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

    [[Page 19]]

                      3. HOMELAND SECURITY FUNDING ANALYSIS

      Since the terrorist attacks of September 11, 2001, the Federal
    Government, with State, local and private sector partners, 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 sites and critical infrastructures; and strengthen
    America's preparedness and response capabilities in our cities and local
    communities. 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--involve every level of government as well as the private
    sector and individual citizens. Since September 11th, homeland security
    has continued to be 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., response to natural
    disasters, 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 2007 Budget. Additional policy and baseline
    data is presented in the ``Additional Tables'' section. Due to rounding,
    data in this section may not add to totals in other Budget volumes.
    ---------------------------------------------------------------------------
      To compile this 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, at a level of detail sufficient to consolidate the information
    to determine 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. 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. For example, this year's budget includes
    significant re-estimates for the homeland security funding requested in
    two agencies' budgets: the U.S. Coast Guard, and the Department of
    Defense. When changes in the way agencies estimate homeland security
    expenditures are made, they are reflected in all years in order to
    maintain consistency.
      In the case of the Coast Guard, the agency derives its homeland
    security funding estimates using an activity-based costing model to
    allocate its budget among its various missions. In early fiscal year
    2005, the Coast Guard discovered the assumptions for this model had not
    been updated to reflect post-9/11 mission demands, meaning the
    projections derived from the model were increasingly inconsistent with
    actual, post-9/11 spending. After reviewing several years of post-9/11
    performance data, the Coast Guard updated its modeling assumptions to
    better reflect its current mission execution. In addition, as part of
    its annual government-wide review of homeland security activities, OMB
    determined that the Coast Guard was reporting both its ``Drug
    Interdiction'' and ``International Fisheries Enforcement'' activities as
    homeland security programs, which was inconsistent with the Government-
    wide definition of homeland security activities. As a result, these two
    mission activities have been dropped from the homeland security data.
      The revisions to the Department of Defense (DOD) homeland security
    funding estimates also better reflect actual spending by the Department.
    Previously, the DOD homeland security funding estimates were derived
    from an annual report issued by the DOD Comptroller's office that
    identified funding spent on combating terrorism activities. Now, DOD has
    been able to identify discrete, homeland security-related projects,
    programs

    [[Page 20]]

    and activities within the budget accounts of the various service
    branches. As a result, the funding estimates are more precise and
    integrated with the DOD budget.
      The following table reflects the adjustments made for the Coast Guard
    and DOD re-estimates:

    ------------------------------------------------------------------------
                                                        FY 2005     FY 2006
                                                         Effect   Effect \2\
    ------------------------------------------------------------------------
    DoD Re-Estimate..................................     +7,541      +7,992
    Coast Guard Re-Estimate..........................       -940        -790
    ------------------------------------------------------------------------
    \2\ The 2006 adjustments reflect comparisons between the 2006 requested
      levels and the revised 2006 enacted levels. As a result, a small
      amount of the adjustment is attributable to differences between the
      2006 Budget and the 2006 enacted funding levels, not just technical re-
      estimates.

      Total funding for homeland security has grown significantly since the
    attacks of September 11, 2001. For 2007, the President's Budget includes
    $58.3 billion for homeland security activities, a $3.4 billion (6.3
    percent) increase over the 2006 level. Excluding mandatory funding and
    the Department of Defense, the 2007 Budget proposes a gross
    discretionary increase of $3 billion (8.2 percent) over the 2006 level.
    The Budget also proposes to increase aviation security fees to allow the
    Government to recover more of its core security costs of Federal
    aviation screening operations. Including this fee proposal, the net non-
    defense discretionary increase from 2006 to 2007 is 3.3 percent.

                                     Table 3-1.  HOMELAND SECURITY FUNDING BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                   Budget Authority                  Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture....................        595.9  ............        563.0  ............        650.3
    Department of Commerce.......................        166.7  ............        181.1  ............        217.8
    Department of Defense........................     16,107.7      1,080.2      16,440.4  ............     16,697.8
    Department of Education......................         23.9  ............         27.5  ............         25.8
    Department of Energy.........................      1,562.0  ............      1,705.2  ............      1,699.6
    Department of Health and Human Services......      4,229.4  ............      4,299.1           0.1      4,563.3
    Department of Homeland Security..............     23,979.9        569.2      25,499.0         176.9     27,777.0
    Department of Housing and Urban Development..          2.0  ............          1.9  ............          1.9
    Department of the Interior...................         65.0  ............         55.6  ............         55.4
    Department of Justice........................      2,690.8         76.1       2,975.4          16.1      3,279.8
    Department of Labor..........................         56.1  ............         48.3  ............         58.7
    Department of State..........................        824.1  ............      1,107.9  ............      1,212.5
    Department of Transportation.................        219.3  ............        181.0  ............        206.0
    Department of the Treasury...................        101.1          0.4         115.8  ............        133.4
    Department of Veterans Affairs...............        249.4  ............        308.8  ............        313.4
    Corps of Engineers...........................         89.0  ............         72.0  ............         43.0
    Environmental Protection Agency..............        106.3  ............        129.3  ............        183.3
    Executive Office of the President............         29.5  ............         20.8  ............         24.6
    General Services Administration..............         65.2  ............         98.6  ............         95.9
    National Aeronautics and Space Administration        220.5  ............        212.6  ............        203.7
    National Science Foundation..................        342.2  ............        344.2  ............        387.4
    Office of Personnel Management...............          3.0  ............          2.7  ............          2.8
    Social Security Administration...............        154.7  ............        176.8  ............        183.8
    District of Columbia.........................         15.0  ............         13.5  ............          9.0
    Federal Communications Commission............          1.8  ............          2.3  ............          5.4
    Intelligence Community Management Account....         72.4  ............         56.0  ............         55.0
    National Archives and Records Administration.         17.1  ............         18.2  ............         18.1
    Nuclear Regulatory Commission................         59.2  ............         79.3  ............         70.3
    Postal Service...............................        503.0  ............  ...........  ............  ...........
    Securities and Exchange Commission...........          5.0  ............          5.0  ............          5.0
    Smithsonian Institution......................         75.0  ............         83.7  ............         80.4
    United States Holocaust Memorial Museum......          8.0  ............          7.8  ............          7.8
    Corporation for National and Community                17.0  ............         20.4  ............         14.9
     Service.....................................
                                                  ------------------------------------------------------------------
    Total, Homeland Security Budget Authority....     52,657.2      1,725.8      54,852.9         193.1     58,282.9

      Less Department of Defense.................    -16,107.7     -1,080.2     -16,440.4  ............    -16,697.8
                                                  ------------------------------------------------------------------
    Non-Def. Homeland Security Budget Authority       36,549.5        645.6      38,412.6         193.1     41,585.1
     excluding BioShield.........................

      Less Fee-Funded Homeland Security Programs.     -3,444.1  ............     -4,130.0  ............     -6,022.0
      Less Mandatory Homeland Security Programs..     -2,193.6  ............     -2,232.0  ............     -2,454.1
                                                  ------------------------------------------------------------------
    Net Non-Defense Discretionary, Homeland           30,911.8        645.6      32,050.6         193.1     33,109.0
     Security Budget Authority excluding
     BioShield...................................

      Plus BioShield.............................      2,508.0  ............  ...........  ............  ...........
                                                  ------------------------------------------------------------------
    Net Non-Defense Discretionary, Homeland           33,419.8        645.6      32,050.6         193.1     33,109.0
     Security Budget Authority including
     BioShield...................................

    Obligations Limitations
    Department of Transportation Obligations              78.2  ............        121.0  ............         99.7
     Limitation..................................
    ----------------------------------------------------------------------------------------------------------------

    [[Page 21]]

      A total of 32 agencies comprise Federal homeland security funding in
    2007. 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 93 percent of total Government-
    wide homeland security funding in 2007.
      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 governments, 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 for Homeland
    Security: intelligence and warning, border and transportation security,
    domestic counterterrorism, protecting critical infrastructures and key
    assets, defending against catastrophic threats, and emergency
    preparedness and response. In all tables, classified funding controlled
    by the Director of National Intelligence 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.
      Funding presented in this report is analyzed in the context of major
    ``mission areas.'' 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.
      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 to build a better
    framework 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)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Intelligence and Warning.....................        349.8  ............        428.2  ............        604.4
    Border and Transportation Security...........     16,652.3        386.2      18,348.6        159.6      20,177.1
    Domestic Counterterrorism....................      3,974.5        257.3       4,548.0         17.6       4,661.6
    Protecting Critical Infrastructure and Key        17,835.9        849.4      17,851.7  ............     18,350.6
     Assets......................................
    Defending Against Catastrophic Threats.......      8,146.4        142.8       8,639.8          0.5       8,882.1
    Emergency Preparedness and Response..........      5,654.5         90.1       4,924.3         15.4       5,474.9
    Other........................................         43.8  ............        112.4  ............        132.2
                                                  ------------------------------------------------------------------
    Total, Homeland Security Budget Authority....     52,657.2      1,725.8      54,852.9        193.1      58,282.9

      Plus BioShield.............................      2,508.0  ............  ...........  ............  ...........
                                                  ------------------------------------------------------------------
    Total, Homeland Security Budget Authority ,       55,165.2      1,725.8      54,852.9        193.1      58,282.9
     including 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, and the public
    at large. It does not include most foreign intelligence collection--
    although

    [[Page 22]]

    the resulting intelligence may inform homeland security activities--nor
    does it fully capture classified intelligence activities. In 2007,
    funding for intelligence and warning is distributed between DHS (61
    percent), primarily in the Office of Intelligence and Analysis; DOJ (26
    percent), primarily in the Federal Bureau of Investigation (FBI); and
    other Intelligence Community members (13 percent). The 2007 funding for
    intelligence and warning activities is 41 percent above the 2006 level.

                                      Table 3-3.  INTELLIGENCE AND WARNING FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture....................          6.3  ............          6.7  ............         22.3
    Department of Homeland Security..............        226.4  ............        323.3  ............        370.4
    Department of Justice........................         44.2  ............         41.7  ............        156.2
    Department of the Treasury...................          0.6  ............          0.6  ............          0.6
    Intelligence Community Management Account....         72.4  ............         56.0  ............         55.0
                                                  ------------------------------------------------------------------
    Total, Intelligence and Warning..............        349.8  ............        428.2  ............        604.4
    ----------------------------------------------------------------------------------------------------------------

      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 information sharing and warning mechanisms,
              such as the Homeland Security Advisory System, to allow
              Federal, State, local, and private authorities to take action
              to prevent attacks and protect potential targets.
      As established by the Intelligence Reform and Terrorism Prevention Act
    of 2004, the Director of National Intelligence (DNI) is ensuring that
    his newly established office is setting collection and analysis
    priorities that are consistent with the new National Intelligence
    Strategy. This new strategy calls for the integration of both the
    domestic and foreign dimensions of U.S. intelligence so that there are
    no gaps in our understanding of threats to the homeland. The DNI is also
    ensuring that information sharing takes place in an environment where
    access to terrorism information is matched to the roles,
    responsibilities, and missions of all the organizations across the
    intelligence community. These changes 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.
      The 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. NCTC serves as
    the primary organization in the U.S. Government for analyzing and
    integrating all intelligence pertaining to terrorism and
    counterterrorism (except purely domestic terrorism) and the central and
    shared knowledge bank on known and suspected terrorists and
    international terror groups. It also ensures 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 DNI and the NCTC work 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. As such, the NCTC allocates requirements to
    the agencies with the assets and capabilities to address them. In
    addition, NCTC has formed a new core staff of analysts drawn from
    multiple intelligence agencies. This variety ensures that NCTC can
    access the Intelligence Community's full breadth of knowledge and
    complement the activities of individual agencies. Despite the addition
    of this new permanent planning staff, NCTC will not undertake direct
    operations but will continue to leave mission execution with the
    appropriate agencies. This separation ensures that the chain of command
    remains intact and prevents potential bureaucratic micromanagement of
    counterterrorism missions. Taken together, the creation of the NCTC and
    recent legislation and executive orders will ensure counterterrorism
    assets are better allocated and more tightly coordinated to produce
    improved indications and warning intelligence to benefit homeland
    security.
      The 2007 request for FBI supports improvements in its intelligence
    infrastructure to enable the Bureau to leverage its workforce,
    particularly the agents, intelligence analysts, and support staff in the
    newly-created National Security Branch. The National Security Branch
    will integrate the Intelligence Directorate with the Counterterrorism
    and Counterintelligence Divisions to ensure that FBI activities are
    coordinated with other Intelligence Community agencies under the
    Director of National Intelligence's leadership.
      Over the past four years, the FBI has developed its intelligence
    capabilities and improved its ability to protect the American people
    from threats to national security. It has built on its established
    capacity to collect information and enhanced its ability to analyze and
    disseminate intelligence. The President's 2007 Budget supports the FBI's
    priorities and its continuing transformation by providing the resources
    needed for its in

    [[Page 23]]

    telligence operations and modernization of its operations. These
    initiatives will increase the number of secure facilities for conducting
    intelligence analysis; enhance intelligence collection, systems, and
    training; continue development of the FBI's new case management system
    that will reduce paperwork and improve information sharing; and upgrade
    fingerprint identification systems to improve screening activities to
    identify potential terrorists.
      As a result of the Department of Homeland Security's 2005 re-
    organization, a new Office of Intelligence and Analysis (OIA) was
    established to strengthen intelligence functions and information sharing
    within DHS. OIA gathers information to analyze terrorist threats to
    critical infrastructure, transportation systems, or other targets inside
    the homeland. Led by the newly-created DHS Chief Intelligence Officer
    reporting directly to the Secretary, this office not only relies on its
    own analysts (comprised of personnel from the former Information
    Analysis and Infrastructure Protection Directorate), but draws on the
    expertise of other DHS components with information collection and
    analytical capabilities. For example, improved coordination and
    information sharing between border agents, air marshals, and
    intelligence analysts deepens the Department's understanding of
    terrorist threats. By maintaining and expanding its partnership with the
    NCTC, DHS will better coordinate its activities with other members
    within the intelligence community and the DNI. The Office also serves as
    the focal point for disseminating information to states and local
    entities. For example, OIA 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 connected to
    HSIN, and HSIN is now being rolled out to major counties as well.

    National Strategy Mission Area: Border and Transportation Security

                                 Table 3-4.  BORDER AND TRANSPORTATION SECURITY FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture....................        159.1  ............        165.3  ............        164.9
    Department of Homeland Security..............     15,628.7        386.2      17,078.6        159.6      18,820.9
    Department of Justice........................         34.5  ............         30.4  ............         20.5
    Department of State..........................        778.5  ............      1,056.6  ............      1,152.1
    Department of Transportation.................         51.5  ............         17.7  ............         18.7
                                                  ------------------------------------------------------------------
    Total, Border and Transportation Security....     16,652.3        386.2      18,348.6        159.6      20,177.1
    ----------------------------------------------------------------------------------------------------------------

      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 ($18.8 billion, or 93 percent, in 2007)
    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 Justice, also play
    a significant role. The President's 2007 request would increase funding
    for border and transportation security activities by 10 percent over the
    2006 level.
      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.
      Since 2001, the Administration and Congress have increased funding for
    border security by 93 percent and immigration enforcement by 90 percent.
    The Administration continues to deploy new technology--from unmanned
    aircraft to ground sensors to infrared cameras; and has eliminated the
    barriers that prevented DHS from completing a 14-mile border fence
    running along the border south of San Diego. The 2007 Budget provides
    funding for 1,500 new border patrol agents and new technology, including
    portable imaging machines, cameras, sensors and automated targeting
    systems that focus on high-risk travelers and goods. This investment
    will support smarter and more secure borders.
      To ensure detention and removal of illegal aliens present in the
    United States, the Budget provides $2.1 billion, a $626 million increase
    over 2006, to support detention and removal efforts. This includes
    funding to expand the program to apprehend alien fugitives and to
    increase efforts to ensure that aliens convicted of crimes in the United
    States are deported directly from correctional institutions after their
    time is served. The Budget provides funding to add more than 6,000 new
    detention beds to hold illegal immigrants while they await removal. This
    will bring the total number of beds available to approximately 27,500.
    DHS will also make improvements in processing and deporting

    [[Page 24]]

    aliens, cutting the time of detention for aliens in half from 30 days to
    15 days. A 2003 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.
      DHS is leading the interagency effort to implement a coordinated
    approach to terrorist-related screening in immigration, law enforcement,
    intelligence, counterintelligence, border and transportation systems,
    and critical infrastructure, covering areas from information sharing to
    screener training. Key to the Federal Government's screening of
    international visitors is the US-VISIT program, which is designed to
    expedite the clearance of legitimate travelers while identifying and
    denying clearance to those who may intend harm. Through 2005, the first
    phases of US-VISIT were successfully deployed. US-VISIT currently
    collects two digital fingerprints and a digital photograph. The ability
    to screen visitors against criminal and terrorist information as well as
    confirming the identity of travelers has improved border security.
    However, in the future, to improve accuracy in the identification of
    visitors, first-time visitors to the United States will be enrolled in
    the program by submitting 10 fingerprints, allowing the identification
    of visitors with even greater accuracy. DHS, in conjunction with the
    Departments of State and Justice, is in the process of implementing this
    multi-year project to improve screening, and the 2007 Budget includes: a
    $60 million increase for DHS for 10-print deployment and for
    interoperability with the FBI's fingerprint system, the Integrated
    Automated Fingerprint Identification System (IAFIS); a $71 million
    increase for FBI to upgrade IAFIS; and $10 million for the Department of
    State to begin implementing these new security measures.
      In the area of aviation security, the Administration continues to
    enhance the multiple levels of security implemented in the wake of the
    September 11th attacks. The Transportation Security Administration (TSA)
    has made significant improvements in aviation security since 9/11 by
    implementing a layered, risk-based security approach. These advances
    include hardened cockpit doors, a greatly expanded Federal Air Marshals
    program, arming some pilots through the Federal Flight Deck Officers
    program, offering voluntary self defense training to crew members, and
    screening 100 percent of passenger and checked baggage. TSA will further
    strengthen these efforts in 2007 by requesting $4.6 billion for aviation
    screening operations, an increase of $74 million, which ensures
    sufficient resources for Transportation Security Officer staffing at our
    Nation's airports. Combined with the funds provided in 2006, TSA will
    apply over $100 million to enhance air cargo security over the next two
    years. TSA will also commit over $690 million to the purchase,
    installation, and maintenance of baggage screening devices, including
    in-line systems that will increase baggage throughput up to 250 percent.
    The Budget also provides over $80 million for emerging technology at
    passenger checkpoints. This technology will enhance the detection of
    prohibited items, especially firearms and explosives, through the use of
    additional sensors such as whole body imaging, automated explosive
    sampling, and cast and prosthesis scanners. The Budget also proposes to
    cover about 70 percent of core aviation security costs through aviation
    security fees.
      The safeguarding 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 major seaport could slow the
    movement of goods and 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 2007, the Coast Guard will continue to
    ensure compliance with MTSA port and vessel security standards and
    regulations. The 2007 Budget provides more than $2 billion for port
    security across DHS, primarily for Coast Guard port security activities
    such as Maritime Safety and Security Teams and harbor patrols. In
    addition, the Coast Guard's 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. In addition, ports are among the
    infrastructure assets protected through DHS Targeted Infrastructure
    Protection (TIP) grants, which fall under the Infrastructure Protection
    mission area.
      The State Department Bureau of Consular Affairs is the second largest
    contributor to border and transportation security. The State Border
    Security program includes visa, passport, American Citizen Services and
    International Adoption programs. In 2007, the State Department will work
    through the interagency process to achieve full and real-time
    interoperability between biographic and biometric screening systems for
    10 fingerprint collection from foreign travelers, as part of the US-
    VISIT Program.
      In addition, the Department of State will also lead the implementation
    of the Western Hemisphere Travel Initiative in 2007, which mandates that
    all travelers within the Western Hemisphere travel with a passport or
    other authorized document by 2009. Under this initiative, United States
    citizens and foreign visitors traveling to and from the Caribbean,
    Bermuda, Panama, Canada or Mexico will be required to have a passport or
    standardized travel card that establishes the bearer's identity and
    nationality to enter or re-enter the United States. The initiative will
    improve security at our borders by standardizing entry and exit
    information and increasing the ability of Government agencies to work
    together.
      In 2007, the State Department plans to increase staff to create a
    dedicated team focused on inter-country adoptions and preventing and
    resolving cases of international parental child abduction.

    [[Page 25]]

    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 44 percent of funding for 2007, respectively. The
    President's 2007 request would increase funding for domestic
    counterterrorism activities by 2.5 percent over the 2006 level.

                                       Table 3-5.  DOMESTIC COUNTERRORISM FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Homeland Security..............      1,897.0        183.0       2,132.8          2.0       2,070.8
    Department of Justice........................      1,999.0         74.3       2,325.3         15.6       2,482.7
    Department of Transportation.................         20.0  ............         21.0  ............         21.0
    Department of the Treasury...................         54.9  ............         64.8  ............         82.5
    Social Security Administration...............          3.7  ............          4.2  ............          4.6
                                                  ------------------------------------------------------------------
    Total, Domestic Counterterrorism.............      3,974.5        257.3       4,548.0         17.6       4,661.6
    ----------------------------------------------------------------------------------------------------------------

      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; and
        Improving law enforcement cooperation and information
              sharing to enhance domestic counterterrorism efforts across
              all levels of government.
      The President's 2007 Budget supports the FBI's top strategic priority:
    to protect the United States from terrorist attacks. FBI continues to
    build its counterterrorism capabilities post-9/11. Over the past five
    years, FBI has shifted resources to counterterrorism from lower priority
    programs, hired and trained additional field investigators, and
    strengthened headquarters oversight of the counterterrorism program.
    More recently, FBI has taken a major step toward integration of
    counterterrorism, counterintelligence, and intelligence functions by
    establishing the new National Security Branch to oversee all three
    programs. Overall, FBI resources in the domestic counterterrorism
    category have increased from $0.9 billion in 2002 to $1.9 billion in
    2007, with the 2007 Budget providing an increase of more than $200
    million over the 2006 level. One of the largest 2007 initiatives for
    enhancing counterterrorism capabilities is $100 million for Sentinel,
    the FBI's new automated case management system, which will streamline
    record-keeping and facilitate sharing of information about terrorists.
      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 2004 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 2007 Budget provides an increase of $127 million for these
    enforcement activities.

    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 of the diversity of infrastructures and since it is
    estimated that more than 85 percent of the Nation's key assets are
    privately owned. DOD reports the largest share of funding in this
    category for 2007 ($11.3 billion, or 62 percent), and includes programs
    focusing on physical security and improving the military's ability to
    prevent or mitigate the consequences of attacks against departmental
    personnel and facilities. DHS has overall responsibility for
    prioritizing and executing infrastructure protection activities at a
    national level and accounts for $2.9 billion (16 percent) of 2007
    funding. In addition, a total of 25 other agencies report funding to
    protect their own assets and work with States, localities, and the
    private sector to reduce vulnerabilities in their areas of expertise.
    The President's 2007 request increases funding for activities to

    [[Page 26]]

    protect critical infrastructure and key assets by $499 million (2.8
    percent) over the 2006 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; and
        Reducing threats and vulnerabilities in cyberspace.

                          Table 3-6.  PROTECTING CRITICAL INFRASTRUCTURE AND KEY ASSETS FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture....................        150.7  ............         93.2  ............         46.0
    Department of Defense........................     10,838.2        847.8      11,096.8  ............     11,304.3
    Department of Energy.........................      1,456.1  ............      1,523.7  ............      1,503.6
    Department of Health and Human Services......        168.2  ............        181.7  ............        188.8
    Department of Homeland Security..............      2,580.9  ............      2,678.5  ............      2,898.0
    Department of Justice........................        468.8          1.3         521.1  ............        568.3
    Department of Transportation.................        137.0  ............        132.5  ............        154.0
    Department of Veterans Affairs...............        212.8  ............        273.5  ............        271.2
    National Aeronautics and Space Administration        220.5  ............        212.6  ............        203.7
    National Science Foundation..................        315.2  ............        317.2  ............        359.4
    Social Security Administration...............        150.6  ............        172.0  ............        178.5
    Postal Service...............................        503.0  ............  ...........  ............  ...........
    Other Agencies...............................        633.9          0.4         649.2  ............        675.0
                                                  ------------------------------------------------------------------
    Total, Protecting Critical Infrastructure and     17,835.9        849.4      17,851.7  ............     18,350.6
     Key Assets..................................
    ----------------------------------------------------------------------------------------------------------------

      Homeland Security Policy Directive 7 (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 managing Federal critical infrastructure protection
    efforts. To provide the overall framework to integrate various critical
    infrastructure protection activities, DHS has developed the interim
    National Infrastructure Protection Plan. Under the plan's risk-
    management approach, DHS will coordinate the infrastructure protection
    programs of other Federal departments and agencies.
      Recognizing that each infrastructure sector possesses it own unique
    characteristics, the National Infrastructure Protection Plan designates
    a sector-specific agency to oversee infrastructure protection efforts
    for each sector. This approach enables agencies to rely on specialized
    expertise and long-standing relationships with industry in conducting
    infrastructure protection activities. With the National Infrastructure
    Protection Plan, sector-specific agencies are pursuing infrastructure
    protection efforts in concert with DHS. There are 13 critical
    infrastructure sectors and 9 sector-specific agencies, including DHS, to
    cover them. For example, the Budget provides $10 million to DHS to
    improve security at chemical plant sites. The Environmental Protection
    Agency is seeking $38 million in 2007 to expand its Water Sentinel
    program to four more cities. The program develops pilot systems for cost
    effective, early detection of disease, pest, or poisonous agents in
    drinking water systems. To protect agricultural resources, the
    Department of Agriculture has undertaken the responsibility to identify
    critical agricultural assets throughout the country. They have completed
    extensive physical security assessments to make sure that all
    agricultural physical security issues throughout the United States are
    in line with latest polices and regulations. The Department of Energy
    continues to coordinate protection activities within the energy sector.
    Overall, additional enhancements are being provided for 14 agencies to
    perform critical infrastructure protection activities that are essential
    to the success of the National Infrastructure Protection Plan.
      In addition to developing the National Infrastructure Protection Plan,
    DHS recently reorganized its infrastructure protection programs and
    created a new Preparedness Directorate in order to better focus
    preparedness activities on objective measures of risk and performance.
    The new Directorate is responsible for both physical and cyber
    infrastructure protection. The Office of Infrastructure Protection,
    located within the new Preparedness Directorate, is responsible for
    managing and prioritizing infrastructure protection at a national level.
    The Office operates the National Asset Database, which catalogues
    critical infrastructure and key assets. The data collected within the
    database is used to identify the most critical infrastructure, assess
    vulnerabilities, and enable DHS to develop a risk-based strategy to
    protect them. DHS conducts site visits and

    [[Page 27]]

    assessments at various 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 other
    infrastructure sectors. DHS also trains State and local officials and
    infrastructure owners to improve security in the areas immediately
    surrounding critical sites. The 2007 Budget provides $462 million for
    these activities in the protecting critical infrastructures and key
    assets mission area. In conjunction with funding for the Office of
    Infrastructure Protection, the Administration proposes $600 million for
    Targeted Infrastructure Protection (TIP) grants, which will integrate
    existing disparate grant programs for securing transportation assets and
    other critical infrastructures. Awarded through the Preparedness
    Directorate's Office of Grants and Training, 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 established the National Cyber Security Division (NCSD) in
    2003, in response to the President's National Strategy to Secure
    Cyberspace, in order to identify, analyze and reduce cyber threats and
    vulnerabilities, coordinate incident response, and provide technical
    assistance. NCSD, now part of DHS' Preparedness Directorate, works
    collaboratively with public, private, and international entities to
    secure cyberspace and America's cyber assets. For example, it
    coordinated the response and mitigation of the Sober and Zotob computer
    viruses. NCSD has also established the U.S. Computer Emergency Response
    Team (US-CERT), which operates a cyber watch, warning, and incident
    response center. US-CERT supports a watch and warning capability
    responsible for tracking incident and trend data, ranking associated
    severity, and generating real-time alerts.

      NCSD also operates a Control Systems Security Program. Today, many
    critical infrastructures such as pipelines, water and pumping stations,
    and pharmaceutical production are run by control systems. These systems
    make our critical infrastructure assets more automated, more productive,
    more efficient, and more innovative, but they also may expose many of
    those physical assets to cyber-related threats and vulnerabilities. NCSD
    works to address these weaknesses and enhance control systems security.
    To evaluate readiness and response programs such as the National
    Response Plan, NCSD conducts national cyber exercises such as Cyber
    Storm with public and private sector entities. These exercises test our
    capabilities and improve our ability to respond to an incident. To
    support these critical preparedness activities, the Budget includes $93
    million for the NCSD in 2007. The Budget also includes an increase of $6
    million for research and development on new technologies to enhance
    cyber security that will be conducted by the Science and Technology
    Directorate.

    National Strategy Mission Area: Defending Against Catastrophic Threats

                               Table 3-7.  DEFENDING AGAINST CATASTROPHIC THREATS FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture....................        222.7  ............        238.3  ............        342.7
    Department of Commerce.......................         73.4  ............         80.6  ............         83.4
    Department of Defense........................      4,925.4        142.4       5,004.3  ............      4,986.4
    Department of Energy.........................          7.5  ............         62.1  ............         58.9
    Department of Health and Human Services......      1,901.8  ............      1,856.3  ............      1,976.0
    Department of Homeland Security..............        936.1  ............      1,306.1  ............      1,338.6
    Department of Justice........................         33.5          0.5          37.4          0.5          42.3
    Department of the Treasury...................  ...........  ............  ...........  ............          0.9
    National Science Foundation..................         27.0  ............         27.0  ............         28.0
    Nuclear Regulatory Commission................         19.0  ............         27.8  ............         24.9
                                                  ------------------------------------------------------------------
    Total, Defending Against Catastrophic Threats      8,146.4        142.8       8,639.8          0.5       8,882.1
    ----------------------------------------------------------------------------------------------------------------

      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 to help develop and field technologies to
    counter CBRN threats are DOD ($5.0 billion, or 56 percent, of the 2007
    total), HHS ($2.0 billion, or 22 percent, of the 2007 total), largely
    for research at the National Institutes of Health, and DHS, mostly for
    the Directorate of Science and Technology (S&T) ($1.3 billion, or 15
    percent, of the 2007 total). The President's 2007 request would increase
    funding for activities to defend against catastrophic threats by 2.8
    percent over the 2006 level.
      The major requirements addressed in this mission area include:
        Preventing terrorist use of CBRN weapons through detection
              systems and procedures, and improving decontamination
              techniques; and

    [[Page 28]]

        Developing countermeasures, such as vaccines and other drugs
              to protect the public from the threat of a CBRN attack or
              other public health emergency.
      DOD defends the nation against catastrophic threats by undertaking
    long-term research on chemical and biological threats and by developing
    strategies to counter the risk of such attacks. DOD's efforts in
    maritime defense and interdiction provide early detection and response
    to possible CBRN threats. DOD also conducts anti-terrorism planning to
    defend against a potential CBRN or other terrorist attack against a
    military base or installment. Finally, the U.S. Northern Command, the
    military command responsible for homeland defense, is included in this
    category.
      To protect against a nuclear or radiological weapon entering the
    country, the Domestic Nuclear Detection Office (DNDO), created in 2006
    within the Department of Homeland Security, will coordinate the Nation's
    nuclear detection efforts. The DNDO is responsible for developing and
    deploying a comprehensive system to detect and report any attempt to
    import a nuclear explosive device or radiological material into the
    United States. This Office has oversight of all research and development
    for detection, identification, and reporting of radiological and nuclear
    materials. It is also 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 2007 Budget includes $536 million for the DNDO, a 70-percent
    increase from the 2006 level. Together with the Departments of State,
    Energy, Defense, and Justice, the DNDO is deploying a comprehensive
    system to detect and report any attempt to import, assemble, or
    transport a nuclear device, fissile or radiological materials within the
    United States.
      In 2007, DNDO will conduct $100 million in transformational research
    and development aimed at enhancing our ability to detect, identify, and
    attribute nuclear and radiological materials. This research looks beyond
    current capabilities and seeks to find new scientific tools and
    methodologies that may prove useful in broad efforts to focus the
    Nation's resources toward countering the threat of nuclear and
    radiological devices. The DNDO budget also includes $178 million for the
    deployment of both fixed and mobile radiation portal monitors at
    strategic points of entry throughout the country. Together with overseas
    non-proliferation efforts led by the Department of State, and overseas
    detection capabilities managed by the Department of Energy, these
    programs seek to create a seamless approach toward preventing terrorists
    anywhere in the world from acquiring, transporting, or introducing these
    materials into the United States.
      Another 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.
      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, thereby allowing the
    distribution of life-saving treatment and preventative measures before
    the development of serious and widespread illnesses.
      The Administration continues HHS' investment in developing medical
    countermeasures to CBRN threats, investing nearly $2 billion, an
    increase of $120 million over 2006 and $1.9 billion over the level prior
    to September 11th (this includes funding for programs focused on
    chemical and radiological and nuclear countermeasures referenced below).
    For 2007, the Budget includes nearly $160 million at NIH for the
    advanced development of medical countermeasures against threats of
    bioterrorism. Large investments in basic research of medical
    countermeasures through NIH have helped create multiple promising
    products to protect the public against the threat of a terrorist attack.
    These investments will accelerate the development of these products to
    help Project BioShield acquire them more quickly for inclusion in the
    Strategic National Stockpile.
      HHS will continue to improve human health surveillance with over $100
    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. FDA and
    USDA 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.

    National Strategy Mission Area: Emergency Preparedness and Response

      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. Response to
    natural disasters, including catastrophic natural events such as
    Hurricane Katrina, does not fall within the definition of a homeland
    security activity. However, in preparing for ter

    [[Page 29]]

    rorism-related threats, many of the activities within this mission area
    also support preparedness for catastrophic natural disasters.
    Additionally, lessons learned from the response to Hurricane Katrina
    will help to revise and strengthen catastrophic response planning.

                                 Table 3-8.  EMERGENCY PREPAREDNESS AND RESPONSE FUNDING
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Defense........................        344.2         90.1         339.4  ............        407.0
    Department of Energy.........................         98.4  ............        119.4  ............        137.1
    Department of Health and Human Services......      2,159.4  ............      2,261.2          0.1       2,398.5
    Department of Homeland Security..............      2,671.8  ............      1,868.9         15.3       2,147.9
    Other Agencies...............................        380.7  ............        335.5  ............        384.4
                                                  ------------------------------------------------------------------
    Total, Emergency Preparedness and Response...      5,654.5         90.1       4,924.3         15.4       5,474.9

      Plus BioShield.............................      2,508.0  ............  ...........  ............  ...........
                                                  ------------------------------------------------------------------
    Total, Emergency Preparedness and Response         8,162.5         90.1       4,924.3         15.4       5,474.9
     including BioShield.........................
    ----------------------------------------------------------------------------------------------------------------

      HHS, the largest contributor ($2.4 billion, or 44 percent, in 2007),
    assists States, localities and hospitals to upgrade public health
    capacity and maintains a national stockpile of medicines and vaccines
    for use following an event. DHS maintains the second largest share of
    funding in this category ($2.1 billion, or 39 percent, for 2007), mainly
    for preparedness grant assistance to State and local first responders. A
    total of 23 other agencies include emergency preparedness and response
    funding. A number of agencies maintain specialized response assets that
    may be called upon in select circumstances, and others report only
    funding for their agency's internal preparedness capability. In the
    President's 2007 Budget, funding for emergency preparedness and response
    activities would increase by $551 billion (11 percent) over the 2006
    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 preparedness 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;
              and
        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. The
    recent release of a unified National Preparedness Goal provides a new
    framework for guiding Federal, State, and local investments. In order to
    ensure that these investments translate into improvements in
    preparedness, we must continue to identify capability gaps 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 building new response capabilities, and not simply
    supplanting normal operating expenses. DHS is leading an interagency
    effort to better match Federal resources with achieving national
    preparedness goals.
      From 2001 through 2006, the Federal Government has allocated $22.5
    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 $350
    million in 2001 to $4 billion in the 2007 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 the eight national priorities and 37 target
    capabilities identified in the new National Preparedness Goal.
      In 2005, DHS rolled-out the National Response Plan, and the
    Administration is currently reviewing the plan to include lessons
    learned from the response to Hurricane Katrina. DHS will provide grant
    funding to support approximately 200 terrorism preparedness exercises in
    2006 and 2007, and take an active role in organizing the 2007 Top
    Officials (TOPOFF) exercise. The 2007 Budget continues to provide
    coordinated terrorism preparedness training and equipment for State and
    local responders across the various responder agen

    [[Page 30]]

    cies. The 2007 request includes $2.1 billion for terrorism preparedness
    grants, training, and exercises to be administered by the Preparedness
    Directorate within DHS, and proposes to continue current progress on
    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, $20 million within DHS for the
    Federal Emergency Management Agency's Urban Search and Rescue teams, 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. The Budget also includes more than $100 million in DHS and
    HHS to strengthen the Nation's capabilities to respond to a mass
    casualty event.
      The Administration continues making significant investments in medical
    countermeasures through Project BioShield. BioShield is designed to
    stimulate the development of the next generation of countermeasures by
    allowing the Federal Government to buy critically needed vaccines and
    medications for biodefense as soon as experts agree they are safe and
    effective enough to be added to the Strategic National Stockpile. This
    program provides an incentive to manufacture these countermeasures.
    BioShield is a shared responsibility, joining the intelligence
    capabilities of DHS with the medical expertise of HHS.
      The Budget includes $594 million to maintain and augment this supply
    of vaccines and other countermeasures that can be made available within
    12 hours in the event of a terrorist attack or other public health
    emergency. This includes funding for storage and maintenance of products
    purchased through BioShield, and nearly $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 2007, HHS will provide nearly $475 million to continue improvements
    for hospital infrastructure and mutual aid through the Health Resources
    and Services Administration, and $824 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 nearly $8.5 billion.

                          Non-Federal Expenditures \3\
    ---------------------------------------------------------------------------

      \3\ 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 infrastructure; 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 continue to place a high priority on
    and provide additional resources for security. On the other hand, many
    entities have not increased their spending. A 2004 survey conducted by
    the National Association of Counties 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. \4\
    ---------------------------------------------------------------------------
      \4\ 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. A
    2003 survey conducted by the Conference Board showed that 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. \5\ Given the
    difficulty of obtaining survey results that are representative of the
    entire universe of States, localities, and businesses, it is expected
    that there will be a wide range of estimates on non-Federal security
    spending for critical infrastructure protection.
    ---------------------------------------------------------------------------
      \5\ Source: Conference Board, ``Corporate Security Management'' 2003.
    ---------------------------------------------------------------------------

                                Additional Tables

      The tables in the Federal expenditures section above present data
    based on the President's policy for the 2007 Budget. The tables below
    present additional policy and baseline data, as directed by the Homeland
    Security Act of 2002.

    [[Page 31]]

    Estimates by Agency:

                       Table 3-9.  DISCRETIONARY FEE-FUNDED HOMELAND SECURITY ACTIVITIES BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Energy.........................          1.2  ............          1.9  ............          2.0
    Department of Homeland Security..............      2,404.0  ............      2,788.0  ............      4,578.0
    Department of State..........................        763.3  ............        988.4  ............      1,128.8
    General Services Administration..............         58.6  ............         91.8  ............         88.4
    Social Security Administration...............        151.0  ............        173.4  ............        179.2
    Federal Communications Commission............          1.8  ............          2.3  ............          5.4
    Nuclear Regulatory Commission................         59.2  ............         79.3  ............         35.2
    Securities and Exchange Commission...........          5.0  ............          5.0  ............          5.0
                                                  ------------------------------------------------------------------
    Total, Discretionary Homeland Security Fee-        3,444.1  ............      4,130.0  ............      6,022.0
     Funded Activities...........................
    ----------------------------------------------------------------------------------------------------------------

                               Table 3-10.  MANDATORY HOMELAND SECURITY FUNDING BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                       2005         2005          2006         2006          2007
                        Agency                       Enacted    Supplemental    Enacted    Supplemental    Request
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture....................        131.0  ............        137.1  ............        139.1
    Department of Commerce.......................         12.1  ............         14.1  ............         28.7
    Department of Energy.........................         11.0  ............         12.0  ............         13.0
    Department of Health and Human Services......         14.2  ............         16.6  ............         16.6
    Department of Homeland Security..............      2,022.7  ............      2,048.3  ............      2,248.2
    Department of Labor..........................          2.6  ............          3.9  ............          8.6
                                                  ----------------------------------------              ------------
    Total, Homeland Security Mandatory Programs..      2,193.6  ............      2,232.0  ............      2,454.1
    ----------------------------------------------------------------------------------------------------------------

    [[Page 32]]

                       Table 3-11.  BASELINE ESTIMATES--TOTAL HOMELAND SECURITY FUNDING BY AGENCY
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                      Baseline
                        Agency                         2006   ------------------------------------------------------
                                                     Enacted*     2007       2008       2009       2010       2011
    ----------------------------------------------------------------------------------------------------------------
    Department of Agriculture.....................        564        579        593        609        623        639
    Department of Commerce........................        181        200      1,173        194        200        205
    Department of Defense.........................     16,441     16,857     17,343     17,836     18,341     18,868
    Department of Education.......................         28         28         29         29         30         30
    Department of Energy..........................      1,704      1,743      1,770      1,809      1,848      1,889
    Department of Health and Human Services.......      4,300      4,401      4,508      4,612      4,715      4,825
    Department of Homeland Security*..............     25,503     26,565     27,449     28,291     29,152     30,046
    Department of Housing and Urban Development...          2          2          2          2          2          3
    Department of the Interior....................         56         57         61         62         66         68
    Department of Justice.........................      2,976      3,092      3,205      3,320      3,437      3,561
    Department of Labor...........................         48         53         49         51         51         52
    Department of State...........................      1,107      1,131      1,157      1,180      1,205      1,230
    Department of Transportation..................        182        190        197        205        212        222
    Department of the Treasury....................        117        120        123        130        134        137
    Department of Veterans Affairs................        310        318        326        334        340        349
    Corps of Engineers............................         72         74         75         77         78         80
    Environmental Protection Agency...............        129        133        136        141        144        148
    Executive Office of the President.............         21         21         22         22         23         23
    General Services Administration...............         99        100        104        104        108        109
    National Aeronautics and Space Administration.        213        218        222        228        232        236
    National Science Foundation...................        344        351        359        367        374        383
    Office of Personnel Management................          3          3          3          3          3          3
    Social Security Administration................        177        181        185        189        194        196
    District of Columbia..........................         14         14         15         15         15         16
    Federal Communications Commission.............          2          5          5          5          5          5
    Intelligence Community Management Account.....         56         57         58         60         61         62
    National Archives and Records Administration..         18         18         19         19         20         20
    Nuclear Regulatory Commission.................         79         82         85         89         91         94
    Securities and Exchange Commission............          5          5          5          5          5          6
    Smithsonian Institution.......................         83         87         90         96        100        103
    United States Holocaust Memorial Museum.......          8          8          8          8          9          9
    Corporation for National and Community Service         20         20         21         21         21         22
                                                   -----------------------------------------------------------------
    Total, Homeland Security Budget Authority.....     54,862     56,713     59,397     60,113     61,839     63,639

      Less Department of Defense..................    -16,441    -16,857    -17,343    -17,836    -18,341    -18,868
                                                   -----------------------------------------------------------------
    Non-Defense Discretionary Homeland Security        38,421     39,856     42,054     42,277     43,498     44,771
     Budget Authority, excluding BioShield........
      Less Fee-Funded Homeland Security Programs..     -4,127     -4,255     -4,350     -4,441     -4,537     -4,630
      Less Mandatory Homeland Security Programs...     -2,232     -2,455     -3,543     -2,650     -2,733     -2,820
                                                   -----------------------------------------------------------------
    Net Non-Defense Discretionary Homeland             32,062     33,146     34,161     35,186     36,228     37,321
     Security Budget Authority excluding BioShield
      Plus BioShield..............................  .........  .........  .........      2,175  .........  .........
                                                   -----------------------------------------------------------------
    Net Non-Defense Discretionary Homeland             32,062     33,146     34,161     37,361     36,228     37,321
     Security Budget Authority including BioShield

    Obligations Limitations
      Department of Transportation Obligations            121        124        126        130        131        135
       Limitation.................................
    ----------------------------------------------------------------------------------------------------------------
    * FY 2006 Enacted estimates exclude supplemental appropriations.

    [[Page 33]]

    Estimates by Budget Function:

                                Table 3-12.  HOMELAND SECURITY FUNDING BY BUDGET FUNCTION
                                       (budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                       2005       2006        2007
                                        Agency                                      Enacted *  Enacted **   Request
    ----------------------------------------------------------------------------------------------------------------
    National Defense..............................................................     20,581      20,771     20,430
    International Affairs.........................................................        824       1,107      1,213
    General Science Space and Technology..........................................        619         616        655
    Energy........................................................................        102         124        125
    Natural Resources and the Environment.........................................        288         285        316
    Agriculture...................................................................        578         541        611
    Commerce and Housing Credit...................................................        649         160        193
    Transportation................................................................      8,109       8,433      9,632
    Community and Regional Development............................................      2,759       2,201      2,722
    Education, Training, Employment and Social Services...........................        164         168        163
    Health........................................................................      4,276       4,347      4,626
    Medicare......................................................................          8          12         14
    Income Security...............................................................          9          11         17
    Social Security...............................................................        151         173        179
    Veterans Benefits and Services................................................        250         310        314
    Administration of Justice.....................................................     14,241      14,784     16,210
    General Government............................................................        778         819        862
                                                                                   ---------------------------------
    Total, Homeland Security Budget Authority.....................................     54,386      54,862     58,282

      Less National Defense, DoD..................................................    -17,186     -16,441    -16,699
                                                                                   ---------------------------------
    Total, Homeland Security Budget Authority excluding BioShield.................     37,200      38,421     41,583

      Less Fee-Funded Homeland Security Programs..................................     -3,444      -4,127     -6,019
      Less Mandatory Homeland Security Programs...................................     -2,194      -2,232     -2,455
                                                                                   ---------------------------------
    Net Discretionary, Homeland Security Budget Authority excluding BioShield.....     31,562      32,062     33,109

      Plus BioShield..............................................................      2,508  ..........  .........
                                                                                   ---------------------------------
    Net Discretionary, Homeland Security Budget Authority including BioShield.....     34,070      32,062     33,109
    ----------------------------------------------------------------------------------------------------------------
    * FY 2005 Enacted estimates include supplemental appropriations.
    ** FY 2006 Enacted estimates exclude supplemental appropriations.

    [[Page 34]]

                      Table 3-13.  BASELINE ESTIMATES--HOMELAND SECURITY FUNDING BY BUDGET FUNCTION
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                      Baseline
                   Budget Authority                    2006   ------------------------------------------------------
                                                     Enacted*     2007       2008       2009       2010       2011
    ----------------------------------------------------------------------------------------------------------------
    National Defense..............................     20,771     21,303     21,904     22,509     23,132     23,777
    International Affairs.........................      1,107      1,131      1,157      1,180      1,205      1,230
    General Science Space and Technology..........        616        629        643        658        670        685
    Energy........................................        124        129        119        124        126        131
    Natural Resources and the Environment.........        285        292        301        310        319        327
    Agriculture...................................        541        555        568        584        597        612
    Commerce and Housing Credit...................        160        182      1,154        174        179        185
    Transportation................................      8,433      8,825      9,232      9,501      9,781     10,077
    Community and Regional Development............      2,201      2,252      2,302      2,352      2,403      2,454
    Education, Training, Employment and Social            168        172        178        186        191        196
     Services.....................................
    Health*.......................................      4,347      4,450      4,558      4,662      4,767      4,877
    Medicare......................................         12         12         13         14         14         15
    Income Security...............................         11         16         11         11         12         13
    Social Security...............................        173        177        181        185        189        191
    Veterans Benefits and Services................        310        318        326        334        340        349
    Administration of Justice.....................     14,784     15,438     15,898     16,463     17,029     17,620
    General Government............................        819        832        852        866        885        900
                                                   -----------------------------------------------------------------
    Total, Homeland Security Budget Authority.....     54,862     56,713     59,397     60,113     61,839     63,639

      Less National Defense, DoD..................    -16,441    -16,857    -17,343    -17,836    -18,341    -18,868
                                                   -----------------------------------------------------------------
    Net Discretionary, Homeland Security Budget        38,421     39,856     42,054     42,277     43,498     44,771
     Authority, excluding BioShield...............

      Less Fee-Funded Homeland Security Programs..     -4,127     -4,255     -4,350     -4,441     -4,537     -4,630
      Less Mandatory Homeland Security Programs...     -2,232     -2,455     -3,543     -2,650     -2,733     -2,820
                                                   -----------------------------------------------------------------
    Net Discretionary, Homeland Security Budget        32,062     33,146     34,161     35,186     36,228     37,321
     Authority....................................

      Plus BioShield..............................  .........  .........  .........      2,175  .........  .........
                                                   -----------------------------------------------------------------
    Net Discretionary, Homeland Security Budget        32,062     33,146     34,161     37,361     36,228     37,321
     Authority, including BioShield...............
    ----------------------------------------------------------------------------------------------------------------
    * FY 2006 Enacted estimates exclude supplemental appropriations.

    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.