[House Document 107-237]
[From the U.S. Government Publishing Office]



107th Congress, 2d Session - - - - - - - - - - - House Document 107-237 


 
    INTENTION TO REALLOCATE FUNDS PREVIOUSLY TRANSFERRED FROM THE 
                        EMERGENCY RESPONSE FUND

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

NOTIFICATION OF THE INTENTION TO REALLOCATE FUNDS PREVIOUSLY 
  TRANSFERRED TO THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) 
  FROM THE EMERGENCY RESPONSE FUND




July 8, 2002.--Referred to the Committee on Appropriations and ordered 
                             to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-012                    WASHINGTON : 2002

                                           The White House,
                                          Washington, July 1, 2002.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: In order to fulfill urgent requirements 
for civil aviation security, I am notifying the Congress of my 
intent to reallocate funds previously transferred to the 
Federal Emergency Management Agency (FEMA) from the Emergency 
Response Fund. These funds will now be allocated to the 
Transportation Security Administration (TSA) in accordance with 
the provisions of Public Law 107-38, the Emergency Supplemental 
Appropriations Act for Recovery from and Response to Terrorist 
Attacks on the United States, FY 2001.
    In addition, I am further revising my request for 
supplemental funding originally transmitted on March 21st to 
account for this transfer by adjusting my Administration's 
request for supplemental funding for FEMA and for TSA. This 
will ensure that FEMA has the full resources necessary to meet 
my commitment to the recovery of New York.
    As provided in Public Law 107-38, the $270 million to be 
transferred will be made available immediately to TSA to 
continue its civil aviation security responsibilities.
    This is the second time I have arranged a ``bridge loan'' 
from FEMA to TSA to allow the Congress to complete action on my 
March 21st emergency supplemental request. This option will not 
be available a third time, since FEMA has no additional 
remaining unobligated funds from Public Law 107-38. It is 
imperative that the Congress quickly pass an acceptable 
emergency supplemental bill to prevent a disruption of 
commercial air travel.
    I hereby designated the revised requests contained in the 
accompanying material as emergency requirements pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.
    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 recommendations.
            Sincerely,
                                                    George W. Bush.
    Enclosure.
                [Estimate No. 14, 107th Cong., 2d Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, June 28, 2002.
The President,
The White House.
    Submitted for your consideration is a request to reallocate 
funds provided in P.L. 107-38, the Emergency Supplemental 
Appropriations Act for Recovery from and Response to Terrorist 
Attacks on the United States, FY 2001. This request would 
reallocate funds previously transferred from the Emergency 
Response Fund (ERF).
    On May 23rd you transferred $760 million of emergency 
response funds previously allocated to the Federal Emergency 
Management Agency (FEMA) to the Transportation Security 
Administration (TSA) to support TSA's operations until the 
enactment of supplemental funding. Since Congress has not yet 
completed its work on the FY 2002 supplemental appropriations 
bill, TSA faces significant constraints in meeting statutorily 
imposed deadlines for airport security screening. The 
Administration now proposes that an additional portion of the 
emergency response funds previously allocated to FEMA instead 
be transferred to TSA to support minimum airport screening 
requirements through July. FEMA has received over $6 billion 
for recovery from and response to the terrorist attacks of 
September 11, 2001, and even with these two transfers, it has 
ample funds to support these activities until enactment of the 
supplemental bill.
    Specifically, this request would transfer $270 million of 
FEMA's emergency response funds to TSA. Pursuant to P.L. 107-
38, the funds would be available immediately. This proposal 
would also account for the transfer by adjusting the 
Administration's request for supplemental funding for FEMA and 
for TSA, accordingly. This action constitutes a ``bridge loan'' 
for TSA from FEMA, pending enactment of the supplemental 
appropriations bill. The reallocation of funds, followed by 
enactment of the President's revised supplemental request, 
would result in both FEMA and TSA having the same level of 
resources, and for the same purposes, as if no bridge loan had 
occurred.
    TSA is under a rigorous timetable established in law for 
the deployment of passenger and baggage screeners, as well as 
necessary equipment. The funding provided through this 
reallocation would only support the continuation of existing 
screening contracts and currently deployed Federal screeners 
through July. Without immediate Congressional action on the 
supplemental, TSA may need to suspend purchases and 
installation of explosives detection equipment, reduce by 40 
percent planned Federal screener hiring and training for July, 
and pare down existing private transitional passenger screening 
contracts.
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
Secretary of Transportation and the Director of FEMA in 
recommending your approval of the requested reallocation and 
the transmittal of the revised supplemental proposals to the 
Congress. In addition, I recommend that you designate the 
revised supplemental requests as emergency funding requirements 
pursuant to section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.
            Sincerely,
                                  Mitchell E. Daniels, Jr.,
                                                          Director.
    Enclosures.

 Reallocation of Amounts Previously Appropriated and Transferred From 
                      the Emergency Response Fund

    Available Immediately:

Department of Transportation: Transportation Security 
    Administration--Transportation Security 
    Administration......................................    $270,000,000

    These funds would support the minimum screening 
requirements of the Transportation Security Administration 
through the end of July, pending the enactment of the FY 2002 
supplemental appropriations bill. Specifically, the funding 
will primarily support the cost of transitional screening 
contracts with private operators for July and currently 
deployed Federal screeners through July. These funds were 
originally transferred from the Emergency Response Fund, 
established by P.L. 107-38, to the Federal Emergency Management 
Agency.

                            Revised Request


                      DEPARTMENT OF TRANSPORTATION


                 TRANSPORTATION SECURITY ADMINISTRATION


                 Transportation Security Administration

    For additional amounts for emergency expenses to implement 
the Federal takeover of airport security, $3,370,000,000, to 
remain available until expended of which not to exceed 
$325,000,000 may be transferred to ``Operating Expenses'' and 
``Aviation Insurance Revolving Fund'' accounts of the Federal 
Aviation Administration: Provided, That the entire amount is 
designated by the Congress as an emergency requirement pursuant 
to section 251(b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.
    This is a revised supplemental request for the 
Transportation Security Administration (TSA), This amount, when 
combined with funds reallocated to TSA from Federal Emergency 
Management Agency pursuant to P.L. 107-38, is identical in 
amount and purpose to the original March 21st request.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


                            Revised Request


                  FEDERAL EMERGENCY MANAGEMENT AGENCY


                            Disaster Relief

    For an additional amount for ``Disaster Relief'' for 
emergency expenses to respond to the September 11, 2001 
terrorist attacks on the United States, $3,780,000,000, to 
remain available until expended: Provided, That the entire 
amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
    This is a revised supplemental request for the Federal 
Emergency Management Agency (FEMA). The pending request has 
been increased by $270 million as a result of an equal amount 
of funding that was reallocated by the President from FEMA to 
the Transportation Security Administration.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.

                                  
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