[House Document 106-239]
[From the U.S. Government Publishing Office]



                                     

106th Congress, 2d Session - - - - - - - - - - - - House Document 106-
239


 
                 BUDGET REQUESTS FOR FISCAL YEAR 2001

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 REQUESTS FOR FISCAL YEAR 2001 BUDGET AMENDMENTS FOR PROGRAMS DESIGNED 
          TO STRENGTHEN THE NATION'S COUNTERTERRORISM EFFORTS




May 18, 2000.--Referred to the Committee on Appropriations and ordered 
                             to be printed
                            ______________

                  U.S. GOVERNMENT PRINTING OFFICE
79-012                    WASHINGTON : 2000


For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov  Phone: toll free (866) 512-1800; (202) 512ï¿½091800  
Fax: (202) 512ï¿½092250 Mail: Stop SSOP, Washington, DC 20402ï¿½090001



                                           The White House,
                                          Washington, May 18, 2000.
The Speaker of the House of Representatives.
    Sir: I ask the Congress to consider the enclosed requests 
for FY 2001 budget amendments for programs designed to 
strengthen the Nation's counterterrorism efforts. The programs 
involve the Departments of Justice and the Treasury, as well as 
national security activities. The requested FY 2001 funding 
increases are offset fully, and these amendments would not 
diminish the FY 2001 surplus.
    Intelligence collected in the wake of the arrest of a 
terrorist operative during the New Year's period indicates that 
the threat of terrorism has increased. The threat extends to 
Americans and their homes and businesses--both in the 
continental United States and abroad. In light of this enhanced 
threat, we must strengthen our counterterrorism efforts. It is 
imperative that the Congress act aggressively to provide this 
critically needed funding.
    This package will provide resources to sustain the high 
level of effort begun during the New York's period and for new 
measures to track and thwart terrorist activity. For example, 
we have already established units at several locations around 
the country to enhance coordination and collaboration among law 
enforcement agencies across Canada and the United States, and 
we have increased protection along the northern border.
    The details of these actions are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                      Bill Clinton.
    Enclosure.
             [Estimate No. 13, 106th Congress, 2d Session]

                 Executive Office of the President,
                           Office of Management and Budget,
                                      Washington, DC, May 18, 2000.
The President,
The White House.
    Submitted for your consideration are requests for FY 2001 
budget amendments for the Departments of Justice and the 
Treasury for activities that are designed to strengthen the 
Nation's counterterrorism efforts. Additional FY 2001 
counterterrorism funding is also requested for certain national 
security activities and is described in a separate classified 
annex. The additional funding requested is offset fully by 
reductions proposed in this transmittal, and the FY 2001 
resources proposed in your budget would not be increased.
    In light of the recent alarming trends of increased 
terrorist activity, OMB and the National Security Council have 
worked with the Departments of Justice and the Treasury, as 
well as the national security community, to produce a set of 
policy and funding options that will permit us to take the 
battle to the terrorists, as well as provide additional 
protection at and within our borders. After several months of 
interagency discussion, we have reached agreement on a highly 
cost-effective package of programmatic proposals.
    The FY 2001 budget amendments for critical counterterrorism 
needs in this transmittal build on initiatives being undertaken 
in FY 2000 and funded through the reallocation of existing 
resources. Department notifications regarding the use of these 
resources for counterterrorism initiatives in FY 2000 are being 
transmitted separately to the Congress for approval.
    As described below, and in more detail in the enclosures, 
the FY 2001 amendments include the following:

                         DEPARTMENT OF JUSTICE

     A total of $38.9 million is proposed for the 
Immigration and Naturalization Service (INS) to enhance its 
counterterrorism efforts. Of this amount, $23.8 million is 
requested to add staff to new Joint Terrorism Task Forces 
(JTTFs) and expand port of entry intelligence teams along the 
northern border. JTTFs are interagency law enforcement groups 
(including State and local law enforcement) that combine 
resources and expertise for a more efficient and effective 
effort to deter and investigate terrorists. Included in the INS 
request is $9.6 million that would be used to expand the 
capability of the only Federal crime lab dedicated to the 
forensic examination of documents to ensure the timely review 
of fraudulent entry documents and $5.5 million that would be 
used to deploy high resolution day and night camera technology 
along the northern border.
     An increase of $26.3 million is requested for the 
Federal Bureau of Investigation (FBI). Of that amount, $2.6 
million is requested for JTTF support, $12.5 million would be 
used to purchase equipment and communications support to 
collect information on digital communications equipment and to 
store this data, and $4.8 million is for increased translation 
services associated with the digital information collection. 
Finally, $5.0 million is requested for investigative travel for 
FBI agents engaged in a counterterrorism activities, and $1.4 
million is for other FBI agents engaged in counterterrorism 
activities, and $1.4 million is for other FBI activities.
     An increase of $3.4 million is proposed for the 
Office of Intelligence Policy and Review to improve the review 
and processing of applications for foreign counterintelligence 
data collection.
     An increase of $2.6 million is requested for 
General Legal Activities to support additional prosecutors and 
to improve guidance and assistance on terrorism to Federal, 
State, local, and foreign agencies.

                       DEPARTMENT OF THE TREASURY

     A total of $14.2 million is proposed to support 
103 additional positions for the JTTFs. Several Department of 
the Treasury bureaus--the United States Secret Service, the 
United States Customs Service, the Bureau of Alcohol, Tobacco 
and Firearms, and the International Revenue Service--bring 
unique investigative skills and jurisdictions to these task 
forces.
     An increase of $26.6 million is requested for the 
U.S. Customs Service. Of this amount, $6.6 million would fund 
48 new agents to increase Customs' ability to counter the 
threat of terriorism along the northern border, in part, 
through cooperative efforts with Canada, and $20.0 million 
would provide an investment in technology and infrastructure on 
the northern border (e.g., gates, bollards, secure 
communications, surveillance cameras, non-intrusive 
technologies.)
     An increase of $6.4 million is requested to 
support the establishment of a new interagency National 
Terrorist Asset Tracking Center and to reinforce the analytical 
unit of the Office of Foreign Asset Control.
     A proposal is also included that would increase--
by $30.0 million--the contingent emergency appropriation 
proposed in your budget for the Department of the Treasury's 
Counterterrorism Fund. This Fund would cover unanticipated 
costs associated with: (1) providing support of center, 
investigate, or prosecute domestic or international terrorism; 
and, (2) re-establishing the operational capacity of an office, 
facility, or other property damaged or destroyed as a result of 
any domestic or international terrorist incident.
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected Departments and agencies in recommending 
that you transmit the proposals to the Congress.
            Sincerely,
                                            Jacob J. Lew, Director.
    Enclosures.

                         Department of Justice


                         GENERAL ADMINISTRATION

                         Salaries and Expenses

FY 2001 Budget Appendix Page............................             629
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................     $88,196,000
Proposed Amendment......................................       3,357,000
Revised Request.........................................      91,553,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would address staffing and equipment needs 
related to the processing of applications to the Foreign 
Intelligence Surveillance Court by the Office of Intelligence 
Policy and Review.
    This amendment would increase FY 2001 outlays by $3.0 
million.
    Taken together with reduction proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                         Department of Justice


                   LEGAL ACTIVITIES AND U.S. MARSHALS

            Salaries and Expenses, General Legal Activities

FY 2001 Budget Appendix Page............................             635
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $552,239,000
Proposed Amendment......................................         996,000
Revised Request.........................................     553,235,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used to develop responses to the 
threat of terrorism and to investigate and prosecute those who 
commit terrorist attacks.
    This amendment would increase FY 2001 outlays by $0.9 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                         Department of Justice


                   LEGAL ACTIVITIES AND U.S. MARSHALS

             Salaries and Expenses, United States Attorneys

FY 2001 Budget Appendix Page............................             638
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $1,291,001,000
Proposed Amendment......................................       1,632,000
Revised Request.........................................   1,292,633,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used to support the U.S. 
Attorneys' participation in counterterrorism investigations. 
Prosecutors are needed in the early stages of these 
investigations to ensure effective electronic surveillance and 
information collection. Additional prosecutors are also needed 
to target foreign terrorists engaged in terrorist fund raising, 
money laundering, and various other terrorism precursor 
activities. This proposal would also support additional 
prosecutors in major cities such as New York, Miami, San 
Francisco, Los Angeles, and Washington, D.C. to handle cases 
that result from increased enforcement under the Foreign 
Intelligence Surveillance Act.
    This amendment would increase FY 2001 outlays by $1.4 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                         Department of Justice


                    FEDERAL BUREAU OF INVESTIGATION

                         Salaries and Expenses

FY 2001 Appendix Page...................................             648
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $3,277,562,000
Proposed Amendment......................................      26,306,000
Revised Request.........................................   3,303,868,000

    (In the appropriations language under the above heading, 
delete ``$3,277,562,000'' and substitute $3,303,868,000; and, 
delete ``$300,473,000'' and substitute $326,779,000.)
    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the the 
Nation's counterterrorism efforts. Specifically, the additional 
resources requested would be used to: expand the Joint 
Terrorism Task Forces; ensure timely compliance with Foreign 
Intelligence Surveillance Act requirements; increase 
translation capabilities; expand the Legal Attache presence in 
Canada; further develop digital collection capabilities; and, 
support domestic and international investigative travel.
    This amendment would increase FY 2001 outlays by $19.7 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                         Department of Justice


                 IMMIGRATION AND NATURALIZATION SERVICE

         Salaries and Expenses, Enforcement and Border Affairs

FY 2001 Budget Appendix Page............................             654
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $2,580,890,000
Proposed Amendment......................................      38,858,000
Revised Request.........................................   2,619,748,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used for: additional agents for 
the Joint Terrorism Task Forces in order to address 
immigration-related issues in terrorism cases; additional 
personnel for Port of Entry Intelligence Teams; agent and 
support positions, laboratory equipment, and fingerprint record 
upgrades to improve the capabilities of the Forensic Document 
Laboratory; and, high resolution day and night camera 
technology to expand the deployment of the Integrated 
Surveillance and Intelligence System (ISIS) along the northern 
border.
    This amendment would increase FY 2001 outlays by $31.1 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                  



                       Department of the Treasury


                          DEPARTMENTAL OFFICES

                         Salaries and Expenses

FY 2001 Budget Appendix Page............................             817
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $154,582,000
Proposed Amendment......................................       6,424,000
Revised Request.........................................     161,006,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used to establish a new 
interagency National Terrorist Asset Tracking Center, which 
will identify and track assets associated with known terrorists 
and terrorist organizations. Funding would be used to reimburse 
Department of the Treasury law enforcement bureaus for 
detailees to the Center. This funding would also be used to 
reinforce the analytical component of the Office of Foreign 
Asset Control (OFAC). Five FTE would be hired to create a 
dedicated information analysis unit that would identify 
significant foreign terrorist targets, their related front 
organizations, their assets and commercial interests within the 
United States, and their methods of funds transfer.
    This amendment would increase FY 2001 outlays by $6.0 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                       Department of the Treasury


                          DEPARTMENTAL OFFICES

                         Salaries and Expenses

FY 2001 Budget Appendix Page............................             825
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................     $25,000,000
Proposed Amendment......................................      30,000,000
Revised Request.........................................      55,000,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. The FY 2001 Budget proposes a $25.0 
million contingent emergency appropriation to cover 
unanticipated costs associated with: (1) Providing support to 
counter, investigate, or prosecute domestic or international 
terrorism; and, (2) re-establishing the operational capacity of 
an office, facility, or other property damaged or destroyed as 
a result of any domestic or international terrorist incident. 
No funding for this account was provided in FY 2000.
    This amendment would provide an additional $30.0 million 
contingent emergency appropriation that would allow Department 
of the Treasury law enforcement personnel to better respond to 
terrorist threats in the United States. Funds would be 
reimbursed to Department of the Treasury bureaus or 
departmental offices to cover unanticipated expenditures, 
including those incurred in FY 2000, in areas such as travel, 
transportation, communications, equipment, and security 
services.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                       Department of the Treasury


                BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

                         Salaries and Expenses

FY 2001 Budget Appendix Page............................             840
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $755,903,000
Proposed Amendment......................................       4,148,000
Revised Request.........................................     760,051,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used to support 30 additional 
Bureau of Alcohol, Tobacco and Firearms (ATF) agents for the 
Joint Terrorism Task Forces (JTTFs). The JTTFs are interagency 
law enforcement groups (including State and local law 
enforcement) that combine resources and expertise for a more 
efficient and effective effort to deter and investigate 
terrorists. ATF brings unique investigative skills and 
jurisdictions in firearms and explosives to these task forces.
    This amendment would increase FY 2001 outlays by $3.7 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                       Department of the Treasury


                     UNITED STATES CUSTOMS SERVICE

                         Salaries and Expenses

FY 2001 Budget Appendix Page............................             843
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $1,858,932,000
Proposed Amendment......................................      28,934,000
Revised Request.........................................   1,887,866,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, of the total amount now 
requested, $2.3 million would be used to support 27 additional 
Customs agents for the Joint Terrorism Task Forces (JTTFs). The 
JTTFs are interagency law enforcement groups (including State 
and local law enforcement) that combine resources and expertise 
for a more efficient and effective effort to deter and 
investigate terrorists. In addition, $6.6 million would support 
48 new agents to increase Customs' ability to counter the 
threat of terrorism along the northern border, in part through 
cooperative efforts with Canadian authorities. Finally, $20.0 
million would provide an investment in technology and 
infrastructure on the northern border (e.g., gates, bollards, 
secure communications, surveillance cameras, non-intrusive 
technologies).
    This amendment would increase FY 2001 outlays by $26.0 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                       Department of the Treasury


                        INTERNAL REVENUE SERVICE

                          Tax Law Enforcement

FY 2001 Budget Appendix Page............................          855-56
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $3,439,020,000
Proposed Amendment......................................       4,839,000
Revised Request.........................................   3,443,859,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used to support 35 additional 
Internal Revenue Service (IRS) agents for the Joint Terrorism 
Task Forces (JTTFs). The JTTFs are interagency law enforcement 
groups (including State and local law enforcement) that combine 
resources and expertise for a more efficient and effective 
effort to deter and investigate terrorists. IRS brings unique 
investigative skills and jurisdictions in financial and tax 
crimes to these task forces.
    This amendment would increase FY 2001 outlays by $4.5 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                       Department of the Treasury


                      UNITED STATES SECRET SERVICE

                         Salaries and Expenses

FY 2001 Budget Appendix Page............................             862
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $821,596,000
Proposed Amendment......................................       2,904,000
Revised Request.........................................     824,500,000

    This proposal would increase the pending FY 2001 request in 
order to provide additional funds in support of the Nation's 
counterterrorism efforts. Specifically, the additional 
resources requested would be used to support 21 additional U.S. 
Secret Service (USSS) agents for the Joint Terrorism Task 
Forces (JTTFs). The JTTFs are interagency law enforcement 
groups (including State and local law enforcement) that combine 
resources and expertise for a more efficient and effective 
effort to deter and investigate terrorists. USS brings unique 
investigative skills and jurisdictions, particularly in 
financial crimes, to these task forces.
    This amendment would increase FY 2001 outlays by $2.6 
million.
    Taken together with reductions proposed in accompanying 
budget amendments, this amendment would not increase the 
proposed budget totals.
                                ------                                


                       Department of Agriculture


                       FOOD AND NUTRITION SERVICE

Special Supplemental Nutrition Program for Women, Infants, and Children

FY 2001 Budget Appendix Page............................             167
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $4,148,100,000
Proposed Amendment......................................     -50,000,000
Revised Request.........................................   4,098,100,000

    This proposal would decrease the pending FY 2001 request 
for the Special Supplemental Nutrition Program for Women, 
Infants, and Children. These funds are no longer required in FY 
2001 because program participation in the first five months of 
FY 2000 has been lower than projected, which will result in 
higher than anticipated carry-over balances.
    This reduction--along with other reductions in this 
transmittal--would offset the additional funding requested in 
accompanying budget amendments to address critical 
counterterroism needs.
    This amendment would decrease FY 2001 outlays by $46.9 
million.
                                ------                                


                         Department of Defense


                              PROCUREMENT

                       Procurement, Defense-Wide

FY 2001 Budget Appendix Page............................             285
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................  $2,275,308,000
Proposed Amendment......................................     -15,000,000
Revised Request.........................................   2,260,308,000

    This amendment would reduce the pending FY 2001 request for 
the Telecommunications Carrier Compliance Fund contained within 
Procurement, Defense-Wide by $15.0 million. These funds are no 
longer required in FY 2001 because the Congress is expected to 
accelerate funding to FY 2000. A $15.0 million reduction to the 
Department of Justice request for this program is also proposed 
in an accompanying budget amendment.
    This reduction--along with other reductions proposed in 
this transmittal--would offset the additional funding requested 
in accompanying budget amendments to address critical 
counterterrorism needs.
    This amendment would decrease FY 2001 outlays by $15.0 
million.
                                ------                                  



                         Department of Justice


                         GENERAL ADMINISTRATION

                       Narrowband Communications

FY 2001 Budget Appendix Page............................             630
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $205,000,000
Proposed Amendment......................................     -17,000,000
Revised Request.........................................     188,000,000

    This proposal would decrease the pending FY 2001 request 
for the Narrowband Communications program. Requirements for the 
use of these funds will be postponed until FY 2002.
    This reduction--along with other reductions proposed in 
this transmittal--would offset the additional funding requested 
in accompanying budget amendments to address critical 
counterterrorism needs.
    The amendment would decrease FY 2001 outlays by $11.9 
million.
                                ------                                


                         Department of Justice


                         GENERAL ADMINISTRATION

                         Counterterrorism Fund

FY 2001 Budget Appendix Page............................             631
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................     $25,000,000
Proposed Amendment......................................     -15,000,000
Revised Request.........................................      10,000,000

    This proposal would decrease the pending FY 2001 request 
for this Fund by $15.0 million. The Counterterrorism Fund is a 
reserve fund used to defray unanticipated costs resulting from 
terrorist activities. Rather than provide this $15.0 million to 
this reserve fund at this time, additional resources are 
requested for specific programs in accompanying budget 
amendments to address critical counterterrorism needs.
    This amendment would decrease FY 2001 outlays by $11.3 
million.
                                ------                                


                         Department of Justice


                         GENERAL ADMINISTRATION

               Telecommunications Carrier Compliance Fund

FY 2001 Budget Appendix Page............................             631
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $120,000,000
Proposed Amendment......................................     -15,000,000
Revised Request.........................................     105,000,000

    This proposal would decrease the pending FY 2001 request 
for the Telecommunications Carrier Compliance Fund in the 
Department of Justice by $15.0 million. These funds are no 
longer required in FY 2001 because the Congress is expected to 
accelerate funding to FY 2000. A $15.0 million reduction to the 
Department of Defense request for this program is also proposed 
in an accompanying budget amendment.
    This reduction--along with other reductions proposed in 
this transmittal--would offset the additional funding requested 
in accompanying budget amendments to address critical 
counterterrorism needs.
    This amendment would decrease FY 2001 outlays by $15.0 
million.
                                ------                                


                         Department of Justice


                         GENERAL ADMINISTRATION

                          Working Capital Fund

FY 2001 Budget Appendix Page............................             634
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................................
Proposed Amendment......................................    -$10,000,000
Revised Request.........................................     -10,000,000

(Insert the appropriations language that follows immediately 
under the above heading.)

    Of the unobligated balances available under this heading on 
September 30, 2000, $10,000,000 is hereby canceled.
    This cancellation of $10.0 million in unobligated balances 
would not affect program operations. This reduction--along with 
other reductions proposed in this transmittal--would offset the 
additional funding requested in accompanying budget amendments 
to address critical counterterrorism needs.
    This amendment would decrease FY 2001 outlays by $10.0 
million.
                                ------                                


                       Department of the Treasury


                        INTERNAL REVENUE SERVICE

                   Information Technology Investments

FY 2001 Budget Appendix Page............................             859
                    ========================================================
                    ____________________________________________________
FY 2001 Pending Request.................................    $119,000,000
Proposed Amendment......................................     -47,249,000
Revised FY 2001 Request.................................      71,751,000
FY 2002 Pending Request.................................     375,000,000
Proposed Amendment......................................      47,249,000
Revised FY 2002 Request.................................     422,249,000

(In the appropriations language under the above heading, delete 
``$119,000,000'' and substitute $71,751,000; and delete 
``$375,000,000'' and substitute $422,249,000.)

    This proposal would decrease the pending FY 2001 request 
for the Internal Revenue Service's (IRS's) Information 
Technology Investment account by $47.2 million. This reduction 
is possible due to the slower-than-expected start up of the 
IRS's Information Technology Modernization program in FY 2000. 
This proposal would also increase the pending FY 2002 advance 
appropriation request by the same amount. While total program 
requirements have not decreased, this one-year delay in funding 
a portion of the program will have no programmatic impact.
    This FY 2001 reduction--along with other reductions 
proposed in this transmittal--would offset the additional 
funding requested in accompanying budget amendments to address 
critical counterterrorism needs.
    This amendment would decrease FY 2001 outlays by $21.3 
million.
                                ------                                


      President Clinton Seeks Additional Counterterrorism Funding

    President Clinton asked the Congress today to provide 
additional resources for critical programs to strengthen the 
Nation's counterterrorism efforts. The programs involve the 
Departments of Justice and the Treasury, as well as national 
security activities.
    Intelligence collected in the wake of the arrest of a 
terrorist operative during the New Year's period indicates that 
the threat of terrorism has increased. The threat extends to 
Americans and their homes and businesses--both in the United 
States and abroad. In light of this enhanced threat, the 
President asked the Congress to act aggressively and provide 
this critically needed counterterrorism funding.
    This package will provide resources to sustain the high 
level of effort begun during the New Year's period and for new 
measures to track and thwart terrorist activity. For example, 
units have already been established at several locations around 
the country to enhance coordination and collaboration among law 
enforcement agencies across Canada and the united States, and 
protection has been increased along the northern border.
    Specifically, the President has asked the Congress to 
provide FY 2001 funding for:

                 DEPARTMENT OF JUSTICE ($71.1 MILLION)

     $226.3 million for the Federal Bureau of 
Investigation (FBI). Of that amount, $2.6 million is for 
support of new Joint Terrorism Task Forces (JTTFs), which are 
interagency law enforcement groups (including State and local 
law enforcement) that combine resources and expertise for a 
more efficient and effective effort to deter and investigate 
terrorists; $12.5 million would be used to purchase equipment 
and communications support to collect information on digital 
communications equipment and to store this data; and, $4.8 
million is for increased translation services associated with 
the digital information collection. Finally, $5.0 million is 
requested for investigative travel for FBI agents engaged in 
counterterrorism activities, and $1.4 million is for other FBI 
activities.
     A total of $38.9 million for the Immigration and 
Naturalization Service (INS) to enhance its counterterrorism 
efforts. Of this amount, $23.8 million is requested to add 
staff to new JTTFs and expand port of entry intelligence teams 
along the northern border.
    Included in the INS request is $9.6 million that would be 
used to expand the capability of the only Federal crime lab 
dedicated to the forensic examination of documents to ensure 
the timely review of fraudulent entry documents and $5.5 
million that would be used to deploy high resolution day and 
night camera technology along the northern border.
     $6.0 million to support additional prosecutors, 
improve surveillance, and improve guidance and assistance on 
terrorism to Federal, State, local, and foreign agencies.

               DEPARTMENT OF THE TREASURY ($77.2 MILLION)

     A total of $14.2 million to support 103 additional 
positions for the JTTFs. Several Department of the Treasury 
bureaus--the United States Secret Service, the United States 
Customs Service, the Bureau of Alcohol, Tobacco and Firearms, 
and the Internal Revenue Service--bring unique investigative 
skills and jurisdictions to these task forces.
     $26.6 million for the U.S. Customs Service. This 
includes $6.6 million to fund 48 new agents to increase 
Customs' ability to counter the threat of terrorism along the 
northern border, in part, through cooperative efforts with 
Canada, and $20.0 million to provide an investment in 
technology and infrastructure on the northern border (e.g., 
gates, bollards, secure communications, surveillance cameras, 
nonintrusive technologies).
     $6.4 million to support the establishment of a new 
interagency national Terrorist Asset Tracking Center and to 
reinforce the analytical unit of the Office of Foreign Asset 
Control.
     A proposal is also included that would increase--
by $30.0 million--the contingent emergency appropriation 
proposed in your budget for the Department of the Treasury's 
Counterterrorism Fund. This Fund would cover unanticipated 
costs associated with: (1) providing support to counter, 
investigate, or prosecute domestic or international terrorism; 
and (2) re-establishing the operational capacity of an office, 
facility, or other property damaged or destroyed as a result of 
any domestic or international terrorist incident.
    In addition, the President has asked the Congress to 
provide critical counterterrorism funding for certain 
classified national security activities.
    These FY 2001 budget amendments for critical 
counterterrorism needs build on initiatives being undertaken 
this year, which will be funded through the reallocation of 
existing resources. Departmental requests to use these 
resources for counterterrorism initiatives in FY 2000 are being 
transmitted separately to the Congress for their approval.

                                  
