorist attacks. In a series of measures to support this
    transformation, resources have been shifted from lower priority
    programs; analytical capability has been enhanced; additional field
    investigators have been hired; and headquarters oversight and management
    of terrorism cases has been strengthened. Overall, FBI resources in the
    domestic counterterrorism category have increased from $0.9 billion in
    2003 to $1.3 billion in 2005, with the 2005 Budget providing an increase
    of approximately $300 million over the 2004 level. This increase will
    support a range of activities, such as counterterorism investigations
    and countering cyber crime.
      By merging existing immigration and customs enforcement functions into
    ICE, the Department of Homeland Security created one of America's most
    robust law enforcement agencies. The Nation is better prepared to
    apprehend potential terrorists because the information and resources to
    identify and investigate illegal activities, such as smuggling, identity
    theft, money laundering, and trafficking in dangerous materials are
    combined. The 2005 Budget provides an increase of $160 million over the
    2004 level for these enforcement activities.
      Cooperation among law enforcement agencies assumes its most tangible
    operational form in the Joint Terrorism Task Forces (JTTFs) that are
    currently established in 66 cities. These task forces are devised to
    prevent and investigate terrorism. They combine the national and
    international investigative resources of the FBI and other Federal
    agencies with the street-level expertise of local law enforcement
    agencies. This ``cop-to-cop'' cooperation has proved successful in
    disrupting terrorist activity. The 2005 Budget provides funding to
    support 18 additional JTTFs.

    [[Page 31]]

    National Strategy Mission Area: Protecting Critical Infrastructure and
    Key Assets

                          Table 3-6.  PROTECTING CRITICAL INFRASTRUCTURE AND KEY ASSETS FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture..................................         60.5  ............         86.5        166.0
    Department of Defense......................................      8,124.0  ............      6,543.8      7,550.7
    Department of Energy.......................................      1,126.0         77.3       1,254.9      1,397.7
    Department of Health and Human Services....................        182.3  ............        164.6        173.8
    Department of Homeland Security............................      1,739.7        250.3       2,413.1      2,558.2
    Department of Justice......................................        341.8         13.0         413.4        484.0
    Department of Transportation...............................        128.0  ............        180.1        189.0
    National Aeronautics and Space Administration..............        205.0  ............        191.0        207.0
    National Science Foundation................................        257.6  ............        300.9        316.6
    Social Security Administration.............................        132.0  ............        139.4        150.6
    Other Agencies.............................................        596.3         47.7         883.4        866.4
                                                                ----------------------------------------------------
      Total, Protecting Critical Infrastructure and Key Assets.     12,893.1        388.3      12,571.0     14,060.0
    ----------------------------------------------------------------------------------------------------------------

      Funding in the protecting critical infrastructure and key assets
    mission area captures the efforts of the U.S. Government to secure the
    Nation's infrastructure, including information infrastructure, from
    terrorist attacks. Protecting the Nation's key assets is a complex
    challenge because more than 85 percent are not Federally-owned. DOD
    reports the largest share of funding in this category for 2005 ($7.6
    billion, or 54 percent, in 2005), and includes programs focusing on
    physical security and improving the military's ability to prevent or
    mitigate the consequences of attacks against soldiers and bases. DHS has
    overall responsibility for prioritizing and executing infrastructure
    protection activities at a national level and accounts for $2.6 billion
    (18 percent) of 2005 funding. A total of 26 other agencies report
    funding to protect their own assets and to work with States, localities,
    and the private sector to reduce vulnerabilities in their areas of
    expertise. The President's 2005 request increases funding for activities
    to protect critical infrastructure and key assets by $1.5 billion (12
    percent) over the 2004 level, of which $1 billion is for DOD.
      Securing America's critical infrastructure and key assets is a
    complicated task. The major requirements include:
        Unifying disparate efforts to protect critical
              infrastructure across the Federal Government, and with State,
              local, and private stakeholders.
        Building and maintaining a complete and accurate assessment
              of America's critical infrastructure and key assets and
              prioritizing protective action based on risk.
        Enabling effective partnerships to protect critical
              infrastructure.
        Reducing threats and vulnerabilities in cyberspace.
      The IAIP Directorate, as part of DHS, is responsible for prioritizing
    and addressing these requirements at a national level. One of the first
    tasks undertaken by IAIP involved cataloguing critical infrastructure
    and key assets of national-level importance. IAIP leverages tactical
    intelligence with a risk-based strategy that identifies critical
    infrastructures in the targeted areas that might be affected by a
    terrorist incident, works to understand the vulnerabilities of that
    infrastructure, and recommends protective measures. In addition, IAIP
    trains State and local officials to improve security in the areas
    surrounding up to 1,000 key infrastructures sites per year. The FY 2005
    Budget provides $287 million for the broad range of IAIP's
    infrastructure protection activities.
      Cyberspace security is a key element of infrastructure protection
    because the internet and other computer systems link many infrastructure
    sectors. The consequences of a cyber attack could cascade across the
    economy, imperiling public safety and national security. In response,
    DHS has established the National Cyber Security Division (NCSD) to
    identify, analyze and reduce cyber threats and vulnerabilities,
    coordinate incident response, and provide technical assistance. Since
    its formal establishment in 2003, NCSD has worked with the private
    sector to improve security of the Nation's information infrastructure.
    For example, it coordinated the response and mitigation of the Blaster
    worm and SoBig virus. $80 million is requested for the NCSD in 2005.
      Even with the creation of IAIP, the Government continues to utilize
    the infrastructure protection efforts of other Federal agencies to
    ensure the delivery of essential goods and services and maintain public
    safety and security. A number of agencies rely on specialized expertise
    and long-standing relationships with industry to assist them.
      Sector-specific agencies outside of DHS are pursuing infrastructure
    protection efforts. The Department of Energy is coordinating protection
    activities within the energy sector as any prolonged interruption of
    energy supply--be it electricity, natural gas, or oil products--could be
    devastating to the Nation. The Department of Trans

    [[Page 32]]

    portation is working with local transit agencies to test and deploy
    integrated intrusion detection technologies in tunnels and open track
    areas in cities with major transit systems. The Department of
    Agriculture (USDA) is protecting agricultural resources, a source of
    essential commodities, through research and testing programs.
      To maintain public safety and security, the Environmental Protection
    Agency (EPA) and DHS are working with the chemical industry to enhance
    measures in place to ensure the safety of facilities and to prevent
    accidental releases. Companies representing more than 90 percent of
    chemical production have adopted a comprehensive security code that
    includes mandatory inspections. EPA has also provided grants and
    technical support to help drinking water systems complete vulnerability
    assessments. To protect Federal facilities that could be exploited by
    terrorists, the Army Corps of Engineers is addressing identified
    vulnerabilities at its highest-priority dams. To protect the Nation's
    nuclear weapons complex, as well as nuclear weapons and their components
    while in transit between facilities, the Department of Energy has
    revised its assumptions of threats and requirements. The 2005 Budget
    includes a $166-million increase to address additional security.
      A major component of ensuring public safety and security is protecting
    Federal employees and Federally-owned, leased, or occupied buildings
    from terrorist attack. The largest share of funding in this area is for
    DOD ($7.6 billion for 2005). This includes programs focusing on physical
    security and improving the military's ability to prevent or mitigate the
    consequences of attacks against soldiers and bases.

    National Strategy Mission Area: Defending Against Catastrophic Threats

                                   Table 3-7.  DEFENDING CATASTROPHIC THREATS FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture..................................         44.6        110.0          20.8        227.0
    Department of Commerce.....................................         63.9  ............         60.0         69.5
    Department of Defense......................................        105.0  ............        146.8        161.3
    Department of Energy.......................................  ...........         84.0   ...........  ...........
    Department of Health and Human Services....................      1,664.4  ............      1,754.5      1,930.3
    Department of Homeland Security............................        491.0  ............        774.0        886.0
    Department of Justice......................................         23.6          7.1          27.9         41.0
    National Science Foundation................................         27.0  ............         27.0         27.0
    Nuclear Regulatory Commission..............................          8.9  ............         16.2         16.1
                                                                ----------------------------------------------------
      Total, Defending Against Catastrophic Threats............      2,428.4        201.1       2,827.2      3,358.2
    ----------------------------------------------------------------------------------------------------------------

      The defending against catastrophic threats mission area covers
    activities to research, develop, and deploy technologies, systems, and
    medical measures to detect and counter the threat of chemical,
    biological, radiological, and nuclear (CBRN) weapons. The agencies with
    the most significant resources in this category are HHS ($1.9 billion,
    or 57 percent, of the 2005 total), largely for research in the National
    Institutes of Health, and in DHS' Directorate of Science and Technology
    (S&T) ($0.9 billion, or 26 percent, of the 2005 total), to help develop
    and field technologies to counter CBRN threats. The President's 2005
    request would increase funding for activities defending against
    catastrophic threats by 19 percent over the 2004 level.
      The major requirements addressed in this mission area include:
        Developing countermeasures, including broad spectrum
              vaccines, antimicrobials, and antidotes.
        Preventing terrorist use of CBRN weapons through detection
              systems and procedures.
      A key element in addressing these requirements as a whole is
    developing and maintaining adequate countermeasures for a CBRN attack.
    This not only means stockpiling those countermeasures that are currently
    available, but developing new countermeasures for agents that currently
    have none, and next-generation countermeasures that are safer and more
    effective than those that presently exist. Also, unlike an attack with
    conventional weapons, an attack with many CBRN weapons may not be
    immediately apparent. Working to ensure earlier detection and
    characterization of an attack is another way to protect and save lives.
      The Federal Government is addressing these requirements. Primarily
    through the National Institutes of Health, HHS has conducted a research
    and development to develop next-generation diagnostics, vaccines and
    therapeutics to identify, prevent and treat the diseases caused by
    biological agents of terror. The 2005 Budget continues this effort by
    investing $1.7 billion, an increase of $128 million over 2004 and $1.4
    billion over level prior to September 11th, including funding for a new
    program to focus on countermeasures against the threat of radiological
    and nuclear weapons. These investments have yielded results. For
    example, in November of 2003, NIH began the first human trial of vaccine
    designed to prevent Ebola infection. When proven effective, this vaccine
    will provide a life-saving advance in countries where the disease occurs
    naturally, and a medical tool to discourage and counteract the use of
    Ebola virus as an agent of bioterrorism. DHS' Project BioShield,
    categorized as emergency prepared

    [[Page 33]]

    ness and response because it will be utilized to augment pharmaceutical
    stockpiles, will also spur the development new biological
    countermeasures.
      In order to decrease the gap in time between a bioterrorist attack and
    the implementation of Federal, State, and local response protocols, the
    2005 Budget includes a $274-million biosurveillance initiative. The
    initiative will help to build a comprehensive detection architecture by
    augmenting and integrating existing surveillance in the areas of human
    health, food supply, agriculture, and environmental monitoring, and then
    integrating those elements with each other and with other terrorist-
    threat information in real time. Improvements to these surveillance
    capabilities will be supported by investing an additional $130 million
    for HHS' Centers for Disease Control and Prevention, an additional $15
    million for HHS' Food and Drug Administration and the Department of
    Agriculture, and a total of $118 million for DHS S&T in 2005. The Budget
    also provides $11 million for the IAIP Directorate to integrate this
    information.
      As part of the Biosurveillance Initiative, the BioWatch program in
    DHS' S&T Directorate will be expanded. BioWatch continuously monitors
    the air for biological agents that might be released by terrorists. The
    2005 Budget provides an additional $47 million to expand the program by
    adding scores of detectors in the top high-threat cities and at high-
    value targets such as stadiums and transit systems. To facilitate
    enhancements in the system, the budget provides $31 million in new
    funding for DHS to develop the next-generation of biological sensors,
    new detection systems at critical food nodes, and a model to enable
    better synthesis of biological incident data when assessing the extent
    of an actual attack.
      USDA, HHS, and DHS will also work together to improve the inputs into
    the biosurveillance system and protect the safety of the Nation's food
    and agriculture systems from terrorist attacks. This effort spans across
    mission area categories, including efforts to detect catastrophic
    agents, improve warning systems, better protect the food and agriculture
    sectors from these threats on a regular basis, and, when necessary,
    implement response protocols. The 2005 Budget includes an increase of
    $357 million to expand laboratory capacity, conduct research, and
    improve surveillance of the food and agriculture supply. This funding
    will support the complete renovation and modernization of the national
    animal disease and diagnostic facility at Ames, Iowa. In addition, $15
    million from the Biosurveillance initiative is specifically dedicated to
    improving food and agriculture surveillance.

    National Strategy Mission Area: Emergency Preparedness and Response

                                 Table 3-8.  EMERGENCY PREPAREDNESS AND RESPONSE FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Energy.......................................        120.9  ............        107.6         99.2
    Department of Health and Human Services....................      2,155.7        142.0       2,189.8      2,172.0
    Department of Homeland Security............................      1,126.0      2,130.0       4,268.0      5,965.5
    Other Agencies.............................................        470.6  ............        567.0        565.8
                                                                ----------------------------------------------------
      Total, Emergency Preparedness and Response...............      3,873.2      2,272.0       7,132.5      8,802.4

      Less BioShield...........................................  ...........  ............       -885.0     -2,528.0
                                                                ----------------------------------------------------
      Total, Emergency Preparedness and Response excluding           3,873.2      2,272.0       6,247.5      6,274.4
       BioShield...............................................
    ----------------------------------------------------------------------------------------------------------------

      The Emergency Preparedness and Response mission area covers agency
    efforts to prepare for and minimize the damage from major incidents and
    disasters, particularly terrorist attacks that would endanger lives and
    property or disrupt government operations. The mission area encompasses
    a broad range of agency incident management activities, as well as
    grants and other assistance to States and localities for similar
    purposes. DHS maintains the largest share of funding in this category
    ($5.9 billion, or 68 percent, for 2005), mostly for preparedness grant
    assistance to State and local first responders and Project BioShield.
    HHS, the second largest contributor ($2.2 billion, or 25 percent, in
    2005), also assists to States and localities to upgrade their public
    health capacity. A total of 18 other agencies include emergency
    preparedness and response funding. A number maintain specialized
    response assets that may be called upon in select circumstances. In the
    President's 2005 Budget, funding for emergency preparedness and response
    activities would increase by $1.7 billion (23 percent) over the 2004
    level.
      Major requirements addressed in the emergency preparedness and
    response mission area include:
        Integrating separate Federal response plans into a single
              all-discipline incident management plan.
        Establishing measurable goals for national preparedness and
              ensuring that federal funding supports these goals
        Ensuring that Federal programs to train and equip States and
              localities are coordinated and complementary.

    [[Page 34]]

        Encouraging standardization and interoperability of first
              responder equipment, especially for communications.
        Building a national training, exercise, evaluation system.
        Creating a national incident management system.
        Preparing health care providers for catastrophic terrorism.
        Augmenting America's pharmaceutical and vaccine stockpiles.
      Many of the key elements of the national emergency response system are
    already in place. However, we must ensure that the investments made
    since September 11th to enhance Federal, State and local preparedness
    capabilities have actually resulted in a higher level of preparedness.
    Key elements in doing so are identifying capability gaps, establishing
    national preparedness goals, and improving response and recovery efforts
    at all levels of government. A related challenge is ensuring that
    investments in State and local preparedness are focused on new response
    capabilities for major events, and not supplanting normal operating
    expenses. DHS is leading an interagency effort to better match federal
    resources with achieving national preparedness goals.
      From 2001 through 2004, the Federal Government has allocated $13.4
    billion in State and local terrorism preparedness grant funding from the
    Departments of Homeland Security, Health and Human Services, and
    Justice, increasing spending from an annual level of approximately $300
    million in 2001 to $5.0 billion in the 2005 request. The funding growth
    has been directed to Federal assistance for State and local preparedness
    and response activities, including equipping and training first
    responders and preparing the public health infrastructure for a range of
    terrorist threats. The Federal Government has also taken steps to
    rationalize and simplify the distribution of State and local assistance.
    For example, DHS now maintains a website that contains information on
    homeland security and public safety grant opportunities offered by DHS
    and other agencies across the Federal Government. In addition, DHS'
    Project SAFECOM has established consistent technical criteria for
    Federally-funded communications equipment, and is developing a strategic
    plan to encourage progress on standardizing equipment and protocols.
      In 2004, DHS will complete a National Response Plan and begin to
    implement a comprehensive National Incident Management System. By the
    end of 2004, over 500,000 first responders will have received terrorism
    preparedness and response training through the Departments of Justice
    and Homeland Security. Over 480 terrorism preparedness exercises will
    have been conducted, including the largest preparedness exercise in
    American history (TOPOFF II). The 2005 Budget continues to provide
    coordinated terrorism preparedness training and equipment for State and
    local responders across the various responder agencies. The 2005 request
    includes $3.6 billion for terrorism preparedness grants, training, and
    exercises administered by the Office for Domestic Preparedness within
    DHS. DHS will also administer a new, $20 million program for planning
    and exercises associated with medical surge capabilities. Of this
    amount, $5 million is for planning and $15 million is for two pilot
    projects to evaluate fixed and mobile medical surge facilities
    capabilities.
      In addition, the Budget includes $2.5 billion, $1.6 billion over the
    2004 level, for Project BioShield. BioShield is designed to stimulate
    the development of the next generation of countermeasures by allowing
    the Federal Government to buy critically needed vaccines and medications
    for biodefense as soon as experts agree they are safe and effective
    enough to be added to the Strategic National Stockpile. This program
    provides an incentive to manufacture these countermeasures. BioShield is
    a shared responsibility, joining the intelligence capabilities of DHS
    with the medical expertise of HHS.
      To take full advantage of that medical expertise, the Budget proposes
    to transfer funding for the Stockpile to HHS. The Budget includes $400
    million to maintain and augment this supply of vaccines and other
    countermeasures that can be made available within 12 hours in the event
    of a terrorist attack or other public health emergency. The Budget also
    includes flexible authority to increase funding to augment the supply of
    antibiotics to protect the public against exposure to anthrax. HHS has
    the lead role in preparing public health providers for catastrophic
    terrorism. For 2005, HHS will provide $476 million to continue
    improvements for hospital infrastructure and mutual aid through the
    Health Resources and Services Administration (HRSA), and $829 million
    for States through the Centers for Disease Control and Prevention (CDC)
    for upgrades to State and local public health capacity. This investment
    will bring the total assistance provided by HHS to States, local
    governments and health care providers since 2001 to $5.8 billion.

                            Non-Federal Expenditures

      Since September 11th, State and local governments and the private
    sector have also devoted extensive resources to the task of defending
    against terrorist threats. Some spending represents one-time costs;
    other spending is likely to be ongoing. In their roles as first
    responders, States and localities have hired more personnel, increased
    overtime for police, firefighters, and other emergency personnel,
    purchased new security equipment, activated and upgraded emergency
    operations centers, and invested in security-focused training.
      In the private sector, firms have devoted more resources to enhance
    security and ensure the continuity of operations in the event of an
    attack. Private sector spending has focused on strengthening information
    systems, reinforcing security and protection, improving surveillance,
    and establishing and improving backup systems and inventory management
    so that activities can be maintained in the event of a major disruption
    of normal operations.

    [[Page 35]]

      In order to estimate expenditures for homeland security activities by
    State and local governments and the private sector for the prior fiscal
    year and the current fiscal year, a number of methodological issues need
    to be addressed. Unlike the Federal Government, many State and local
    governments and private sector firms do not have budget systems that
    uniformly separate homeland security spending from other spending. Even
    when homeland security spending is tracked at the level of individual
    governmental units or firms, there is no organized data collection
    system for aggregating spending and for estimating spending for entities
    that do not collect homeland security data. This leads to a number of
    concerns with State, local, and private sector estimates that have been
    developed for, or are related to, homeland security:
        Entities that have reported estimates may not have used a
              uniform definition of homeland security activities. For
              example, private firms have difficulty separating expenditures
              primarily motivated by the threat of terrorism from other
              security expenses, and State and local governments may not
              have separated general public safety costs from activities
              more clearly motivated by the threat of terrorism, such as
              purchases of bullet proof vests versus specialized training
              for incidents involving weapons of mass destruction.
              Furthermore, the large number of Federal, State, local, and
              private entities that perform homeland security activities
              makes it difficult to collect estimates and ensure uniformity.

        Funding estimates may not have been categorized in a uniform
              way. For example, it is unclear whether certain estimates have
              reflected amounts budgeted versus amounts expended, or that
              certain estimates have been normalized to conform to a uniform
              fiscal year.

        Expenditures for homeland security may be double-counted.
              For example, the ramp-up in State and local expenditures since
              September 11th may be attributed to the increase in Federal
              grant funding for homeland security activities (see discussion
              below). The same applies to funding transfers among States and
              counties or cities. Although some estimates have attempted to
              control for this, uniform estimates that differentiate between
              where funding originated versus where it is ultimately
              expended are not available at this time. The possibility that
              fiscal substitution may have occurred--that one governmental
              entity lowered what it planned to spend based on anticipated
              funds from another source--is also a problem.

        Many of the homeland security spending estimates generated
              since September 11th focus exclusively on increases, without
              accounting for pre-existing activities. A valid comparison
              must capture these historical costs in a logical way. For
              example, while public safety spending related to terrorism may
              have increased, it is problematic to assert that there were no
              homeland security activities at the State and local level
              before September 11th. Conversely, not all State and local and
              local public safety spending since that date may be attributed
              to homeland security. Furthermore, because some homeland
              security expenditures may be one-time costs or costs that
              occur infrequently (e.g., purchasing additional security
              cameras), some of the expenditures that occurred in the wake
              of September 11th may be one-time or infrequent costs.

      Given these issues, it is not surprising that there is a wide range of
    plausible estimates of non-Federal homeland security spending.
      Two private consulting firms have published estimates based on
    responses to surveys they conducted of a sample of States, localities,
    and private-sector firms. The estimates are shown in the table below.
    The wide range between the low and high estimates developed by Deloitte
    Consulting, and the wider range between those estimates and the
    estimates developed by International Horizons Unlimited attests to the
    difficulty of accurately estimating non-Federal homeland security
    spending.

    [[Page 36]]

      The estimates by International Horizons Unlimited are on a Federal
    fiscal year basis. The Deloitte Consulting estimates are on a fiscal
    year basis appropriate to the reporting entity. For States and
    localities, the fiscal year most often, but not always, begins July 1;
    for corporations, there are several common starting dates for fiscal
    years, including July 1, October 1, and January 1. For State and local
    spending, both sets of estimates attempted, as best as possible, to
    remove spending that was funded by Federal grants to avoid any double
    counting of spending that was reported by the Federal Government.
    Federal grants to States and localities for homeland security activities
    totaled $5.2 billion in FY 2003 and are estimated to be $5.5 billion in
    2004.
      The Administration will work closely with other public and private
    entities in the coming year to improve estimates of homeland security
    spending for inclusion in the 2006 Budget.

       Table 3-9.  ESTIMATES OF NON-FEDERAL HOMELAND SECURITY EXPENDITURES
                   (funding estimates, in billions of dollars)
    ------------------------------------------------------------------------
                                                        2003         2004
    ------------------------------------------------------------------------
    States and localities
    International Horizons Unlimited..............          6.5          7.5
    Deloitte Consulting...........................      14.6 to    around 15
                                                           29.2

    Private Sector
    International Horizons Unlimited..............          4.5          4.8
    Deloitte Consulting...........................      45.9 to    around 46
                                                           76.5

    ------------------------------------------------------------------------
    Sources: ``The Homeland Security Market,'' Aviation Week/Deloitte
      Consulting, June 2002

                                Additional Tables

      The tables in the Federal expenditures section above present data
    based on the President's policy for the 2005 Budget. The tables below
    present additional policy and baseline data, as directed by the Homeland
    Security Act of 2002.

                               Estimates by Agency

                      Table 3-10.  DISCRETIONARY FEE-FUNDED HOMELAND SECURITY ACTIVITIES BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Energy.......................................          1.2  ............          1.2          1.2
    Department of Homeland Security............................      2,571.0       -705.0       2,701.0      2,875.0
    Department of Labor........................................          4.0  ............         14.9         16.1
    Department of State........................................        591.8  ............        649.0        898.0
    General Services Administration............................         61.5  ............         72.8         73.2
    Social Security Administration.............................        132.0  ............        143.4        155.0
    Federal Communications Commission..........................          1.0  ............          1.0  ...........
    Nuclear Regulatory Commission..............................         47.0  ............         66.8         57.0
    Securities and Exchange Commission.........................          5.0  ............          5.0          5.0
                                                                ----------------------------------------------------
      Total, Discretionary Homeland Security Fee-Funded              3,414.4       -705.0       3,655.1      4,080.5
       Activities..............................................
    ----------------------------------------------------------------------------------------------------------------

    [[Page 37]]

                               Table 3-11.  MANDATORY HOMELAND SECURITY FUNDING BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                     2003         2003          2004         2005
                               Agency                              Enacted    Supplemental    Enacted      Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture..................................        119.0  ............        133.0        140.0
    Department of Commerce.....................................          9.5  ............          9.5         10.8
    Department of Energy.......................................         10.0  ............         11.0         11.0
    Department of Health and Human Services....................         13.6  ............         13.7         14.6
    Department of Homeland Security............................      1,603.6  ............      1,777.6      2,082.4
    Department of Labor........................................          3.7  ............          3.2          2.6
                                                                ----------------------------------------------------
      Total, Homeland Security Mandatory Programs..............      1,759.4  ............      1,948.0      2,261.4
    ----------------------------------------------------------------------------------------------------------------

                       Table 3-12.  BASELINE ESTIMATES--TOTAL HOMELAND SECURITY FUNDING BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                      Baseline
                       Agency                         2004    ------------------------------------------------------
                                                  Enacted \1\     2005       2006       2007       2008       2009
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture...................         326         336        315        324        334        345
    Department of Commerce......................         131         135        141        142        149        152
    Department of Defense.......................       7,025       7,221      7,425      7,646      7,883      8,131
    Department of Education.....................           8           8          8          8          8          9
    Department of Energy........................       1,362       1,380      1,388      1,411      1,439      1,468
    Department of Health and Human Services.....       4,108       4,169      4,241      4,320      4,409      4,503
    Department of Homeland Security \2\.........      23,492      25,946     23,892     24,449     25,059     27,878
    Department of Housing and Urban Development.           2           2          2          2          2          3
    Department of the Interior..................          66          66         69         70         74         74
    Department of Justice.......................       2,166       2,229      2,296      2,368      2,444      2,527
    Department of Labor.........................          53          53         50         52         53         55
    Department of State.........................         702         710        722        734        748        763
    Department of Transportation................         285         292        302        311        320        331
    Department of the Treasury..................          91          93         95        100        104        106
    Department of Veterans Affairs..............         271         275        280        285        290        297
    Corps of Engineers..........................         103         104        106        108        110        112
    Environmental Protection Agency.............         123         124        125        130        133        135
    Executive Office of the President...........          35          35         36         37         37         38
    General Services Administration.............          79          79         82         82         83         86
    National Aeronautics and Space                       191         193        196        199        204        208
     Administration.............................
    National Science Foundation.................         327         331        336        342        348        355
    Office of Personnel Management..............           3           3          3          3          3          3
    Social Security Administration..............         139         141        143        145        148        151
    District of Columbia........................          19          19         19         20         21         21
    Federal Communications Commission...........           2           2          2          2          2          2
    Intelligence Community Management Account...           1           1          1          1          1          1
    National Archives and Records Administration          12          12         12         13         13         13
    Nuclear Regulatory Commission...............          67          69         71         74         75         78
    Securities and Exchange Commission..........           5           5          5          5          5          5
    Smithsonian Institution.....................          78          81         85         89         91         96
    United States Holocaust Memorial Museum.....           8           8          8          8          8          9
    Corporation for National and Community                23          23         23         24         25         25
     Service....................................
                                                 -------------------------------------------------------------------
      Total, Homeland Security Budget Authority.      41,307      44,145     42,479     43,504     44,623     47,980

      Less Department of Defense................      -7,025      -7,221     -7,425     -7,646     -7,883     -8,131
      Less BioShield............................        -885      -2,528  .........  .........  .........     -2,175

                                                 -------------------------------------------------------------------
    Non-Def. Homeland Security BA excluding           33,398      34,396     35,054     35,858     36,740     37,674
     BioShield..................................

      Less Fee-Funded Homeland Security Programs      -3,651      -3,688     -3,744     -3,810     -3,885     -3,963
      Less Mandatory Homeland Security Programs.      -1,948      -2,262     -2,204     -2,222     -2,243     -2,264
                                                 -------------------------------------------------------------------
    Net Non-Def. Disc. Homeland Security BA           27,795      28,446     29,106     29,826     30,612     31,447
     excluding BioShield........................

    Obligations Limitations
      Department of Transportation Obligations           133         135        137        139        143        145
       Limitation...............................
    ----------------------------------------------------------------------------------------------------------------
    \1\ Details may not add to totals due to rounding differences.

    \2\ DHS baseline estimates include BioShield funding in 2004 ($885M), 2005 ($2,528M), and 2009 ($2,175M).

    [[Page 38]]

                          Estimates by Budget Function

                                Table 3-13.  HOMELAND SECURITY FUNDING BY BUDGET FUNCTION
                                       (budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                       2003        2004       2005
                                                                                   Enacted \1\   Enacted    Request
    ----------------------------------------------------------------------------------------------------------------
    National Defense.............................................................      10,461       9,098     10,368
    International Affairs........................................................         634         702        955
    General Science Space and Technology.........................................         533         555        608
    Energy.......................................................................          91         109         99
    Natural Resources and the Environment........................................         274         319        258
    Agriculture..................................................................         402         313        614
    Commerce and Housing Credit..................................................         106         110        126
    Transportation...............................................................       9,481       7,997      9,206
    Community and Regional Development...........................................       3,601       2,974      3,147
    Education, Training, Employment and Social Services..........................         166         151        174
    Health.......................................................................       4,231       5,082      6,864
    Medicare.....................................................................          10          13         14
    Income Security..............................................................           7           6          7
    Social Security..............................................................         132         143        155
    Veterans Benefits and Services...............................................         154         271        297
    Administration of Justice....................................................      11,543      12,829     13,800
    General Government...........................................................         623         634        690
                                                                                  ----------------------------------
    Total, Homeland Security Budget Authority....................................      42,447      41,307     47,386
      Less DoD (National Defense)................................................      -8,442      -7,025     -8,022
      Less BioShield.............................................................  ...........       -885     -2,528
                                                                                  ----------------------------------
    Total non-Defense Homeland Security BA excluding BioShield...................      34,005      33,398     36,836
      Less Fee-Funded Homeland Security Programs.................................      -2,709      -3,655     -4,080
      Less Mandatory Homeland Security Programs..................................      -1,760      -1,948     -2,262
                                                                                  ----------------------------------
    Net Non-Defense Disc. Homeland Security BA excluding BioShield...............      29,536      27,795     30,493
    ----------------------------------------------------------------------------------------------------------------
    \1\ FY 2003 Enacted includes supplemental funding; details may not add to totals due to rounding differences.

                      Table 3-14.  BASELINE ESTIMATES--HOMELAND SECURITY FUNDING BY BUDGET FUNCTION
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                      Baseline
                  Budget Authority                    2004    ------------------------------------------------------
                                                  Enacted \1\     2005       2006       2007       2008       2009
    ----------------------------------------------------------------------------------------------------------------
    National Defense............................       9,098       9,321      9,556      9,812     10,091     10,385
    International Affairs.......................         702         710        722        734        748        763
    General Science Space and Technology........         555         562        570        580        591        603
    Energy......................................         109         111        103        106        108        111
    Natural Resources and the Environment.......         319         321        328        336        346        351
    Agriculture.................................         313         323        302        310        320        331
    Commerce and Housing Credit.................         111         115        120        121        127        129
    Transportation..............................       7,997       8,440      8,604      8,798      9,009      9,236
    Community and Regional Development..........       2,974       3,013      3,060      3,111      3,171      3,235
    Education, Training, Employment and Social           151         154        158        165        169        177
     Services...................................
    Health \2\..................................       5,082       6,788      4,332      4,414      4,504      6,775
    Medicare....................................          13          13         14         14         15         15
    Income Security.............................           6           6          3          3          3          4
    Social Security.............................         139         141        143        145        148        151
    Veterans Benefits and Services..............         271         275        280        285        290        297
    Administration of Justice...................      12,829      13,211     13,532     13,906     14,305     14,724
    General Government..........................         634         641        652        664        678        693
                                                 -------------------------------------------------------------------
    Total, Homeland Security Budget Authority...      41,307      44,145     42,479     43,504     44,623     47,980
      Less DoD (National Defense)...............      -7,025      -7,221     -7,425     -7,646     -7,883     -8,131
      Less BioShield............................        -885      -2,528  .........  .........  .........     -2,175
                                                 -------------------------------------------------------------------
    Total non-Defense Homeland Security BA,           33,398      34,396     35,054     35,858     36,740     37,674
     excluding BioShield........................

      Less Fee-Funded Homeland Security Programs      -3,651      -3,688     -3,744     -3,810     -3,885     -3,963
      Less Mandatory Homeland Security Programs.      -1,948      -2,262     -2,204     -2,222     -2,243     -2,264
                                                 -------------------------------------------------------------------
    Net non-Def. Disc. Homeland Security BA           27,795      28,446     29,106     29,826     30,612     31,447
     excluding BioShield........................
    ----------------------------------------------------------------------------------------------------------------
    \1\ Details may not add to totals due to rounding differences.
    \2\ Health function baseline estimates include BioShield funding in 2004 ($885M), 2005 ($2,528M), and 2009
      ($2,175M).

    [[Page 39]]

                      Detailed Estimates by Budget Account

      An appendix of account-level funding estimates, organized by National
    Strategy mission area, is available on the Analytical Perspectives CD
    ROM.