[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.