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


  Since the terrorist attacks of September 11, 2001, America has engaged 
in a broad, determined effort to thwart terrorism, identifying and 
pursuing terrorists abroad and implementing an array of measures to 
secure our citizens and resources at home. The Administration has worked 
with the Congress to reorganize the Federal Government, acquire 
countermeasures to biological weapons, enhance security at our borders, 
transportation systems, critical infrastructure and local communities, 
and strengthen America's preparedness and response capabilities. To 
build upon these accomplishments, the President signed landmark 
legislation to reorganize America's intelligence agencies and implement 
other recommendations of the 9/11 Commission, the Intelligence Reform 
and Terrorism Prevention Act of 2004. These are elements of our national 
homeland security strategy--to prevent terrorist attacks within the 
United States, reduce America's vulnerability to terrorism, and minimize 
the damage from attacks that may occur--involving every level of 
government, the private sector, and individual citizens. Since September 
11th, homeland security has remained a major policy focus for all levels 
of government, and one of the President's highest priorities.
  To underscore the importance of 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 legislative 
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 the efforts of 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 2006 Budget. Additional policy and baseline 
data is presented in the ``Additional Tables'' section. Due to rounding 
differences, data in this section may not add to totals in other Budget 
volumes.
---------------------------------------------------------------------------
  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 total governmental spending on homeland security.
  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. \2\ As in the Budget, where appropriate, the 
data is also updated to reflect agency activities, Congressional action, 
and technical re-estimates. 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.
---------------------------------------------------------------------------
  \2\ For the estimates in this section, the significant changes of this 
type are: 1) a change to estimates in the U.S. Coast Guard to reflect 
distribution of defense-related funding consistent with appropriations, 
2) a change to estimates to capture additional resources for plant and 
animal monitoring and surveillance programs in the Animal and Plant 
Health Inspection Service, and 3) a change to estimates to remove 
resources for the Health Resources and Services Administration's poison 
control activities. Historical data has been adjusted to reflect these 
changes. Major changes to the classification of homeland security 
activities will be reviewed pursuant to section 889 of the Homeland 
Security Act of 2002.
---------------------------------------------------------------------------
  Total funding for homeland security has grown significantly since the 
attacks of September 11, 2001. For 2006, the President's Budget includes 
$49.9 billion for homeland security activities, a $3.9 billion (8.6 
percent) increase over the 2005 level, excluding DHS' Project BioShield. 
\3\ The 2006 level is more than $29 billion above, or approximately 240 
percent, of the 2002 level of $20.7 billion. Excluding mandatory 
funding, the Department of Defense, and DHS' Project BioShield, the 2006 
Budget proposes a gross discretionary increase of $2.9 billion (8.3 
percent) over the 2005 level. The Budget also proposes to increase 
aviation security fees to allow the Government to recover most of the 
cost of Federal aviation screening operations. Including this

[[Page 38]]

fee proposal, the net non-defense discretionary increase from 2005 to 
2006 is 3.1 percent.
---------------------------------------------------------------------------
  \3\ The Department of Homeland Security Appropriations Act, 2004, 
provided $5.6 billion for Project BioShield, to remain available through 
2013. Pursuant to that Act, specific amounts became available in 2004 
($0.9 billion) and 2005 ($2.5 billion) that are intended to cover 
programmatic activities through 2008. The remainder will become 
available in 2009. Including this uneven funding stream can distort 
year-over-year comparisons.
---------------------------------------------------------------------------
  A total of 33 agencies comprise Federal 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 2006:
  

                                 Table 3-1.  HOMELAND SECURITY FUNDING BY AGENCY
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                      Budget Authority                         Enacted    Supplemental   Enacted *     Request
----------------------------------------------------------------------------------------------------------------
Department of Agriculture..................................        411.1  ............        599.9        703.7
Department of Commerce.....................................        124.6  ............        166.7        183.2
Department of Defense......................................      7,024.0  ............      8,570.1      9,513.5
Department of Education....................................          8.0  ............         23.8         22.7
Department of Energy.......................................      1,364.0  ............      1,562.0      1,665.8
Department of Health and Human Services....................      4,062.2  ............      4,230.3      4,406.7
Department of Homeland Security............................     22,832.7         90.7      24,870.7     27,332.5
Department of Housing and Urban Development................          1.7  ............          2.0          1.9
Department of the Interior.................................         82.9  ............         65.0         57.1
Department of Justice......................................      2,164.9         15.5       2,677.8      3,103.6
Department of Labor........................................         52.4  ............         56.1         47.9
Department of State........................................        696.4  ............        824.1        938.1
Department of Transportation...............................        283.5  ............        181.7        191.5
Department of the Treasury.................................         90.4  ............        101.1        110.5
Department of Veterans Affairs.............................        271.3  ............        280.4        298.9
Corps of Engineers.........................................        101.5  ............         89.0         72.0
Environmental Protection Agency............................        131.0  ............        106.8        184.3
Executive Office of the President..........................         35.0  ............         29.5         22.4
General Services Administration............................         78.9  ............         65.2         79.8
National Aeronautics and Space Administration..............        207.0  ............        218.0        205.0
National Science Foundation................................        340.0  ............        342.2        344.2
Office of Personnel Management.............................          3.0  ............          3.0          3.8
Social Security Administration.............................        143.4  ............        159.4        177.5
District of Columbia.......................................         19.0  ............         15.0         15.0
Federal Communications Commission..........................          1.0  ............          1.6          3.5
Intelligence Community Management Account..................          1.0  ............         72.4         55.8
National Archives and Records Administration...............         16.0  ............         17.1         20.2
Nuclear Regulatory Commission..............................         66.8  ............         59.2         61.0
Postal Service.............................................  ...........  ............        503.0  ...........
Securities and Exchange Commission.........................          5.0  ............          5.0          5.0
Smithsonian Institution....................................         78.3  ............         75.0         86.6
United States Holocaust Memorial Museum....................          8.0  ............          8.0          8.7
Corporation for National and Community Service.............         22.8  ............         17.0         20.4
                                                            ----------------------------------------------------
Total, Homeland Security Budget Authority..................     40,727.7        106.2      45,998.2     49,942.9
 
  Less Department of Defense...............................     -7,024.0  ............     -8,570.1     -9,513.5
 
                                                            ----------------------------------------------------
Non-Defense Homeland Security Budget Authority excluding        33,703.7        106.2      37,428.1     40,429.5
 BioShield.................................................
 
  Less Fee-Funded Homeland Security Programs...............     -3,289.1  ............     -3,941.0     -5,889.5
  Less Mandatory Homeland Security Programs................     -1,940.2  ............     -2,225.1     -2,302.0
 
                                                            ----------------------------------------------------
Net Non-Defense Discretionary, Homeland Security Budget         28,474.4        106.2      31,262.0     32,237.9
 Authority excluding BioShield.............................
 
  Plus BioShield...........................................        885.0  ............      2,508.0  ...........
 
Net Non-Defense Discretionary, Homeland Security Budget         29,359.4        106.2      33,770.0     32,237.9
 Authority including BioShield.............................
                                                            ----------------------------------------------------
Obligations Limitations
  Department of Transportation Obligations Limitation......        139.8  ............         57.7         54.6
----------------------------------------------------------------------------------------------------------------
* Excludes $16M in supplemental appropriations provided to the Coast Guard in 2005.

  The growth in Federal homeland security funding is indicative of the 
efforts that have been initiated to secure our Nation. However, it 
should be recognized that fully developing the strategic capacity to 
protect America is a complex effort. There is a wide range of potential 
threats and risks from terrorism. To optimize 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 govern

[[Page 39]]

ments, the private sector, and individual citizens, each with a unique 
role in protecting our Nation.
  The National Strategy for Homeland Security provides a framework for 
addressing these challenges. It 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. 
For this analysis, agencies categorize their funding data based on the 
critical mission areas defined in the National Strategy: 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.''
  The National Strategy is a dynamic document; it includes actions that 
agencies use and must build upon 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 continue to develop a better understanding of risks 
and threats--such as the biological agents most likely to be used by a 
terrorist group or the highest-risk critical infrastructure targets--in 
order to develop benchmarks.
  This chapter highlights some significant results from OMB's 
Performance Assessment Rating Tool (PART), as well as some major 
performance metrics and milestones. These are not an exhaustive list of 
homeland security PART results, measures, or milestones; nor are they 
exempt from the performance measurement challenges highlighted above. 
However, they do illustrate the Government's efforts in building a more 
robust architecture to measure homeland security performance.
  The following table summarizes funding levels by the National 
Strategy's mission areas; more detailed analysis is provided in 
subsequent mission-specific analysis sections.
  

                     Table 3-2.  HOMELAND SECURITY FUNDING BY NATIONAL STRATEGY MISSION AREA
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Intelligence and Warning...................................        242.2  ............        349.8        431.9
Border and Transportation Security.........................     15,840.8         90.7      17,550.2     19,285.8
Domestic Counterterrorism..................................      3,379.3         12.3       3,944.5      4,468.7
Protecting Critical Infrastructure and Key Assets..........     12,279.1          2.5      14,939.4     15,632.2
Defending Against Catastrophic Threats.....................      2,974.2          0.7       3,399.2      3,898.3
Emergency Preparedness and Response........................      6,002.6  ............      5,765.2      6,121.6
Other......................................................          9.6  ............         49.8        104.5
                                                            ----------------------------------------------------
  Total, Homeland Security Budget Authority................     40,727.7        106.2      45,998.2     49,942.9
 
  Plus BioShield...........................................        885.0  ............      2,508.0  ...........
 
                                                            ----------------------------------------------------
  Total, Homeland Security Budget Authority, including          41,612.7        106.2      48,506.2     49,942.9
   BioShield...............................................
----------------------------------------------------------------------------------------------------------------


National Strategy Mission Area: Intelligence and Warning

  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 the resulting 
intelligence may inform homeland security activities--nor does it fully 
capture classified intelligence activities. In 2006, the bulk of the 
funding for intelligence and warning is in DHS (61 percent in 2006), 
primarily in the Information Analysis and Infrastructure Protection 
(IAIP) Directorate and the Secret Service, DOJ (21 percent in 2006), 
primarily in the Federal Bureau of Investigation (FBI), and the 
Intelligence Community Management Account (13 percent in 2006). 2006 
funding for intelligence and warning activities would increase by 23 
percent over the 2005 level.

                                  Table 3-3.  INTELLIGENCE AND WARNING FUNDING
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Agriculture..................................          0.8  ............          6.3         22.3
Department of Homeland Security............................        236.0  ............        226.4        262.4
Department of Justice......................................          2.0  ............         44.2         90.9
Department of the Treasury.................................          2.5  ............          0.6          0.6
Intelligence Community Management Account..................          1.0  ............         72.4         55.8
                                                            ----------------------------------------------------
  Total, Intelligence and Warning..........................        242.2  ............        349.8        431.9
----------------------------------------------------------------------------------------------------------------

  The major requirements addressed in the intelligence and warning 
mission area include:
    Unifying and enhancing intelligence and analytical 
          capabilities to ensure officials have the information they 
          need to prevent attacks; and
    Implementing the Homeland Security Advisory System and other 
          information sharing and warning mechanisms to allow Federal, 
          State, local, and private authorities to take action to 
          prevent attacks and protect potential targets.
  The recently-passed Intelligence Reform and Terrorism Prevention Act 
of 2004, supported by executive orders on information sharing, 
management of the in

[[Page 40]]

telligence community, and the National Counterterrorism Center, will 
improve the Nation's intelligence and warning capabilities. The new 
Director of National Intelligence (DNI) is empowered to set collection 
and analysis priorities, which will help ensure that homeland security 
requirements are addressed. The DNI is also empowered to ensure that 
information sharing takes place across the intelligence community. These 
changes implement the recommendations of the 9/11 Commission, and should 
allow the intelligence community to ``connect the dots'' more 
effectively, develop a better integrated system for identifying and 
analyzing terrorist threats, and issue warnings more rapidly.
  In addition, the newly created National Counterterrorism Center (NCTC) 
is specifically chartered to centralize U.S. Government terrorism threat 
analysis and ensure that all agencies receive relevant analysis and 
information. The NCTC will serve as the primary organization in the U.S. 
Government for analyzing and integrating all intelligence pertaining to 
terrorism and counterterrorism (excepting purely domestic terrorism); 
operate as the central and shared knowledge bank on known and suspected 
terrorists and international terror groups; and ensure that agencies, as 
appropriate, have access to and receive the all-source intelligence 
support needed to execute their counterterrorism plans or perform 
independent, alternative analysis. NCTC is tasked to coordinate 
counterterrorism operations on a global basis and develop strategic, 
operational plans for the Global War on Terrorism. The NCTC will use 
this capability to allocate requirements to the agencies with the assets 
and capabilities to address them. NCTC will not direct operations, 
leaving mission execution to the appropriate agencies. This structure 
will ensure that the chain of command remains intact and prevent 
bureaucratic micromanagement of counterterrorism missions. Taken 
together, the creation of the NCTC and recent legislation and executive 
orders will ensure that counterterrorism assets are better allocated and 
coordinated to produce improved indications and warning intelligence to 
benefit homeland security.
  These structural changes complement ongoing efforts to improve 
information sharing. The Information Systems Council (ISC) established 
by Executive Order 13356, ``Strengthening of Terrorism Information to 
Protect Americans,'' was directed to establish an interoperable 
terrorism ``environment'' to automate information sharing among the 
homeland security, law enforcement, and intelligence communities. The 
ISC recently reported to the President a plan to improve sharing of 
terrorism information through the establishment of an interoperable 
terrorism information sharing ``environment.'' The proposed plan 
includes a vision for the future of the environment, including 
additional functions and capabilities, and a four-phase plan for moving 
forward, including near-term solutions to address gaps. The environment 
will enable the interchange of information between appropriate Federal, 
State, and local authorities and the private sector while protecting the 
privacy rights and civil liberties of Americans.
  As discussed above, the DNI and the NCTC will continue to utilize the 
unique assets and capabilities of other Government agencies--some of 
which are reorganizing to improve these capabilities and better 
interface with the new intelligence structure. After 9/11, the FBI 
created an Office of Intelligence to establish intelligence requirements 
and coordinate information collection and sharing. The 2005 Department 
of Justice Appropriations Act and the Intelligence Reform and Terrorism 
Prevention Act directed the FBI to re-designate the Office of 
Intelligence as the Directorate of Intelligence. The new Directorate 
supervises all national intelligence programs of the FBI, oversees field 
intelligence operations, and is developing an FBI intelligence career 
service. The 2006 Budget provides $117 million in new funding for FBI to 
enhance its intelligence programs. Performance measures that will be 
used by the FBI program include the percentage of intelligence products 
meeting all standards and the percentage of investigations that are 
intelligence-based.
  The Department of Homeland Security's Information Analysis and 
Infrastructure Protection Directorate (IAIP) will also contribute to the 
new intelligence structure. By maintaining and expanding its partnership 
the NCTC, IAIP will continue to coordinate its activities with other 
members within the newly reorganized intelligence community. IAIP was 
established as part of DHS to fill a 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. 
IAIP's Office of Information Analysis, which is the Department's 
intelligence division, centralizes analysis and information about

[[Page 41]]

threats to homeland security. IAIP is also the focal point for 
disseminating information to states and local entities. For example, 
IAIP is connected to homeland security directors of States and 
territories through the Homeland Security Information Network (HSIN). 
All fifty States and major urban areas are now connected to HSIN. In 
2006, HSIN will be rolled out to major counties as well. In addition, 
IAIP's analysis informs the Secretary as he administers the Homeland 
Security Advisory System.

National Strategy Mission Area: Border and Transportation Security

  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 ($18.2 billion, or 94 percent, in 2006) 
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. The President's 2006 request would increase 
funding for border and transportation security activities by 10 percent 
over the 2005 level.


                             Table 3-4.  BORDER AND TRANSPORTATION SECURITY FUNDING
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Agriculture..................................        147.9  ............        163.1        164.2
Department of Homeland Security............................     14,941.7         90.7      16,560.6     18,207.3
Department of Justice......................................         20.1  ............         34.5         20.8
Department of State........................................        663.9  ............        778.2        878.4
Department of Transportation...............................         67.2  ............         13.9         15.1
                                                            ----------------------------------------------------
  Total, Border and Transportation Security................     15,840.8         90.7      17,550.2     19,285.8
----------------------------------------------------------------------------------------------------------------

  Securing our borders and transportation systems is a complex task. 
Security enhancements in one area may make another avenue more 
attractive to terrorists. Therefore, our border and transportation 
security strategy aims to make the U.S. borders ``smarter''--targeting 
resources toward the highest risks and sharing information so that 
frontline personnel can stay ahead of potential adversaries--while 
facilitating the flow of legitimate visitors and commerce. 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. Rather than having separate systems for 
managing goods, people, and agricultural products, one agency is now 
accountable for ensuring that there is one cohesive border management 
system.
  In 2005 and 2006, the Administration will focus on implementing 
Homeland Security Presidential Directive (HSPD) 11, Comprehensive 
Terrorist-Related Screening Procedures. Although resources related to 
screening are spread throughout mission areas, the majority are captured 
in border and transportation security because of the sizable Federal 
efforts to screen people, cargo, and conveyances as they cross U.S. 
borders or travel through U.S. transportation systems. A cohesive 
screening system is a key element of a smart border strategy.
  Internally, DHS will modify its own organizational structure to 
consolidate screening programs previously spread throughout the 
Department's components. The new Screening Coordination and Operations 
Office (SCO) will manage the two DHS centerpiece screening programs: US-
VISIT, which screens international travelers arriving at our ports of 
entry; and the Secure Flight program, which conducts automated screening 
of all domestic aviation passengers. At least nine other existing 
programs will also be consolidated, including the Free and Secure Trade 
(FAST) and the Transportation Worker Identification (TWIC) card 
programs. DHS is also leading the HSPD-11 interagency effort to 
implement a coordinated approach to terrorist-related screening in 
immigration, law enforcement, intelligence, counterintelligence, border 
and transportation systems, and critical infrastructure. This effort 
covers diverse areas, from information sharing to screener training. SCO 
will play a central coordinating role. The 2006 Budget includes more 
than $800 million in discretionary, fee-funded, and mandatory resources 
to support SCO.
  Key to the Federal government's screening of international visitors is 
the US-VISIT program, which will be incorporated into SCO. US-VISIT is 
designed to expedite the clearance of legitimate travelers while 
identifying and denying clearance to those who may intend to do harm. In 
2004 and 2005 the first phases of US-VISIT were successfully deployed. 
The 2006 Budget includes a $50 million increase for accelerated 
deployment of US-VISIT at land border ports of entry and for enhancing 
border personnel's access to immigration, criminal, and terrorist 
information. Through 2006, over $1.4 billion will be appropriated to 
support this initiative.
  In the area of aviation security, the Administration continues to 
strengthen multiple layers of security implemented in the wake of the 
September 11th attacks. The Federal Government will continue to improve 
the

[[Page 42]]

airport screening system to ensure that it provides effective security 
with less bother to travelers. TSA will refine its training programs and 
screening procedures to ensure a balance among security needs, screening 
efficiency, and traveler privacy. While maintaining the more than 10,000 
screening devices at 448 airports, TSA will also begin to upgrade 
equipment and address technology gaps, such as screening for explosives 
on higher risk passengers and property. TSA will receive an increase of 
more than $400 million over 2005 for aviation security. Improved 
domestic and international passenger prescreening systems and processes 
will be fully implemented in 2006 to ensure that higher risk passengers 
receive scrutiny before boarding aircraft. The Budget also proposes to 
set aviation security fees at a level that allows the Government to 
recover most of the cost of Federal aviation screening operations.
  Outside of passenger and baggage screening, DHS has recently proposed 
a comprehensive set of air cargo security requirements. The rulemaking 
process should be completed this year. The Budget will support a strong 
air cargo prescreening and regulatory enforcement program in CBP and 
TSA, and air cargo technology research and development program in the 
DHS Science and Technology (S&T) Directorate. In addition, the S&T 
Directorate will continue its R&D program on the viability of 
countermeasures that could be placed on commercial aircraft to defend 
against the threat of shoulder-fired missiles. The Budget provides $110 
million to test these systems to determine operational, safety, and 
reliability issues.
  The security of our seaports is 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 ports, vessels, and facilities to conduct security assessments. 
In 2006, the Coast Guard will continue implementation of MTSA to ensure 
compliance with port and vessel security standards and regulations.
  The 2006 Budget provides more than $2 billion for port security across 
DHS, including $1.9 billion in discretionary funding for Coast Guard 
port security activities such as Maritime Safety and Security Teams and 
harbor patrols for ports with liquefied natural gas terminals. In 
addition, the Coast Guard budget funds operations to strengthen 
intelligence collection and surveillance capabilities in the maritime 
environment, both of which contribute to the broader Coast Guard effort 
to enhance Maritime Domain Awareness.
  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 2006 would increase by 
more than $150 million over the 2005 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 
screens cargo containers at foreign ports before the containers are 
placed on ships bound for the United States. The 2006 Budget requests 
$138 million for CSI.
  A major focus across mission areas for 2006 is the effort to upgrade 
our radiological and nuclear detection capability. The 2006 Budget 
provides $178 million to CBP (along with an increase for radiological 
and nuclear detection research, discussed below) to defend against 
radiological and nuclear threats by deploying current non-intrusive 
inspection technologies and piloting next-generation radiation detection 
technologies. The 2006 PART on the Inspection Technology program found 
that while the program is lacking in specific targets to measure long-
term success, it has a very clear program purpose and sound management.
  To ensure detention and removal of illegal aliens present in the U.S., 
the 2006 Budget also supports a $176 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. A 2005 PART found this program 
moderately effective because DHS Immigration and Customs Enforcement 
(ICE) has reorganized its operations and engaged in significant 
strategic and performance planning efforts to identify ambitious goals 
to improve program performance.
  The State Department is the second largest agency contributor to 
border and transportation security. The Bureau of Consular Affairs 
Border Security program consists of visa, passport and American Citizen 
Services programs. The State Department Border Security program 
underwent a PART analysis in 2004, 2005 and 2006 budgets, and was found 
to be effective. The analysis determined that State, working in 
coordination with the other border and transportation security agencies, 
has effectively targeted programs and funding, established achievable 
annual and long term goals as well as developed thoughtful policies that 
not only secure processes related to screening of all travelers to the 
US but also facilitate legitimate travel. The 2006 Budget includes 
funding in State for technology related to increased interviews, 
screening, and information sharing between Federal agencies on visa 
applicants; the development and production of new machine-readable 
biometric U.S. passports; and for increased interoperability of border 
security and counterterrorism systems between State, DHS, and FBI.

[[Page 43]]

National Strategy Mission Area: Domestic Counterterrorism

  Funding in the domestic counterterrorism mission area covers Federal 
and Federally-supported efforts to identify, thwart, and prosecute 
terrorists in the United States. The largest contributors to the 
domestic counterterrorism mission are law enforcement organizations: the 
Department of Justice (largely for the FBI) and DHS (largely for ICE), 
accounting for 53 and 45 percent of funding for 2006, respectively. The 
President's 2006 request would increase funding for domestic 
counterterrorism activities by 13 percent over the 2005 level.
  

                                   Table 3-5.  DOMESTIC COUNTERRORISM FUNDING
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Homeland Security............................      1,703.7  ............      1,867.0      2,008.8
Department of Justice......................................      1,608.4         12.3       1,999.0      2,372.7
Department of Transportation...............................         21.0  ............         20.0         22.0
Department of the Treasury.................................         45.2  ............         54.9         61.0
Social Security Administration.............................          1.0  ............          3.7          4.2
                                                            ----------------------------------------------------
  Total, Domestic Counterterrorism.........................      3,379.3         12.3       3,944.5      4,468.7
----------------------------------------------------------------------------------------------------------------

  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 domestic counterterrorism 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.
  Over the past three years, FBI has transformed its organization and 
established priorities to ensure that protecting the U.S. from terrorist 
attack is its primary focus. To support this transformation, resources 
have been shifted from lower priority programs, counterterrorism 
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 2002 to 
over $1.7 billion in 2006, with the 2006 Budget providing an increase of 
approximately $300 million over the 2005 level. The increase will 
support a range of activities, such as counterterrorism investigations 
and countering cyber crime. To specifically promote information sharing 
efforts, it includes an additional $17 million for FBI to upgrade its 
Integrated Automated Fingerprint Identification System. This will 
enhance system capacity, speed, and capabilities, and will promote 
information sharing between the FBI, DHS, and other agencies.
  By merging existing immigration and customs enforcement functions into 
ICE, the Department of Homeland Security created one of America's 
largest law enforcement agencies. The Nation is better prepared to 
apprehend potential terrorists because DHS has combined the information 
and resources to identify and investigate illegal activities--such as 
smuggling, identity theft, and money laundering, and trafficking in 
dangerous materials. The 2006 PART found that the investigative arm of 
ICE, the Office of Investigations, has made significant progress in the 
integration of former customs and immigration investigators, and has 
started to reap the benefits of additional investigative authorities. 
However, the program must institute stronger financial and management 
controls to ensure appropriate expenditure and budgeting of resources 
and to hold managers and agency partners accountable for performance 
results. The 2006 Budget provides an increase of $34 million to expand 
these enforcement activities.
  The interagency Terrorist Screening Center (TSC) is a hub for domestic 
counterterrorism activity. TSC was established in September 2003 
pursuant to HSPD-6 in order to consolidate terror screening watch lists 
and to support Federal screeners worldwide. In its first year, TSC has 
created a single point for terrorist screening data; established a 
round-the-clock call center for officials encountering suspects; 
coordinated response for Federal, State, and local law enforcement; and 
instituted a formal process for tracking encounters. TSC staff, who 
include participants from DOD, DHS, DOJ, State, and other agencies, 
currently field nearly 100 calls per day from Federal, State, and local 
law enforcement representatives. The 2006 Budget provides $104 million 
for TSC, a $75 million increase over 2005, to enable TSC to meet its 
increasing responsibilities, particularly in support of the DHS Secure 
Flight program.


[[Page 44]]


National Strategy Mission Area: Protecting Critical Infrastructure and 
Key Assets

  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 an estimated more than 85 percent are not Federally-
owned. DOD reports the largest share of funding in this category for 
2006 ($8.7 billion, or 56 percent), and includes programs focusing on 
physical security and improving the military's ability to prevent or 
mitigate the consequences of attacks against personnel and bases. DHS 
has overall responsibility for prioritizing and executing infrastructure 
protection activities at a national level and accounts for $2.8 billion 
(18 percent) of 2006 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 2006 request increases funding for activities 
to protect critical infrastructure and key assets by $0.7 billion (5 
percent) over the 2005 level.
  Securing America's critical infrastructure and key assets is a complex 
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.
  

                      Table 3-6.  PROTECTING CRITICAL INFRASTRUCTURE AND KEY ASSETS FUNDING
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Agriculture..................................         36.9  ............        150.7        129.3
Department of Defense......................................      6,543.8  ............      7,916.9      8,700.8
Department of Energy.......................................      1,256.4  ............      1,456.1      1,481.0
Department of Health and Human Services....................        162.8  ............        168.3        170.3
Department of Homeland Security............................      2,128.3  ............      2,585.9      2,820.0
Department of Justice......................................        409.2          2.5         455.8        566.1
Department of Transportation...............................        180.1  ............        137.0        141.2
Department of Veterans Affairs.............................        239.2  ............        242.9        262.3
National Aeronautics and Space Administration..............        207.0  ............        218.0        205.0
National Science Foundation................................        313.0  ............        315.2        317.2
Social Security Administration.............................        142.1  ............        155.0        172.6
Postal Service.............................................  ...........  ............        503.0  ...........
Other Agencies.............................................        660.4  ............        634.6        666.3
                                                            ----------------------------------------------------
  Total, Protecting Critical Infrastructure and Key Assets.     12,279.1          2.5      14,939.4     15,632.2
----------------------------------------------------------------------------------------------------------------

  IAIP is the focal point for DHS infrastructure protection efforts, and 
is responsible for prioritizing and addressing requirements at a 
national level. IAIP maintains the National Asset Database, which 
catalogues critical infrastructure and key assets. IAIP leverages 
tactical intelligence with a risk-based strategy that identifies 
critical infrastructures in targeted areas, assesses the vulnerabilities 
of that infrastructure, and recommends protective measures. IAIP 
conducts site visits and assessments of more than 1,000 sites each year, 
and has used this information to develop site security guidelines for 
nuclear power plants and chemical facilities. Security guidelines are 
also being developed for all infrastructure sectors, covering spent 
nuclear fuel, petroleum refineries, natural gas facilities, and 
railroads, for example. In addition, IAIP trains State and local 
officials and infrastructure owners to improve security in the areas 
immediately surrounding critical sites. The 2006 Budget provides $530 
million for IAIP activities in the protecting critical infrastructures 
and key assets mission area. In addition, the Administration proposes 
$600 million for Targeted Infrastructure Protection (TIP) grants. 
Awarded through the Office of State and Local Government Coordination 
and Preparedness, TIP grants and assistance will supplement state and 
local infrastructure protection efforts, especially detection and 
security investments.
  Cyberspace security is a key element of infrastructure protection 
because the internet and other computer systems link infrastructure 
sectors. The consequences of a cyber attack could cascade across the 
economy, imperiling public safety and national security. To address this 
threat, 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 Na

[[Page 45]]

tion's information infrastructure. For example, it coordinated the 
response and mitigation of the Blaster worm and SoBig virus. NCSD has 
also established the U.S. Computer Emergency Response Team (US-CERT). 
US-CERT supports watch and warning capability responsible for tracking 
incident and trend data, ranking associated severity, and generating 
real-time alerts. $73 million is requested for the NCSD in 2006.
  HSPD-7, signed in December 2003, established a national policy to 
protect critical infrastructures and key resources from attack, ensure 
the delivery of essential goods and services, and maintain public safety 
and security. Under HSPD-7, DHS is responsible for coordinating Federal 
critical infrastructure protection efforts. To provide a consistent 
structure to integrate critical infrastructure protection, DHS has an 
interim National Infrastructure Protection Plan. Under the plan's 
framework, DHS will coordinate the infrastructure protection efforts of 
other Federal departments and agencies. A number of agencies rely on 
specialized expertise and long-standing relationships with industry in 
conducting infrastructure protection activities.
  Recognizing that each infrastructure sector possesses it own unique 
characteristics, a sector-specific agency has been designated to oversee 
infrastructure protection efforts for each sector. Consequently, sector-
specific agencies are pursuing infrastructure protection efforts in 
concert with DHS. For example, the Department of Energy is coordinating 
protection activities within the energy sector. The Department of 
Agriculture is protecting agricultural resources, a source of essential 
commodities, through research and testing programs. There are 13 
critical infrastructure sectors and nine sector-specific agencies.
  The Environmental Protection Agency (EPA), the water sector-specific 
agency under HSPD-7, guides the protection of water infrastructure 
through training and technical support for water utilities and grants 
for State water security coordinators. In 2006, EPA will address the 
HSPD-9 requirement to lead the development of surveillance and 
monitoring systems for water quality. EPA will introduce Water Sentinel, 
a program to develop and demonstrate cost-effective, real-time sampling 
and analysis capabilities at critical points in a water system for early 
detection of disease, pest, or poisonous agents. The Administration's 
request for $44 million in 2006 will fund Water Sentinel as a pilot 
program in five major cities.

National Strategy Mission Area: Defending Against Catastrophic Threats

  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 ($2.0 billion, 
or 51 percent, of the 2006 total), largely for research in the National 
Institutes of Health, and in DHS, mostly for the Directorate of Science 
and Technology (S&T) ($1.2 billion, or 31 percent, of the 2006 total), 
to help develop and field technologies to counter CBRN threats. The 
President's 2006 request would increase funding for activities defending 
against catastrophic threats by 15 percent over the 2005 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, and improving decontamination 
          techniques.
  A key element in addressing these requirements is developing and 
maintaining adequate countermeasures for a CBRN attack. This not only 
means stockpiling 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, a CBRN attack may not be immediately apparent. Working to 
ensure earlier detection and characterization of an attack helps protect 
and save lives.
  

                           Table 3-7.  DEFENDING AGAINST CATASTROPHIC THREATS FUNDING
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Agriculture..................................        168.2  ............        222.7        317.2
Department of Commerce.....................................         60.0  ............         73.4         84.7
Department of Defense......................................        146.8  ............        178.2        158.9
Department of Energy.......................................  ...........  ............          7.5         62.8
Department of Health and Human Services....................      1,754.1  ............      1,901.8      1,971.5
Department of Homeland Security............................        774.0  ............        936.1      1,212.1
Department of Justice......................................         27.9          0.7          33.5         43.0
National Science Foundation................................         27.0  ............         27.0         27.0
Nuclear Regulatory Commission..............................         16.2  ............         19.0         21.2
                                                            ----------------------------------------------------
  Total, Defending Against Catastrophic Threats............      2,974.2          0.7       3,399.2      3,898.3
----------------------------------------------------------------------------------------------------------------


[[Page 46]]

  The Federal Government is addressing these requirements. The DHS 
Biological Countermeasures Office budget request is $385 million in 
2006, a $22 million increase over 2005. This program received an 
effective PART rating, demonstrating significant accomplishments for a 
new program. Within the Biological Countermeasures Office, new vaccine 
research funds will target specific vaccines that can be used to defend 
our food supply from the intentional or accidental introduction of 
foreign animal diseases into the country. These vaccines will help 
protect the Nation from the catastrophic economic consequences that a 
major disease outbreak would cause. Funds are also requested for a 
National Agrodefense Facility that will be able to analyze pathogens in 
large animals. The 2006 Budget also includes $59 million for the 
Department of Agriculture to complete a state-of-the-art animal disease 
research and diagnostic facility at Ames, Iowa.
  The Budget continues to invest in efforts to decrease the time between 
an attack and implementation of Federal, State and local response 
protocols. The Science and Technology Directorate will expand and 
enhance the BioWatch environmental monitoring program, which samples and 
analyzes air in over 30 metropolitan areas to continually check for 
dangerous biological agents. The program is designed to provide early 
warning of a large-scale biological weapon attack, allowing the 
distribution of life-saving treatment and preventative measures before 
the development of serious and widespread illnesses.
  The Administration maintains HHS' investment in developing medical 
countermeasures to CBRN threats, investing nearly $1.8 billion, an 
increase of $56 million over 2005 and $1.7 billion over the level prior 
to September 11th (this includes funding for programs focused on 
chemical and radiological and nuclear countermeasures referenced below). 
HHS will continue to improve human health surveillance with $79 million 
dedicated to the BioSense program (collecting information from 
hospitals, emergency departments, and laboratories to identify ``real-
time'' trends), increasing laboratory capacity, and augmenting the 
number and quality of border health and quarantine stations. The Food 
and Drug Administration and the U.S. Department of Agriculture will also 
conduct surveillance to ensure the security of the food supply. 
Information collected from these programs will be disseminated to the 
National Biosurveillance Integration Center at DHS.
  In addition, the Administration proposes to double the amount of 
spending on chemical agent R&D conducted by DHS, including $36 million 
in additional spending on non-traditional chemical agent threats, 
enhancing our ability to detect and counter these weapons. This funding 
level includes the creation of a state-of-the-art materials testing 
facility that will be housed with the Department of Defense chemical 
countermeasures programs. The National Institutes of Health will also 
devote $50 million to research chemical agent countermeasures.
  To protect against a nuclear or radiological weapon entering the 
country, a new Domestic Nuclear Detection Office (DNDO) is being created 
in the Department of Homeland Security. The DNDO will be responsible for 
developing and deploying a comprehensive system to detect and report any 
attempt to import a nuclear explosive device or radiological material. 
This Office will have oversight of all research and development for 
detection, identification, and reporting of radiological and nuclear 
materials. It will also be responsible for establishing response 
protocols to ensure that the detection of a nuclear explosive device or 
radiological material leads to timely and effective action by military, 
law enforcement, emergency response, and other appropriate government 
assets.
  The Administration is requesting $262 million in DHS R&D funds for 
advanced detection devices to minimize the likelihood that a 
radiological or nuclear device could enter the United States; this more 
than doubles the amount provided in 2005. This R&D program will be 
integrated with our overseas non-proliferation and border security 
efforts to keep these devices out of the hands of terrorists and outside 
the borders of this country. The DNDO will also work with CBP on its 
pilot program to deploy next-generation radiation detectors. Finally, 
the Office will work with State and local grant recipients to best 
deploy their radiation detection assets to work in concert with Federal 
detection efforts.

National Strategy Mission Area: Emergency Preparedness and Response


                             Table 3-8.  EMERGENCY PREPAREDNESS AND RESPONSE FUNDING
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Defense......................................        333.3  ............        469.0        651.4
Department of Energy.......................................        107.6  ............         98.4        122.1
Department of Health and Human Services....................      2,145.3  ............      2,160.2      2,264.9
Department of Homeland Security............................      3,049.0  ............      2,655.8      2,725.8
Other Agencies.............................................        367.3  ............        381.9        357.5
                                                            ----------------------------------------------------
  Total, Emergency Preparedness and  Response..............      6,002.6  ............      5,765.2      6,121.6
 
    Plus BioShield.........................................        885.0  ............      2,508.0  ...........
                                                            ----------------------------------------------------
  Total, Emergency Preparedness and  Response including          6,887.6  ............      8,273.2      6,121.6
   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 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. DHS maintains the 
largest share of funding in this category ($2.7 billion, or 45 percent, 
for 2006), mainly for preparedness grant assistance to State and local 
first responders. HHS, the second largest contributor ($2.2 billion, or 
37 percent, in 2006), also assists States and localities to upgrade 
public health capacity. A total of 24 other agencies include emergency 
preparedness and response funding. A number maintain specialized 
response assets that may be called upon in select circumstances, and 
others report only funding for their agency's internal preparedness 
capability. Excluding BioShield, in the President's 2006 Budget, funding 
for emergency preparedness and response activities would increase by 
$0.4 billion (6 percent) over the 2005 level. The major requirements 
addressed in this mission area include:
    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 meet national pre

[[Page 47]]

          paredness goals in a coordinated and complementary manner.
    Encouraging standardization and interoperability of first 
          responder equipment, especially for communications.
    Building a national training, exercise, and evaluation 
          system.
    Implementing the National Incident Management System.
    Preparing health care providers for a mass casualty event.
    Augmenting America's pharmaceutical and vaccine stockpiles.
  Many of the key elements of the national emergency response system are 
already in place. During 2004, separate Federal response plans were 
integrated into a single all-discipline National Response Plan. To 
ensure that Federal, State, and local investments translate into 
improvements in preparedness, we must continue to identify capability 
gaps, establish national preparedness goals, and improve 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, 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 2005, the Federal Government has allocated $18.2 
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 $4.8 billion in the 2006 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; 
better target funds based on risks, threats, vulnerability and need; and 
develop and implement national preparedness goals. In addition, DHS' new 
Office of Interoperability and Compatibility is developing a strategic 
plan to standardize public safety communications equipment and 
protocols.
  In 2005, DHS will begin to implement the National Response Plan and 
develop national preparedness goals. DHS will leverage the existing 
network of State and local responder training facilities by focusing 
more effort on ``training the trainer.'' DHS will organize 150 terrorism 
preparedness exercises during 2005, and provide grant funding to support 
approximately 400 exercises at the State and local level. The 2006 
Budget continues to provide coordinated terrorism preparedness training 
and equipment for State and local responders across the various 
responder agencies. The 2006 request includes $3.6 billion for terrorism 
preparedness grants, training, and exercises to be administered by the 
Office of State and Local Government Coordination and Preparedness 
within DHS, and proposes a significant restructuring in the grant 
allocation process to better address threats and needs. The Budget also 
supports a range of Federal response capabilities, including providing 
$110 million for the Department of Energy's Nuclear Emergency Support 
Team and other emergency response, management, and operations assets. 
The capabilities of these teams range from providing radiological 
assistance in support of State and local agencies to responding to major 
incidents worldwide.
  In 2005 and 2006 a new catastrophic incident response planning 
initiative will be undertaken. This planning effort will span across 
Federal agencies, as well as State and local governments. In addition to 
this planning initiative, the budget includes $80 million in the 
Departments of Homeland Security and Health and Human Services to 
strengthen the nation's capabilities to respond to a mass casualty 
event.
  The Budget reflects ongoing investment 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 pro

[[Page 48]]

gram provides an incentive to manufacture these countermeasures. 
BioShield is a shared responsibility, joining the intelligence 
capabilities of DHS with the medical expertise of HHS.
  The Budget includes $600 million for the Strategic National Stockpile 
to maintain and augment the 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. This now includes funding for 
storage and maintenance of products purchased through BioShield, and $50 
million for the purchase of supplies under the medical surge capacity 
initiative. HHS has the lead role in preparing public health providers 
for catastrophic terrorism. For 2005, HHS will provide $483 million to 
continue improvements for hospital infrastructure and mutual aid through 
the Health Resources and Services Administration, and $797 million for 
States through the Centers for Disease Control and Prevention 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 more than $7 billion.

                      Non-Federal Expenditures \4\
---------------------------------------------------------------------------

  \4\ OMB does not collect detailed homeland security expenditure data 
from State, local, or private entities directly.
---------------------------------------------------------------------------
  State and local governments and private-sector firms also have devoted 
resources of their own to the task of defending against terrorist 
threats. Some of the additional spending has been of a one-time nature, 
such as investment in new security equipment and structures; some 
additional spending has been ongoing, such as hiring more personnel, and 
increasing overtime for existing security personnel. In many cases, own-
source spending has supplemented the resources provided by the Federal 
government.
  Many governments and businesses are placing a high priority on, and 
providing additional resources for, security. On the other hand, many 
entities have not increased their spending. A survey conducted by the 
National Association of Counties in the spring of 2004 found that as a 
result of the homeland security process of intergovernmental planning 
and funding, three out of four counties believed they were better 
prepared to respond to terrorist threats. Moreover, almost 40 percent of 
the surveyed counties had appropriated their own funds to assist with 
homeland security. Own-source resources supplemented funds provided by 
states and the Federal Government. However, the same survey revealed 
that 54 percent of counties had not used any of their own funds. \5\
---------------------------------------------------------------------------
  \5\ Source: National Association of Counties, ``Homeland Security 
Funding--2003 State Homeland Security Grants Programs I and II.''
---------------------------------------------------------------------------
  There is also a diversity of responses in the businesses community. In 
a survey conducted by the Conference Board in 2003, just over half of 
the companies reported that they had permanently increased security 
spending post-September 11, 2001. About 15 percent of the companies 
surveyed had increased their security spending by 20 percent or more. 
Large increases in spending were especially evident in critical 
industries, such as transportation, energy, financial services, media 
and telecommunications, information technology, and healthcare. However, 
about one-third of the surveyed companies reported that they had not 
increased their security spending after September 11th. \6\
---------------------------------------------------------------------------
  \6\ Source: Conference Board, ``Corporate Security Management'' 2003
---------------------------------------------------------------------------
  In light of the range of spending responses to the new security 
environment and the inherent difficulty of obtaining survey results that 
are representative of the entire universe of States, localities, and 
businesses, it is not surprising that estimates of non-Federal security 
spending also differ widely. Estimates by two private consulting firms 
for 2004 reveal that States and localities may have spent as little as 
$8 billion (according to International Horizons Unlimited) or as much as 
$15 billion (according to Deloitte Consulting). The business sector may 
have spent about $5 billion (International Horizons Unlimited) or as 
much as $46 billion (Deloitte Consulting).
  The estimates by International Horizons Unlimited were published in 
September 2003. They are on a Federal fiscal year basis. The Deloitte 
Consulting estimates were published in June 2002. They are on a fiscal 
year basis appropriate to the reporting entity. For State and local 
governments, both sets of estimates attempted to remove spending funded 
by Federal grants to avoid double counting spending that was reported by 
the Federal Government.

                            Additional Tables

  The tables in the Federal expenditures section above present data 
based on the President's policy for the 2006 Budget. The tables below 
present additional policy and baseline data, as directed by the Homeland 
Security Act of 2002.

[[Page 49]]

Estimates by Agency:
  

                   Table 3-9.  DISCRETIONARY FEE-FUNDED HOMELAND SECURITY ACTIVITIES BY AGENCY
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Energy.......................................          1.2  ............          1.2          1.5
Department of Homeland Security............................      2,335.0  ............      2,875.0      4,688.0
Department of Labor........................................         14.9  ............         17.6         14.2
Department of State........................................        649.0  ............        763.3        866.0
General Services Administration............................         72.8  ............         58.6         72.9
Social Security Administration.............................        143.4  ............        159.4        177.5
Federal Communications Commission..........................          1.0  ............          1.6          3.5
Nuclear Regulatory Commission..............................         66.8  ............         59.2         61.0
Securities and Exchange Commission.........................          5.0  ............          5.0          5.0
                                                            ----------------------------------------------------
  Total, Discretionary Homeland Security Fee-Funded              3,289.1  ............      3,941.0      5,889.5
   Activities..............................................
----------------------------------------------------------------------------------------------------------------



                           Table 3-10.  MANDATORY HOMELAND SECURITY FUNDING BY AGENCY
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental    Enacted      Request
----------------------------------------------------------------------------------------------------------------
Department of Agriculture..................................        119.0  ............        135.0        137.0
Department of Commerce.....................................          9.5  ............          8.4          8.6
Department of Education....................................  ...........  ............          2.7  ...........
Department of Energy.......................................         11.0  ............         11.0         11.0
Department of Health and Human Services....................         13.9  ............         14.2         15.9
Department of Homeland Security............................      1,783.7  ............      2,051.2      2,125.5
Department of Labor........................................          3.2  ............          2.6          4.0
                                                            ----------------------------------------------------
  Total, Homeland Security Mandatory Programs..............      1,940.2  ............      2,225.1      2,302.0
----------------------------------------------------------------------------------------------------------------


[[Page 50]]


                   Table 3-11.  BASELINE ESTIMATES--TOTAL HOMELAND SECURITY FUNDING BY AGENCY
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                  Baseline
                    Agency                         2005   ------------------------------------------------------
                                                 Enacted*     2006       2007       2008       2009       2010
----------------------------------------------------------------------------------------------------------------
Department of Agriculture.....................        601        617        632        651        668        686
Department of Commerce........................        167        172        177        185        188        194
Department of Defense.........................      8,566      8,865      9,137      9,423      9,722     10,032
Department of Education.......................         25         22         23         23         23         24
Department of Energy..........................      1,562      1,595      1,618      1,655      1,690      1,728
Department of Health and Human Services.......      4,229      4,323      4,423      4,522      4,624      4,730
Department of Homeland Security*..............     24,887     25,714     26,169     26,903     27,663     28,456
Department of Housing and Urban Development...          2          2          2          2          2          3
Department of the Interior....................         65         68         69         71         73         76
Department of Justice.........................      2,679      2,778      2,879      2,976      3,079      3,190
Department of Labor...........................         55         56         57         59         61         62
Department of State...........................        824        840        859        876        894        914
Department of Transportation..................        182        190        197        206        214        223
Department of the Treasury....................        102        107        110        115        118        124
Department of Veterans Affairs................        281        291        301        312        324        336
Corps of Engineers............................         89         91         93         95         97         99
Environmental Protection Agency...............        107        109        113        117        119        124
Executive Office of the President.............         30         31         31         32         32         33
General Services Administration...............         65         66         67         68         70         71
National Aeronautics and Space Administration.        218        223        226        232        237        241
National Science Foundation...................        342        349        357        364        371        379
Office of Personnel Management................          3          3          3          3          3          3
Social Security Administration................        160        163        166        170        173        177
District of Columbia..........................         15         15         16         16         16         17
Federal Communications Commission.............          2  .........  .........  .........  .........  .........
Intelligence Community Management Account.....         72         73         75         77         78         80
National Archives and Records Administration..         17         17         18         18         18         19
Nuclear Regulatory Commission.................         59         62         64         66         68         71
Postal Service................................        503        513        524        534        546        558
Securities and Exchange Commission............          5          5          5          5          5          6
Smithsonian Institution.......................         75         79         82         87         90         94
United States Holocaust Memorial Museum.......          8          8          8          8          9          9
Corporation for National and Community Service         17         17         17         19         19         19
                                               -----------------------------------------------------------------
Total, Homeland Security Budget Authority.....     46,014     47,464     48,518     49,890     51,294     52,778
 
  Less Department of Defense..................     -8,566     -8,865     -9,137     -9,423     -9,722    -10,032
                                               -----------------------------------------------------------------
Non-Defense Discretionary Homeland Security        37,448     38,599     39,381     40,467     41,572     42,746
 Budget Authority, excluding BioShield........
 
  Less Fee-Funded Homeland Security Programs..     -3,942     -4,052     -4,140     -4,228     -4,318     -4,412
  Less Mandatory Homeland Security Programs...     -2,225     -2,303     -2,057     -2,079     -2,099     -2,122
                                               -----------------------------------------------------------------
Net Non-Defense Discretionary Homeland             31,281     32,244     33,184     34,160     35,155     36,212
 Security Budget Authority excluding BioShield
 
  Plus BioShield..............................      2,508  .........  .........  .........      2,175  .........
                                               -----------------------------------------------------------------
Net Non-Defense Discretionary Homeland             33,789     32,244     33,184     34,160     37,330     36,212
 Security Budget Authority including BioShield
 
Obligations Limitations
  Department of Transportation Obligations             19         19         19         20         21         22
   Limitation.................................
----------------------------------------------------------------------------------------------------------------
* FY 2005 Enacted estimates include supplemental funding, but baseline estimates assume that these are one-time
  events.


[[Page 51]]

Estimates by Budget Function:
  

                            Table 3-12.  HOMELAND SECURITY FUNDING BY BUDGET FUNCTION
                                   (budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                 2004         2004          2005         2006
                           Agency                              Enacted    Supplemental   Enacted *     Request
----------------------------------------------------------------------------------------------------------------
National Defense...........................................        8,960           80        12,171       12,830
International Affairs......................................          697  ............          821          938
General Science Space and Technology.......................          583  ............          617          608
Energy.....................................................          109  ............          102          112
Natural Resources and the Environment......................          342  ............          289          345
Agriculture................................................          398  ............          582          664
Commerce and Housing Credit................................          103  ............          649          162
Transportation.............................................        8,350           11         8,620       10,463
Community and Regional Development.........................        2,789  ............        2,743        3,069
Education, Training, Employment and Social Services........          151  ............          164          168
Health.....................................................        4,152  ............        4,276        4,473
Medicare...................................................           11  ............            8            9
Income Security............................................            6  ............            5            6
Social Security............................................          143  ............          160          177
Veterans Benefits and Services.............................          272  ............          281          300
Administration of Justice..................................       12,937           16        13,769       14,843
General Government.........................................          727  ............          742          775
                                                            ----------------------------------------------------
Total, Homeland Security Budget Authority..................       40,730          107        45,999       49,942
 
  Less National Defense, DoD...............................       -7,025  ............       -8,566       -9,513
 
                                                            ----------------------------------------------------
Total, Homeland Security Budget Authority excluding               33,705          107        37,433       40,429
 BioShield.................................................
 
  Less Fee-Funded Homeland Security Programs...............       -3,289  ............       -3,942       -5,888
  Less Mandatory Homeland Security Programs................       -1,941  ............       -2,225       -2,303
 
                                                            ----------------------------------------------------
Net Discretionary, Homeland Security Budget Authority             28,475          107        31,266       32,238
 excluding BioShield.......................................
 
  Plus BioShield...........................................          885  ............        2,508  ...........
 
                                                            ----------------------------------------------------
Net Discretionary, Homeland Security Budget Authority             29,360          107        33,774       32,238
 including BioShield.......................................
----------------------------------------------------------------------------------------------------------------
* Excludes $16 million in supplemental appropriations provided to the Coast Guard in 2005.


[[Page 52]]


                  Table 3-13.  BASELINE ESTIMATES--HOMELAND SECURITY FUNDING BY BUDGET FUNCTION
                                   (Budget authority, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                                  Baseline
               Budget Authority                    2005   ------------------------------------------------------
                                                 Enacted*     2006       2007       2008       2009       2010
----------------------------------------------------------------------------------------------------------------
National Defense..............................     12,171     12,555     12,914     13,291     13,681     14,087
International Affairs.........................        821        837        856        873        891        911
General Science Space and Technology..........        617        630        643        656        670        683
Energy........................................        102        106         97        100        102        107
Natural Resources and the Environment.........        289        296        305        313        319        331
Agriculture...................................        582        598        612        630        646        664
Commerce and Housing Credit...................        649        662        676        694        709        726
Transportation................................      8,636      8,907      9,204      9,480      9,766     10,063
Community and Regional Development............      2,743      2,800      2,858      2,918      2,981      3,044
Education, Training, Employment and Social            163        164        169        178        183        189
 Services.....................................
Health........................................      4,276      4,371      4,471      4,572      4,676      4,782
Medicare......................................          8          8          9          9          9         10
Income Security...............................          5          6          6          6          6          7
Social Security...............................        160        163        166        170        173        177
Veterans Benefits and Services................        281        291        301        312        324        336
Administration of Justice.....................     13,769     14,307     14,454     14,897     15,353     15,840
General Government............................        742        763        777        791        805        821
                                               -----------------------------------------------------------------
Total, Homeland Security Budget Authority.....     46,014     47,464     48,518     49,890     51,294     52,778
 
  Less National Defense, DoD..................     -8,566     -8,865     -9,137     -9,423     -9,722    -10,032
                                               -----------------------------------------------------------------
Net Discretionary, Homeland Security Budget        37,448     38,599     39,381     40,467     41,572     42,746
 Authority, excluding BioShield...............
 
  Less Fee-Funded Homeland Security Programs..     -3,942     -4,052     -4,140     -4,228     -4,318     -4,412
  Less Mandatory Homeland Security Programs...     -2,225     -2,303     -2,057     -2,079     -2,099     -2,122
                                               -----------------------------------------------------------------
Net Discretionary, Homeland Security Budget        31,281     32,244     33,184     34,160     35,155     36,212
 Authority....................................
 
  Plus BioShield..............................      2,508  .........  .........  .........      2,175  .........
                                               -----------------------------------------------------------------
Net Discretionary, Homeland Security Budget        33,789     32,244     33,184     34,160     37,330     36,212
 Authority, including BioShield...............
----------------------------------------------------------------------------------------------------------------
* FY 2005 Enacted estimates include supplemental funding, but baseline estimates assume that these are one-time
  events.

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.