[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.