[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR 2015 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION ________ SUBCOMMITTEE ON HOMELAND SECURITY JOHN R. CARTER, Texas, Chairman JOHN ABNEY CULBERSON, Texas DAVID E. PRICE, North Carolina RODNEY P. FRELINGHUYSEN, New Jersey LUCILLE ROYBAL-ALLARD, California TOM LATHAM, Iowa HENRY CUELLAR, Texas CHARLES W. DENT, Pennsylvania WILLIAM L. OWENS, New York CHARLES J. FLEISCHMANN, Tennessee JACK KINGSTON, Georgia NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mrs. Lowey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. Ben Nicholson, Kris Mallard, Cornell Teague, Valerie Baldwin, and Anne Wake, Staff Assistants ________ PART 2 DEPARTMENT OF HOMELAND SECURITY Page Department of Homeland Security.................................. 1 U.S. Coast Guard................................................. 199 U.S. Immigration and Customs Enforcement......................... 315 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ________ Printed for the use of the Committee on Appropriations ________ DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR 2015 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION ________ SUBCOMMITTEE ON HOMELAND SECURITY JOHN R. CARTER, Texas, Chairman JOHN ABNEY CULBERSON, Texas DAVID E. PRICE, North Carolina RODNEY P. FRELINGHUYSEN, New Jersey LUCILLE ROYBAL-ALLARD, California TOM LATHAM, Iowa HENRY CUELLAR, Texas CHARLES W. DENT, Pennsylvania WILLIAM L. OWENS, New York CHARLES J. FLEISCHMANN, Tennessee JACK KINGSTON, Georgia NOTE: Under Committee Rules, Mr. Rogers, as Chairman of the Full Committee, and Mrs. Lowey, as Ranking Minority Member of the Full Committee, are authorized to sit as Members of all Subcommittees. Ben Nicholson, Kris Mallard, Cornell Teague, Valerie Baldwin, and Anne Wake, Staff Assistants ________ PART 2 DEPARTMENT OF HOMELAND SECURITY Page Department of Homeland Security.................................. 1 U.S. Coast Guard................................................. 199 U.S. Immigration and Customs Enforcement......................... 315 S ________ Printed for the use of the Committee on Appropriations ________ U.S. GOVERNMENT PRINTING OFFICE 89-668 WASHINGTON : 2014 COMMITTEE ON APPROPRIATIONS HAROLD ROGERS, Kentucky, Chairman FRANK R. WOLF, Virginia NITA M. LOWEY, New York JACK KINGSTON, Georgia MARCY KAPTUR, Ohio RODNEY P. FRELINGHUYSEN, New Jersey PETER J. VISCLOSKY, Indiana TOM LATHAM, Iowa JOSE E. SERRANO, New York ROBERT B. ADERHOLT, Alabama ROSA L. DeLAURO, Connecticut KAY GRANGER, Texas JAMES P. MORAN, Virginia MICHAEL K. SIMPSON, Idaho ED PASTOR, Arizona JOHN ABNEY CULBERSON, Texas DAVID E. PRICE, North Carolina ANDER CRENSHAW, Florida LUCILLE ROYBAL-ALLARD, California JOHN R. CARTER, Texas SAM FARR, California KEN CALVERT, California CHAKA FATTAH, Pennsylvania TOM COLE, Oklahoma SANFORD D. BISHOP, Jr., Georgia MARIO DIAZ-BALART, Florida BARBARA LEE, California CHARLES W. DENT, Pennsylvania ADAM B. SCHIFF, California TOM GRAVES, Georgia MICHAEL M. HONDA, California KEVIN YODER, Kansas BETTY McCOLLUM, Minnesota STEVE WOMACK, Arkansas TIM RYAN, Ohio ALAN NUNNELEE, Mississippi DEBBIE WASSERMAN SCHULTZ, Florida JEFF FORTENBERRY, Nebraska HENRY CUELLAR, Texas THOMAS J. ROONEY, Florida CHELLIE PINGREE, Maine CHARLES J. FLEISCHMANN, Tennessee MIKE QUIGLEY, Illinois JAIME HERRERA BEUTLER, Washington WILLIAM L. OWENS, New York DAVID P. JOYCE, Ohio DAVID G. VALADAO, California ANDY HARRIS, Maryland MARTHA ROBY, Alabama MARK E. AMODEI, Nevada CHRIS STEWART, Utah William E. Smith, Clerk and Staff Director (ii) DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR 2015 Tuesday, March 11, 2014. UNITED STATES DEPARTMENT OF HOMELAND SECURITY WITNESS HON. JEH JOHNSON, SECRETARY Opening Statement: Mr. Carter Mr. Carter. Well, good afternoon. I think we are going to start now. Everybody ready? We are going to have some folks who are going to have to move out around 5 o'clock for a hearing on the Ukraine. But we are ready to start. Today we have and welcome Secretary Johnson for what marks his very first appearance before this Subcommittee. Mr. Secretary, thank you for being here. We are looking forward to your testimony, and we are going to talk about the President's budget request for Homeland Security for the fiscal year 2015. Mr. Secretary, budgets are policy documents, as you well know--documents which reflect the administration's priorities. So when we look at your budget proposal for fiscal year 2015, what jumps off the page is a blatant disregard for critical security and law enforcement functions and priorities that truly defy logic. Either this Administration does not see homeland security and law enforcement as important or it is trying to game Congress and hope we will bail out unjustified and truly harmful cuts to essential frontline operations. Either way, as Chairman of this Subcommittee, I am obligated to call you on it and not to tolerate it. We all know a political election-year budget proposal when we see one, and I am afraid that that is what we have here today. Specifically, your budget proposes a 12-percent cut in CBP's Air and Marine operation, which includes a cut of more than 30 flight hours. It proposes a cut of 5 percent to ICE, which includes an arbitrary $30-million cut in investigations and a decrease of nearly 3,500 detention beds, or a more than 10-percent reduction in the detention-bed space; a cut of more than 4 percent to the Coast Guard, including a cut of nearly 30 percent to critical acquisitions and a cut of more than 17 percent to fixed-wing flight hours. So what we have here is a budget proposal that, if ever enacted, would result in more drugs on our streets, more illegal border incursions, more mariners in distress, more transnational crime, including more instances of human smuggling and trafficking, as well as child exploitation--an outcome that is simply unacceptable. Then this budget proposes to actually increase the spending of the management and headquarters by nearly 3 percent. To make matters worse, the budget proposes about a billion dollars in new fees that are not even authorized. So your budget assumes enormous offsets that simply do not exist. The budget then proposes the creation of a new and costly political program that does not adhere to the Ryan-Murray plan enacted into law just months ago and that has no plan and no justification. This so-called Opportunity, Growth, and Security Initiative is little more than a political wishlist that has been presented to Congress and to this Committee in an amateurish and wholly inadequate way. Finally, your budget simply does not comply with the law, as it is missing some 20 reports and expenditure plans required to be submitted with the budget. This is an argument that we have had especially with Homeland for years. This is how we are able to use facts to understand your budget. But the failure to provide these 20-some-odd reports is inexcusable. Frankly, it is offensive. It is late and incomplete and does not comply with the law nor meet the Subcommittee's standards for budget submittals. Mr. Secretary, this Subcommittee deals in matters of reality, meaning we enforce the law as it is written, not how we would like it to be, and we only deal with laws and offsets that are real, not some false or fictitious fee. Now, that is why the Subcommittee has to adhere to three core principles. We have done this since Chairman Rogers was in charge, and it has been carried out for 11 years: one, unwavering support to our frontline personnel and essential security operations; two, clear alignment of funding to results; and, three, true fiscal discipline, meaning we provide every well-justified dollar needed for homeland security and not one penny more. This is a commonsense policy. Mr. Secretary, we know you are new. I know you inherited an ill-conceived budget, so we will work with you in the coming months. Lord knows we can only approve the so-called proposal, and I give you my word that I will work with you to do that. Mr. Secretary, I think it is clear we have a lot to cover here today. Before I recognize you for your testimony, let me turn to my friend and the distinguished Ranking Member and former chairman, Mr. Price, for his remarks. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Opening Statement: Mr. Price Mr. Price. Thank you, Mr. Chairman. Good afternoon, Mr. Secretary, and welcome to you. This is your first appearance before our subcommittee, your first opportunity to answer questions on the fiscal year 2015 budget request from the President. I hope you will find our hearings to be both constructive and beneficial to your mission as the Secretary. This subcommittee is inclined to be candid and probing, but I hope our questions will be fair and reasonable. You have a difficult job, so even when there are disagreements, we still appreciate and respect your service to the country and look forward to working together. You have inherited a department that is now more than 10 years old. It has had its share of growing pains, but it has made significant progress in many areas under the leadership of each of your predecessors. I know your intent is to build on and hasten that progress. One area that is in dire need of progress is the morale of DHS personnel, which ranks as the lowest among Federal agencies. I know from our conversations that that is a priority for you, and I look forward to hearing more about your strategy not only to address it but to continue to build the Department into ``one DHS.'' Part of the morale problem, I know, has to do with the extended vacancies across multiple DHS leadership offices. Some of these vacancies can be explained by delays in the Senate confirmation process, although we have seen some progress on that front, including three important confirmations last week. But for many, the Department or the administration was slow to act. So I hope you can give us a feel for when we might see all of these vacancies filled. Beyond employee morale, you need long-term leaders in charge of all your departmental components to help you do your job effectively. I have been particularly impressed with the strides made across the Department in using risk-based strategies to prioritize the use of limited resources. From risk-based screening by TSA and prioritizing criminal alien deportations by ICE to improved targeting of passengers and cargo by CBP, the Department is taking a more strategic approach to accomplishing its many missions. That approach is especially needed now, as we continue to live in an era of fiscal restraint. The fiscal 2015 net discretionary budget request for the Department is $38.2 billion, not including an additional $6.4 billion in disaster-relief funding that does not count toward the discretionary cap. This total is $1.1 billion below the current-year funding level. Of course, DHS isn't the only department being asked to do more with less. In fact, other departments are far worse off. While I am hopeful that we can move forward in a bipartisan manner based on the previously agreed-upon top-line fiscal 2015 numbers, this agreement will still leave massive shortfalls across our Federal budget in funding for health and research grants, infrastructure investments, veteran benefits, and much beyond that. Now, some are going to be quick to criticize the Homeland Security budget request, but we need to realize it is part of a bigger picture--a bigger picture that includes in the recent past government shutdowns, destructive sequestration cuts, unwise repeated cuts in critical domestic investments. So this history, unfortunately, has left the administration with severely limited options. There is perhaps no greater challenge for the Department than border and immigration enforcement. This is not only because of the fact that our immigration system is fundamentally flawed but also because the politics surrounding immigration are so contentious, plagued, I am afraid, by exaggerations of both fact and rhetoric as well as legitimate policy differences. My experience on this subcommittee ever since its creation has convinced me of the futility of approaching immigration as simply an enforcement issue or simply throwing money at the border or any other aspect of the problem. We must have comprehensive reform. In fact, we should have had it long ago. And if we can accomplish reform this year, Mr. Secretary, that would go farther than anything else I can think of to make your job more manageable and your department more successful. One of the things that the subcommittee would benefit greatly from and that would help clear the air around the overall immigration debate would be more comprehensive and timely data about how the Department is managing its border and immigration enforcement responsibilities. How many individuals are being apprehended? Where are they being apprehended? How do they fit into the Department's enforcement priorities? How many meet ICE's statutory or policy criteria for detention? How many are put on alternatives detention or some other nondetention form of supervision? And which enforcement priority levels do these individuals fit into? We need to have more confidence that our detention resources are used for those who are threats to the community or are serious flight risks. And we need to know that our ATD programs, which are less expensive, work effectively as a detention alternative. Better information may not be the way to reach consensus on every question of border and immigration enforcement policy, but it would help us. It would elevate the discussion to one based on empirical evidence and agreed-upon data. With regard to immigration enforcement policy, there has been a significant debate about ICE's use of prosecutorial discretion, but the use of law enforcement discretion has a long and credible history. In fact, as you well know yourself, Mr. Secretary, from your own experience, every prosecuting office in the country exercises discretion on which cases to pursue and to what extent. In fact, any prosecutor not exercising discretion is derelict in his or her duty to the taxpayers. So we should have a discussion about the priorities the Department has established for immigration enforcement, but I hope we can all agree that it simply must prioritize. A convicted felon, by definition, has committed a more serious crime than a misdemeanor offender or a deferred-action-eligible individual and therefore poses a bigger risk to the public. We simply don't have the resources to do it all. Now, on the specific budget proposal, there are some recycled proposals that I was hoping we wouldn't see again. I want to particularly register my concerns with the proposed cuts to FEMA grants and to the Coast Guard's acquisition budget. Both of those accounts represent important investments in the Nation's future homeland security capabilities that we can't shortchange. I am also wary of the proposed transfer of the funding and responsibility for the Emergency Food and Shelter Program from FEMA to the Department of Housing and Urban Development. That idea has been proposed and rejected in the past because the stakeholder community simply didn't support the change. Mr. Secretary, I look forward to your testimony, our discussion today, look forward to continuing to work with you this year in support of your department's important missions. Thank you, Mr. Chairman. Mr. Carter. Thank you, Mr. Price. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. Mr. Secretary, your entire written statement will be entered into the record. You are now recognized for 5 minutes to summarize your testimony. Secretary Johnson. Thank you, Mr. Chairman---- Mr. Carter. I am sorry, I should have asked my Chairman if he had an opening statement. Opening Statement: Mr. Rogers Please excuse me, Hal. Mr. Rogers. Thank you, Mr. Chairman. Thank you, Mr. Secretary, for being here on your first appearance before the committee. In the past several years, Ranking Member Lowey and I, along with our counterparts across the Capitol, have worked hand-in-hand to restore regular order to this committee, thoughtful oversight, and austerity. The omnibus bill for fiscal 2014, which we agreed upon in January, is truly emblematic of that commitment, making responsible choices to right-size our Federal Government and target precious tax dollars where they are needed the most. That bill was a true product of coming together, reflecting our shared desire to roll up our sleeves, cast partisanship to the wayside, and do the critical work expected of this storied committee. All of us are committed to moving forward in a similar fashion in fiscal year 2015, with honest and fair negotiations. That is why I am disappointed that we are here today to review a budget request that, as Chairman Carter has pointed out, is overtly partisan and political at its core. The protection of our homeland is a responsibility of paramount importance. And I fear this budget request undermines that duty with the same budget gimmicks, unauthorized legislative proposals, and cuts to frontline security operations that we have sadly come to expect under this administration. Mr. Secretary, we have to do better. Once again, the Department has proposed to significantly reduce Coast Guard and ICE that supports the men and women who bravely defend our homeland on the front lines. In particular, the budget would decrease custody operations by $202 million and domestic investigations by $27.7 million, in addition to reducing the mandated detention level by over 10 percent-- another strong signal that this administration is not interested in enforcing the immigration laws on the books in this country. This budget cuts over 500 military and civilian personnel at the Coast Guard--500. When the Attorney General is describing the uptick in heroin abuse in our country, he said it is an urgent public health crisis--and I am using his words--I simply don't see the wisdom in reducing one of our first and most important front lines of defense against heroin drug trafficking. Once again, the Department is budgeted with imaginary money, relying on $1 billion in unauthorized increases to multiple CPB user fees and to TSA's aviation passenger fees to support critical security measures. Once again, the Department has proposed a new FEMA grant program that has not been formally submitted to or vetted by the relevant authorizing committees of the Congress. Once again, the Department has failed to submit a number of plans and reports which are essential to help this committee do its work and do its work well. These are not merely suggestions or requests; they are required by law. I could go on, Mr. Secretary, and I may later. The bottom line is this: We have to do better. Your testimony today I hope will allay my concerns as we work together in protecting our homeland. And I thank the chairman. Mr. Carter. Thank you, Mr. Chairman. I am sorry about that. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. Ms. Lowey. Opening Statement: Mrs. Lowey Mrs. Lowey. Thank you, Mr. Chairman. And welcome, Mr. Secretary. I would like to thank Chairman Rogers, Judge Carter, Ranking Member Price for their leadership. This subcommittee values our role in protecting our homeland, as well as the bipartisan working relationship we foster to meet that goal. Mr. Secretary, as you appear before the House Appropriations Committee for the first time, I welcome you. Last year, there were acts of terror in Boston, growing cyber attacks on America's businesses, and drug cartel violence along the U.S.-Mexican border. That has resulted in the murder of 60,000 people since 2006 and turned some border towns into a war zone. These challenges alone certainly make an extremely difficult job, and yet you oversee 16 different agencies and offices, which is no small feat. I wish you luck, stand ready to work with you to provide our first responders, Border Patrol officers, special agents, and every Federal law enforcement officer with the resources to keep our country safe. The President's budget yet again proposes to consolidate FEMA's State and local grants into a large pot without authorization from Congress and expressly against the wishes of this committee. Such a consolidation could dilute crucial antiterrorism funds from areas most at risk of attacks and leave transit and port security in the Nation's most densely populated areas without the ability to prevent and respond to acts of terror. In addition, the Department's assumption that the job is complete in New York City is premature, and a reduction in securing the city's funding could leave New York City without the radiological and nuclear detection capabilities it needs. With that said, I commend the President for his efforts to put Americans back to work while making investments that will support our infrastructure. The Opportunity, Growth, and Security Initiative, if implemented, would provide $400 million for pre-hazard-mitigation assistance. With natural disasters becoming more frequent, severe, and costly, these funds would be a worthy investment in our resiliency and infrastructure. Lastly, every day the best and brightest come to America to study and work and then, due to our broken immigration system, return home to compete against us in a global market. This makes no sense. Businesses, security professionals, and labor all agree that every day without comprehensive immigration reform is a missed opportunity. I hope that the House will take up H.R. 15, nearly identical to the Senate bill that passed with bipartisan support, and that when you come before us next year we will discuss how the President's fiscal year 2016 budget meets the implementation needs of this important legislation. Thank you, Mr. Secretary. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. Okay. I am sorry for the mix-up. You are now recognized, Secretary Johnson, for your statement. Opening Statement: Secretary Johnson Secretary Johnson. Thank you, Mr. Chairman; thank you, Mr. Chairman; thank you, Ranking Member Price, Ranking Member Lowey, who I have known for some years. I want to begin by thanking the subcommittee--you have my prepared statement for the record. I will read an abbreviated version of it. I would like to thank the subcommittee for the strong support you have provided to the Department for the past 11 years. I look forward to continuing to work with you in the coming year to protect the homeland and the American people. I am pleased to appear before the subcommittee to present the President's fiscal year 2015 budget request for the Department. The 2015 budget request builds on our accomplishments over the past 11 years while providing essential support to national and economic security. The basic missions of DHS are and should be: preventing terrorism and enhancing security, securing and managing our borders, enforcing and administering our immigration laws, safeguarding and securing cyberspace, and strengthening national preparedness and resilience. The President's fiscal year 2015 budget request provides the resources necessary, in our judgment, to maintain and strengthen our efforts in each of these critical mission areas. In all, the fiscal year 2015 budget requests $60.9 billion in total budget authority, $49 billion in gross discretionary funding, and $38.2 billion in net discretionary funding. Of particular note, the President's budget request funds production of the National Security Cutter 8 as part of the recapitalization of the Coast Guard and requests $300 million to complete the funding necessary to construct the National Bio- and Agro-Defense Facility, a state-of-the-art bio- containment facility central to the protection of the Nation's food supply and security. The fiscal year 2015 budget will provide $10.2 billion to support disaster resiliency, primarily through the grants program, that are administered by FEMA and the Disaster Relief Fund. I would like to also mention something about vacancies. There has been a lot of discussion of vacancies within the senior levels of the Department. I am pleased that the Senate last week acted on the confirmations of Suzanne Spaulding, Gil Kerlikowske to lead CBP, and John Roth to be our new Inspector General. We have three more who are awaiting Senate confirmation now. And I would like to report that with respect to the other senior leaders, I have in mind at least one individual who we are recruiting at every one of these levels. This is an active part of my responsibility as Secretary, to fill these leadership positions. I spend virtually some part of every day working on this important mandate. As Secretary, I am also mindful of the environment in which we pursue each of our important missions. The days are over when those of us in national and homeland security can expect more and more to be added each year to our top-line budgets. I therefore believe, as I know many members of this committee believe, I am obligated to identify and eliminate inefficiencies, waste, and unnecessary duplication of resources across DHS's large and decentralized bureaucracy while pursuing important missions such as the recapitalization of the aging Coast Guard fleet. We reached a major milestone last year when the Department achieved its first unqualified or clean audit opinion on its financial reporting. These are important steps in maturing the Department's management and oversight functions. But there is more to do. As part of the agenda, we are tackling our budget structure and process. DHS currently has 76 appropriations over 120 projects, programs, or activities. And there are significant structural inconsistencies across components, making mission-based budget planning and budget execution analysis difficult. We are making changes, as I have discussed with members of this committee, to our budget process to better focus our efforts on a mission and cross-component view. I, along with the Deputy Secretary, am personally engaged to provide the necessary leadership and direction to this process. As part of a management reform agenda, I am also doing a top-to-bottom review of our acquisition governance process, from how we develop our strategies to the development of our requirements, to how we sustain our platforms, equipment, and people, and everything in between. Part of this will include the thoughtful but necessary consolidation of functions to provide the Department with the proper oversight management and responsibilities to carry out this task. This will allow DHS to more fully ensure the solutions we pursue are responsive to our strategy, technologically mature, and cost-effective. I look forward to sharing our ideas and strategies with this subcommittee as we move forward in this area. The last thing I would like to comment on is a comment was made that I am new. The week before last, in my testimony before the House Homeland Committee, a member remarked, we know you inherited this, but when you inherit something, you own it. And so I accept responsibility for the Department and its budget submission. Someone has to be responsible, and that is me. Thank you very much, Mr. Chairman. I look forward to your questions. Mr. Carter. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] IMMIGRATION: CATCH-AND-RELEASE POLICY Mr. Carter. And I appreciate that comment. You know, in the past 4 months, CBP has apprehended 66,928 illegal entrants into the Rio Grande Valley sector of our border. Rio Grande Valley is in Texas; we call it ``the Valley.'' Policies, procedures, and adjudication backlog resulted in many of these illegal immigrants staying in the United States for an indeterminant period of time, which is leading to a de facto catch-and-release policy. Mr. Secretary, in a yes-or-no answer, first, has the Administration regressed to the flawed catch-and-release policy of our past history? What do you think? Do you know if this Administration has established a catch-and-release policy? Secretary Johnson. I do not believe so. And I would be opposed to such a policy. I know from my experience at the Department of Defense that an armed force, a law enforcement force has serious objections to a catch-and-release policy. We ask these people to put their own lives on the line, and if you do that, you should not catch, capture, or arrest someone only to be released moments later. So I do not believe in such a policy, and I don't believe we have such a policy. Mr. Carter. Well, let's just look at some things. We have a combination of government directives, deferred action, rule interpretation, and proposed budget cuts, leading to a de facto cut-and-release policy. Aren't all these directives and memos regarding illegal activity such a thing by granting the recent border entrants with temporary status, even if it is a type of legal limbo, aren't the White House decisions, including the latest proposal to slash ICE enforcement resources, creating an irrational posture for illegal entry that is leading to humanitarian dilemmas and law enforcement nightmares? Sir, I am from Texas, and you know that; we have talked. So illegal border crossings are a big deal to me and to my neighbors. And, you know, we all know what is going on in the Rio Grande Valley. Your group called that the RGV. We call it the Valley. And though we worry about the escalating flow of illegal aliens streaming into our neighborhoods and our communities, we worry more about the transnational criminal network that supports these illegal crossings. The word on the border is, at least across from Texas, that today no one crosses that river without the cartel being involved. Consider these statistics from CBP about apprehension in the Rio Grande Valley for the first quarter of fiscal year 2014. Between October and January--October, November, December, 4 months--as I said, 66,828 people were apprehended. A total of 49,850 were other than Mexicans, and 18,555 were juvenile apprehensions. When these folks were apprehended, they met ICE's mandatory detention criteria because they were recent illegal entrants, but, needless to say, they weren't all placed in detention beds. So what happened to them once they were processed by CBP and turned over to ICE? Of the 66,928, how many were removed, remained in detention, were placed in alternative detention, claimed credible fear, are awaiting immigration hearings? How many other Mexicans are waiting to be deported? We can't just ship them back to Mexico. Of the 18,555 children, how many were delivered to family members living legally or illegally in the United States? And how many children continue to wait in shelters if they couldn't be reunited to family members? There is no doubt, Mr. Secretary--in my opinion, at least, there is no doubt--the current policies are causing systematic failures to the United States immigration enforcement process, creating, I would argue, an invitational posture that is leading to a humanitarian crisis. It is a really sad story to hear, and we hear it on the border all the time, of a small child dropped across the bridge in Brownsville with a plan that is instigated by the cartel, says there is nothing to worry about that small child, it will be delivered by ICE, two agents flying in to accompany him travelling to a family in Virginia. Now, this whole policy has created a disaster on our border. Would you consider that this might be creating incentives to bad behavior? And what is your solution? Secretary Johnson. A couple of comments. First, I have been to the Valley, I have spent time there, I have done the Rio Grande, and I have talked to our Border Patrol agents on the front lines about the challenges they face and what they need, the resources that they need. Because I know from personal experience, very often, you learn more from talking to the people on the front lines than you do your subordinates in Washington. In fact, when I went to the Valley, I told my subordinates in Washington to stay home; I wanted to talk directly to the guys on the front line. I agree that we have some real challenges in south Texas. I think south Texas, particularly of late, is presenting some real challenges, and we have some work to do there. One of the things that I was struck by when I visited the detention center on January 20th was that there were 995 detainees there, only 18 percent of whom were Mexican. There was something like 30 nationalities represented in that one detention center. And it is very clear why: Smuggling organizations are bringing these individuals through Mexico into the United States as part of a plan. So one of my concerns, one of my challenges is I think we have to be very aggressive when it comes to going after the organizations, some of whom are beholden to the cartels--many of whom are beholden to the cartels. Almost no one crosses the south Texas border who is not being smuggled. There is no freelancing. It is all part of an organized process put in place. I am also sensitive to aspects of our system that may create magnets for illegal immigration. I am sensitive to that. And when I was on the front lines, I talked to our Border Patrol folks about some of the stresses that they face on the front lines as a result of the system we have in place. In my judgment, this is one of the reasons why we need comprehensive immigration reform, both for the added border security that it would provide and, frankly, for--and I know some people disagree with this, but I think I am right on this--as a matter of homeland security, an earned path to citizenship for the 11 million who are here. I want them to come out of the shadows so that we know who they are as a matter of homeland security. But, Chairman, I am sensitive to the challenges the people on the front lines face. I think in south Texas and the Valley, we have some work there to do in particular. The last thing I would say is there is a difference between catch-and-release and apprehension, arrest--and you know this yourself from your time in the judiciary--and someone being released on parole, on bond because someone has determined that they are not a flight risk. And that does indeed happen in our immigration system. And we have asked in this budget submission for $94 million for an alternatives-to-detention program that we think is a pretty good one, consistent with public safety. Mr. Carter. Well, you sort of confirmed, in some ways, what I just said about an invitational posture, and I thank you for your comments. When we had catch-and-release, I interviewed bondsmen, and the policy that they had was they would make the bond, but they were before the judge getting off the bond in a month because they knew the no-shows were going to be 90 percent, and they were gaming the system. This was way back in 2004 when the catch-and-release was the policy of the United States. But I need to go on to Mr. Price, so I will get my time again. Mr. Price. NATIONAL PREPAREDNESS GRANT PROGRAM Mr. Price. Thank you, Mr. Chairman. Mr. Secretary, as you know, on this subcommittee, we have worked very hard to be full partners with our first responders and with our State and local governments to fully fund FEMA's first-responder programs. I am disappointed that this budget does propose a reduction in these programs, although I note that the administration has also proposed the Opportunity, Growth, and Security Initiative. That includes additional funding, or would include additional funding, for State and local grants, fully paid for, but it would be beyond the top- line funding level in the budget agreement. Now, in addition, the Department is again proposing to establish a National Preparedness Grant Program, which would take the place of the currently funded preparedness programs. That would include the State Homeland Security Grant Program, the Urban Areas Security Initiative, the Port Security Program, and the Transportation Security Grant Program--in other words, the rail program. Now, the administration, unlike the last 2 years, has proposed authorization language for this new NPGP, but the proposal is basically the same as we have seen in recent years. So I am wondering if you could elaborate for us the rationale for this proposal and some of the practical effects. I am especially interested in the practical effects. With the major urban areas, for example, are they justified in their concern that they could lose access to significant amounts of funding under this restructuring? What would the UASI cities gain or lose under the proposed structure? Would those cities need to rely solely on their State governments or more on their State governments to receive funding under the proposed structure? Secondly, could you describe for me how changes have been made, what kind of changes you have made in response to some of the criticisms leveled by stakeholders to the proposal from prior years? Thirdly, were the consolidated program to be authorized and funded, do you expect that we would see a significantly different balance of investments than we have seen under the currently funded preparedness grant programs? You see what I am getting at. I mean, these are programs that are important to us; they are important to you, I know. We want to fund them as generously as we possibly can, and we want to do this in a way that is effective and as efficient as possible. This proposal keeps coming back, though. And we have resisted it, as you know very well. We have resisted it. We have reason to believe that the current grant structure is well-defined and has delivered important assistance. If you have a different idea or if you believe that the bottom line in terms of what is delivered and how it is utilized would be different and would be better under this kind of consolidation, then I think now is the time to let us know that rationale. Because, as I said, this proposal, this isn't the first time we have seen it. So if you are persisting in this, we obviously need to know the reason why. Secretary Johnson. First of all, I was pleased that in the 2014 budget agreement, there was more money set aside for State-level and UASI grants. I believe that assistance grant- making to State and local governments, from my counterterrorism point of view, is particularly important as the terrorist threat becomes more diffused, decentralized, and, in many instances, localized, with the self-radicalized individuals we see domestically. So I think support for State and local governments is particularly important. And I was pleased that in the 2014 budget we have more money to work with, and we intend to do so. I am aware of the opposition to the consolidation of the grants program. I know that this debate has been going on. And I have asked the very same questions you have just asked me. My understanding is that, with the consolidation of the grants programs at the State level, there would be increased efficiencies in terms of Federal oversight of how the grant money is spent and increased efficiency on the State/local side in terms of oversight for how this money, how the grant money is distributed. I know that our FEMA leadership--and FEMA administers these grants--is a big believer in consolidating the grants program. And I have a tremendous amount of respect for Craig Fugate in this regard, and he believes that we need to do this. He administers this program, and I am inclined to defer to his judgment on this. I understand the concerns, but, you know, anytime you are engaged in grant-making, if there is a way to reduce the overhead so that the grant money is maximized in terms of getting to its maximum impact, that is a good thing. So that is why we come back at this. I am pleased that this year, we offered authorization language to accompany it. But that is my best understanding of the reason for the proposal. Mr. Price. Just one detailed question about the authorization language. You propose authorization to build and sustain core capabilities identified in the National Preparedness Goal. Now, I know you are maintaining the fire grants and the SAFER grants, the personnel grants, as discrete programs. Secretary Johnson. Yes. Mr. Price. Does this definition, though, include firefighting as one of those core capabilities? It is included now, as I understand. Is that proposed to be changed? Secretary Johnson. I have to take that question for the record, and I can get back to you in writing, sir---- Mr. Price. All right. Secretary Johnson [continuing]. If you don't mind. [The information follows:] Rep. Price: Under the National Preparedness Grant Program, would firefighting be considered a core capability? Response: Under the Administration's proposed National Preparedness Grant Program (NPGP), the Assistance to Firefighters Grant Program (AFG) is maintained as a separate and free standing grant program. The NPGP consolidation does not contemplate the absorption of the AFG grant program within its structure. ``Firefighting'' does remain a target capability under the National Preparedness Goal (pursuant to PPD-8) and the NPGP will support all of the target capabilities. Mr. Price. Thank you, Mr. Chairman. Mr. Carter. Chairman Rogers. COAST GUARD BUDGET CUTS' EFFECT ON DRUG INTERDICTION Mr. Rogers. Mr. Secretary, the country has an opioid problem, and that is putting it mildly. Until fairly recently, the abuse of prescription drug medicine was killing more people than car wrecks--opioids, Oxycontin and the like. We have made a real dent in that through a concerted action on the State, Federal, local levels, and we are making some progress. That was what the Centers for Disease Control called a national epidemic. And I have been to too many emergency rooms in my district looking at young kids, with parents grieving over the body of their son or daughter, 18, 19 years old. But we have made some progress on prescription drug abuse. But now they are switching to using heroin, an opioid, obviously. And the rise in heroin abuse now is what the Attorney General yesterday called, quote, ``an urgent public health crisis,'' end of quote. We all know that heroin is not made here in the U.S. It has to be imported, has to be brought in, either across our borders or across our seashores. And yet, to combat this urgent public health crisis, in your budget you proposed cutting the Coast Guard drastically--the one agency that can protect our shorelines against this invasion of a health crisis that we are undergoing. You have cut over 800 military positions, over 600 selective reserves. You again gut the Fast Response Cutter by funding only two, even though the program is on cost and on schedule, desperately needed. And your budget decimates operational flying hours by proposing to retire aircraft and, more concerning, proposing to cut flying hours for the new HC- 144 aircraft by 16 percent. I could go on on your cuts to the Coast Guard vital to our seashore defense, particularly on drugs. We could talk about the land crossings the same way, the reduction in personnel and cuts to the land-based law enforcement, ICE investigations. You are proposing to reduce the number of average sustained detention beds, for example, from 34,000 to 30,000. Furthermore, ICE's Homeland Security investigations program decreased nearly $30 million. I could go on. Is the Attorney General wrong when he said yesterday this is an urgent national crisis? Or do you maintain that the Coast Guard is not an important factor in fighting that curse? Secretary Johnson. I wholeheartedly agree with the Attorney General with regard to his comment. The short answer to your question is that this budget submission reflects hard choices given our fiscally constrained environment in which we are operating, pursuant to the Bipartisan Budget Act and the top-line limit that we face. With regard to the Coast Guard, I am personally committed to continuing with our recapitalization effort. My understanding is that the Coast Guard has the oldest fleet of vessels of any navy in the world. We need to continue our recapitalization effort. And I am pleased that we have in our budget submission asked for $562 million to fund the National Security Cutter No. 8, which is the last one in that production line. I am pleased that we are continuing progress toward the selection of a contractor for the Offshore Patrol Cutter, which is the medium- size cutter in the fleet. And I am pleased that we have forward progress with regard to the FRC [Fast Response Cutter], the smaller cutter. We asked for appropriations for two versus four or six because we had to make some hard choices. My observation of Homeland Security investigations is that they do a marvelous job in terms of narcotics interdiction. I get daily reports at their efforts at interdiction at the border of illegal narcotics. I think they are doing a terrific job, and we need to encourage them to continue to do so. But without a doubt, this budget submission reflects some very hard choices. Mr. Rogers. Hard choices. You are right, you have to make choices; so do we. That is what we are in business for, you and us, on budgets, hard choices. And while you are cutting the Coast Guard and the other agencies that fight illegal drug trafficking, you are increasing management, administration. Immigration and Customs Enforcement, 13, almost 14 percent increase in management and administration, bureaucrats in Washington. You have cut domestic investigations by almost $30 million, and so on. So the hard choices--plus, you proposed to increase the amount of money to complete the DHS headquarters buildings-- D.C., bureaucrats. St. Elizabeth headquarters, $73 million increase. Hard choices. Take it from drug fighting and put it into headquarters. To me, that is not a hard choice; that is an easy choice for me to make. So I disagree with you on the hard choices, so-called hard choices, that you say you have made. Your budget would put Coast Guard at a 5-year low in cocaine interdiction--a 5-year low. And we all know that cocaine is flooding into our country. And so, Mr. Secretary, this is not good news for the home folks. FEDERAL AIR MARSHALS PROGRAM Mr. Chairman, before I relinquish my time here, let me ask the Secretary about the Federal air marshals program. I know we can't talk about that in open court here too much, but I would appreciate a report, confidential report, for the record for me and for whomever wants it about the operation of the Federal air marshals--the number, the effectiveness, the preventions, if any, that they may have expedited--and just an analysis of where we are with the FAM program and whether or not we need them. Secretary Johnson. Mr. Chairman, I am happy to provide that report to you, with the suitable safeguards that--I know we can trust you and your staff with the appropriate safeguards, so I am happy to provide that to you. I think that it is something you should have if you ask for it. [The information follows:] Rep. Rogers: I would appreciate a report, confidential report, for the record for me and for whomever wants it about the operation of the Federal air marshals--the number, the effectiveness, the preventions, if any, that they may have expedited--and just an analysis ofwhere we are with the FAMS and whether or not we need them. Response: As the material requested contains Sensitive Security Information, it will be provided to the Committee under separate cover. Mr. Rogers. Anything that spends money we want to know about. Secretary Johnson. I am sorry? Mr. Rogers. Any program that spends money we want to know about, we are entitled to know about, and demand to know about. And so I want a good analysis of the FAMs forthwith, pretty quick, before we mark this bill up. Secretary Johnson. I am not disagreeing with you, sir. Mr. Rogers. Thank you. Mr. Carter. Ms. Lowey. URBAN AREAS SECURITY INITIATIVE Mrs. Lowey. Thank you again, Mr. Secretary. The explanatory statement accompanying the fiscal year 2014 omnibus included language directing the Department to focus the Urban Areas Security Initiative, UASI, on urban areas that are subject to the greatest terrorism risk and allocate resources in proportion to that risk. As you know, the purpose of this language was to focus the resources of the Department and FEMA on those urban areas at the highest risk of an event, rather than spread this money around from region to region and State to State, rather than put it to good use where it matters most. How does the Department plan to implement this language for the fiscal year 2014 UASI allocation? And when can we expect the fiscal year 2014 allocations under the more focused standard? Secretary Johnson. I made an initial review of the proposed allocations last week. I believe we are on track, pursuant to the timetable that we hope to adhere to, to get that information out. I agree with the statement about how the grant money should be prioritized to the communities most at risk. As someone who was in Manhattan on 9/11, I appreciate the challenges that we in the New York area have, and in other communities. So we expect to have that information for fiscal year 2014 out very soon. I have heard from enough Members of Congress about the UASI grants program and how we allocate risk. I think it is incumbent upon me as Secretary to make sure that we are allocating this in the proper way and that we occasionally reevaluate it to make sure we are getting it right. So for fiscal year 2015 I am committed to do that, as well. DOMESTIC NUCLEAR DETECTION OFFICES' SECURING THE CITIES PROGRAM Mrs. Lowey. Thank you very much, Mr. Secretary. The budget request would also cut $10 million from the DNDO Securing the Cities Program. This program has been invaluable in outfitting law enforcement in areas of critical infrastructure in New York with radiological and nuclear detection capabilities to identify, respond to, and altogether prevent a radiological or nuclear attack in cities. Could you discuss with me what accounts for the proposed reduction of $10 million to this program? Has the Department coordinated with New York City's new chief of police to ensure that the proposed reduction to the Securing the Cities Program would not harm the New York Police Department's detection capabilities? Secretary Johnson. Well, I have a pretty good working relationship with the NYPD and its leadership. I knew Commissioner Bratton before I took this job. I have met with him, I think, two or three times since. And I have a dialogue with the New York City Police Department. You are correct that there is, in our submission, $10 million less. Again, this reflects hard choices. And I asked specifically about this one in particular. And it is my hope and expectation that we can leverage this through other means, through other grant programs, for New York City and for other communities. That is my hope and expectation. But, again, it reflects hard choices. TRANSPORTATION SECURITY OFFICERS, FEMALE Mrs. Lowey. I thank you very much, because I did work closely with Commissioner Kelly, and I hope that we will be able to discuss this with the new commissioner. Lastly, I would just like to discuss some matter of importance regarding TSA. I recently met with transportation security officers who relayed that female TSOs are finding it more difficult to be promoted because they are held at the passenger checkpoints for pat-downs rather than gaining experience at other stations. Approximately 33.8 percent of TSOs are women, and as only female TSOs are permitted to conduct pat-downs of female travelers, as well as being the preferred choice for pat-downs of children and the elderly, the result is that 33 percent of TSOs are responsible for over 50 percent of all the pat-downs. Having female TSOs conduct pat-downs of female passengers is certainly a well-intentioned policy, but I have heard continuing problems about its implementation. Due to the increased demand for female TSOs at passenger checkpoints, they tell me they are not rotating positions, per TSA policy, because of insufficient number of TSOs on duty at passenger checkpoints. The result is that female TSOs are not getting the experience in other stations to be considered for a promotion and are being denied shift and position bids because they are disproportionally kept at the checkpoints. In addition to making an effort to hire more female TSOs, could you discuss with us what steps should TSA take to ensure that female TSOs have equal access to training, shift bids, promotions as their male counterparts? And the tragic shooting at Los Angeles International Airport last year, which resulted in the murder of Gerardo Hernandez, shined a bright light on the need for checkpoint security. So if you can tell us, what steps is TSA taking to improve checkpoint security? How will it train its employees to handle an active shooter event so that events like the attack at LAX will not happen again? If you could just address briefly those two issues, I would be most appreciative. Secretary Johnson. On the first issue, I had not heard that before, but I am not surprised, given the basic statistics. If 33 percent of TSOs are women and we want TSOs who are women to conduct the pat-downs of women passengers, who are probably about 50 percent of aviation passengers--and if you add kids, that is in excess of 50 percent. And I wouldn't want to see male officers doing that with regard to women. That need, therefore--there is a certain logic to your question--requires that they be on the front lines of aviation security. I wouldn't want to see that deprive them of promotion opportunities. So I will look into that. That is an interesting comment, which I had not heard from the women in the force who I have chatted with at LAX and Dulles and elsewhere. It doesn't mean it doesn't exist; they just didn't raise it to me directly. CHECKPOINT SECURITY, IMPROVING With regard to LAX, I was there. I spoke with the officers who had worked with Officer Hernandez on that day. I asked them about their security. I don't think that the answer is to create a security perimeter around a public airport. I think that would create all kinds of backlogs, and I know Administrator Pistole agrees with me. There is a review that is out that I am due to get soon on promoting security for our officers. And that is a top priority for me, the safeguarding of our men and women. And I look forward to the results of that review. Mrs. Lowey. Thank you. Thank you, Mr. Chairman. Mr. Culberson. Thank you, Mr. Chairman. A point I want to quickly follow up on. Ms. Lowey has quite correctly, identified a real problem with the ability of the employees at airports to get access to identification documents, and I hope that she will continue to work on that. And, Mr. Secretary, I am trained as an attorney as well. I did civil defense work in Houston defending businesses, individuals that got sued, engineers, professional people, and I see that is your background as well, sir, as an attorney. Secretary Johnson. My last trial was in Houston. Mr. Culberson. Was it really? Secretary Johnson. I won't tell you the result. Mr. Culberson. Well, you were the general counsel, I see, at the Department of Defense. Secretary Johnson. Yes. DETENTION BEDS Mr. Culberson. And just as a point of curiosity, do you think that the individuals picked up by our soldiers overseas on the battlefield that are held at Guantanamo are entitled to constitutional protection, equal protection, due process, the protections guaranteed in the Constitution? Secretary Johnson. That is a very interesting question that we wrestled with extensively. I will give you the current state of the case law. Mr. Culberson. Your opinion. Secretary Johnson. My opinion, well, as a lawyer and legal advisor, my opinion is whatever the Supreme Court tells me to think. And so the current state of the case law is that with regard to the right to habeas, they have that and certain other limited rights. There has been no determination by the courts that detainees at Guantanamo enjoy the full panoply of constitutional rights. The courts have tended to say, we are not there yet, or we don't have to rule on that. And so that is the current state of the case law. Mr. Culberson. Right. Secretary Johnson. It could go in that direction depending upon the particular issue. Mr. Culberson. Yes, sir. I was particularly interested in what you as the general counsel of the Department of Defense that you had been involved in advocating for a different result. Secretary Johnson. I agree with the comment made earlier, which is I am not in the business of enforcing the law as I wish it existed. I do my best job of enforcing the law as I believe it currently exists. Mr. Culberson. There you go. So as a good lawyer, when the law says ``shall,'' shall means shall. Secretary Johnson. Generally, that is true, yes, sir. Mr. Culberson. And since 2002 this committee has had in statute a provision that Chairman Carter, with the strong support of Chairman Rogers, and the final bill that the President just signed, provides--this is in H.R. 3547--that funding made available under this bill shall maintain a level of not less than 34,000 detention beds. And you are quite correct, you are, as the secretary, have sworn an oath to uphold and defend the Constitution, the laws of the United States, you can't deal with the law as you wish it would be, you are dealing with the law as it is. So therefore, if you could, sir, what possible justification is there for the Department of Homeland Security to refuse to obey that law? And why would you request a cut to detention beds by 10 percent? But first of all, what is your legal justification for ignoring that law, and not complying with that ``shall''? Secretary Johnson. I dealt with similar provisions when I was the lawyer for the Department of Defense, and the Department of the Air Force when I was general counsel there. I believe that in the executive branch, when we have a legal obligation to make a budget submission to Congress, we owe the Congress our best effort at what we think the budget priorities should be. Mr. Culberson. Recommendation. Secretary Johnson. As a recommendation. And it is your prerogative to agree with it or disagree with it. And I am sure that the Congress will do so in this instance as well. But with regard to that particular provision, we believe we owe you our candor and our best effort---- Mr. Culberson. Certainly. Secretary Johnson [continuing]. At what we believe is the appropriate level for detention beds given our current demands. And so that is what you have from the administration. Mr. Culberson. Right. But you are not filling all those beds today? That is my concern. Secretary Johnson. We are not filling all those beds today. Mr. Culberson. That is my concern. Secretary Johnson. Well, actually today, I believe, we are somewhere just shy of that, shy of 34,000, based on our best judgment about who should be detained and who can be bonded or paroled. Mr. Culberson. But the law is mandatory, you agree, nondiscretionary, mandatory, shall. Secretary Johnson. The clause reads as it reads. We have given you our best submission based on our honest assessment of what we think we need. Mr. Culberson. Sure. You, I am confident, can detect from the committee all of us on this committee are committed to enforcing the law as it is written. And my good friend Henry Cuellar, who I had the pleasure of serving with in the Texas House, one of my nearest and dearest friends, his constituents, who live there right on the river, there is no one more committed to enforce the law than Henry's constituents, because those poor folks are on the front line. I mean, they deal with it every day. And they want safe streets and good schools and a strong economy. Laredo is the largest inland port in the United States, I think, Henry, and a beautiful city. I used to be able as a kid to go to Nuevo Laredo. You can't go there anymore. It is like a ghost town. It is critical, and I hope you detected it from all the questions that you have seen in this hearing, that you enforce the law as it is written. It is not, as you said, what you would like the law to be. You are following the law as the Supreme Court gave it to you, but you are also following the law as given to you by the United States Congress. And this is not optional. It is not discretionary. There is no prosecutorial discretion on the part of a police officer or your detention folks as to whether or not you are going to fill 34,000 beds. You shall fill 34,000 beds. Would you, if you could, please take that message back to the agency? And I know that the chairman and all the subcommittee members will be keenly interested in helping you obey the law as it is written. Thank you, sir. Mr. Carter. Ms. Roybal-Allard. Ms. Roybal-Allard. Mr. Secretary, I just want to comment on that, on the bed mandate. As the law is written and is being interpreted by my colleagues in saying that you must fill 34,000 beds, what that does is, if I am correct, takes away the discretion of professional ICE personnel who may determine that someone who is arrested, could be an elderly person, whoever that happens to be, that you would not be allowed to use that discretion and put them in an alternative means of detention because of health or for other reasons if those 34,000 beds were not filled. You would be in a position of having to fill those beds every night whether or not you believed a certain number of the people that were arrested could be put into an alternative situation. Is that how, I mean, the law is being interpreted by my colleagues, that those 34,000 beds have to be filled regardless of the merits, of the need, of the conditions of that person, and that the discretion is taken away from ICE professionals if that 34,000 number of beds isn't filled? I am just trying to understand the logic in how this law applies here, because it is very, very costly to have people in detention, $125 a night as opposed to, I forget what the figure is, something like 30 cents per day to put them in alternative measures. So could you explain to me---- Secretary Johnson. Well, I don't have the statute in front of me. I have no doubt it says the word ``shall'' in it. And I don't know that the interpretation here--and feel free to disagree with me--is that we must maintain 34,000 detainees at any one time. It is that we must maintain the capability for 34,000 detainees. But, Congressman, you will correct me if I am wrong. Mr. Culberson. It is just real simple, straightforward. Secretary Johnson. Okay. I mean, the other comment---- Ms. Roybal-Allard. So the capability is one thing, but if it is that you must fill them, that means that there is no discretion, those beds have to be filled every night regardless of who it is that you are arresting, whether it is elderly or otherwise. That is what I am asking for clarification on. Secretary Johnson. Well, the statute says, the language says, funding made available under this heading shall maintain a level of not less than 34,000 detention beds through September 30, 2014. So reading that, I would interpret that to mean that we have to maintain 34,000 detention beds. Some of those beds might be empty at any given time. But we have to maintain 34,000 detention beds. We believe that is not the best and highest use of our resources, given our current estimates of who we need to detain, who we regard as public safety, national security, border security threats. Our best estimate is that the number is something south of 34,000, particularly when we have what we think is a pretty good alternatives-to-detention program that we have also asked for funding for. So we have asked for something around 30.6 thousand to detain whom we believe needs to be detained. Ms. Roybal-Allard. Okay. So your interpretation then is different than previous interpretations. Those beds do not have to be filled, they have to be available, and the discretion as to whether or not to detain someone or put them into an alternative situation remains at the discretion of the ICE professional? Secretary Johnson. Well, I am reading the statute, and---- Ms. Roybal-Allard. The reason I am asking is because I think there is a little bit of a disagreement between us. Secretary Johnson. The lawmakers here can correct me if I am wrong in my interpretation of the statute. Ms. Roybal-Allard. Okay. Do I have time for another question. Secretary Johnson. Chairman, may I make a comment, please? Mr. Carter. Yes, you may. Secretary Johnson. When I was general counsel of the Air Force we used to get language every year, not exactly like this, that said you shall budget for 94 B-52s. And it wasn't just you shall have 94 B-52s, you shall submit to me a budget for 94 B-52s. And the chief of staff of the Air Force would have this conversation with me every year, do I have to really submit a budget for 94, because I think I only need 76? And I said to him, well, I think you owe it to Congress the candor to tell them you think you only need 76. They would disagree with you every year and you would get 94. But as part of that process, which we are engaged in right now, I think we owe it to you our best estimates of what we need and how we think we should spend the money. It is your prerogative to disagree. Mr. Carter. And if the gentlelady would yield, I think she has about 30 seconds, can I make a comment? Would you yield? Ms. Roybal-Allard. Yes, I will. Mr. Carter. I agree that you have to have available 34,000 beds under this law. You don't have to have anybody sleeping in them every night, but they have to be made available. I think that is what this says. And we give a dollar amount in there for how much we will pay to maintain those things. I think that is a call of the detention folks. Now, the concern I have about reducing that number is that, from my experience as having one of the bad jobs I had when I was a judge, was keeping our jail overflow from killing us. And when you run out of space, the space you have to hire to meet a crisis is about five times or more expensive than the space that you maintain. And I think the numbers track that we have been closer to 34,000 than any other number most of all the year, and it is not because we are filling beds with people that don't need to be there. It is because the need actually is there. But we will see. We will find that out as we investigate this. I yield back. I believe your time is up. Ms. Roybal-Allard. Yes. Mr. Carter. Who is next? Mr. Frelinghuysen. Mr. Frelinghuysen. Mr. Chairman, I was late, and I think might be, if I may, yield to those who were here earlier and more promptly. I was here early, but if that is all right with you. Mr. Carter. That is fine. Mr. Dent. SCREENING PARTNERSHIP PROGRAM Mr. Dent. Thank you, Mr. Chairman. Good afternoon, Mr. Secretary. Mr. Secretary, as you know, the Screening Partnership Program, or SPP, allows airports to apply for private screeners rather than the Federal screeners. Administrator Pistole is on the record opposing the SPP concept, and to date I believe 14 airports actively participate in the SPP program. Again this year the TSA budget proposes to cut funding for the Screening Partnership Program. So I have a few questions I would like to have you address, if you could. First, what level of oversight is DHS conducting to ensure that the cost comparison process being conducted by TSA is accurate and has DHS validated TSA's cost comparison process? Secretary Johnson. The level of oversight with regard--I am sorry, should I go now, or---- Mr. Dent. Yes. Go right ahead. Secretary Johnson. Okay. The level of oversight that we are providing to the components with regard to programs like that one is, I would say, in transition. We are conducting a top- down efficiencies review, including creating a new budget process and the like, that I hope will lead to greater efficiencies and weeding out inefficiencies with regard to that particular program. Mr. Dent. Okay. And second, is DHS satisfied with the amount of time it takes TSA to award an SPP contract and to transition that airport once an application has been approved? Secretary Johnson. For what program? I am sorry. Mr. Dent. The same program, the Screening Partnership, SPP. Secretary Johnson. I am sure there is room for improvement, sir. Mr. Dent. Thank you. And the third point I want to make on this, TSA bases its Federal cost estimate on TSA's starting wages rather than the actual wages being paid by the TSA, preventing bidders from meeting the parameters of the bid without paying incumbent employees at TSA starting salary, rather than their current wages. Mr. Secretary, Chairman Carter and I agree that in this budgetary environment cost efficiency is absolutely critical. But has TSA set the bar unduly high for private screeners to compete with federalized screening? Secretary Johnson. That is a good question. I would like to take that one for the record, if I may, so I can give you a full answer. Mr. Dent. Sure, not a problem. Thank you. [The information follows:] Rep. Dent: Has TSA set the salary bar too high for private screeners to compete with federalized screening? Response: No. The Aviation Transportation Security Act requires that private contractors provide wages and benefits to contract screeners at least at the level or wages and benefits of federal screener personnel. Approximately 90 percent of the estimate is attributed to salary cost and the Transportation Security Administration makes public its estimated cost of operations to prospective bidders when it issues a Request for Proposals. The Transportation Security Administration has held industry briefs and congressional staff briefs on the details of its cost estimating methodology concerning salaries and is confident in its estimates. The Transportation Security Administration uses actual salary and benefit data in developing the federal cost estimate for salaries at the specific airport where the screening operations are conducted by a federal workforce. For example, if the minimum salary and benefits for a D Band Transportation Security Officer at a given airport was $31,000, but the Transportation Security Administration paid the average D Band officer at that airport $32,000, it would use $32,000 in developing the Transportation Security Administration's cost estimate. However, a prospective private sector contractor could pay a contract screener filling such a position an amount down to the minimum in the example, $31,000. PERSONNEL SCREENING PROGRAMS Mr. Dent. And then I want to quickly move to the Personnel Surety Program, Mr. Secretary. Given that there are individuals who are being vetted for security clearance for DHS programs similar to the Personnel Surety Program, or PSP, under CFATS, why should people have to go through that same process twice? Secretary Johnson. I believe that we are looking for ways to consolidate our screening programs. This is an issue that has been raised to me, and I believe we are looking for ways to consolidate our programs. Mr. Dent. I appreciate your help with us on that, because at one point in this deliberation over the development of the PSP consideration was being given to the use of the TWIC card by individuals for vetting. Is this still on the table, TWIC? I mean, many people have come to me and said they thought---- Secretary Johnson. Yes, it is. I believe TWIC (transportation worker identification card) is an important program. My understanding is that we are on track to be in a position to mail to people their TWICs and get to the one-stop system where you only have to go once to get your card and then you get it mailed to you. Mr. Dent. Right. Well, my staff and I would love to work with your folks on that issue. Secretary Johnson. I would be happy to work with you on that. Mr. Dent. Thank you. Secretary Johnson. I would note that I personally have to go to the DMV (Department of Motor Vehicles) to get my new license plate. Mr. Dent. And I have to yield back my time. I just want to say I have a question I will submit for the record at some point with respect to the motor coach industry and intercity passenger transportation. Thank you. And I will yield back. Mr. Carter. Mr. Cuellar. COUNTERTERRORISM: PERFORMANCE MEASURES Mr. Cuellar. Mr. Chairman, thank you so much. Mr. Secretary, it is good seeing you again. What I want to do is focus on performance. This last omnibus appropriation bill we added some language that applies to all agency heads, including yourself, that says that as you prepare your funding requests as part of the President's annual budget and in consultation with the GAO, you should directly link your performance plan under the GPRA tied into that performance measures, and in there you have got to show that those performance measures, that we give you $1, what do we get for that bang for $1. Then it goes on, and particular performance measures should examine outcome measures, output, everything as defined under GPRA. One of the things that I would ask you to do is, when we were looking at the Performance.gov and looked at your performance goals--and there is a handout, Members, if you will look at the handouts that we handed out--and I think we gave you a copy also, Mr. Secretary--I would ask you to look at, for example, your budget last year was, at least the general purpose discretionary, was $39.2 billion. Secretary Johnson. Uh-huh. Mr. Cuellar. How much money do you think out of that is used to prevent terrorism, which is your number one goal, preventing terrorism, roughly, just a rough estimate? Secretary Johnson. There is probably a number that we attribute out of that 39.2 to counterterrorism someplace. It depends, obviously, on what aspects of our mission you consider could be potentially counterterrorism, what aspect of the Secret Service's budget goes to counterterrorism. But I suspect there is a number assigned to that and I just don't have it offhand. Mr. Cuellar. If you can get that to us later on, just roughly. [The information follows:] Rep. Cuellar: How much of the $39.2B in FY 14 was used for preventing terrorism? Response: The Department expects to devote approximately $8.7 billion of the FY 2014 net discretionary appropriation to programs and activities devoted to preventing terrorism. Mr. Cuellar. But I would venture to say it is billions and billions of dollars that we put in terrorism. Is that correct? Secretary Johnson. That is probably correct, yes, sir. Mr. Cuellar. Okay. And then your number one goal--you set different goals, and I am just taking everything you have in Performance.gov--your number one goal is to prevent terrorism. And then there are measures tied into that, Mr. Secretary. Now, would you venture to say--and I am looking at, Members, I would ask you to take a look at this--if we spend billions of dollars and your number one goal, your number one goal, your first performance measure is the percentage of intelligence report rated satisfactory or higher and customer feedback that enable customers to understand the threat. And then you go on, the second one, the percentage of intelligence report rated satisfactory or higher in customer feedback that enable customers to anticipate emerging threats. And I think you retired that performance measures and then you go into some other ones. Now, would you say that for members of the Appropriation, that if we appropriate billions of dollars, that the number one measure you should have is how satisfied are those people that get those intelligence reports? Is that what we should be measuring? Again, I took everything out of Performance.gov, and I assume all of that is correct. Secretary Johnson. The way your question is stated, I would have to say no. Mr. Cuellar. Okay. And then I would venture to say, I mean, I would ask you to go back with your folks and look at this language that we added to the omnibus bill and ask you to look at what outcomes. Because I think the outcome we ought to be looking after we put billions of dollars should be numbers of terrorist acts committed in the United States should be zero. I mean, I think that is the result or the impact that we are looking at. I would ask you to look at that because you all are looking at activities, and again, I would ask your staff to look at the definition of what an outcome measure is, which is results or impact, what output is, and all of that. I would also ask you, I don't have this, but if you look at one of the things that I am very familiar with since I breathe the air and drink the water in the Rio Grande, and I live there, on securing the land ports, for example, I mean, I think we should have much better measures than what you have here. So again, I would ask you to just look at that, work with us, work with GAO. And, Members, I would ask you to take a look at that. Mr. Chairman, you are familiar with what we did in Texas with the state legislature. We have different measures. And again, we would love to sit down and look at this, because we are just measuring activity. After billions and billions of dollars for your number one goal and the number one measure is, are you happy with the report we gave you? I think we can do better than that. But, Mr. Chairman, I would like to yield back the balance of my time. Thank you so much. Mr. Carter. Thank you, Mr. Cuellar. Mr. Fleischmann. AIRPORT WAIT TIMES, DECREASING Mr. Fleischmann. Thank you, Mr. Chairman, Mr. Secretary. Mr. Secretary, as you know, customs processing in our nation's busiest airports during peak travel times remains a problem. This deters international tourism to the United States, costing our economy billions of dollars annually. As you are aware, the fiscal year 2014 omnibus appropriations bill included funding for an additional 2,000 CBP officers. What is your plan for mitigating and eliminating excessive customs and immigration wait times at our nation's airports? And specifically, approximately how many of the 2,000 additional CBP officers do you plan to deploy at our airports? Secretary Johnson. Congressman, I agree with much of the premise in your question. I agree that one of my missions as Secretary of Homeland Security is promoting and expediting lawful travel and trade. So wait times at airports is a big issue. I will observe that, in a lot of major airports, wait times can spike up and down depending on time of day, because very often international flights come in all at once. I have seen this myself. I am sure you have experienced the same thing. Mr. Fleischmann. Yes. Secretary Johnson. You are correct that in the fiscal year 2014 budget, we have 2,000 additional CBP officers, many of whom will be devoted to airports and lessening wait times at airports. We have made some preliminary estimates of where those officers should go, but it is still a work in progress. We haven't finalized it yet. We want to make sure we are making the best allocation of that. But an important goal is reducing wait times, facilitating lawful travel. And I think we will be able to accomplish that with the additional resources that you have given us. AIR CARGO ADVANCED SCREENING PROGRAM Mr. Fleischmann. Thank you. An additional question. Mr. Secretary, since the attempted bomb plot with cargo coming out of Yemen in 2010, CBP and TSA have worked closely together, and with industry, to create the Air Cargo Advanced Screening pilot program. It is my understanding that a draft rule to convert this pilot program into a mandatory program has been in discussion for over a year. Can you provide any updates on when we can expect to see a published notice of proposed rulemaking please, sir. Secretary Johnson. Not specifically. I am happy to take that question for the record and get back to you. I agree with you that port security and port screening of inbound cargo should be a top priority. It is certainly a top priority of mine, as the Secretary of Homeland Security, for the very reasons you have cited. But I will get back to you on the timing on the report. [The information follows:] Rep. Fleischmann: When can we expect to see a published Notice of Proposed Rulemaking (on the Air Cargo Advanced Screening Pilot Program)? Response: A rough estimate for publication of the Air Cargo Advanced Screening Notice of Proposed Rulemaking is 19 months. We estimate that it will take about 10 months to get this document out of CBP (this includes continued analysis of the pilot, drafting the proposed rulemaking, preparation and review of economic impact analysis, and CBP review). We estimate that it will then take another 9 months to complete the DHS and OMB review process and rollout. CBP (OFO) has been coordinating with TSA on this project. Mr. Fleischmann. Yes, sir. And as a follow-up, assuming this rule does get published and goes into effect in the near future, does DHS have sufficient funds to staff the National Targeting Center that analyzes and targets these international inbound cargo ships based on risk? Secretary Johnson. I will have to get back to you on that, on whether we do. [The information follows:] Rep. Fleischmann: Does DHS have sufficient funds to staff the National Targeting Center, if the draft rule does go into effect? Response: Cost estimates associated with the implementation of the rule are being developed. As CBP is defining the scope of the rule we will be in a better position to develop solid cost estimates. Mr. Fleischmann. Mr. Chairman, I am going to yield back. I have some more questions for later. Mr. Carter. Thank you. CYBERSECURITY Mr. Frelinghuysen. Mr. Frelinghuysen. Thank you, Mr. Chairman. Mr. Secretary, it is a pleasure to welcome a fellow northern New Jersey resident before our committee. We share a common experience having lived the New York/New Jersey region, remembering quite acutely September 11, 2001. And I know in your testimony before the authorizers you sort of expressed some very heartfelt views as to why this new assignment is so important to you. Part of your new assignment, I guess this is a presidential directive, is to focus on the whole issue of cybersecurity. I note that in your written statement here, in the 2015 budget, you have $1.27 billion for Department of Homeland cybersecurity activities. Can you talk a little bit about those, what your priorities are for the use of these dollars? Secretary Johnson. Yes. I am determined to advance the ball on cybersecurity. DHS is the coordinator of the Federal Government's efforts in this regard. I am very aware of the cybersecurity threat that this Nation faces on the basis of my experience in national security, and I think we have got to do a better job. I think this subject matter in general is, because of the terms we use, impenetrable for a lot of people. And so one of my missions is to state the threat more clearly, in plain terms, so that the average American understands that this has to be a top priority. The $1.2 billion is across DHS, so that covers not just NPPD [National Protection and Programs Directorate], our national directorate, which has the core mission, but it also includes the components. So, for example, the Secret Service is the lead investigator in the Target store issue with the credit cards at Target. That is also cybersecurity. And so across DHS in its entirety there are a number of components invested in cybersecurity, which is how you get to that number. A large part of that number is the EINSTEIN System, where we protect the dot-gov world, which is about ready to deploy. I believe the request includes about $375 million for that, as well as response in the private sector and diagnostics, rapid response. Mr. Frelinghuysen. Can you talk a little about the private sector with all of the things that are happening out there? Secretary Johnson. Yes. Mr. Frelinghuysen. Issues of privacy. Certain carriers I think in many ways doing some courageous things. Where do you sort of stand? You have to penetrate, using your own terms---- Secretary Johnson. Yes, you do. Mr. Frelinghuysen [continuing]. And educate the public, but in many ways we need working relationships with these entities here, some of whom have rightly grown suspicious and others of whom have been participants, perhaps not too willing. How do you handle yourself and your Department in terms of your work in this area, and how it is going? Secretary Johnson. The best we can do, I think the biggest thing we can achieve on behalf of the American public is building relationships, raising the trust with the private sector, with private business, with the average American, interfacing with best practices and the like. And we are doing that. I am personally committed to that. I am engaging with business leaders myself to talk to them about this problem and lowering some of the barriers. I agree that, with some of the unauthorized disclosures last year, there has been a lot of suspicion raised about our government's national security surveillance practices and a lot of public confusion about what we are doing and not doing, and we have got to restore some of that trust. So that is a big personal priority of mine. There have been efforts in this Congress at cybersecurity legislation, which I by and large support. I outlined in a speech a couple of weeks ago what I think our goals should be. I am glad to know that our authorizing committees are taking a renewed interest, because cybersecurity legislation will help to clarify for the private sector what we can do in support of its efforts and raise the trust factor. So I would like to work with the Congress on cybersecurity legislation to try to get us in a better place. But best practices, information sharing, rapid response, diagnostics, I think those are the keys with the private sector. Mr. Frelinghuysen. Thank you, Mr. Chairman. Mr. Carter. Mr. Kingston. CUSTOMS AND BORDER PROTECTION OFFICERS Mr. Kingston. Thank you, Mr. Chairman. Mr. Secretary, could you give me the breakdown of those 2,000 Custom and Border Patrol officers by location. Secretary Johnson. We are in the process of doing that right now, sir. Mr. Kingston. All right. Not to be unfriendly here, but how could you ask for 2,000 if you don't know where you are going to put them? Secretary Johnson. It is an overall assessment of what we need. Mr. Kingston. But where did that come from? Why 2,000? Why not 1,753 or 2,162? How did you come up with 2,000? Secretary Johnson. Well, first of all, I wasn't---- Mr. Kingston. You inherited it. I understand. Secretary Johnson. I am responsible for it, obviously. My sense is that we are able to make an overall estimate based on where we know we have a need nationwide to get to that number. PRECLEARANCE OFFICES Mr. Kingston. Okay. So it would be domestic then. You are saying nationwide. So they would be not overseas in preclearance offices, is that correct? Secretary Johnson. By and large, but some are and should be, in my judgment, devoted to preclearance overseas. I think that is very important. Mr. Kingston. How big do you think that number is? Secretary Johnson. Offhand, I don't know. We just opened a preclearance capability, as I am sure you know, in Abu Dhabi, and I think we need to continue to work in that direction. Mr. Kingston. So how many preclearance offices would we have in the Middle East? Secretary Johnson. We would like to have more. It depends upon an assessment of the security at each airport. And this is not something that will occur overnight, but I believe it is the general direction we should work in. Mr. Kingston. Where are the non-Middle East preclearance offices? Secretary Johnson. You mean airports? Mr. Kingston. Yes. Secretary Johnson. Doha comes to mind, for example. Mr. Kingston. No, non-Middle East. Secretary Johnson. Oh, non-Middle East. In Europe. Mr. Kingston. Are we not worried about placing so many in the Middle East? Secretary Johnson. The level of security at last-points-of- departure airports tends to vary. Some are better than others. So I think we need to focus our preclearance resources in the airports that need a little more help and where the host government is willing to support us. So, for example, what we hope to have is a situation where the host nation, the host government will support our efforts and help pay for it. But it depends on the ability to work out an arrangement with the host government. AVIATION FEES Mr. Kingston. And you proposed a fee for this, correct, to pay for this? Secretary Johnson. We propose that CBP, our customs efforts be funded in part--well, this is largely TSA [Transportation Security Administration]--through the increases. That is correct. Mr. Kingston. And the fees would go on an airline ticket, or where do the fees go? Secretary Johnson. Well, if you are talking about TSA, there is a fee that we propose that would be paid by the airline, and then there is the 9/11 security fee, and I think I am getting the terminology a little bit wrong, that is paid by the passenger who flies and who passes through TSA. Mr. Kingston. I think if I could get from you the breakdown of the 2,000, where they would go, and why, and the breakdown of the amount of money generated by the fees, and if that fee covers it, or if you are talking about fees partially covering it, and then how much money is already generated through other fees. I think that would be of interest. And I would also like to know what kind of congestion decrease there would be because of this. Secretary Johnson. Well, the allocation of the additional officers, my understanding, is still a work in progress, but we are almost done. The fees that I referred to a moment ago would go to helping to support TSA, not CBP. So the aviation infrastructure fee and the security fee would help to sustain TSA. Preclearance is a CBP function. Mr. Kingston. Okay. Well, thank you, Mr. Secretary, Mr. Chairman. Mr. Cuellar. Mr. Chairman, could I, just to make sure I understand the final question? When you said Border Patrol, you mean CBP, the men and women in blue. The men and women in green is Border Patrol. The men and women in blue is CBP officers. I just want to make sure. Mr. Kingston. I am talking about CBP. Mr. Cuellar. Okay, the men and women in blue, okay. Mr. Carter. Mr. Kingston, just for clarification, the Abu Dhabi preclearance facility is the only one anywhere in the Middle East. In Europe it is Dublin, Ireland--no, Shannon, Ireland. Shannon in Ireland, and then Canada, and some of the islands. But there are no others over on the European side except Shannon, is that correct? And the fee that they are talking about, the immigration user fee, on the Abu Dhabi issue, that is a fee that has been in effect since 1980. Now they are asking for an increase in that fee. Mr. Kingston. That is what I mean, the increase in fee. Mr. Carter. That has been a longtime established fee, just to clarify it. Mr. Kingston. Yes, sir, I know about the fee, but as I understand there is an additional fee that is being proposed. Mr. Carter. They are asking for an increase in that fee. Mr. Kingston. And do we know what that additional fee is? Secretary Johnson. It is to finance TSA. Mr. Kingston. But do we know what the fee is and how much it generates? Secretary Johnson. Well, the aviation security fee---- Mr. Carter. Yeah, we know what they are, and we do know the increases. We have already explained to them we are not real excited about fees. These are not authorized. One of them is an authorized fee, immigration, but they all require authorization. Secretary Johnson. Correct. Mr. Kingston. Thank you. LATE REPORTS Mr. Carter. You know, I talked earlier about the reports that we are supposed to get. There is about 20 of them. One of them, Mr. Secretary, is for the Coast Guard Capital Investment Plan or the Department's comprehensive acquisition status report. We don't have that. I am not trying to gotcha, but I would like to know when you are going to get that to us, because I have got a hearing tomorrow. Secretary Johnson. I have directed my staff to give you what we owe you and not delay. I think Congress should have what you need to help me. Mr. Carter. I ask that question strictly to make the point---- Secretary Johnson. Yes. Mr. Carter [continuing]. That it is helpful to have that kind of information as we go into a hearing. It saves time. Secretary Johnson. Understood. Mr. Carter. It makes for more accurate questions. Secretary Johnson. Understood. BUDGET PROCESS REFORM Mr. Carter. Going on to something else which you and I talked about when we first met. Mr. Secretary, we all note with interest the section of your testimony stating the need to reform the Department, namely, budget reform. Secretary Johnson. Uh-huh. Mr. Carter. First, I would like your opinion why you believe DHS' budget process needs reforming. Explain more in detail where you intend to start. I think that is very important. I, too, have an interest, as does Mr. Price, in this subject. We think we can always do better. And so I look forward to working with you on this. So I would love to have your information, and what your vision is, maybe for the benefit of the rest of the committee. Secretary Johnson. My impression is that the DHS budget process is too stovepiped. It is developed at the component level. We get the components' budget request and we react to that at the DHS level. We give it to OMB, and OMB gives it to you. And there are certain respects in which DOD cannot be a model for DHS. But I think we ought to start with defining what our overall mission is with regard to counterterrorism, border security, aviation security, maritime security. Define your mission at the DHS level, early in the process. And once you have defined the mission, you figure out the resources you need to fulfill a mission, and then you expect the components to meet those resource needs, paying attention to potential overlaps, gaps, inefficiencies. So I know from personal experience if you plan at the Department of Defense to have the capability to fight two major conflicts at once around the world, that is done at the Joint Staff level. You don't ask the Army, Navy, Air Force, Marine Corps to develop their own sense of what they need themselves, and then you react to that. So I think that we need to have a more centralized, mission-focused budget process that starts earlier in the budget cycle, that originates at the DHS level, and we are building that process now. And I want to work with the committee and get your advice on this as well, Mr. Chairman, because I do think that we can identify better efficiencies and inefficiencies if we do this. Mr. Carter. Well, I look forward to working with you on that because I have a real interest in that. You know, to be trite, we are the Congress and we are here to help. But seriously, we do want to work with you on it. We need to know what your needs are to help do this. And I think there is an interest among all of the members of this Committee, we have an interest in this. I will yield back my time. Mr. Price. IMMIGRATION: REFORM Mr. Price. Thank you, Mr. Chairman. Mr. Secretary, as I said when we started, you have a tough job, and I would say that one of the toughest challenges is immigration enforcement. And it is tough because there is a significant amount of disagreement on this issue among the American people, and it is really one of the few issues where the members of this subcommittee don't regularly see eye to eye. I mean, we do have differences on this. And if you think it is bad on the subcommittee, wait until we get to the House floor. That is where we really see some of the differences emerge. So this discussion here today, we have focused on the detention bed mandate. I think that a mandate of this sort is very unwise. I have made this very clear. It conceivably forces ICE to detain individuals, at a significant cost to the taxpayer, who don't otherwise meet the criteria for detention. And then there is the question about the enforcement of immigration law, deportation. How do you prioritize, as any prosecutorial office would have to do, how do you prioritize your cases, your most dangerous individuals to focus on, and make the best use of limited resources? I would like to just invite you to reflect on this. How much, if at all, these dilemmas might be made more tractable, more resolvable if we had better data, more comprehensive information. We are working, as you know, at the staff level on this right now to get more detailed data on exactly how detention is working and how deportation is working, how we are enforcing immigration law. I don't think the best data in the world will bring us perfect consensus. On the other hand, we do find ourselves wondering. The example that Ms. Roybal-Allard brought up, how typical is that? I mean, is that really what we are dealing with in substantial numbers in terms of these specific decisions that are made on detention? I certainly wonder about deportation. We all hear about the anecdotes, about people who should have been deported who weren't, and even more, those who probably shouldn't have been prioritized who were, families that were broken up unnecessarily, the situation with these. I mean, some people go so far as to suggest, I don't think anybody on this subcommittee, but some of our colleagues go so far as to suggest there is really no difference, shouldn't be any difference between a DREAM Act student and a hardened criminal; that if you give priority to the latter, then that really is declaring amnesty. I mean, that is absurd, obviously. But there still are important differences. And here, too, we are not exactly certain what we are dealing with. The Department has data that suggests there has been an increasingly sharp focus on dangerous people for deportation, but we all know that that case is something less than airtight, and the reality is somewhat messy, and probably we would be better served by more precise data and more precise information about exactly what we are dealing with. I guess I am just asking you to reflect on that. How much would better data help you? I certainly think it would help us. And we might see disagreement narrowed if we knew exactly what we were dealing with here. So I do want to ask for your help in getting better information on this area, and particularly in this area of prosecutorial discretion, or the analogy to prosecutorial discretion in terms of the enforcement, the deportation decisions you are making, the decision about whom to go after, what you think improved data is going to show us in terms of how far you have come and how far you still need to go. Secretary Johnson. Mr. Price, I agree that informed judgment is always better than uninformed judgment. I would rather arm you with information so that we can have an informed discussion about the correct approach to immigration reform. As the immigration reform debate advances, I have had a number of Members of Congress, House and Senate, express similar sentiment to me, and I am committed to giving you the information you need. I had this discussion of a similar nature as recently as earlier today with some Members of the Senate. So if there is a specific request that this committee has with regard to data, with removals, priorities, I am happy to consider it, and I have pledged numbers of times to be transparent with the Congress on issues of this nature. Sometimes we have certain law enforcement sensitivity, so I might ask you to accept the information with certain protections and the like. But in general I agree with the need to provide the Congress with information of this type so that we can all make informed judgments. Mr. Price. Thank you, Mr. Chairman. Mr. Carter. Mr. Culberson. DETENTION BEDS, REMOVALS Mr. Culberson. Thank you, Mr. Chairman. To follow up on the subject we have all been keenly interested in, of course, is the number of detention beds and the folks that you have here in the country that are not legally present. In 2013, Mr. Secretary, ICE deported 368,644 convicted criminals and noncriminal immigration violators, all of whom met the definition of mandatory detentions. You have got a tremendous number of people here in the country who were--I was just looking for that number--folks who have, for example, that have been accorded due process, people who had entered the country illegally. They exhausted their appeal, they received a final order of removal, but they remain in the country in defiance of that order. At the end of July 2013, there were 872,000 individuals on ICE's docket in that category. They have gone through the whole process and they have been ordered removed, and the vast majority of those have just simply disappeared. So in light of that, what are the assumptions that you are making that would justify the agency recommending that you only need 30,539 detention beds since you obviously have plenty of customers? Secretary Johnson. A couple of comments. Obviously, not everyone among the 368,000 who were removed in fiscal year 2013 had been held in detention for the entire time they were in the United States. A large part of that population was at liberty for some period of time, and then they were subject to our process and they were removed. The other point I would make is that a very large fraction, I don't know the number offhand, but a very large fraction of that 368,000 are basically border removals where they are apprehended in or around the border. Mr. Culberson. And the Border Patrol just takes care of it. Secretary Johnson. And they are given over to ICE, because either they can't be sent right back to Mexico or some other reason, so a lot of these are border removals where they are in the country for a very short period of time. We are criticized by some for the very high number of removals that are taking place right now. And so the end result of a process where somebody is detained who is not lawfully in this country who meets our priorities is a removal. And as you know, we managed to remove 368,000 people last year, and my understanding is that 98 percent of those fit within our removal priorities. So that is pretty effective. Mr. Culberson. But under the Obama administration more than half of those removals that were attributed to ICE were actually a result of Border Patrol arrests. They wouldn't have been counted in prior administrations. Secretary Johnson. Right. Mr. Culberson. So you really can't actually use that number in terms of when you say ICE has removed that number of people. Half of those, of course, were Border Patrol removals and they were never counted before. In fact, I think there is even a quote I saw from President Obama in 2011 that these statistics on removal are, in fact, I am quoting directly from his statement, ``These statistics are a little deceptive because what we have been doing is, with the stronger border enforcement, we have been apprehending folks at the border and just sending them back.'' That is counted as a deportation, even though they may have only been held for a day or 48 hours, sent back. That is counted as a deportation. That has never been done before in previous administrations. I have been on this subcommittee since shortly after it was created, and I know that the Bush administration never counted folks that were removed by the Border Patrol as being deported by ICE. And you have vast numbers of criminal aliens as well. So again, I just want to be sure for the record, if I could, and I appreciate the time, Mr. Chairman, would you please tell the committee what are the assumptions that DHS made that you believe justify reducing the number of detention beds from 34,000 to 30,539. Secretary Johnson. Two things. First, it is my understanding that 368,000 is the number removed by ICE. Now, it is the case that for various reasons, including reasons involving logistics, a larger number of people who were apprehended in or around the border then go to ICE custody. But the number 368,000 reflects those removed by ICE. The number 30,006 is our best judgment about where detention bed levels should be given who we believe needs to be detained in this process. That is our best assessment based on what our removal priorities should be, based on what we believe are national security, public safety threats. The number tends to hover around that number. I think it is a little higher right now as we speak, but it goes up and down. But that is our best assessment of who should be detained at any given moment in time. Mr. Culberson. You will provide that to the subcommittee and to the chairman and the staff, those assumptions, those numbers, to justify your request? Secretary Johnson. I believe we can do that. [The information follows:] Rep. Culberson: What were your assumptions to arrive at the 30,539 detention bed funding level? Response: ICE began with the assumption that the use of costly detention beds should be based on operational need rather than an annual statutory mandate to detain a minimum number of individuals on average, regardless of need. ICE's operational need is generally based on two factors: 1) the number of individuals requiring detention pursuant to mandatory detention provisions (mandatory detainees), and 2) the number of non-mandatory indivuduals who may present a risk to public safety if not detained. The detention of individuals that would otherwise not be detained (and who can be placed on alternatives to detention programs), except to meet the minimum statutory bed requirement, results in higher average daily costs to the government. Based on these assumptions, ICE reviewed the historical average number of aliens apprehended who were either mandatory detainees or non-mandatory individuals that presented a risk to public safety. Funding for an average of 30,539 detenition beds would meet ICE's operational needs, allowing ICE to maintain beds for mandatory and higher risk aliens, and providing flexibility to detain a level of non- mandatory individuals that may present a risk to public safety. Mr. Culberson. Thank you very much. Thank you, Mr. Chairman. Mr. Carter. Ms. Roybal-Allard. BORDER SECURITY Ms. Roybal-Allard. Mr. Secretary, one of the reasons that we are given for not passing a comprehensive immigration reform is that the majority believes that President Obama can't be trusted to enforce our laws. Yet, in the little over 4 years President Obama has been in office projections are that around early April deportations will have reached 2 million. And that is more deportations than during the entire 8 years of the Bush administration, and actually that 2 million deportation number exceeds the sum total of all deportations prior to 1997. Another excuse for delaying the passage of comprehensive immigration reform is that our borders must first be secured. And the fact is that under President Obama's leadership, and, frankly, the thoughtful work of this subcommittee, remarkable progress has, in fact, been made in securing our borders. We now have more than 21,000 Border Patrol agents, 651,000 miles of fencing, more than 300 remote video surveillance symptoms, and at least six drones deployed along our southwest border. In addition, due in part to these investments, the number of illegal entries into our country is at a 40-year low. And according to a 2012 report by the Pew Research Center, net migration from Mexico has fallen to zero. I have a three-part question. First of all, what does this record number of deportations tell you about the President's commitment to obey our laws? And what is your assessment of our border security? And based on that assessment, do you believe that we need to spend tens of billions of dollars more on border security before we can begin fixing our broken immigration system? Secretary Johnson. First of all, I agree with everything you said in the first part of your question. We are enforcing the law. We are enforcing the law vigorously and effectively, which results in the removal of more than 300,000 people per year over the last several years. We are using the resources Congress gave us to remove those we believe are threats to national security, public safety, and border security, and they result in the numbers that you see. At the same time, you are correct, the apprehension levels at the border have been going down recently. They have begun to spike up again slightly for various reasons. I suspect maybe because the economy in this country is getting a little better, they are beginning to spike up again. All of this to say that we are enforcing the law at unprecedented levels with the resources Congress has given us. And I believe that when it comes to border security, you have to be agile, it is an evolving task, in that border threats, challenges to border security, tend to migrate different places. If you focus resources one place, you have to be agile and be able to move your surveillance resources, your manpower, to another part of the border, the southwest border in particular. And so we have got to be vigilant. We have to be continually vigilant. I don't believe that we should have a standard of border perfection before every other aspect of comprehensive immigration reform kicks in because I believe as a matter of Homeland Security those who are here in this country undocumented should be encouraged to come out of the shadows, be accountable, pay taxes, and get on an earned path to citizenship, which as contemplated by the Senate legislation would take 13 years. So it is not going to happen tomorrow. But I believe that we should do that, we should continue to work on border security, which we are doing at unprecedented levels right now, as a part of an overall comprehensive package, and proceed on all of those fronts at the same time. So I agree with you. Mr. Carter. Mr. Frelinghuysen. DISASTER RELIEF FUND Mr. Frelinghuysen. Thank you, Mr. Chairman. Mr. Secretary, in the past, I asked of your predecessor about the Disaster Relief Fund over the long term. And let me give a shout-out to Craig Fugate, a really good guy, nonpolitical person, who has done a really good job working with FEMA. The Disaster Relief Fund, pretty important to those of us in the Northeast and wherever there has been a major disaster. Your fiscal year 2015 budget includes $7.8 billion in the FEMA Disaster Relief Fund, including $2.9 billion for the cost of disasters that have already occurred, such as Hurricane Sandy. Based on the Disaster Relief Fund Annual Report, which I have a copy of here, which was submitted Friday, this is what the Department needs to respond to disasters during the fiscal year 2014 budget based on current spend plans and what we call, as you are aware, the 10-year averages. Your monthly report, which I have, states that you will carry over $4.6 billion into fiscal year 2014. Is the requirement of $7 billion for fiscal year 2015, or is it significantly higher? In other words, there are two reports, both submitted by your department, which seem to be somewhat in conflict. Can you provide a little bit of clarity? Secretary Johnson. Congressman, I would have to study the reports specifically that you are referring to to answer that question. My general understanding is that the request we made with regard to the Disaster Relief Fund, which is multiyear money, is sufficient to meet what we believe will be the disaster relief challenges. But I will take a look at those two reports to see whether there are any inconsistencies in that regard. [The information follows:] Rep. Frelinghuysen: Please review submitted reports (referenced by Rep. Frelinghuysen) on DRF funding levels and see if there are any inconsistencies. Response: The President's FY 2015 DRF request is consistent with the Budget Control Act requirements and available data. No known inconsistencies exist between reports that the Department has provided. While FEMA is currently reflecting a projected end of FY 2014 DRF balance, this balance is not carried into the FY 2015 budget request, based on previous, expected Hurricane Sandy projects costs related to the original Sandy supplemental funding. Thus, this carryover is expected to be used beyond the amount included in the FY15 Budget for the DRF ($7.033B). In the FY 2015 budget request, we included $3.912B for non- catastrophic disasters (based on 10 year average), $2.871B for expected costs for previous catastrophic events; $1B for a disaster reserve, and a $596M appropriation request for the Base (in addition to recoveries). For the base request, we used the 10-year average for Surge, Emergencies, and Fire Management Assistance Grants, and our estimate of Disaster Reserve Spending (DRS) requirements. Mr. Frelinghuysen. During a debate on the floor on Hurricane Sandy, and it was my amendment, I took quite a lot of flak. One of the issues was--and this is understandable--FEMA is still working on programs and rebuilding from storms that occurred before Sandy. In the event of another disaster, considering Sandy and others that we are still cleaning up from, how would you prioritize spending between, sort of, immediate needs, Sandy projects that are under way, and past projects? Because there was quite a lot of angst and anger that we in the Northeast were getting this and other parts of the country weren't getting, shall we say, the remainder of what they needed to do their cleanups. How do you view that situation? Secretary Johnson. I think you have to--it obviously depends on the circumstances. Living in an area affected by Hurricane Sandy myself, and in a neighborhood--and there was a lot of damage done to my own yard--I know that there is a lot of angst about how slow that money has been in coming. A lot of that depends beyond a certain point on what the States are doing with the money, not the Federal Government. And how fast we are able to push out money like that, you know, it obviously depends on the circumstances. Could we do a better job? I suspect the answer is yes. There is always room for improvement. How you prioritize old needs versus new needs, I think, depends on the circumstance. And that is one of the reasons why it is multiyear money. Mr. Frelinghuysen. But do you still have carryover money which needs to be---- Secretary Johnson. Yes. Mr. Frelinghuysen. Yeah, put to use. And that is something which you are committed to expediting its use to meet the needs of the people? Secretary Johnson. Yes, that is correct. Mr. Frelinghuysen. Thank you, Mr. Chairman. Mr. Carter. Mr. Cuellar. Mr. Cuellar. Thank you, Mr. Chairman. Secretary, again, I know you are new. And I have a lot of high hopes for you; you are smart. And we really appreciate looking--working with you. A couple points---- Secretary Johnson. At some point, that excuse won't work for me any longer. Mr. Cuellar. At least for this appropriation hearing, it is going to work for you. But let me just say this---- Secretary Johnson. I hope the newness hasn't reflected too much. CBP OFFICERS, PUBLIC-PRIVATE PARTNERSHIPS Mr. Cuellar. First of all, on the CBP officers, the men and women in blue, you know, for us on the border, we appreciate all the work that the men and women in green do, but, you know, having ports of entry, as you know, those men and women in blue are very important. And keep in mind, Members, that over 80 percent of all the goods and people that come into the U.S. come through land ports. And sometimes we don't tend to put that much attention. But in Laredo, my hometown, we handle 45 percent of all the trade between the U.S. and Mexico. That is over 12,000 trailers a day. So we appreciate the men and women in blue. Number two--and even though we have them there at the bridges, we appreciate that professionalism campaign. I think they were supposed to start that in Laredo and extend it out. As you know, if there is a bad apple comes in, you all do what you need to do. But the majority of those people coming over are coming over to spend money in the U.S. And I would ask you to--and I have been working with your office and Thomas Winkowski, a good person. But we have to make sure that they know if they are here to spend money, they are here, we have to treat them with a little dignity and respect, instead of thinking that everybody is a bad apple on that. And I would ask you to just check up on that. I would ask you to check up on something that the chairman and I and the committee worked on, and Senator Mary Landrieu on the Senate side, is the public-private partnerships on the infrastructure. I know there are five pilot programs for the service over time, but I am also asking you to look at the infrastructure. Because the Federal Government is not putting the money in. I think we need probably about $5 billion on infrastructure. I think that is one of the studies. We probably need 5,000 CBP officers. You know, we start off with 2,000; that is a pretty good start. But I would ask you to look at the public-private partnership, because we want to see men and women in blue, and also the infrastructure. The last point I would ask you to look at: Canada and the United States. I know we worked with Candice Miller on this. You know, on the northern border, the U.S. and Canadians work together, they do joint operations, and they do a lot of stuff together. And I am going to be sitting down with the chairman and the ranking member, Mr. Price here, and the committee to see if we can look at something similar with Mexico. I know that you are all doing a lot, and I am very familiar. But I would ask you to do that, to look at some of the joint operations. And I am familiar, they are doing some. But I would ask you to look at that, whether it comes to trade, tourism, even on the infrastructure, what they do, SENTRI lanes, fast lanes, what we do over here. And we have to make sure that we sit down with them on the other side. The head of customs, the Mexican customs, Alejandro Chacon, was here last week, and I am sure he met with you all. And, again, we need to do more coordination. So what we are doing with the Canadians I think would help us expedite trade, tourism, but at the same time secure the southern border also. And I know we have been working with the chairman and the ranking member, and we appreciate your support. Secretary Johnson. Thank you. Mr. Cuellar. Thank you. Mr. Carter. Mr. Kingston. STATE DEPARTMENT DIPLOMATIC SECURITY TRAINING Mr. Kingston. Thank you, Mr. Chairman. Mr. Secretary, the State Department requested from GSA a Foreign Affairs Security Training Center at the Army's Fort Pickett in Blackstone, Virginia. And, as I understand it, the authorizing committee were the ones who at first waved the flag on this. But the cost, the original cost, was $935 million. However, if they used the existing Federal Law Enforcement Training Center facilities, it would have been $272 million, you know, over a $600 million savings or difference. And then the scope of the operation was reduced, but it still is almost half to do it at the Federal Law Enforcement Training Center that is in existence, up and running and fully capable of doing this, than it is to create the new facility and training center at Fort Pickett. OMB, as you know, is looking at this right now. Do you know what their timeline is? And do you have any comments on the difference? Secretary Johnson. I don't know their timeline. This exact issue is something that I have talked to the director of FLETC about. The numbers you have cited are the numbers I understand to be the case, that we could support the State Department Diplomatic Security training mission at FLETC for about--by an expenditure of about $275 million, which is a lot less than a billion. Mr. Kingston. Yes. Secretary Johnson. And, frankly, that is--the purpose of FLETC is to be a training center for law enforcement protection services across the Federal Government. So this is, in my judgment, a perfect example of why you have a training center like FLETC. Additionally, if we bring a Diplomatic Security training capability to FLETC, that will work to the benefit of other Federal law enforcement agencies and departments. Mr. Kingston. Uh-huh. Secretary Johnson. I fully support having the State Department bring that mission to that center. Mr. Kingston. Do you know when OMB is going to make their final decision? Secretary Johnson. I don't know offhand, but I can find out. [The information follows:] Rep. Kingston: What is OMB's timeline for a final decision on FLETC conducting the State Department's Diplomatic Security Training? Response: OMB has been working with the Department of State to ensure that State's diplomatic security training requirements are met and to determine the best path forward to expand that training capacity, including assessing whether training capacity exists at other federal facilities. We expect a final decision on plans to expand training later in the spring. BIGGERT-WATERS Mr. Kingston. Okay. Also, I wanted to submit--and I know we are all coming up on votes, Mr. Chairman--I wanted to submit a few questions on Biggert-Waters for the record. And some of it is past-tense now because we have another bill that has taken its place. But there was a requirement for FEMA to do a feasibility study on it before they implemented Biggert-Waters, and for some reason they bypassed that study. And I am not really clear as to why they would have. And I don't expect you to know offhand, so I would like to submit that to you for the record, Mr. Chairman, and a couple of other little follow-ups. Secretary Johnson. Just my understanding is that the money appropriated to do the study was not sufficient, which is why we couldn't do it. Mr. Kingston. Okay. Well, I may want to flesh that out a little bit, but I appreciate your sensitivity of that, because you know what it did to the coastal areas. Thank you very much, Mr. Secretary. MORALE, FILLING VACANCIES Mr. Carter. Mr. Secretary, we are going to conclude this hearing today. Before we do, I am going to point something out to you. There are several suggestions about morale, and you and I had a conversation--you and I and Mr. Price had a conversation about the vacancies. I want to commend you for the vacancies--in that you have built a fire under the White House to get these done. I hope you will keep that fire burning. I think the leadership of having permanent people in positions-- and I think you agree on this--is very, very important to the morale of the people. I commend you also for being a man who says, ``I take responsibility.'' That is rare before this Committee, in many instances, and I appreciate that. And that is the kind where we are going to call on these new people that get these appointments to be responsible for the leadership position that they have been awarded. So thank you for that, and I hope you are going to stick with that because we need it. Secretary Johnson. Yes, sir. Mr. Carter. Thank you for this hearing and for being here. Your candor was much appreciated. And we look forward to working with you in the future. Secretary Johnson. Thank you, sir. Thank you. Mr. Carter. Unless there is anybody who has any other business, we will adjourn. Secretary Johnson. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, March 12, 2014. UNITED STATES COAST GUARD WITNESS ADMIRAL ROBERT J. PAPP, JR., COMMANDANT, UNITED STATES COAST GUARD Opening Statement: Mr. Carter Mr. Carter. All right. This subcommittee will come to order. Today we will have a conversation with the Coast Guard. Admiral, thanks for testifying before us today. As you prepare to retire from the United States Coast Guard this May, no one can doubt your dedication to the service, nor that Active Duty military civilians that you command honor and respect you. Thank you for your service, and thank you for being with us with what could be your last time to appear before this committee. Admiral Papp. Yes, sir. Mr. Carter. We have personally enjoyed very much working with you. And we wish you, as they say, fair winds and following seas. Admiral Papp. Yes, sir. Mr. Carter. So that your retirement may be a joy to you. But before we wish you these greetings, it is time for us to talk about this budget request. The budget request for this fiscal year is a proposal that, one, cuts almost 750 Active Duty full-time positions; decommissions 2 high-endurance cutters, 8 patrol boats and numerous air assets; reduces operational flight hours and cutter hours; and squanders $30 million in savings per year by dragging out the acquisition of the Fast Response Cutters. Instead of supporting frontline operations or maintaining and supporting mission requirements, this budget submission severely diminishes current and near-term as well as future capabilities. Admiral, this budget is one that we cannot accept. We fully understand the challenge you face in balancing a shrinking budget while also trying to take care of Coast Guard families, sustaining operations with aging assets, and recapitalizing for the future. This is no small task in today's fiscal environment, but the Congress and this Subcommittee in particular has never supported a plan that so bluntly guts operational capabilities and that so clearly increases our Nation's vulnerability to maritime risk, including more illegal drugs. Admiral, we know you have a tough job. That is precisely why we are relying on you to explain how this budget meets our Nation's needs for both fiscal discipline and robust security, and, perhaps more importantly, how it doesn't. Before I turn to the Admiral for his statement, let me recognize my distinguished Ranking Member for any remarks that he may have. Mr. Price. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Opening Statement: Mr. Price Mr. Price. Thank you, Mr. Chairman. Admiral, let me add my word of welcome. We are glad to have you before the subcommittee today to discuss the Coast Guard budget request for fiscal 2015. And we know this may well be your last appearance, at least in this format, before this subcommittee, so I want to add my thanks for your service. You have rendered first-rate service, and you have certainly been a pleasure to work with as we have gone through numerous funding and policy issues over these recent years, so your service is exemplary to the Coast Guard, to our Department of Homeland Security and to the Nation. Your budget request is for $8.1 billion in discretionary funding. That is a cut of $364 million, as you know, or 4.5 percent from your current year appropriation. The proposed funding level does improve on last year's request, but it is still far below what is needed, and I suspect you may feel the same way. In addition, we have still not received the 5-year Capital Investment Plan, which is supposed to be submitted along with the budget request. This late submission of the CIP has become a perennial problem, and it appears to reflect a continuing mismatch of expectations between the Coast Guard and the administration regarding the Coast Guard's future. Admiral, I suspect you have done your due diligence on the CIP, but to those who are here representing the White House and OMB, we cannot continue this game of underresourced budget requests that requires to divert funding from other parts of the bill to make the Coast Guard acquisition budget reasonable. And I say that as someone who is sympathetic with the administration's larger dilemma in terms of the occasions that--the things we have been through in budgeting in recent years with sequestration, with shutdowns, with these unreasonable appropriations cuts again and again. This has left the administration with a lot fewer options than it should have. At the same time, for the Coast Guard to bear the brunt of this, or to bear such a disproportionate share of this, I think, can't go on. We have really got to do better, and so our subcommittee is going to be tasked with doing better both on the acquisitions side and on the personnel side. The acquisition budgets are long-term propositions; they require long-term budgeting. We can't have a reasonable discussion this morning about recapitalizing the Coast Guard fleet without the CIP. There is no excuse for withholding, the administration withholding, the 5-year budget for Coast Guard acquisition until after the Coast Guard hearing. Now, we have withheld $75 million from the Coast Guard Headquarters budget until the CIP is submitted, but that is apparently not applying leverage in the right place. The underlying problem is that the Coast Guard's mission needs as they are currently defined are not supported by the acquisition budgets the Coast Guard is allowed to put forward. Either the budget requests need to increase, or the missions needs to be rescoped. We need to resolve that disconnect sooner rather than later. The fiscal 2015 request for acquisition, construction and improvements is $291.4 million, or 21 percent below the fiscal 2014 level. Compared to fiscal 2010, the proposed fiscal 2015 funding level would represent a nearly 30 percent reduction in ACI funding. Admiral, you said before that in order to properly recapitalize the Coast Guard fleet, you would require at least $1.5 billion a year, yet here we sit again with a request that obviously does not address the known needs of the Coast Guard. In addition to recycling a flawed acquisitions budget, this budget request repeats another proposal from last year to significantly reduce the Coast Guard workforce. Under the fiscal 2015 budget request, you would be down to 49,093 positions by the end of the fiscal year. That is a reduction of nearly 1,200 positions below fiscal 2013, more than 800 positions below the current year. Perhaps the proposed attrition is justified by the more efficient use of personnel and assets, but we want to know that. We want to know how these personnel losses would affect your operational capacity. Admiral, we know the Coast Guard is committed to doing its part to find savings in these lean budget times. We also know you are committed to ensuring that the Coast Guard is able to do more with less. But the Coast Guard has a critical set of missions that require a certain level of resources. We need to know if fiscal pressures have up-ended the balance between them. As you can see, we have a number of topics that need to be explored in depth this morning. I look forward to our discussion. Thank you, Mr. Chairman. Mr. Carter. Thank you, David. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. And, Admiral, we have your written statement, and we are going to have that entered into the record, and we ask you in the next 5 minutes to give us a summation of your position on this budget. Opening Statement: Admiral Papp Admiral Papp. All right. Well, thank you, Mr. Chairman. I do have just a few comments and thoughts to expand upon some of the details in the written statement. And first of all, let me thank you for the very kind remarks, and to Mr. Price as well for your kind remarks, and outlining all the challenges that we face. And to the other distinguished members of the subcommittee, thank you for having me up here this morning. It has been an honor for me and a privilege to represent the men and women of the Coast Guard for the last 4 years, and in particular before this subcommittee, because you have done something that is near and dear to my heart. You have provided support for my Coast Guard people, and I will be eternally indebted to all of you for the hard work that you have done behind the scenes to make sure that our Coast Guard people are taken care of. I want to thank you also for the support that you provided in the Consolidated Appropriations Act of 2014. That act helped to relieve the erosive effects that we were suffering under sequestration. It restores frontline operations, it gives us badly needed training hours, and it eases some of the personnel management restrictions that we had to place on our people over the last year. I would also like to take this opportunity to thank Secretary Johnson publicly. Even in the short time he has been our Secretary, he has gone in feet first, hit the deck running, and I think, as you probably saw yesterday, he has fought for the Coast Guard to make sure that our people get the right tools and that we continue with our recapitalization, and that battle will continue. And it has to, because America is a maritime Nation. We rely on the safe and secure and free flow of goods across the seas and into our ports and waterways. And I have always firmly believed that a measure of a nation's greatness is its ability to provide safe and secure approaches to its ports. And we need this system of uninterrupted trade, because it is the lifeblood of our economy. And you can see it in the great work that our Coast Guard is doing today on the Great Lakes, where our cutters have been working in some of the heaviest ice in 30 years on the lakes. The icebreaker Mackinaw recently completed almost 2 straight months of continuous icebreaking in the passages of the Great Lakes, providing escorts and direct assistance to commercial traffic, and validating a decision made by Congress 15 years ago to build that icebreaker. You can also see it in the work that we do to secure our maritime borders. During 2013, the Coast Guard interdicted over 2,000 migrants attempting to illegally enter our country, and we deterred countless others. Our new Fast Response Cutters, the FRCs, which you had so generously supported, are becoming the workhorses of our interdiction operations in the approaches to Florida and Puerto Rico, and they continue to be delivered on time and on budget. Every day our Coast Guard acts to both prevent and respond to an array of threats that, if left unchecked, would impede trade, weaken our economy, and create instability. And these threats disrupt regional and global security, the economies of our partner nations, and access to both resources and international trade. All these are vital elements of our national prosperity and in turn, then, our national security. In previous testimony I used the term ``layered security'' to describe the way the Coast Guard and DHS counters maritime threats facing the United States. This layered security first begins in foreign ports and then spans the high seas, because the best place to counter a threat is before it reaches our borders. It then encompasses our exclusive economic zone, the largest exclusive economic zone at 4.5 million square miles, and it continues into our territorial seas, our ports and our inland waters. Our Nation faces a range of risks and vulnerabilities that continue to grow and evolve. We continue to see persistent efforts by terrorists and transnational criminal networks to exploit the maritime environment. The global economy is spurring investment in even larger vessels to ship goods across the seas, and the Arctic is seeing exponential increases in traffic and human activity. The work to address these challenges is done by a committed Coast Guard, which faces these risks every day. Earlier this year I was reminded once again of the dangerous work that my people do as Deputy Secretary Mayorkas and I attended a memorial service for Boatswain's Mate Third Class Travis Obendorf of the cutter Waesche. Petty Officer Obendorf was mortally wounded during a rescue operation in the Bering Sea, and his death, as if I didn't need it, provided a fresh reminder that downstream of every decision we make down here in Washington, there are young men and women out there serving, who are often cold, wet and tired, who take the risks to make sure our country is secure. It is the Coast Guard's responsibility to detect and interdict contraband and illegal drug traffic, enforce U.S. immigration laws, protect valuable national resources, and counter threats to U.S. maritime and economic security worldwide, and it is often the most effective to do this as far as from our shores as possible. So a capable offshore fleet of cutters is critical to the layered security approach, and it is the area that gives me the most concern. Our fleet of major cutters has reached obsolescence and is becoming increasingly expensive to maintain. The average Reliance-class medium endurance cutter is 46 years old, and the oldest of them turns 50 this year. In fact, I sailed onboard one of these cutters, the Valiant, then home-ported out of Galveston, Texas, as a cadet at the Coast Guard Academy. By the time I received my commission, the ship was nearly a decade old, and due solely to the determination of our cuttermen, naval engineers, and a modernized mission support system, Valiant will still be sailing when I leave the service after nearly 40 years of service. So as good as our people and support systems are, this is no longer supportable. And I am fully aware of the fiscal constraints we face as a Nation, but we must continue to support recapitalization of our offshore fleet of cutters. Two weeks ago we awarded the preliminary contract design contracts for our offshore patrol cutter, and I am committed to working with the Department, the administration and you in the Congress to ensure we continue to provide safe and secure approaches to our ports in an affordable and sustainable manner. Over the past 10 years, we have rebuilt our acquisition force. It has become a model for other similar-sized agencies across government. In fact, it has been an award-winning acquisition for us, winning four of five awards from the Department of Homeland Security. This last year we are the only military, the first military service, to achieve a clean financial audit, which required at least a decade of hard work from my people. So we now sit at a critical point where we have the vital necessity to recapitalize the fleet, we have our financial act in order, and we have reformed all our acquisition procedures to be the best in government. All we need now to continue on is stable and predictable funding. Any acquisition expert will tell you you have to have this stable and predictable funding. So as the Nation's maritime governance force, the Coast Guard possesses unique authorities, capabilities and partnerships, coupled with capable cutters, aircraft and boats operated by highly proficient and dedicated personnel. We maximize those authorities and capabilities to execute a layered security throughout the entire maritime domain. We are a ready force on continuous watch with the proven ability to surge assets and our people to crisis events wherever they occur. So I want to thank you once again for this opportunity to testify today, and I look forward to all your questions. Mr. Carter. Thank you, Admiral. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. I am going to start off with the first question, and it shows how great minds work alike. David's comments in his opening statement basically consumed the vast majority of the first question I was going to ask you about. This issue of the CIP is very important to us, and we have raised this issue with the Coast Guard. When the full committee chairman was the chairman of this committee, Mr. Rogers went to war with the Coast Guard over this issue. We don't want to go to war with the Coast Guard over this issue, but we need to know why the Coast Guard has failed again to comply with the law and give us the CIP as is written in the law. Have you got any explanation for why? And then following on that, I want to know when we are going to have it. Admiral Papp. Sir, it is my fault, and you rightly hold us accountable for that. And if there is any delay, it is because I have been obstinate in making sure that the administration knows the needs of the United States Coast Guard. It is not my job at first to fit the Coast Guard within a budget; it is my job to look at what we need now and what we are going to need 10, 20, and 30 and 40 years from now. There is only one person who has that responsibility, and that is me. So there is, I would say, a robust discussion that goes forth, first of all with the Department, and the Department has been very supportive, and then we work with the Office of Management and Budget, and at some point we come to an agreement. But what I would say is we have been fighting for everything that we need to try and get it in that 5-year plan, and there are disagreements. That is, I think, the most polite way I can put it. And at the end of the day, we will finally get to a point where we come to agreement, I am told this is what you are going to get, you have to fit your acquisition plan within it, and I think we are at that stage now. The Secretary has committed to making sure we get reports on time. We have forwarded it to the Department, it has been forwarded on to OMB, and we will work as hard as we can to make sure you get it as soon as possible. Mr. Carter. Well, we need a date. Can you give me a date? Admiral Papp. I cannot give you a date, no, sir. But we will find out. Mr. Carter. Try within the next couple of days to come back to me with a date. Admiral Papp. Aye, sir. Mr. Carter. Notify somebody and give me a date so we can have that. And if we have to go talk to others who are throwing up roadblocks, I think it is time for us to start considering that. Cutting your budget is a way we could do things, but we may be able to influence the budgets of others if they are not willing to comply, because, quite honestly, we are trying to run a very professional subcommittee here where we have all the information available as we start to consider each budget, and we are having very poor success with all the departments, not just the Coast Guard, in meeting this obligation. This is not a policy I established. This policy has been established for quite some time in this committee. When David was chairing this subcommittee, he was fighting this battle, and it is getting a little tiresome to start off every year with anybody that we meet asking the same question: Where is it? This is the policy. I am not just picking on you. This is a speech for every department head that fails in this mission. This is one of the missions we expect in order for us to be good appropriators. And I thank my colleague Mr. Price for raising this issue. And I want within the next couple days, let's say--what is today, Wednesday? The 12th? By the 14th. Admiral Papp. Aye, aye, sir. Mr. Carter. 15th at the latest. Okay? That way we have something to shoot towards. Then I want to know if there is something that has come up because this is something that we are trying to impress upon everybody. Everybody in the room that is involved in this, this is important to this subcommittee. It has been since I have been on it, and I have been on it a pretty good while. That is the first thing I wanted to talk about. Let's start talking about our gaps that may be in this bill. I don't have to tell you that the Coast Guard's efforts to interdict drugs being smuggled from the source in transit zones are vital to our security, however, this fiscal year 2015 budget will actually diminish your current drug interdiction capabilities by cutting operational flying and patrol boat hours on our new assets, decreasing personnel, and decommissioning aircraft and cutters. Admiral, can you discuss how these cuts will reduce our current drug interdiction capabilities and how the Coast Guard will mitigate the impacts of the cuts? Admiral Papp. Well, yes, sir. You can see an example of it what happened this past year in fiscal year 2013. With the effects of sequestration, we placed a 25 percent operation reduction across the service. We kept up our search and rescue activities and our port security activities, but the bulk of it had to come out of the accounts that are the most expensive, fueling the ships and putting them out to sea, so that the bulk of the reduction was in the transit zone, drug interdiction operations and the migrant operations. And you can see when you look at the metrics, we did approximately 30 percent worse in terms of cocaine interdictions this past year because of the effects of cutbacks of sequestration, we did about 30 percent worse in marijuana interdiction, and our interdictions of migrants, even though the flow was up, we had fewer interdictions this year. So there is a direct correlation between the reductions in operations and more drugs and more migrants getting through. We will see an improvement in that, because we won't have sequestration, so we are able to restore most of our flight hours and our ship and boat hours, but still there is approximately a 3 to 5 percent reduction across all program areas this year because of what we call efficiencies across our operating accounts. Mr. Carter. Well, I am sure that you know this because you have experienced it, but as we have these ongoing national discussions on our southern border, as an example, but on all of our land borders, as in the State of California, we secured the border with double fencing, speed corridors and all the things we have requested in the San Diego sector. We secured it down to the waterline, and now they are in the water. These are determined people that are determined to smuggle drugs and people into the United States, and now they are out in their--I forget the name of those boats. What do they call them? Admiral Papp. Pangas. Mr. Carter. Yeah, pangas. They are out in their pangas, and they are running up and down the coastline and going way out and coming in in the State of California, because they refuse to be denied this market of people and drugs. And I don't know if the American people realize that the enemy in the drug wars never stops. They will find alternate sources, when we plug one hole, they find another one. And we can't lose our sea operations. And, yesterday Chairman Rogers pointed out to Secretary Johnson that we have a 5-year low in cocaine interdiction last year. Admiral Papp. Yes, sir. That is true. Mr. Carter. And that is what you just were talking about. You know, and we are a frontline-troops-oriented subcommittee. Mr. Price just made that statement. We want operations to work. And I agree wholeheartedly, and so does everyone on both sides of the aisle in this subcommittee. We are about making the Coast Guard have the capability of doing its job, and we will-- but we struggle with that, and that is one of the reasons we need this long-term look at the Coast Guard every time we have this hearing. And part of doing the work of making that report is to have others start to look into the future, as I know you do as part of your job, Admiral. Admiral Papp. Yes, sir. Mr. Carter. All right. I will yield back and yield to Mr. Price. Mr. Price. Thank you, Mr. Chairman. Admiral, I appreciate your account just now given in response to the chairman about the reductions in operations that you were forced to absorb as a result of sequestration, and of course you gave this by way of reference to some of the constraints, reductions that are contained in your present budget. All this is part of a bigger picture, and as you say, this budget this year is an improvement on sequestration, but you didn't say, I will say, it is not enough of an improvement. We are still constrained in ways that are really going to make it very hard for the Coast Guard to do its job. Now, as I said, in my opening statement, all of this traces back to this dysfunctional approach to budgeting that has become the norm in the House especially, going to appropriations again and again and again while we leave the main drivers of the deficit, namely tax expenditures and entitlement spending, leave those things largely unaddressed. And although we are happy to have a bipartisan agreement that for at least 18 months gets us back to something like the regular order of appropriating, you are locking in levels here that still are inadequate, and that are very, very disproportionate in terms of the comprehensive approach to budgeting that we should be taking in this country. Now, having said that, the question remains, what is the Coast Guard's relative position within this larger budget picture? And while the larger budget picture gives us some understanding of the constraints and difficulties the administration is facing, it by no means absolves the administration of the kind of responsibility we have talked about here this morning for getting this long-term plan in place and also sending a budget up here that is commensurate with your responsibilities and your needs. And so let me just ask you to focus in a little further on the personnel side of this. The budget request proposes 49,000 positions by the end of the fiscal year. That is a net reduction of nearly 1,200. It is 800 below the current year; 1,200 below 2013, 800 below the current year. Now, most of those are military positions, as I understand. There is some mitigation with nearly 500 new positions, but you can tell us how all that nets out. The budget justifications identifies 451 of the lost positions. More than a third is associated with efficiencies. I wonder if you could tell us what that means. They are spread among the vessel-boarding and search teams, fixed-wing aircraft, H-2 navigation, and the decommissioning of certain assets. What do those efficiencies look like? What will that mean in terms of your ability to carry out key missions, key activities; what are we going to be doing less of, in other words? What about those other lost positions? Some of this is attributable to the more efficient crewing of newer assets, for example. So let me stop there and ask you to elaborate on these personnel numbers. Admiral Papp. Yes, sir. You used a great term when you had your opening statement. You suggested that perhaps missions will need to be rescoped. And what I would suggest is we are rescoping missions all the time. Many times when I have come up before this committee, we talk about a patrol boat gap. Well, we have a gap because what we do is across all our mission areas for all our assets, we do something which--I got this theme from Vince Lombardi. Vince Lombardi when he talked to his teams said, we will pursue perfection knowing full well we will not catch it, but in the process we will catch excellence. So what we do is we go across all our mission sets, look at our assets, and we determine how many hours we need for aircraft, boats and ships; but at the end of the day, we can only provide so much, so that creates a gap across all missions. And throughout the year the operational commanders take those scarce resources; they may have to switch them between missions. For instance, you can take the same ships and use them for drug interdiction, the ones that we are using for migrant interdiction, but you are always going to have a gap out there, because we set our goals based upon an unconstrained environment, and then we have to deal with the realities. The realities are as we have progressively--I think our high-water mark was fiscal year 2012. As we have been squeezing down over the last three budget cycles, we take what we call efficiencies. What it means is we have fewer people out there to do the jobs, and we either have to cut back jobs, or we make the remaining people work harder. In the case of the vessel-boarding search-and-seizure teams, the VBSS teams that are distributed, those are something that we created because of needs after 9/11 to go out and inspect vessels at sea before they come into our ports. We can train them to become highly proficient, because that is what they do. As we squeeze down and we lose budget authority, we look for places where perhaps other people can do that job. So we will take some of our conventional organic forces from our stations, and we will put together teams that will go out and do that, but it means taking them off other duties or perhaps a team that is not quite as qualified and not quite as proficient. We might be able to take our deployable specialized forces teams, which are used for security in the ports, and put together teams and send them out. It is just going to make it a little more difficult for us to provide the service that we think--and we fall further below those program goals that we set for ourselves. It is the same with our ships and our aircraft as well. As the budget squeezes down, as we decommission units, it means that across our mission set, we fall a little further behind. Where Lombardi talked about perfection and achieving excellence, we shoot for perfection, but we might be just achieving very good instead of excellent across those mission sets. So that is what this gradual squeeze-down is doing to us. It doesn't become readily apparent early, but we will have lagging indicators of squeezing down, because in the future, and one of the things I am very concerned about is my highest priority has been a focus on proficiency and making sure our people are prepared to do their jobs in dangerous conditions. We lost a number of people before I came in as Commandant, and my goal was to turn that around. We have done that, but now we are going back in the other direction where we perhaps won't be able to focus on that proficiency. Mr. Price. Thank you, Mr. Chairman. Mr. Carter. Mr. Fleischmann. Mr. Fleischmann. Thank you, Mr. Chairman. Admiral, it is a great privilege and honor to have you before us today. As you and I spoke earlier, Chattanooga has a great history of celebrating our Armed Forces Day and Armed Forces parade, many years going on unbroken. And last year I had the privilege to be there when we honored your great branch, the United States Coast Guard, and it was just an outstanding day, sir. So I thank you for your service, and thank you for the Coast Guard and for your great presence in our district, particularly in the inland waterways, which are so important. So I thank you for that, sir. I have some questions. My understanding is that the High Endurance Cutter fleet is over 25 years old, sir, and it is in dire need of replacement. I understand the President's budget includes funding for the eighth and final National Security Cutter. Is that correct, sir? And what is the status of the cutters that are under contract, and when will they deliver, sir? Admiral Papp. Just a slight technical correction. They are not 25 years old. The High Endurance Cutters are 45 or older. They are approaching 50 years of age. And just as a means of comparison, the Navy generally decommissions ships after about 25 years. They figure 25-year service life. We tend to get double that out of our Coast Guard cutters, not because we want to, but because we have to. And you are correct. This budget would provide the construction for the final National Security Cutter, the eighth. Those eight ships replace 12 that we have had in service since the late 1960s, early 1970s. And the budget also calls for decommissioning two of those older ships this year. The eight cutters, we are just about to take delivery on the fourth, and that will be commissioned in December. The fifth is going to be christened this summer and then will be brought into commission in fiscal year 2015. And then six and seven, they are all construction activities going on. I don't have the exact date, but we can provide that for the record for six, seven and eight. Mr. Fleischmann. Thank you, sir. [The information follows:] General Question Asked: Provide the status of the Coast Guard's National Security Cutters currently under contract, as well as their projected delivery dates. Coast Guard/Admiral Papp response: The U.S. Coast Guard's National Security Cutters (NSCs) 4, 5, and 6 are currently under construction. NSC 4 is scheduled for delivery in the fourth quarter of FY 2014. NSC 5 is scheduled for delivery in the third quarter of FY 2015 and NSC 6 is scheduled for delivery in FY 2017. The U.S. Coast Guard awarded the production contract for NSC 7 on March 31, 2014. Mr. Fleischmann. I understand that NSCs number one and number two are operational on the west coast. What do the capabilities of these cutters bring to the Coast Guard, and how do you see these being used in the future? Admiral Papp. Actually, one, two and three are fully operational, Bertholf, Waesche and Stratton. They are our high- end cutter. They are the ones that are capable of operating in the Bering Sea, in the far reaches of the Pacific. A lot of our people from our country don't realize that that 4.5 million-square-mile exclusive economic zone surrounds the Hawaiian Islands, it surrounds our trust territories throughout the Pacific. We have the United States' sovereign responsibilities throughout the entire Pacific. We need ships that have long range, good seakeeping capabilities, can launch and recover helicopters and boats, and provide safety and comfort for the crews that operate them. And they have to range from the South Pacific all the way up to the Arctic Ocean, which is another topic which we could expand upon. Our mission space is not getting smaller, it is getting bigger. As the arctic ice recedes, we have to be up there every summer now because of the increase in human activity. National Security Cutters are the ones that will carry out that mission in those most harshest of environments. And they are also equipped and prepared to be interoperable with the United States Navy. They serve as an auxiliary force that can complement the Navy. The Navy provides weapons and sensors through their budget process, and we maintain them onboard. Mr. Fleischmann. Chairman, do I have time for another question, sir? Mr. Carter. No. Time is out. Mr. Fleischmann. I yield back. Thank you, Admiral. Mr. Carter. Ms. Roybal-Allard. Ms. Roybal-Allard. Commander Papp, I want to join my colleagues in thanking you for your outstanding service to our country. Admiral Papp. Thank you. Ms. Roybal-Allard. And I would like to commend you for your groundbreaking efforts to combat sexual assault in the Coast Guard. Under your leadership, the Coast Guard created the Special Victims Counsel and Advocacy Office staffed with trained attorneys dedicated to supporting and representing victims of this horrific crime throughout the entire process of holding the perpetrator accountable. In fact, it is my understanding that the Department of Defense is following the Coast Guard's lead and establishing similar victim advocacy programs across the military services. Can you please elaborate on the impact that this program has had on the Coast Guard and its shipmates, and what is being done to institutionalize these efforts as a top priority so that the Coast Guard will continue to be a safe and supportive workplace for women not only now, but in the future? Admiral Papp. Yes, ma'am. This has been probably my highest priority, particularly over the last 2 years, but I was actually starting to see indications of it 4 years ago when I became Commandant. Whether it is discrimination, sexual assault, hazing or other activities, I have had emphasis on making sure we take care of our shipmates. We put together a special group of flag officers, admirals, to lead this. We came up with a Sexual Assault Prevention Response Strategic Plan, and we created actually a military campaign office with a captain in charge that is overseeing the implementation of all the things in our strategic plan. More importantly, however, I believe I have spoken to almost the entire Coast Guard face to face, almost 35-, 40,000 people, during all-hands meetings over the last 18 months or so. My sole theme has been talking about sexual response, making sure that we take a preventative approach to it rather than having to react to it. But we are also setting up to react to it with our victims' advocates, with our special victim counsels, and we are devoting not just people, but money to make sure that we take care of our folks. I think anecdotally I am seeing improvement and trust in the system, starting with myself. I have been contacted by a captain, a woman captain, who was assaulted 26 years ago and finally felt that she could come forward. She came to me and trusted me with her story. I brought her in and talked to her, and then we had it investigated. Even though it was 26 years old, it was investigated fully by Coast Guard Investigative Service, and we came to a satisfactory resolution with her. And I have had a seaman apprentice stand up in an all-hands meeting and say that she was a victim of sexual assault, and we took care of that. And there are other stories I can tell you, but I am also now getting stories from people in the field who tell me about how well the Coast Guard treated them when something was revealed. So even though we are seeing some numbers of reports go up, I feel that is because they are trusting the system now, they are coming forward, and it allows us to take the action, and we are vigorously prosecuting those that perpetrate this and making sure that they don't remain in our Coast Guard. Ms. Roybal-Allard. Well, thank you for that. And also I think it is important in terms of even trying to recruit the young people to go not only to the Coast Guard, but into the other services, because one of the concerns that is often raised by my constituents is they have concerns about their daughters going into the service because of this, and I think this will be very, very helpful in being able to tell them that something is being done about this. Admiral Papp. Absolutely, yes, ma'am. Ms. Roybal-Allard. I would like to talk just a little bit about an issue that seems to be a problem. And I don't know if you are familiar with the report that was published last month by the Vietnam Veterans of America that alleges that the Coast Guard routinely violates its own procedures and regulations when discharging guardsmen with certain mental health disorders. And the report states that in 90 percent of the cases reviewed, this was over a 12-year period, the Coast Guard did not provide guardsmen with documentation advising them as to why they were being discharged or their rights and remedies, including their right to consult a military attorney and submit a written statement. And I am wondering if you are looking into this, what changes you are considering making so that--you know, to address these issues? Admiral Papp. Yes, ma'am. That was equally troubling to me to hear something like that, because we should be taking care of our veterans and assisting them in any way possible, obviously. We are looking into it. I have not got any results from the inquiries we have been making. It has been very difficult to track down information, but we are on it. And I can't give you any means that we are using to correct the situation right now, because we have not determined the extent and the depth of the problem. Ms. Roybal-Allard. Okay. Thank you. Is my time up, Mr. Chair. My time is up? Mr. Carter. You have about 30 seconds. Ms. Roybal-Allard. A few seconds. Okay. I will wait until the next round then. Thank you. Mr. Carter. Mr. Frelinghuysen. Mr. Frelinghuysen. Thank you, Mr. Chairman. Admiral, thank you for nearly 40 years of dedicated public service. And let me also salute your close working relationship with our other services, joint operations. I think sometimes people don't recognize that the Coast Guard has been doing some remarkable things around the world side by side with our other sailors and soldiers and marines. So I just want to acknowledge on behalf of our defense appropriations committee, even though you are not under our jurisdiction, now that Judge Carter is a member of our committee, I can say on all of our behalf, we are so proud of the work that often goes unrecognized that Coast Guard men and women do on behalf of our country. You have an international presence, and you are working with other navies and doing things that sometimes don't get the public eye, but on all of our behalf, thank you. Admiral Papp. Yes, sir. Mr. Frelinghuysen. We are back to regular order. Goodness knows that the numbers are pretty low, but at least give us, as I am sure you did, some credit for getting back on track, and hopefully there will be some stability and predictability. I would like to follow up on Mr. Fleischmann's area that he initially started on on these Fast Response Cutters. I just want to get a little more meat on the bones. Your budget request funds only two; is that right? Admiral Papp. Yes, sir. Mr. Frelinghuysen. That is a decrease of four from last year; is that right? Admiral Papp. Yes, sir. Mr. Frelinghuysen. And seven have been commissioned. Are nine in production in Louisiana? Admiral Papp. Actually we just commissioned the eighth. Mr. Frelinghuysen. Yeah. Admiral Papp. We will take delivery of the ninth here very shortly. There are 18 or 22 under production, but we have received funding. Through the 2014 budget we have received funding for a total of 30 so far, so that is over half the production run. Mr. Frelinghuysen. So your goal is still to add 58 of those vessels to your fleet? Admiral Papp. Yes, sir, that is our ultimate goal. Mr. Frelinghuysen. And by dropping from six to two cutters, how much will the budget request add to the per cost vessel? Admiral Papp. That is a little difficult to determine right now. Actually the contract, the initial contract, has run out, and we have been working on a new request for proposal. We always planned to recompete this after the first 30 boats. We just bought the rights, and we are in the process of rewriting a request for proposal. It has actually taken us a little bit longer than I had anticipated, because what we are trying to do is do a real good scrub on it to see if there are potential other savings we can get on the final run of the ships. And then why the two? The two is because that is all I could fit within the---- Mr. Frelinghuysen. Budget. Admiral Papp [continuing]. The ultimate---- Mr. Frelinghuysen. Number. Admiral Papp [continuing]. Top line that I got. That is all we could fit in and keep all our other construction projects. Mr. Frelinghuysen. So the timeline is---- Admiral Papp. It will be pushed to the right. Mr. Frelinghuysen. Pushed to the right. And will you be able to sustain the current fleet while awaiting for the final ability to reach 58? Admiral Papp. Well, we could sustain the current fleet of Island class patrol boats, but this budget calls for decommissioning eight of those. I feel like that is the right way to go, because we do have eight of the new ships in. They provide us with more operational hours than the older boats that they are replacing. It is time now as we try to fit into that top line, it is time to start decommissioning the older patrol boats, which allows us to get a little bit more headspace under the top line that we are given. Mr. Frelinghuysen. And lastly, all of us across all of our services were concerned about the industrial base, the shipbuilding base. As you exit the stage, and we thank you for, you know, many years of dedication, do you have any comments on shipbuilding, industrial base and--maybe this is a softball-- the need to make sure that we sustain it? Admiral Papp. Yeah. I may be a little biased, but as I said, this country depends, our economy, our prosperity depends upon free and safe and secure access to our ports. That is nothing new. Hamilton wrote about it back at the beginning of our country. We are a maritime Nation; we are going to depend upon maritime trade. Ninety percent of the goods that come in and out of this country come in ships. You want to have the ability to protect those waterways and also prevent against threats. You can't do that by sitting on a beach. You have got to have ships that can go out there to sea and---- Mr. Frelinghuysen. And we need an industrial base, too. Admiral Papp. Absolutely. Mr. Frelinghuysen. To put a point on the---- Admiral Papp. When you go down to places like Huntington Ingalls or Bollinger where we are constructing our ships, and I have visited many of the other shipyards around the country, these are dedicated, highly skilled craftsmen. The more that they can be put to work, it has got to be good for our economy. They have tremendous skills, and we will lose that over time as we build fewer and fewer ships in this country. And the end result is the ships that we do build are more expensive, because you have less competition, you have got a higher overhead at the yards because they are building fewer ships. I am deathly afraid that the Navy is going to build fewer ships, because then the yards---- Mr. Frelinghuysen. So are we. Admiral Papp. And the yards charge their overhead against my ships and make my ships more expensive, so---- Mr. Frelinghuysen. We need more ships rather than less. Thank you, Mr. Chairman. Thank you, Admiral. Mr. Carter. Mr. Owens. Mr. Owens. Thank you, Mr. Chairman. Thank you, Admiral. I come from the northern part of our country, and I am curious as to what impact the current budget will have, if any, on your operations along the entire northern border stretching from Maine to Washington. Admiral Papp. Well, from Maine to Washington, the major part that I am concerned about from a Coast Guard point of view is, of course, the St. Lawrence Seaway coming in from the gulf and in through the Great lakes, and then--most people don't realize, but then the boundary waters of northern Minnesota, which we have responsibilities for as well. The operational efficiencies that we gain by reducing things 3 to 5 percent means there will be boats out there fewer hours patrolling the border. There will be fewer people out there. We know there is an awful lot of smuggling and other things that go across that international border out there, and we will just have fewer Coast Guard people out there trying to interdict it. Mr. Owens. As you evaluate and analyze the threats, if you will, whether they be smuggling or terrorist activity that originates in the cells that exist in Canada, how much does your reduced operations increase the likelihood that a threat will become an activity or an action in the United States? Admiral Papp. My concern is not having the operating forces out there to be able to interdict it when we know there is a threat. And sometimes you just interdict a threat or you disrupt a threat because you are out there and you have presence. I served in that district. I was the District Commander for our Ninth Coast Guard District that goes from New York all the way out to Minnesota. The Coast Guard is actually a great tool for our country in terms of maintaining relationships with Canada. For the Coast Guard we deal not only with the Canadian Coast Guard, but the Canadian Navy, the Royal Canadian Mounted Police, Transport Canada. We deal with about 9 nine or 10 agencies up there that are all associated with border security. We have great relationships, working relationships, with them. We share information. We put people in the command centers on the Canadian side, their Maritime Command Center for the Atlantic and also one in Niagara. So I think a lot of it is taken care of by making sure that we are communicating with our Canadian partners as well, but when there is a threat, or there are things that we don't know about, you always have to have presence out there. And that is part of what people need to understand is that we need to have a sovereign presence out on the water on a regular basis to enforce the laws and to also deter other people from trying to act. And if we have fewer hours, we are just not going to be out there as much. Mr. Owens. Thank you very much. Mr. Carter. Mr. Culberson. Mr. Culberson. Admiral, I, too, want to thank you on behalf of the people of Texas and the country for your service to the Nation. It is a real privilege to have you, sir, here with us today. The committee supports what the Coast Guard does, supports you with everything we can to enhance what you can present to the committee in the budget that the President and the White House has put forward, but we are here to help you, sir. We admire what you do, and we want to do all we can to support you. I think it is very important what you just said a moment ago quoting Alexander Hamilton for the committee as we move forward, as Judge Carter--how many years were you on the bench there in Williamson County? Mr. Carter. Twenty-one. Mr. Culberson. Twenty-one years. Judge Carter was one of our great district judges in Texas, enforcing the law, keeping the streets of Williamson County safe, and that is really our responsibility on this committee is to ensure that the laws are enforced and the country is safe. And I particularly enjoyed your quote of Alexander Hamilton that the economy of a maritime nation depends on safe and secure access to our ports, and that means enforcing the law and ensuring that free trade can take place, that people can move freely back and forth. And that is true not only of our maritime ports, but also of our inland ports. Our friend Henry Cuellar, who is not here today, represents the city of Laredo, and that is the largest inland port in the United States. There are more goods that travel through Laredo than any other inland port. So a fundamental part of our responsibility on this committee is to ensure that the law as it is written is enforced for the safety and security of the Nation and those communities that live and work along the border, and to, therefore, ensure the free flow of goods. As you just said, as it is true for the maritime ports, it is true for the inland ports as well. I really appreciate that. And I wanted to ask, if I could, sir, about the new program you are putting forward on these Offshore Patrol Cutters. I wanted to ask you, if you could, to walk the committee through how the Coast Guard would move forward with the acquisition, construction of these tremendously expensive--this hugely expensive new shipbuilding program with the limited requests that you have in this year's budget. Talk us through what your strategy is for acquisition of the Offshore Patrol Cutters, if you would, please, sir. Admiral Papp. Yes, sir. Well, we are trying to run the Offshore Patrol Cutter as wisely as possible. As I indicated earlier, we have gone through about a decade of acquisition reform, and I will stack my acquisition people up against anybody in Washington, D.C. We have true professionals, and that expertise is now matched with a need. We have nearly 50- year old ships that need to be replaced. We have gone through a process now that has brought us to the point where we have great competition. We had a number of shipyards. We just down-selected to three to do the preliminary and contract design of three candidate ships. I have had a chance to look at all three ships. All three of them are great ships, but the thing that I have been stressing is affordability, because we are hopeful that we will be able to build these ships two a year at a certain point after we get through the initial construction, and we are hopeful that for about the price of one National Security Cutter, you can build two of these ships. That is what we have been shooting for. Mr. Culberson. Do you believe the budget recommendation you have made to the committee will enable you to build two of these Offshore Patrol Cutters a year? Admiral Papp. Well, that is what we have been struggling with; as we deal with the 5-year plan, the Capital Investment Plan is showing how we are able to do that. And it will be a challenge, particularly if it sticks at around $1 billion. As I have said publicly, and actually I have stated publicly before that we could probably construct comfortably at about $1.5 billion a year, but if we were to take care of all the Coast Guard's projects that are out there, including shore infrastructure--that fleet that takes care of the inland waters is approaching 50 years of age as well, but I have no replacement plan in sight for them, because we simply can't afford it. Plus we need at some point to build a polar icebreaker. Darn tough to do all that stuff when you are pushing down closer to $1 billion instead of $2 billion. As I said, we could fit most of that in at about the $1.5 billion level, but the projections don't call for that. So we are scrubbing the numbers as best we can---- Mr. Culberson. Yes, sir. Admiral Papp [continuing]. Just to make sure we have got good competition so we can get the best price on the ship. Mr. Culberson. Based on the budget recommendation you have submitted to the committee, when would you expect to have, under the numbers you project in the President's budget, the first Offshore Patrol Cutter in the water? Admiral Papp. Fiscal year 2021 would have that first ship delivered as we project ahead, getting through--we have got about a year and a half now to go through the preliminary contract design, which then takes us up to about fiscal year 2017 before we award the contract to the company that is going to get the construction. We build the first one, which will take about--by the time they get the yard set up and they get the first one in the water and we commission it, it is going to be about fiscal year 2021. Mr. Culberson. Well, you know the committee strongly supports what you do, and we are going to do everything we can to help you in your mission. We understand the importance of the need for the replacement cutters. And one other quick question, if I could, Mr. Chairman, about the icebreaker. During the Bush administration, they attempted to shift that responsibility onto the National Science Foundation, and it is not really something they are equipped to do and didn't have the money for. And I think Frank LoBiondo added language to an authorization bill that restored that responsibility to the Coast Guard. And the Coast Guard has responsibility for opening up channels in the ice for both Antarctica and in the Arctic? Admiral Papp. Yes, sir. That was one of our goals as I started as Commandant to get--it is actually the operations funding was transferred to NSF. We---- Mr. Culberson. You got it back, though. Admiral Papp. We kept the icebreakers, and we depended upon them to feed us the money to operate them. And they chose to contract foreign icebreakers, which then we atrophied and had to lay up our icebreaker fleet. We have got Healy, which is our medium icebreaker. Healy's a little over a dozen years old and is in good shape. We restored Polar Star. Polar Star is on its way back to Seattle now. Mr. Culberson. How old are those ships? Admiral Papp. Polar Star is 35 years old. We have just restored her to active service, and she broke out McMurdo and is on her way across the Pacific now going back to Seattle. Mr. Culberson. But the NSF is contracting that service out? Admiral Papp. No, sir. We have the operating funds. Mr. Culberson. You do it now for the NSF? Admiral Papp. They are our customer now. Mr. Culberson. Okay. Good. That is the way it ought to be. You all ought to have the responsibility, and we will do everything we can to support you. Thank you, sir. Mr. Carter. Well, let's continue on the polar icebreaker-- -- Admiral Papp. Sure. Mr. Carter [continuing]. Just for a minute. When I was in Alaska, I had some conversations when I was up at the Kodiak about the law of the seas and the claiming that the Russians are very active, as I understand, in the Arctic Ocean, and we are limited in our activity because of our icebreaker weakness, and that under the law of the seas, we could actually lose a claim to what would now be considered American waters if we don't show a presence, a continuing presence, over a period of time. And the icebreaker is a key to being able to show our presence, and the Coast Guard is basically our presence in the Arctic Ocean. Now, what does that mean, and who cares? Well, those of us who are in the petroleum-producing business should care a lot, because there are projections now worldwide that there is a large deposit of petroleum sitting under the North Pole. And as the ice recedes, and there are opportunities to go out and explore in that area, a lot of people see that as a real plus. And the Russians recognize it, and, of course, they are in the petroleum business now, too. That is one of the reasons they are showing such a presence in American waters. Is that correct? Admiral Papp. I have got no reports of them being in our waters, what we consider to be our waters. And actually within Alaska, we have got a great working relationship with the Russians, one of the few good working relationships with the Russians. We work with their border guards; we have frequent meetings with them, bilateral meetings; and we have multi- lateral meetings with them in the North Pacific and North Atlantic Coast Guard Forum. So we get along with them pretty well, and we have pretty well-defined boundaries, at least where we both think they are. There are some shared waters, though. The Bering Strait is of a concern, because the amount of traffic going through the Bering Strait has quadrupled now. And while a lot of people worry about the potential for an oil spill due to drilling, I am more concerned about an oil spill or a disaster because of a ship losing power and running aground up there than I am anything else. And there is a huge increase of traffic in a very barren and not supported area right now. We need the icebreakers, because I can send our conventional Coast Guard cutters up there during the summertime when there is plenty of open water and when there is all the human activity, but there will be a time, date and time to be determined, where we have to have assured access during winter months, during ice months. We had a case like that 3 years ago when the city of Nome got iced in early. In spite of global warming, they got iced in early, and the oil tankers couldn't get in, and they would have run out of fuel supplies if we had not turned around our icebreaker and broke a path in there to resupply Nome. You can envision other reasons for having to get assured access into the Arctic during the wintertime, during ice conditions as well, and we need to have those icebreakers available so that we can do that, or there will be sometime when we won't be able to meet the country's needs. Mr. Carter. I was at the White House Christmas party, the year before last, and my daughter was accompanied by a Coastie as her date, and he was in his uniform. And the Senator from Alaska came all the way across the room to shake his hand and thank him for breaking the ice for Nome. And she just was full of praise for what the Coast Guard had done for the State of Alaska. So I am well aware of its importance. Admiral Papp. Yes, sir. Mr. Carter. But ultimately we have got to be able to have access up there. And I also heard stories that now cruise ships are making the Northwest Passage, and that our Coast Guard is the only potential rescue for a cruise ship that might get in trouble trying to make that Northwest Passage. And it is a long way away from the nearest---- Admiral Papp. Everything there. Mr. Carter [continuing]. Anything when they get out there up in the northern part of Canada. Admiral Papp. Yes, sir. Mr. Carter. So you have got a lot of heavy responsibilities up there in the Arctic Circle. And I, for one, am a champion of trying to get us another icebreaker, but they are really expensive. But we have got to get to work on that, because we have to realize that we are talking about a vast amount of ocean that we are responsible for. That brings me to another issue that has to do directly with the aviation program. Admiral, this year's defense authorization provides the transfer of 14 medium-range aircraft to the Coast Guard, and the fiscal year 2014 Appropriations Act funded an initial stand-up for this program within the Coast Guard. What is the status of these transfers, and when will we have the aircraft operational? How will this aircraft increase our maritime capabilities? Admiral Papp. Well, I first have to start off by thanking the Congress and anyone who participated in the NDAA that transferred those aircraft to us. This was a windfall for us. I estimate we avoid about a half a billion dollars in future costs that we would have to spend on medium-range fixed-wing aircraft by obtaining these brand-new aircraft from the Air Force. It is a good deal for us. We will, in all likelihood, complete our purchase of the HC-144 aircraft, fixed-wing, which will give us a total of 18. We will take these 14. We now have 11 C-130Js that have been appropriated that will come into the service. So we are doing good in fixed-wing aircraft. Our challenge now is evaluating how we lay these aircraft down in an optimal arrangement. The C-27J gives us the added benefit as it uses the same engines as the C-130J. The cockpit is basically the same. So we gain some efficiencies in training and logistics by gaining these new aircraft also. We have set up a project office, an acquisition project office, which we were given the money in the fiscal year 2014 budget, and there are some continuing funds in this budget. The amount escapes me, but there are some continuing funds to work bringing the aircraft in. We have had people out to look at the aircraft. And we are also making preparations for transferring some of our HC-130H models to the Air Force for renovation, and they will go to the Forest Service. Mr. Carter. Admiral, are you concerned about there is no recapitalization plans for the H-65 and H-60 helicopter funding for the sustainment of the current inventory? And how do you plan to solve this problem? Admiral Papp. Sir, I think we are in good shape in our helicopter fleet. We have done continuous upgrades on those. We have now converted the H60 to the H-60 Tango model. The reality is with our facility we have in Elizabeth City, you could bring--and we have, we have taken airframes from the Navy that they have cast away, and we have turned them into new helicopters. We can do that. And there is plenty of H-60s out there, and we are going to continuously upgrade the avionics and do improvements to the H-60s, and I am estimating we are probably good for 15 years before we have to recapitalize that fleet. The H-65 we have done the same thing. We have continuously upgraded them to the Delta model. Now we have the MH-65 Delta. We have continually upgraded those. My only concern about the H-65 is that we have lost three of them in crashes without replacement. We can't get them anymore. We take that out of our product line overhaul line to keep the frontline forces. So we have got enough to get by with right now, and I think we have got probably a good 10 to 15 years out of that aircraft as well. But at some point beyond the 5-year Capital Investment Plan, if we start looking at perhaps a 20-year Capital Investment Plan, we have to start figuring aircraft. The Air Force has gone to a new combat search and rescue helicopter that they are purchasing. Just like we did with the H-60, we are probably well advised to follow one of our sister services along so we get the economic order quantity for replacement after they have gone through the testing and evaluation and everything else. Mr. Carter. Thank you. Mr. Price. Mr. Price. Thank you, Mr. Chairman. Admiral, most of the questions today have focused on your acquisition, construction and improvements budget, and understandably so. This is a 1.1 billion budget item, and that number is 21 percent below what has been provided in the current fiscal year. So this budget is of great concern to us. It is going to occupy this subcommittee extensively, I think, over the weeks to come. Fortunately, the budget does provide for the construction of National Security Cutter number 8 to the tune of $638 million. Unfortunately, though, that represents 59 percent of the ACI budget. And so these other assets that we have been talking about today are possibly at risk, or at least the schedule for delivering these assets could be at risk, and therefore you have gotten lots of questions about that, about the schedule for the Offshore Patrol Cutter, for example, the schedule we are anticipating there; the implications of constructing only two Fast Response Cutters; the timetable for this Polar Ice Breaker, which, of course, is in this year's budget--or in the proposed budget only to the tune of $8 million in planning and design funds. What are the implications for all of these programs of this budget? As you have just testified in response to the chairman, the C-27 aircraft transfer appears to be a somewhat brighter spot. Remind me, what was your estimate of the cost savings associated with that? Admiral Papp. We estimate about $500 million. Mr. Price. All right. So that amounts to reduced pressure on the ACI budget. Admiral Papp. Yes, sir. We would have had to buy more of the HC-144 aircraft in future years. That relieves us of having to do that now. Mr. Price. Well, as you described this, you seem to have come out pretty well. The Coast Guard came out pretty well in this deal. Admiral Papp. In that particular deal, yes, sir. Mr. Price. In this particular deal, which, you know, we look for bright spots as well as problems in this budget picture. So let me shift. Having given the ACI budget a lot of attention, let me ask you to talk about another item of great concern: housing, the way you house your personnel. We received last year the Coast Guard's national housing assessment, and the assessment recommended a 4-year strategy to right-size the Coast Guard's housing inventory and invest only in needed housing. So we have had some follow-up on that. According to the most recent information we have, you are still in the process of developing a plan to address the recommendation of the housing assessment. The first step is going to be to reduce your inventory from 4,000 units to about 2,700 units, more fully utilizing local home rental, which is what the assessment recommended. When is this response plan going to be finalized? Will it happen in time to affect our deliberations? And what about your deliberations in terms of reducing the housing inventory in the current year? When do you think the Coast Guard will reach a new steady state for its housing inventory? Let me ask you that first, and then I have a follow-up. Admiral Papp. We are getting very close right now. We had over 4,000 Coast Guard-owned homes. They all weren't filled, and I toyed with the thought of making mandatory housing, but then I had a chance to get out there and see some of the housing, and I wouldn't put my Coast Guard families in them. So we came up with this plan for an assessment. First of all, look and see what the economy in the localities demands. For instance, is there available housing that we can pay people a housing allowance? Are there places where we have too much inventory, and in trying to maintain it all, we are losing money? And we did a good assessment. I am very pleased with it. We narrowed it down to about 2,700 homes that we need at various locations. What that has allowed us to do--and we are in the process now of divesting those. We have been through the final reviews with all of our operational commanders to validate this, and we are in the process of divesting the homes. In fact, we just had a meeting about 2 weeks ago on the final homes, making some decisions in certain locations, and what I told them is if you get rid of the homes that we don't need in our inventory, we can keep the same maintenance money and spread it out across the ones that we need. So we have actually gone from annually we invest $3,000 per Coast Guard home; now we are able to devote $5,300 to each Coast Guard home that we are going to retain, which gives us a lot more opportunity to do improvements. And while we don't have any money for new housing in our AC&I funds this year, although the Congress has been very generous the last 2 years, giving us 10 million 2 years ago and 18 million last year, we couldn't fit that in this year, but what we do is we are devoting probably close to $50 million, $40 million to improvements of the housing that we have, renovating our homes in Puerto Rico and in other locations so that when we do mandatory housing, they have good, decent housing to move into. So it is a multipronged attack: improving the Coast Guard- owned housing that we have; finding other alternatives like Department of Defense leased housing, public-private venture housing, that we were able to take advantage of in numerous locations; and then when we have it available within our AC&I funds, building new homes at places where we can't find homes in the community for our people. Mr. Price. So although that is not in the budget for this year, you are following through on this 5-year plan for significant investments in new housing. When do you reach steady state on that? What are we talking about here likely in terms of a timeframe and the size of investments that you are going to need? Admiral Papp. Specific to housing, we are pretty much there in terms of the owned housing that we have. We know the number we are going to have, and we have projects in the works to continue the renovations. And we continue to take that out of our operating expenses, our maintenance money. In terms of new homes, that is a constant process. We have got a backlog. I will get you the exact backlog, but we have probably, in terms of ready projects, we have got about $25 million of ready projects that could be executed where we have identified needs for new Coast Guard housing. Mr. Price. New housing. That is right. All right. Thank you very much. Thank you, Mr. Chairman. Mr. Carter. Mr. Fleischmann. Mr. Fleischmann. Thank you again, Mr. Chairman. Admiral, the 2004 Mission Needs Statement created specific requirements for patrol boats, major cutters, and fixed-wings operational hours. However, that was over a decade ago, sir, and subsequent budgets have never supported these requirements. Admiral, at what point does the decade-old mission statement need to become irrelevant since the budgets over the last few years do not support the requirement, sir? Admiral Papp. I think if I go back to one of the other questions I answered, the Mission Needs Statement is where we start. That is sort of where we look with an eye towards an unconstrained environment, what are those things that the statutes require us to do? And then what assets would we need to do all of those at 100 percent? And people have suggested it is a 10-year old Mission Needs Statement. We are going to redo the Mission Needs Statement this year. We have already embarked upon that to update it. Now, every study that we have done has always validated the need for at least the program of record that we are embarked upon. We will do the Mission Needs Statement, but given the fact that the Arctic has expanded, we have got increased mission space that we need to take care of, and increased missions that we have been given, I can't imagine any way that a new Mission Needs Statement would not come out saying we need more than the program record. But I have been satisfied as to the program record, because we are having a hard enough time just getting there. So the Mission Needs Statement, I would say the one in 2004 is probably still valid, but we are going to revalidate that and update it now a decade later. And then it is my job to present that to the administration and say, this is what I need, this is what I would like to fit in there, and at some point they are going to give me a top line, and then I am forced to make those tough decisions within the limits of the budget. Mr. Fleischmann. Okay. So the good news is a new mission statement is in progress, and we can expect to receive that. Admiral Papp. Yes, sir. Mr. Fleischmann. Thank you. I think that is very important. A follow-up to my colleague's question. And I certainly appreciate all that you and the Coast Guard are doing with your flag officers to address sexual assault. I want to thank you for the State of the Coast Guard Address. I think you addressed that there, as well as alcohol abuse issues. What can we do as legislators to help you implement that? I understand you have got these great laudatory goals which are out there, but what can we do? Admiral Papp. Well, I think what you can do is you use the bully pulpit. First of all, you hold our feet to the fire, people like me, and insist that we live up to those things that we talk about. And you have got a fully committed person in me in that respect. But we serve the people of the United States. You represent the people of the United States. If we are not serving the people of the United States and their sons and daughters that have volunteered to come and work within our services, then we need to have our feet held to the fire. And I appreciate it. Even though I disagree with some of the policies that were proposed, I respect the right and appreciate the fact that the Congress--and most notably over in the Senate--have come forward with proposals to assist us or make more stringent requirements. But at the end of the day, we have got to execute it, and I really appreciate the fact that we are going to allow our commanders to hold that responsibility. And I hold my commanders responsible and make sure that they are taking these on. And as you mentioned, it is not just sexual assault. I mentioned this in the State of the Coast Guard speech that we are putting out a revised alcohol abuse policy. I just got the final package on my desk last night and read it late, came in with a few alterations, but we will be putting out that policy over the next couple of days. Mr. Fleischmann. Thank you, Admiral. I yield back, Mr. Chairman. Mr. Carter. Mr. Culberson. Mr. Culberson. Thank you, Mr. Chairman. Admiral, I wanted to ask, if I could, a little bit more about the icebreaker program, which we all support and want to see you have that capability, because it is so vital, as the chairman has pointed out. As a Texan--and I know Judge Carter has heard this as well as a fellow Texan--Texas, I suppose, and Houston in particular, is to the oil and gas industry what Silicon Valley is to the computer industry. And companies that the judge represents and that I represent in the oil and gas industry have told us that they have discovered or gained access to more oil and gas in the last 10 years than has ever been discovered in the history of the United States. It is the largest mineral discovery in the history of the country. It dwarfs the Gold Rush of 1849, Spindletop, east Texas--you roll them all together--west Texas, all of it together. And what we have been able to gain access to with this new technology in fracking, in shale, and in the ways that we are able to open up these old wells that were not producing, it is extraordinary. They are producing oil out of shale formations that weren't even possible. So Judge Carter is exactly right. Particularly I wanted to ask you about two areas, about the icebreaker and also the Law of the Sea Treaty, because Bob Ballard, the discoverer of the Titanic, tells me that there are vast amounts of rare Earth elements that we as a country already have economic jurisdiction over and own on the flanks of the volcanoes that we took in the Pacific from the Japanese in World War II; that there is, under the Law of the Sea Treaty, if you can show that a geologic formation off the coast of your country is a part of the Continental Shelf, then you have the right under international law to develop all of those resources. So Judge Carter is exactly right. There is vast amounts of oil and gas out there underneath the Arctic Ocean, probably even more than we can imagine. By the way, they have also told me that they can make--the oil and gas companies--if we will just get out of the way, they can make America energy independent in less than 5 years if the government would just get out of the way and let them do what they do best, which is produce oil and gas safely, cleanly and in an environmentally friendly way. They can make us completely energy independent. So those icebreakers are critical, and I wanted to ask what in the $6 million in this budget that you are recommending to this committee, what is your acquisition strategy for the program? And when would we actually have a new icebreaker breaking ice? It is a concern. You are talking about a billion- dollar-plus vessel, and how do you really make any headway building it with just a $6 million down payment? What is the acquisition strategy, and when will we have an icebreaker in the water under your projected numbers? Admiral Papp. A heavy polar icebreaker has not been built in this country for nearly 40 years now, so you want to be fairly circumspect about the way you approach that and make sure--particularly if you are only building one, and it costs a billion dollars, you better have the requirements right. So that is what we are doing right now. We could on our own decide how we want to build an icebreaker, but it would be big and tough, and it would be rough to live on. And it might break great ice, but it might not be compatible with all the scientists that our customers, or the Department of Defense, or the Department of Interior, NSF. So we are consulting across the interagency to make sure that we are coming up with the design that will meet the needs of the country since this is such a valuable asset, and that takes time. And you don't need a large amount of money in the beginning because you are working through that process of coming up with the requirements. What concerns me, however, is particularly as I am being constrained closer to the billion-dollar range in my acquisition projects, I don't know how you fit in a billion- dollar ice breaker, because at some point you are going to have to take--even if you do it with a multiyear strategy, you are going to have to go 300- or $400 billion in a couple of years, which would displace other very important things. So we are having to take a hard look at this. One way of doing it is to say, okay, this icebreaker serves the interagency. The Department of Defense could call upon us, NSF certainly does, and other agencies. Why should that not be a shared expense? And, oh, by the way, if all of these companies are going to be making that much money off of oil exploration in the Arctic, maybe they could share in the cost of this icebreaker. Mr. Culberson. Free enterprise is a wonderful thing. Admiral Papp. Yes, sir. I don't see any way right now, and I know that the President has committed us to designing an icebreaker. We haven't committed to building an icebreaker yet. And if I am constrained at a billion dollars, I just don't know how you do it, because I have higher priorities to build within that AC&I money. Mr. Culberson. Well, GSA charges rent to Federal agencies, you know, in buildings that the GSA builds. No reason you shouldn't charge for the use of your icebreaker. Admiral Papp. Well, that is a creative solution that I would look forward to somebody proposing for us. But in the absence of that, I can only look at the conventional way that we do things. Mr. Culberson. I guarantee you that the oil and gas companies would help you pay for it, the scientific community, Particularly the oil and gas community, Because it is just unbelievable. In Houston, Texas, it is raining money in Houston, Texas, because they have actually figured out how to access--they are producing oil from pool table slate. Unbelievable. Admiral Papp. It would take some persuasion, sir, because I have been up to Alaska each of the last 4 years. I have talked to Shell and the other companies, and they are of the opinion that they already pay a lot of money in taxes right now, and that to put that extra burden on them, they believe, would be unfair. Mr. Culberson. I mean just in terms of renting the ship and getting access to the ship, in order for them to get access out there, because the judge is right. Thank you very much, Mr. Chairman. Mr. Carter. Admiral, as we discussed with the Secretary yesterday and other times, we need to look for efficiencies. Have you considered working with CBP and the Air and Marine Division about leveraging the capabilities at Elizabeth City? Also, could you commit to working with CBP to further utilize their Air and Marine Operations Center? Admiral Papp. First of all, yes. I believe there are efficiencies to be gained. They fly H-60 helicopters; we have a product line down there that does very good work. We have the capability for doing that. I don't know if we have got the full capacity to be able to do all of that work, but certainly we could adjust that. And I think we have done an aviation commonality study with CBP under the direction of the former Deputy Secretary, and we are continuing to work towards that. I think since we already have a world-class facility down there, I don't know why CBP would be sending their aircraft somewhere else to be maintained. Mr. Carter. Well, that is kind of the thinking we had. There is no reason to have duplication. We ought to be able to work together to maintain these various airframes. Admiral Papp. Right. Mr. Carter. And in operations, as our mission requires teamwork, we want to encourage that teamwork. Admiral Papp. Yes, sir. And there is plenty going on out there, sir. I have seen numerous ways. In my recent travels I was out in San Diego just a couple of weeks ago, and we have a command center out there that brings together Customs and Border Protection, the Border Patrol, and Air and Marine, in addition to State law enforcement agencies and the municipal law enforcement agencies. And we are leveraging all of those assets to take on this challenge that you talked about earlier with the Mexican pangas coming across the border. Mr. Carter. Okay. I have one more question. We all know this budget does not fund the Coast Guard this Nation needs. If we can find additional funds, where do we start? What are your unfunded priorities? Admiral Papp. Well, probably in a less constrained environment, I certainly would have put more of the Fast Response Cutters in the budget. You are absolutely right, we gain efficiencies by keeping the production line running full down there. I think with building two, because it would be an extension of the current contract, we can could probably come up with a pretty good price, but we come up with the best price if we are doing the full loading of six per year, which is what the shipyard can handle. That plays towards the recapitalization that is so important to us. If I had the wherewithal, I would restore our operational efficiencies, our operational reductions. We need to have our people out there doing their mission. We have to have the presence. The biggest driver for dissatisfaction for Coast Guard people is not being able to do their job. And if they know they are getting fewer boat hours, fewer aircraft and ship hours, not only does it reduce our mission effectiveness, but it doesn't allow them to do the things that they have been trained to do. And it also hurts our ability to keep them in their highest playing form, their best state of proficiency, so that they are safe when they go out there and do this dangerous work that we send them out to do. So restoration of operations is always important. Maintenance funds. We are forced to squeeze down maintenance funds, and any time we get extra maintenance funds, it helps us to take care of those housing units that we talked about. It helps us on some of the renovation projects on some of our older cutters that we are doing. It helps to keep moving them along. So operations and maintenance are, sir, the holy grail for us. And then, as I said, it is tough to live within the constraints of that AC&I budget, so I would turn towards increasing that, but it has got to be balanced across the board. And that is really what I tried to do for 4 years is maintain balance, not cutting back on mission support fully or dumping it all on operations. Whatever we have done has been a balanced approach. But we are down to the point now where we just can't squeeze anything more out of this rock without losing significant numbers of people. And I would say that is probably the thing, if I have any regret at all at this 4-year point, when I look and I see that from a high-water mark in fiscal year 2012 in the middle of my term as Commandant, we have lost a thousand Coast Guard people due to efficiencies and squeezing down. We face the prospect of losing other 800. I have always known from the start that people are the most important thing, because the fewer people we have, the less Coast Guard you have, the less operations we have. And, sir, I want to give you one little anecdote, the little prices we pay along the way as we squeeze down. My Master Chief Petty Officer of the Coast Guard has been pushing a physical fitness program. We are finally to the point where we have tested it, and we are almost ready to implement it, and they come in to give me the briefing, and at the end of the briefing they said, but of course in the fiscal year 2015 budget, we have had to cut all of our health-promotion specialists across the Coast Guard because we have noplace to go to gain efficiencies. So, I mean, it is only 13 people, but they are 13 people that were located at each one of our bases to supervise health-promotion programs that services my people. Special pay. I am having to cut back on special pay for those people who go out and do those hazardous assignments. And that is what hurts me. I want to provide the best for my people. I want to retrain my people, because I know we need them. And this gradual squeezing down, it is nibbling away, and at some point we just won't be able to do it anymore, and we will just have to do some sort of major cut. I lived through it in the 1990s where we had to lose about 6,000 people in the Coast Guard, and it took us a long time to recover from that. I was talking to Admiral Kramek the other night, he was the Commandant at the time, and it was terrible. And I know it was terrible because I was a more junior officer at the time. If there is anything I can leave you with it is taking care of the people and making sure we got enough people to do the job, because even though I say we will cut back on the work, coasties just, if they lose the person next to them, they will just work twice as hard. Even though we tell them not to, they will work twice as hard to get the job done. So it breaks my heart to have to let people go. Mr. Carter. Well, Admiral, this subcommittee thanks you for your service. Coming to the conclusion, I will tell you that I have got a lot of old Marine friends who will tell you that the Marine Corps likes to brag they fight their wars with other people's leftovers. I think the coasties can use the same argument, that they fight their part of this war with other people's leftovers and do a good job. And we will continue to do our best to make sure that the Coast Guard has its needs filled. Thank you for your service. Admiral Papp. I am deeply indebted to all of you. Thank you. It has been an honor. Mr. Carter. No further questions? Mr. Price. No further questions. Thank you. Mr. Carter. At this time we will stand adjourned. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Thursday, March 13, 2013. UNITED STATES IMMIGRATION AND CUSTOMS ENFORCEMENT WITNESSES DANIEL RAGSDALE, DEPUTY DIRECTOR PETER EDGE, DEPUTY ASSOCIATE DIRECTOR, HOMELAND SECURITY INVESTIGATIONS THOMAS HOMAN, EXECUTIVE ASSOCIATE DIRECTOR, ENFORCEMENT AND REMOVAL OPERATIONS Opening Statement: Mr. Carter Mr. Carter. I am going to call this hearing to order. Let me just open up by saying there are multiple hearings today and people will be coming and going a lot, as they move from one subcommittee hearing to the other. We are pleased to get started. Our panel this morning is made up of three exceptional professionals who have almost 75 years of law enforcement experience between them, Dan Ragsdale, ICE acting director; Tom Homan, executive associate director, Enforcement and Removal Operations; and Pete Edge, deputy executive associate director, Homeland Security Investigations, HSI. Before we begin, I want to thank all of you for what you do and for all the agents and officers that work with you and the investigative teams in the service. You do exceptional work. We are aware of your work and we are very proud of you. The subcommittee knows your efforts are essential to keep this Nation safe and we are very grateful for the effort that all in your department do. Our job today is to learn whether the President's budget request enables you to do your jobs taking down transnational criminal organizations, combating illegal border crossing activity, and enforcing immigration laws. Gentlemen, I am going to be blunt. As chairman of the subcommittee, I must be convinced the budget supports your operations. Unfortunately from what I have reviewed so far, cuts to operational accounts are not justified by the facts, analysis, or data. For example, I am not convinced the detention bed request is sufficient to detain level one, two, and three criminals, fugitives, and criminal aliens being released from prison. I am worried the cut in HSI salaries means fewer investigative hours and continued imbalance between the need for special agents and a team of wire tap specialists, intel analysts, and assistants. It upsets me that politically motivated policies and directives are creating an invitational posture at the border, and that this open invitation causes human suffering and law enforcement nightmares. I get even more agitated or irritated when these policies and directives undermine legitimate budgetary needs. Bottom line, ICE is not an organization that should be politicized. Its law enforcement mission is just too important to this Nation. Here are some cold, hard facts. From October through December, the Border Patrol apprehended 66,928 people in the Rio Grande Valley of Texas. This is a place we in Texas call the Valley. A total of 49,815 were ``other than Mexicans'' and 18,555 were juveniles. And the juvenile issue is quite honestly a human suffering issue as far as I am concerned. When these folks were apprehended, they met ICE's mandatory detention criteria because they were all recent illegal entrants. But needless to say, they were not all placed in detention beds. What I would like for you to provide for the record is what happened to them once they were processed by CBP and turned over to ICE. Of the 66,928 people, how many were actually placed in detention? What happened to the people ICE did not detain? How many were removed, remain in detention, were placed on alternative initiatives to detention or claimed credible fear and are waiting for immigration hearings? Of the 18,555 children, how many were delivered to their families? We would like to have the statistics to understand what is going on. Gentlemen, all too often this debate ends up focusing on stories of good, hard-working people who make this dangerous journey to care for their families. Well, what do we know about the criminal organizations that brought these migrants to the United States? From the stories that I hear on the Rio Grande border, no one now crosses the border in Texas that does not have the permission of the cartels that operate across the border. I would like to know what your thoughts are on that, but we will get to all that when we go to the questioning. How are they networked inside of our borders? Is the human trafficking business providing the capital they need to develop cyber pornography, sell drugs, or sell the kids they are transporting? These are the criminals ICE goes after. This is the evil ICE confronts and you deserve a robust budget to do this effectively. In closing, I know you mean well, but I would be irresponsible if I did not ask whether these very policies and directives creating this massive migration of people are contributing to an environment that supports criminal activity. This is my biggest frustration and constant worry. We have a common goal to keep the homeland as safe as possible. We are counting on you to give us the facts and the benefit of your professional judgment. Before we get to your testimony, however, I will turn the floor over to my distinguished colleague from North Carolina, the subcommittee ranking member, Mr. Price. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Opening Statement: Mr. Price Mr. Price. Thank you, Mr. Chairman. Gentlemen, good morning. Glad to have you here. We appreciate your appearing before the subcommittee. We appreciate your service to the country, particularly during this time of transition for U.S. Immigration and Customs Enforcement. I hope, of course, that an individual will soon be nominated to be the director of ICE. That is all the more important in light of the national debate we continue to have about reforming our immigration system. But for this morning, I am very happy to have the benefit of your expertise and experience, and the three of you bring a great deal to the table. Much of the discussion this morning will likely focus on ICE's role in detaining and removing aliens from the country, but I hope we can also pay attention to the other important ICE activities, many of which are as critical to homeland security as civil immigration enforcement and should be resourced accordingly. These activities include investigations to combat illegal cross-border trafficking and weapons, illicit drugs and other contraband, money laundering and other financial crimes, fraudulent trade practices, identity and benefit fraud, and human trafficking and child exploitation. ICE's efforts in these areas are not controversial in the way that immigration enforcement has become, but they are extremely important. Too few people understand this aspect of ICE's mission or give ICE enough credit for the good work it is doing. Having said that, the debate surrounding immigration enforcement is important, and I will have several questions in that area as well. As I said at the secretary's hearing on Tuesday afternoon, this is not only because of the fact that our immigration system is fundamentally flawed, but also because the politics surrounding immigration are so contentious, plagued, I am afraid, by exaggerations of both fact and rhetoric, as well as legitimate policy differences. I have to say the politics of this issue has been on full display this week on the House floor even as we are having this hearing. The republican majority has the House considering two bills as deeply misguided as they are unprecedented. Heaven forbid the House consider unemployment insurance or raising the minimum wage. Instead we are once again playing politics on immigration. My experience on this subcommittee ever since its creation has convinced me of the futility of approaching immigration as simply an enforcement issue or simply throwing money at the border or any other aspect of the problem. We must have comprehensive reform. One of the things the subcommittee would greatly benefit from and might help clear the air somewhat around the overall immigration debate would be more comprehensive and timely data about how the department is managing its border and immigration enforcement responsibilities. We do hear disturbing stories, as you know, about families being broken up when ICE deports a family member who, as far as we know, is not a criminal, poses no threat to the community. These are families in many cases who have been in the country for decades, working, paying taxes, attending church, contributing to their communities. So we need more information about who you are apprehending, detaining and removing, and how they fit into your enforcement priorities. We need to have more confidence that our detention resources are used for those who really are threats to the community or serious flight risks, and that alternative to detention programs, which are much less expensive, are being fully utilized as a detention alternative. Now, better information may not be the way to reach consensus on vexing questions of border and immigration enforcement policy, but surely it would help. It would help elevate the discussion to one based more on empirical evidence. The agency's budget request is for $5.36 billion. That is a reduction of $255 million or 4.8 percent below the current year. We want to hear from you regarding the rationale behind all the agency's funding proposals and how they fit into your overall strategy for prioritizing activities. I know some of my colleagues are very quick to attack the proposed reductions in ICE's overall budget, particularly the proposed reduction in the detention bed requirement and elimination of the detention bed mandate. But ICE's budget request simply has to be considered in the proper budget context. In an era of limited resources, we simply cannot do it all. If we want to fix holes we identify in the President's budget, we are going to have to find savings elsewhere in the bill and we are going to be hard pressed to do that. Of course, many of the other appropriations subcommittees have even bigger challenges than this one does under this constrained budget. And let me be clear. It is a good thing that we have an agreed upon top-line funding level for the coming fiscal year. It should help us get our work done. It should help us do what appropriations is supposed to do. But there are consequences to arbitrarily limiting investments in enforcement priorities, and we are experiencing those consequences right now. It is very easy to complain about individual items or individual functions, but they are part of this larger picture which we need to take responsibility for and ultimately to fix in this institution. Before I end, I want to reiterate what I and many others have said for years now. We are setting the department and ourselves up for failure by not enacting legislation to reform and rationalize our immigration system. According to a variety of recent polls, a clear majority of Americans want Congress to enact immigration reform and support a pathway to legal status and eventual citizenship for most unauthorized immigrants. We need to get on with that task. Gentlemen, thank you for joining us this morning. I look forward to our discussion. Thank you, Mr. Chairman. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. Thank you, Mr. Price. Before I start, we have received your written testimony. It will be entered into the record. And we want to ask you for your testimony. We are ready to go. Opening Statement: Mr. Ragsdale Mr. Ragsdale. Well, good morning again, Chairman Carter, Ranking Member Price, and distinguished Members of the committee. I am honored to appear here today with two of my colleagues, Tom Homan, executive associate director of Enforcement and Removal Operations, and Peter Edge, deputy associate director of Homeland Security Investigations. Both of these men are long-time career enforcement officers and employees and they are a significant credit to our agency. Before I begin, I would like to start by expressing my appreciation for your support of the men and women of ICE. Carrying out our mission and achieving the law enforcement results our folks realize every day would not be possible without your strong support. ICE is the principal investigative arm of the Department of Homeland Security and is responsible for one of the broadest investigative portfolios among any federal law enforcement agency. Our primary law enforcement operations are carried out by the two offices these gentlemen represent, the Office of Homeland Security Investigations and Enforcement and Removal Operations. Their work is bolstered by the men and women of the Office of the Principal Legal Advisor, the Office of Professional Responsibility, and the key mission support personnel in management and administration. The President's fiscal year 2015 budget supports ICE's law enforcement programs and ensures ICE operates with maximum efficiency. The fiscal year 2015 request totals $5.359 billion. This is approximately a five percent reduction of our fiscal year 2014 level. As the principal investigative arm of DHS, ICE enhances national and border security by dismantling transnational criminal organizations that seek to exploit our border. In fiscal year 2013, HSI's special agents made 32,401 criminal arrests and initiated 100,026 new investigations. We seized $1.3 billion in currency and 1.6 million pounds of narcotics and other dangerous drugs. ICE conducts national security investigations through interconnected investigative programs that prevent criminals and terrorists from exploiting our Nation's border control system. This includes investigating criminal and terrorist organizations, preventing the acquisition and trafficking in weapons and other sensitive or licensable technology, identifying and removing war criminals and human rights abusers from the United States. This budget request supports ICE's investigative efforts in the coming fiscal year by continuing our efforts against illicit finance by supporting our bulk cash smuggling center's efforts to add additional law enforcement partners. We will expand our commercial fraud efforts by expanding investigative support and leveraging enforcement operations with our state and local partners. We will continue to develop our illicit pathways attack strategy to focus on cross-border threats and global illicit pathways including contraband smuggling, arms trafficking, money laundering, bulk cash smuggling, and human smuggling and trafficking. In fiscal year 2013, ERO's officers and agents identified, arrested, and removed 368,644 aliens. One hundred and thirty- three thousand of those removed were apprehended in the United States. Eighty-two percent of that number were criminal aliens. We conducted 235,000 removals of individuals apprehended along our borders for a total of 368,000. Fifty-nine percent of all ICE removals were aliens who had previously been convicted of a crime. To support these operations, ICE will also leverage IT solutions to increase our efficiency in screening, vetting, and recording Visa applications through our patriot system. This modernization effort will allow all ICE attache offices to perform Visa security operations. Further, to support our immigration enforcement efforts, our budget request, as the chairman said, 30,539 detention beds at a rate of $119 a day. This detention level will allow us to detain all aliens subject to mandatory detention provisions as well as other high-risk non-mandatory detainees. ICE will ensure the most cost-effective use of our funding by focusing detention capabilities on priority and mandatory detainees while placing lower-risk, non-mandatory detainees on lower-cost alternatives. The budget also proposes that a portion of our custody operations funding be available for five years. This will allow us to pilot and try to seek more favorable pricing for detention beds and using multi-year contracts. If approved, this change would empower ICE to negotiate more advantageous contract terms and realize efficiencies not available with current one-year funding. This budget also supports the alternatives to detention program as a cost-effective alternative from traditional detention that makes bed space available for those aliens posing the greatest risk to public safety or national security. ICE will continue to focus on identifying, arresting, and removing criminal aliens, recent border entrants, and other priority aliens to support DHS's national security, border security, and public safety mission. Finally, the budget supports some key investments. It continues an important automation project to replace our investigative case management system known as TECS at $21 million to ensure we can deploy core case management in late 2015. The budget also proposes $20 million in achievable reductions for IT contractor conversions, contract staff reductions, and our detainee to guard ratio at certain SBC facilities to bring our staff detainee ratio in line with our national detention standards. Let me thank you again for your support and we look forward to answering your questions. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Carter. Once again, the President's budget calls for a cut in funds for detention beds of about ten percent, taking the beds down from 34,000 to 30,539. Explain how this number was developed. Mr. Ragsdale. So we looked at our historical averages of the number of aliens we apprehend who are subject to the Immigration Nationality Act's mandatory detention provisions. And that number is roughly around 26 to 28 thousand over the last couple of years. So we can detain everyone who is subject to mandatory detention. This number also gives us some flexibility for other aliens not subject to mandatory detention but are nonetheless presenting a risk to public safety. The point that I would like to make sort of most strenuously the detention piece is only, I will say, a step in the process. The real key is getting folks through the immigration court system to get a determination about whether or not we can remove them or whether they can stay. So we are focusing on not the detention beds as a outcome but rather working with EOIR to make sure there are immigration judges to hear cases whether detained or not detained. In fact, from fiscal year 2014 into 2015, EOIR is going to add 65 immigration judges, so we are hoping to see our average length of stay in those beds fall so we can essentially remove increasing number of people with less beds. Mr. Carter. And I think that is good. Let's just talk about the 30,539 will you be able to detain all level one criminals? Mr. Ragsdale. I believe we will be able to detain all level one criminals assuming again---- Mr. Carter. That is violent crimes. These are important crimes. These are felony crimes we are talking about. Mr. Ragsdale. They are. Mr. Carter. All right. How about all level two criminals? Mr. Ragsdale. I believe it will cover all level ones and level twos. Mr. Carter. How about all level three criminals? Mr. Ragsdale. I do not think it will cover all level threes. And, of course, as the chairman knows, you know, custody determinations are made on a case-by-case basis, balancing dangerousness and flight risk. You know, we use the levels for, you know, statistical record-keeping purposes. However, we would certainly say that every case is not created equally and we would have to use our resources appropriately to make essentially those individual case determinations. Mr. Carter. I have recently visited the ICE detention and work provided by ICE down in the Rio Grande Valley where I just gave you some statistics about what has happened the last four months, 60,000 people. Many of these people are being released on some form of some program, whether you put a monitor on them, whether you put extensive supervision of some sort, whether you have telephone call-in supervision, but you turn them loose. Mr. Ragsdale. So a couple things here. You know, we actually work obviously very closely with Customs and Border Protection on the front end in terms of the apprehension and Citizenship and Immigration Services on what is sort of the middle piece of the credible fear process. It is important, sir, to put this in context, that one of the sort of advantages after the 1996 bill with the expansion of expedited removal, that CBP without putting people in removal proceedings that need to go in front of immigration judges can order the vast majority of folks removed. So we receive the vast majority of apprehended aliens, OTMs and Mexicans from CBP with final orders of removal. There is a subset of that category who are placed in expedited removal that express credible fear. Those folks go to Citizenship and Immigration Services while they are being detained by ICE because they are subject to mandatory detention and then Citizenship and Immigration Services makes a finding whether or not that alien possesses a credible fear. ICE does not look behind that decision. Once a credible fear is found, the ER order, the expedited removal order is vacated and a notice to appear is issued. Once that notice to appear is issued, that person becomes eligible for bond. They can be eligible for bond from DHS as well as an immigration judge. All of those folks remain in immigration proceedings. But as I mentioned earlier, the challenge, of course, is again court hearing capacity. For folks that, you know, stay---- Mr. Carter. Well, there is more than that. Do you know what the statistics are for no shows on hearings? Mr. Ragsdale. So we certainly had many discussions about this. The struggle with giving those numbers, first of all, they are maintained by the Department of Justice, but it is also a blended data set. There is not a year-to-year capture of folks that are put into proceedings in the same fiscal year and whether a case would be heard that same year. So you end up with someone who may have entered years ago, gets that final hearing several years later, and then is counted as a no show. So what I cannot do, at least from ICE's data, is tell you sort of one to one apprehensions versus no shows because the immigration court docket is sort of backlogged. Mr. Carter. The reality is if the court cannot get to them for two years, it just gives them an additional excuse for not showing up for court, but they could be in Bangor, Maine. I mean, they are not sitting down in the Rio Grande Valley waiting to go to court like good little citizens. They are off to anywhere in the 50 states. Mr. Ragsdale. That is exactly correct. What we really again sort of need to do is obviously work with our partners at---- Mr. Carter. And 66,000 in four months is a shocking number in any criminal court in the land. Okay. Mr. Ragsdale. It is a considerable volume. Mr. Carter. Having been there, I can tell you I do not want any 66,000 criminals in my court in four months. Mr. Ragsdale. It is a challenge. Mr. Carter. So take that and average it over a two-year period of time. If we kept that kind of consistency of crossings, it is an overwhelming flood. And my real question is that if we do not have available detention beds that we can fill and we have a shortfall, aren't we, in effect, back to catch and release? Mr. Ragsdale. So, again, I think we are certainly sort of back to catch and release because, again, the folks do remain in proceedings. And from the ICE perspective, we cannot what I will say is re-arrest or remove anybody until an immigration judge makes a decision. Mr. Carter. Well, let's just take one of our best ankle monitors. Okay? There is a point in time, roughly 60 days would be my guess, when the cost to the government of that ankle monitor equals or exceeds the cost of incarceration. Mr. Ragsdale. That is exactly right. I mean, again, it goes back to the speed of the immigration docket. Mr. Carter. And the immigration docket is slow as a snail in the wintertime right now. Mr. Ragsdale. I am sure it did not operate with the speed of your court. That I am sure of. Mr. Carter. Yeah. Well, of course not, but we had a different world. And I do not mean any criticism. I was felony only, so I did not have to mess with misdemeanors and, yeah, we could move. But even then, a thousand felony docket a year was a hard job. You are talking about tens of thousands of people on people's dockets. And the whole question, and one of the things that we have to deal with as a reality, is that there is a vast number of people who know if you overwhelm the border--I mean, they know how many people can be processed in the Rio Grande Valley. The network of rumors on the border has been around for longer than I have been alive and I have been alive a while. And I have been down there. I live in this world and I know they know which sector is open, which sector is closed. They know what courts are overwhelmed, what are not. They know they have overwhelmed the Valley right now. That means your chances of going across and surrendering to the Border Patrol, your chances are pretty darn good, probably one in three that you are going to be released. And you are on your way. And the court date, if you are given a court date, the court date you are given is probably 18 months away, maybe longer. In 18 months, you could have held four jobs in five states, you know. I mean, we do not know where you are. And if you have to pick every one of those people up, the United States Army could not pick those people up. They got right now until they cut us again, they got 450,000 troops. So, I mean, at some point, the reality is the system is being intentionally overwhelmed and if we give up the one thing we know that can at least make them worry is that if you go across, you might end up in detention. If they know the odds have gotten so good that they are not going to end up in detention, then it is going to enhance the number of people coming across the border. So this is my whole issue. Whether we like it or not, criminal justice is about deterrence as well as punishment. And would you agree or disagree that the chance of being detained and put in some kind of lockup is a deterrent to people coming across the border? Mr. Ragsdale. Our custody authority does not equate to the criminal justice. There is no punitive function in our detention authority. Our detention authority is solely for the purpose of removal, so we are sort of again similar---- Mr. Carter. I know that is your theory. If I go interview the people that are in detention, you think they are going to tell me it is not punitive? Mr. Ragsdale. Well, I would not want to speculate as to what they think. Mr. Carter. Right. Mr. Ragsdale. I will say that again as a consumer of the immigration court docket, I think as you correctly pointed out, speed of that docket is really the key. Mr. Carter. By the way, I forgot to ask you. Is this number sufficient to detain all criminal aliens identified in prisons and jails throughout the criminal alien program assuming all jurisdictions honored ICE detainers before they are released from incarceration? I happen to be from the world of crowded county jails in Texas. And is the number that you are telling me that you all came up with, the 30,000 plus number, is that sufficient to take care of level one, level two, no level three? Can you still pick up everybody that is needed to be picked up at every jail in the United States? Mr. Ragsdale. So I believe the level one and level two number covers all our enforcement programs in terms of our flows. I can defer to Mr. Homan if he---- Mr. Carter. Mr. Homan, you got any comment on that? Mr. Homan. I think with 30,500 beds will, as Mr. Ragsdale said, we will be able to detain the mandatory cases and the high-risk community threat aliens. The rest will be going to the ATD docket. That is based on current population. But to your point, more and more jurisdictions do not honor our detainers. Mr. Carter. I know. I know. Mr. Homan. I think criminal population is down. So if that was to turn around, that would be a population that we are not dealing with now. So I do not know the answer to your question, but it would add to the criminal alien population that we would have to detain. Mr. Carter. Well, I cannot speak for every jail in the United States. I can only speak for the Williamson County Jail, especially before we built our new expanded jail. We had the Texas Jail Commission on our backs about our daily numbers in our jail. And we had to move people out of our jail. And the first people we called, and this was back under the old system, we called the immigration folks and said come pick your people up because we need them out of our jail. They came on Tuesday. If they did not show up on Tuesday, we would turn them loose on Wednesday because they were overpowering, overwhelming our jail population and causing us to be fined a daily fine for being over our numbers. Now, that is just Williamson County, one county out of 254 counties in Texas. Do the numbers. Mr. Homan. Well, sir, almost every week another county is choosing not to honor detainers. I mean, the fact is for California alone after the passing of the Trust Act, our criminal alien arrests in California has dropped over 25 percent. You are talking about tens of thousands of aliens. I mean, it has gotten to the point it is a community safety issue now because level ones and twos are walking out of jails without attention from ICE. So it is a concern of ours. It something we need to--we need some changes. Mr. Carter. Well, it should be a concern of the citizens of the United States that--and, once again, I am making the argument that the people we are trying to have a policy to prevent coming into our country illegally know that when you overwhelm--it is just like back in the old days when they get there and 500 people would run across the border at the Border Patrol. The border patrol could not catch 500 people and so they would have--400 would get in and 100 get caught. That was good odds. It is the same concept knowing what you can process and they know they overwhelm the process. Knowing what you can detain, and they know they overwhelm the detention. And at that point in time, the effectiveness of the overall criminal justice plan, and I use that term because that is a term I am used to, if you want to call it noncriminal, I do not know what to call it, justice plan, law enforcement, it is enforcement, the overall law enforcement plan is to set up a way where we are dealing with people who are coming into our country illegally. Whether they come in and they are the nicest people in the world or they are the baddest people in the world is irrelevant to the plan to do it. And I think there is a conscientious effort to overwhelm. And I worry if we reduce the number of available beds, because where I came from, if we had to keep somebody in jail and we did not have a bed, we had to go out and contract for that bed. I do not know whether you have to do that or not. Mr. Ragsdale. We do have contract vehicles in place that allows us to bring our detention up and down. And, again, we certainly are mindful of obviously the instruction of our appropriation language and we will obviously meet that goal. Mr. Carter. And the contracts cost more, doesn't it? Mr. Ragsdale. It varies by location. Sometimes they are less expensive, some they are more expensive. But, you know, again, having what I will say is the multi-year funds would hopefully help us sort of---- Mr. Carter. And I have gone way too far. Mr. Price. Mr. Price. Thank you, Mr. Chairman. I would like to continue this discussion just to gain some further clarity, if we might, and turn to some other questions later in the hearing. If the circumstance Mr. Homan detailed developed, that really would affect the projections for the ability to take care of level one and two offenders and it might indeed call for more detention beds. In the meantime, it seems to me you have made a reasonable estimate based on your best projections. And while this is a real dilemma, I understand that, the system is overwhelmed with these people coming over and with the kind of claims they are making, the credible fear processing that has to go on. It just is not clear to me that the answer to this is more detention beds or for there to be a congressional requirement that a certain minimum number of detention beds be maintained. By the way, the cost comparisons I have seen with alternatives to detention are something like $119 a day to keep people in detention versus $5.00 a day for alternatives to detention. Does that sound right? Mr. Ragsdale. So it is a blended rate on alternatives to detention. While the unit cost of alternative detention is lower on its face, it is sort of the cycle time or the time spent in---- Mr. Price. No, no. That is what I am getting to. I understand. The per day rate, though, is as I just stated it, right? So obviously if the docket is much more crowded and the time in ATD is much, much greater than the average time in detention, then obviously that differential is going to be less. I thought it was a good deal more than 60 days or whatever was said earlier. I am not sure at what point we cross that line in terms of the time in ATD. Mr. Homan. Our estimates on ATD when you hit the right over 300 day mark, that is when it is less cost effective. Mr. Price. Three hundred days, not 60 days? All right. Maybe I misunderstood earlier. All right. So that is a big difference. Mr. Homan. And it varies on the level of ATD. It can be technology only or it can be the more expensive full service which is more expensive, up to $11.00 a day. But if you do the blended option, you average it out, it is a little over 300 days where it becomes less effective, less cost effective. Mr. Price. All right. Well, let's say we have these additional detention beds and let's say we are putting more and more people in detention. Then you are going to clog the detention docket even more, right? I mean, is there a tradeoff there? Mr. Homan. Well, sir, as far as the 34,000 mandate, you know, it all depends on operational effectiveness. It depends on seasonally. There are times we are going to be above 34,000. Mr. Price. Yes. Mr. Homan. There are times where we are below 30,000. Like today I think we are at 31,000. It depends on what is going on on the border. There are a lot of issues surrounding this. So at the end of this year, I suspect to be fully near the 34,000 average daily population. So I can tell you the detain docket, those that are in detention, the docket moves quicker than those that are released and put on the non-detained docket. Mr. Price. Right. Mr. Homan. They get hearings quicker. So as far as, you know, what---- Mr. Price. Excuse me. But my point is if you are altering that balance and putting more and more people in detention, then you are going to have a commensurate slowdown in the detained docket, right? Mr. Homan. Yes, sir. Mr. Price. Yes. So there is a tradeoff there? Mr. Homan. Yes, sir. Mr. Price. And as I understand it, there is more discretion being exercised with respect to the bond that is required for people with this making these credible fear claims. Surely that is an important part of this, too, because there is some discretion here. And that would have the potential to make absconding less likely. There are plenty of things we need to work on here, but it does not seem clear to me that the major solution to this is simply to mandate more detention beds. I just do not get it. It seems to me that this is a work in progress. You are going to have to make estimates about your needs as we go along. But nothing that has been said here this morning makes me believe that the estimates you have given as to the need for detention beds--and, therefore, the recommendation that we not come in with a larger mandate--is not justified. Would you like to comment on that? Mr. Homan. Well, who sits in a detention bed and who gets released on some form of alternative detention or out on bond, it is a case-by-case analysis. I can tell you we cannot possibly detain everybody that is arrested. We will need 100,000 beds. So on a case-by-case basis, we need to decide who sits in that bed. So the ones that are mandatory detention by statute, the ones that are a danger to community, they need to sit in those beds first. So the decisions have to be made. Some people have to be released on bond or, as I said, I would need 100,000 beds. So that decision is made every day. As far as bonds, there is a lot of discretion. It is based on do they have a criminal history, do they have ties to--do they have any U.S. citizen relatives, do they have an address they can go to. So a lot of things are done in order to set that bond. But that is just a first step. We can set a bond for $10,000. Then they get a redetermination bond hearing from a judge who can lower that bond or hold the bond. So it has got to be a mix of both to make the system work. Mr. Price. Right. All right. Well, to be continued. The system is being overwhelmed right now. We all know that. We know we have got to do something about it. But we will no doubt continue to debate whether a detention bed mandate at X level is the solution or is even a major component of the solution. Let me in the time I have here this first round ask you about enforcement priorities. And I know that there is a difficulty here in dealing with anecdotes, dealing with individual cases. I understand that very, very well. But you understand, I am sure, that it does not take too many problematic anecdotes, based on real cases, to send waves of apprehension through the immigrant community and to raise real questions about the kind of priorities that we are setting and exactly what it means to be targeting in the way we supposedly are targeting dangerous people in our enforcement activities. Just the quick details of a case. We have a fellow named Jose Alfredo Ramos Gallegos who entered the country at age eight. At 16, he was deported--15 years ago--then illegally reentered to join his U.S. citizen wife and first child. He has been a resident of Ohio for 24 years, and is the father of two U.S. citizens. He was pulled over by a police officer in Ohio, apparently, who questioned him about his immigration status. He was a passenger in a car where there was an infraction. Now he has been indicted by a grand jury for illegally reentering the country 15 years ago. And I know that it is not your role to seek an indictment, but it does seem to me to be a good example. And I must say we hear a good bit of this. I assume ICE has been involved in the case so far. I am not asking you to comment on this individual case. But does someone like Mr. Alfredo fit ICE's enforcement priorities? How do they go from being a passenger in a car pulled over by law enforcement in Ohio to being prosecuted by a U.S. Attorney and put in ICE removal proceedings? And what is ICE's role in determining whether someone like this will face federal charges? Mr. Ragsdale. A couple things. First of all, as you noted, the charging decision is obviously made by the Department of Justice. What I think you see sort of at play here is if you look at the strict letter of what the Immigration Nationality Act requires, someone who has a prior order of removal and the government, you know, has obviously gone to some level of expense and effort to effectuate that removal, the provision in this case, a reinstatement or an illegal reentry, the act, the statute says it shall be reinstated. So from sort of a law enforcement perspective as the act is currently written, it is fairly black and white. Obviously the charging decision is going to be made based on the volume in that judicial district. And, again, as I said, the U.S. Attorney's Office will ultimately make that decision. But just in terms of the men and women at ICE that have to make that decision, that is sort of the case that puts us sort of in the most sort of difficult place in that public debate because it is a place where the law is fairly clear. Mr. Price. Well, that is really what I am trying to get at and we will not resolve it at this moment. But obviously this man would never be targeted by ICE or anybody else had he not been a passenger in that car pulled over for a traffic infraction. So once the man is in your sights, you are saying I suppose you have no alternatives or have very limited alternatives? Mr. Ragsdale. We would certainly, you know, take a look at, you know, the charging decision. Obviously we would do that in a circumstance like this obviously with the Department of Justice. But somebody in that factual scenario that had never been encountered by ICE would certainly not be one of our first priorities except, like I say, he does have a prior order of removal. That is the facts in this case that sort of makes it an aggravating factor. Mr. Price. All right. My time has expired. Thank you, Mr. Chairman. Mr. Dent [presiding]. Thank you. I think I will recognize myself for five minutes and thank you for being here. I am going to focus on the issue of secure communities. Last year this committee applauded ICE for finally achieving full deployment of Secure Communities providing ICE with awareness of illegal aliens booked in custody by state and local law enforcement across the country. However, increased visibility provides limited advantages if law enforcement is unable to act on this information. Several jurisdictions continue to ignore ICE detainers, releasing potentially dangerous criminal aliens into local communities. The administration has maintained a posture of inaction allowing these jurisdictions to continue this practice unchecked. As a result of this inaction the number of jurisdictions choosing to ignore ICE detainers has increased, further exacerbating the threat to public safety. If you could answer some of these questions. How many jurisdictions are failing to honor ICE detainers in your estimation? Mr. Homan. The last count was 22. Mr. Dent. Twenty-two? Mr. Homan. They do not honor them fully or have limited how they honor them. Mr. Dent. Do you have a list of those communities? I would appreciate it if you would share that with the subcommittee, if you would. How does this number 22 compare to last year? Mr. Homan. It continually grows. I mean, on average once a month another jurisdiction joins the list so it is increasing. Mr. Dent. Do you think that the administration's refusal to take action against these jurisdictions is causing this number to bump up, to increase? Mr. Homan. I do not know the specific reason why these counties choose not to honor detainers. But I do agree that it is becoming a public safety issue when criminal aliens are walking out of a jail and the jurisdiction does not honor our detainer when we have identified them as an alien and they have been convicted of a crime and we cannot get our hands on them. This also causes an officer safety issue. I have got 6,000 law enforcement officers that now have to go out and look for this person rather than pick them up in the safe environment of a jail. So it is impacting our morale, it is impacting officer safety, and I think it is impacting public safety. Mr. Dent. Thank you for that answer. How many individuals have been released before ICE can take them into custody, do you know? Mr. Homan. No, we are working on that number now. We just recently started tracking electronically. My instructions to the field offices that are dealing with these jurisdictions, that they continue to send the detainer to the facility. Even though they do not honor them we are going to track what detainers we send to the facility and what detainers are not acted upon. So in the very near future we are going to be able to determine how many criminal aliens hit the streets without our attention. Mr. Dent. Can you tell me how many of these individuals ICE has been able to track down and how many are at large? Mr. Homan. I do not have those numbers available. What I can tell you though is we are dedicated to seeking to those individuals that fall under our priorities. So the fugitive operation teams and the criminal alien teams are out looking for them. So I can tell you we expend a lot more resources, we expend more money looking for somebody out in the public when they could have been apprehended in a jail. Mr. Dent. And then finally, and then I will end, obviously this is clearly a major threat to public safety, as you have indicated. And it is alarming that the administration continues to stand by idly while criminal aliens are being set free in our communities. Does the administration plan to take any action against these jurisdictions, the 22 or so? Mr. Ragsdale. We would obviously, that is much greater than a DHS decision. We would obviously have to work with the Department of Justice. There is a whole range of issues, Tenth Amendment issues, some federalism issues that they are attending here. I think as Mr. Homan points out from our purpose, you know, we would like to have folks partner with us. We do think we support public safety and border security through our enforcement programs. And you know, we would have to sort of defer to the Department of Justice on the litigating position. Mr. Dent. Thank you. At this time I am going to recognize Mr. Cuellar for five minutes. Mr. Cuellar. Thank you very much, Mr. Chairman. And again, to all of you, I appreciate what your men and women do. And I appreciate all of the good work. And if you see my good friend John Morton, please say hello to Mr. Morton. Let me just follow up on what the chairman just mentioned. Can you provide us a list of, well let me ask you, do you have any counties in the State of Texas that are not honoring the detainers? And if you have a list in Texas, I would like to see that list. And I assume the state, because you mentioned some, I believe there are some states that do not honor it. But I assume the State of Texas does honor it, number one? Mr. Ragsdale. I think we have great partners in Texas. Mr. Cuellar. Okay. Any---- Mr. Homan. I am not aware of any jurisdiction in Texas that---- Mr. Cuellar. No jurisdiction? Okay, good. The second thing is let us talk about the AUOs, the administrative uncontrollable overtime. What is the impact of this AUO decertification on your men and women, morale, etcetera, etcetera, etcetera? Mr. Ragsdale. Well I am going to start and then I am going to let Mr. Homan finish. So at ICE as well as some other places in the Department of Justice there are several statutory schemes that compensate our folks for overtime work. And we certainly operate at a tempo that, law enforcement is not an eight-hour-day. It is just that simple. What we have seen is sort of the advent of technology, the way we sort of staff headquarters, and just sort of as the work has evolved over the last the last several decades that the statute that provides us with the administrative uncontrollable overtime has not really kept pace with operations. So we have had some concerns about sort of the implementation of the practices around AUO. For Mr. Edge's program there is a different program called law enforcement availability pay. So we are in a situation that we have a blended workforce with two different schemes, and one of whom, particularly whether it is full time training officers, folks at headquarters, are not, at least as we understand our current understanding of the way AUO must be administered, were not properly on that scheme. It does present a challenge for us. Mr. Homan cannot run his program at headquarters without officers in the field holding their hand up and volunteering to come in. So we are looking to make sure that there is a scheme that compensates work that must get done but in a lawful and a way that follows the law and regulation. Mr. Homan. I can tell you the AUO pay system that was set up over 50 years ago does not make sense anymore, not in today's law enforcement. We are law enforcement organizations and other law enforcement organizations have a better pay system. This issue, as Mr. Ragsdale stated, is causing a retention issue now. A lot of these people have been decertified at the Academy headquarters, they want out. Either out of the agency or out of those divisions. We cannot operate without an academy training new officers and we cannot operate without staff and headquarters. We need some sort of pay reform fix. I mean, there is a lot of things floating around. I know there is the border patrol pay reform option out there. I also know there is thought about, you know, LEAP, and should we be on LEAP. And our national labor union has a pay reform package they are pushing on the Hill. So I know there is a lot of options out there. What I ask for, I think it is important to everybody in this room that we get some sort of pay reform that protects the pay for my law enforcement officers. These people that, you know, get up everyday and strap a gun and badge to themselves and try to uphold these laws. And this is affecting them personally. It is affecting their families. There are officers that this is a huge impact. And whatever morale is left is diminishing with an issue like this being held above their heads. Mr. Cuellar. I hope we can work in a bipartisan way to find a solution to the men and women. Talk to me about the influx of unaccompanied alien children on the southwest border. I know that at one time you had a place in Nixon, Texas that I went to go visit. And it is sad, members, because you are talking about, here I have got two young girls. And I could never imagine myself to be in a situation that would send my young kids unaccompanied, put them in the hands of [speaking foreign language]. And we heard stories of what happened to those young kids. But young kids, young boys and girls are sent. It is a tragedy. But what are you all doing to address the issue? And how are you all handling that particular situation basically to, I guess in many ways to relieve your law enforcement from doing that work? I mean, it has got to be addressed. But what are your thoughts on that? Mr. Homan. Well the unaccompanied alien children, we call them UACs, issue is continuing to grow and it is at an all time high. And it is causing an effect on my operations. What have we done with the issue? First of all, you know, I know there has been a lot of questions. Should we legally be doing this? Are we committing some sort of criminal conspiracy? And the answer is no. One has got to review the Homeland Security Act of 2002 and the Trafficking Victims Protection Act of 2008, and that does several things. Number one, it took the care and custody responsibility for these UACs, they took it from legacy INS and gave it to Health and Human Services Office of Refugee Resettlement. Also it made it clear that ICE is required within 72 hours to turn these UACs over to ORR. Also if you read the appropriations language, we are appropriated transport aliens and it specifically delineates funds to be used for the transportation of the UACs. So we are doing what we have to do within the statute, within the law. And it is tying up law enforcement officers to do those escorts. And do I think there is a better, there is more mission critical work that my law enforcement officers can do? Absolutely. Do my officers not like this type of work? Many of them do not. Because it, but right now according to statute, according to policy, according to the appropriations, this is work we must do. What we have done to decrease this, our involvement in this, is we work with Health and Human Services and they have opened up almost 2,000 more beds in Texas. That saves us money from transporting these juveniles across the country. We have also, HSI is, my counterpart on the other side of the table, they have initiated investigations into these organizations that smuggle UACs. You know, it is an unfortunate, and I was down in the Rio Grande Valley myself, it's a sad situation and we are out there dealing with it. Most recently what we are doing, because I think that my law enforcement officers need to be assigned to more mission critical law enforcement duties, is we just sent a request for information out try to contract some of this work out so it does not tie up my law enforcement officers. Mr. Cuellar. Well thank you so much. I have more questions but we will wait until the second round. Thank you so much, Mr. Chairman. Thank you. Mr. Dent. The chair recognizes the gentleman from Texas, Mr. Culberson. Mr. Culberson. Thank you very much, Mr. Chairman. One of the most critical things the committee has to do is have good data in order for us to make the decisions we have to make on allocation of these very precious resources, our taxpayers' hard earned tax dollars. And I wanted to ask if I could, could you tell us how many people are on the non-detained docket? Mr. Ragsdale. So again, we would sort of defer to the Executive Office for Immigration Review for the precise numbers. I think it is somewhere around 360,000-some. But EOIR in their statistical yearbook is the, sort of the repository of that data, the official number. Mr. Culberson. I am sorry, how many? Mr. Ragsdale. It is a little over 360,000. Mr. Culberson. And that is on the non-detained docket? Mr. Ragsdale. And I am doing this from memory---- Mr. Culberson. Yes, sure. Just ball park. Mr. Ragsdale [continuing]. So what I will say is let us, I think it is somewhere around that number. Or that, actually that could be the number they completed last year. So I think it is probably better to get that number from EOIR and we will provide that to you. Mr. Culberson. The best number my staff was able to find on the non-detained docket was estimated to be about 1.8 million folks that have been given essentially a notice to appear. If you have been, if you are encountered within 25 miles of the border of course you are the responsibility of the Border Patrol. And if you are encountered inside the country you are the responsibility of ICE. And those folks that have been picked up inside the country or have been detained by some other law enforcement agency and brought to your attention, those that have been given a notice to appear, the best numbers my staff was able to find are about 1.8 million who are on the non-detained docket, those that have been given a notice to appear at some point in the future. You would not disagree with that? Mr. Ragsdale [continuing]. I will give you that number. I do not think that our, Mr. Homan, do you know that number off the top of your head? Mr. Homan. I think that is a close estimate. Mr. Culberson. But 1.8? Mr. Homan. Yes, sir. Mr. Culberson. Yes, the 1.8---- Mr. Homan. I have seen 1.6 and 1.8. But again we would have to---- Mr. Culberson. Yes, ball park. Because the point is, those who are in alternatives to detention the number is about 25,000 according to the best numbers that we can find. Mr. Ragsdale. Right. And that does ebb and flow---- Mr. Culberson. They ebb and flow. Mr. Ragsdale [continuing]. Yes. Mr. Culberson. But again, if you are looking at a population of approximately 1.8 million people who have a notice to appear, but only 25,000 are in an alternative to detention, that represents about 1.4 percent are on the alternative to detention. So that is basically somebody who has been given a notice to appear and they actually showed up. I remember going with, truly Henry is one of my best friends in the world, Henry Cuellar. Remember, Henry, we were down in Laredo and the officers were telling us that the smugglers would come across the border and actually look for an officer and, do you remember that? They called them a permisso slip. And they, I want you to find the officer and say, you know, I need my permisso slip for all my guys here. And they would hand out the notice to appear. And I guess as far as I could tell, a lot of those folks just make up a name. I would, too. And hand him the permisso and those boys, they were gone, never to be seen again. Mr. Ragsdale. Well I think we---- Mr. Culberson. That is basically right, remember that, Henry? Mr. Ragsdale. Well there is some progress that has been made here. The expansion of expedited removal does allow Customer and Border Protection Officers and Border Patrol Agents to order folks removed on their own, never seeing an immigration judge. So in once sense, I mean from 2007 on, that number has decreased. Mr. Culberson. But to this, if we are looking at still about only 1.4 percent, 25,000 are in alternatives to detention. I always wondered what was wrong with those 25,000 that actually show up, you know? Can you imagine the guys that, I mean---- Mr. Ragsdale. Well---- Mr. Culberson [continuing]. Would show up voluntarily to be deported, or to be given an alternative to detention. Mr. Ragsdale. If I---- Mr. Culberson. The system is just, like Judge Carter said, badly overwhelmed. And we are all on this committee committed, we understand there is an absolute catastrophe, humanitarian catastrophe on the border. And again, my good friend Henry Cuellar and I, who served, we served together in the Texas House since '86, and Henry and I spent a lot of time together, I spent a lot of time in his district. And it will just break your heart to see these families. I mean, Nuevo Laredo had to be evacuated. I mean it is still like a ghost town, isn't it, Henry? Who wants to live down there? You cannot survive. And your heart goes out to these folks and their families. Any of us would do anything you can to help your kids get out of a situation like that. But I think Judge Carter really nailed it on the head. You know, what we have really got to focus on, and I know, I know that you, each of you are law enforcement officers and you are committed to, you know, take an oath to, preserve and protect the Constitution, and enforce the laws of the United States. I noticed Mr. Homan that you started out as a police officer in New York. And it is of deep concern to all of us. Because no matter where you live in the country you expect the law enforcement officers and the criminal, and again the law enforcement system to protect lives and property. And the folks that Henry represents on the border have tremendous, they support overwhelmingly to enforce the law. It is just a matter of public safety, safe streets, good schools, a good economy, Laredo being the largest inland port in the United States. And the reason I keep looking at Henry is really we are dear, good friends. But I mean, this is an area where we really have strong agreement. That if you just enforce the law as it is written you are protecting the community, you are strengthening the economy, you are making sure kids can play in your front yard, and to us, the Homeland Security Committee, it is our responsibility as appropriators to be sure that the law as it is written is being enforced. And this is a big worry. If you have got that many people on the non-detention docket, 1.6 to 1.8 million, the law is not being enforced. Whether there is improvement or not, you have still got essentially only, what is that? 98.6 percent of the people that are picked up are given a notice to appear and they just vanish. Mr. Ragsdale. Right. The only thing I would just, just to make clear is the responsibility for managing the non-detained docket is the Department of Justice. That is beyond our control. We are a customer of that process. Mr. Culberson. I know. That is my other subcommittee, Commerce, Justice, Science. So I am helping to get ammunition for that hearing which I look forward to with Attorney General Holder. Mr. Ragsdale. Thank you, sir. Mr. Culberson. I recognize that. You guys are the ones in the street doing the best you can to enforce the law. I understand. And we also did give the committee, if I--wow, five minutes goes fast. I will be back. I will be back. Thank you. Mr. Dent. At this time I would like to recognize Ms. Roybal-Allard for five minutes. Ms. Roybal-Allard. Thank you very much, Mr. Chairman. I apologize for being late but I have another hearing happening at the same time. First of all, just going back to the questioning that we just heard, is it true also that the success rate of alternatives to detention is over 90 percent? Mr. Ragsdale. So it is again a blended number in the sense that folks do not always stay. It is not an intact number in the sense that someone could be detained, they could be placed on alternative detention, they could come off the alternative detention, and back on it. So it is also not, it is a blended number year to year. So what we really need to do is make sure that the folks that present a risk of flight are either detained or in an alternative to detention. And folks where we can actually get it, when there is a decision from an immigration judge and they need to surrender to be removed, those folks are either detained or in an alternative detention. But as we sort of had the conversation to the extent that folks that are still waiting for an immigration to make a decision that may take several years, having them on even a very inexpensive form of alternative detention is not cost effective. Ms. Roybal-Allard. From 2007 to 2011, nearly 200 women reported suffering sexual abuse while in ICE custody. And Secretary Johnson, as you know, has finalized new regulations to reduce sexual abuse against immigrant detainees. This is a very welcome thing and is a very critical first step towards protecting immigrant women in detention. But the key to the success will actually be its implementation. And this will be especially challenging since approximately 50 percent of detained immigrants are kept in jails and prisons that contract with DHS. So my question is that given the fact that so much is contracted out, I would like to know what plans are being made to ensure that not only in the DHS facilities but also in the contracted facilities that hold immigration detainees are, what are the efforts that are being made to inform and to implement and to train folks on these new regulations and procedures? Mr. Ragsdale. So we have obviously a cross sort of office team at ICE to implement the Prison Rape Elimination Act regulations. Our Office of Detention Policy and Planning, and Office of Detention Oversight will obviously work with our enforcement and removal operations. Our detention service managers, our contracting officers are all on notice to make sure that folks we do business with adhere to our standards. Ms. Roybal-Allard. But is some kind of a training, I mean, what, actually how are you making sure that this is being implemented and actually happening so that both with DHS and the contract facilities they know exactly what they are supposed to do? Is there some kind of a training? Or is it right now just kind of oversight and hoping that everybody does what they are supposed to do? Mr. Ragsdale. So the regulation is effective 60 days from the release, and obviously we will work with our folks through a blended approach, including some training, to make sure they meet our standards. But in most circumstances, you know, it is a requirement for them to meet our standards. Ms. Roybal-Allard. Okay. And---- Mr. Ragsdale. I am sure Mr. Homan agrees. Mr. Homan. Yes, our Office of Detention Planning and Policy, which is run by Kevin Landy, this is one of his biggest priorities right now, to roll out that training, and to, right now our first priorities are SPCs, our large dedicated contract facility which holds most of our detainees. But that training and implementation is beginning. Ms. Roybal-Allard. Okay, great. ICE issued new detention standards in 2011 in order to improve safety and security conditions of confinement for detainees. However, three years later these standards have yet to be implemented at many of the approximately 250 facilities where ICE holds immigrants. This raises concerns about still inadequate medical care, insufficient hygiene supplies, limited contact visits with family, limited outdoor recreation, and verbal abuse by jail personnel in many facilities. What are your plans to fully implement the 2011 standards in all of the facilities used by ICE and the contract facilities, and what is the timeline to do that? Mr. Ragsdale. So we have obviously, what we have done is sort of covered our largest detention centers first. Our SPCs, our dedicated contract facilities, and we have sort of gone in descending order. Sort of the next traunch, as we have sort of done it on sort of an average daily population, I think that number is around 200? I am looking at Mr. Homan because I am not sure of the precise number but I think that it is around 200. So we are focusing the next sort of traunch of implementation on folks that have, you know, they are actually regularly doing business with us. There are some of that number you just described that may have one or two folks over some, you know, intermittent period of time. As we go into negotiations with our providers there are some folks that can meet our standards rather easily. In fact, at almost little to no cost. There are other folks just for brick and mortar reasons will have to make some changes that are going to cost some money. So what I have actually asked our Chief Financial Officer working with our ERO folks is to give me sort of an execution plan so we know sort of, you know, what our costs are now, what our costs would be if we need per diem rates to meet this increased cost, and then we will see as we attack down that list to make sure those standards get implemented. Ms. Roybal-Allard. Is my time up? Okay. Mr. Dent. At this time I would like to recognize the member from Tennessee, Mr. Fleischmann, for five minutes. Mr. Fleischmann. Thank you, Mr. Chairman. Good morning, gentlemen. I apologize for my late arrival. I was at another subcommittee hearing down the hall. I am sure there has been some discussion about the issues of detention beds so I will not go into too much detail about the statutorily mandated level of 34,000 beds. I would like to follow up on a discussion we had when your agency testified before this subcommittee last year regarding cost comparisons between detention and alternatives to detention. The proposed budget makes a noticeable shift toward the latter of these in the name of cost effectiveness. Last year we were told that the average cost per day of alien detention was roughly $120, whereas alternatives to detention, ATDs, purportedly cost much less per day. However, the average length of stay for individuals in detention is much shorter than the average time individuals spend on the non-detained docket, a matter of days or weeks compared to a matter of years. The extreme difference in processing times translates to much higher total cost per individual for the use of ATDs compared to the cost of detention by the numbers provided last year. Mr. Homan, we had a three-part question, sir. Can you provide with, first, the current average processing times for individuals in detention and for individuals on the non- detained docket? Second, the average per day cost for ATDs, which you plan to expand the use of? And third, your estimate of the cost of reapprehending individuals who have disappeared while on the non-detained docket? Thank you, sir. Mr. Homan. All of these answers are, they are hard. I mean, the average processing time for somebody, whether in detention or ATD, it depends on the specific case. It depends on if they, how quick they get in front of a judge. It depends on if they appeal to the Board of Immigration Appeals, the second layer of immigration proceedings, or if they even appeal the case to the appellate court, I mean to the district courts. So it depends on the specific case and how complicated those cases are. So some of them can be in detention for a long time. It depends how quick we can get a travel document to return that person to their homeland. An ATD docket, the same thing. It depends on how quick they get in front of a judge. In some areas of the country they may see a judge within 18 months. In some areas of the country it could be three, four, five years. So it is really a hard question to answer. What I can say is the average cost of a detention bed right now is $119.86. ATD, a blended cost is around $11 a day. So at some point, which we figure is a little over 300 days, that ATD becomes less effective. Because once you get over that 300, get to 400 days, then that cost of ATD does not equate to the same as they would have got if they would have been in detention. So that is a hard question to answer because there are so many variables, so many factors involved in this. I think the overarching, what we are trying to do is put the right people in those beds. And it is a community safety issue, as Mr. Ragsdale says, a flight issue. And we have got a limited number of beds, put the right people in those beds. People who are not a danger to the community, do not have the criminal history, and have, you know, maybe have U.S. citizen children, maybe they have been long time residents here. They would be served better on the non-detained docket on some form of ATD. Mr. Fleischmann. Okay. How about the third part of that, of reapprehending individuals, the cost? Mr. Homan. Again, there are so many factors involved. I can tell you it costs a lot more to seek, identify an alien in the public than it does to have that alien in detention. I mean, the same as I testified earlier, if we can get an alien in the jail, that is a lot cheaper than having the fugitive operations team spend weeks, maybe months looking for the individual in the general public. Mr. Fleischmann. Thank you, Mr. Chairman. I yield back. Mr. Carter [presiding]. Thank you, Mr. Fleischmann. Mr. Edge, Agent Edge, we have been giving you a rest here. But let me start first by saying I understand ICE played a considerable role in assisting the Mexican police in bringing down the world's most notorious drug lord, Joaquin ``El Chapo'' Guzman. Before I ask you some questions I want to congratulate you on your participation in that effective law enforcement activity. We are grateful for the men and women in your force that assisted in that. This is a very, very bad guy. I hope we can hold on to him. He escaped once before. I would like to see him in an American prison. But I am hoping that our Mexican allies will do a good job of sitting on this guy. Give us a brief sketch of what your participation was in that operation. Mr. Edge. Well, given the nature of the investigation and ongoing prosecution, I would prefer, sir, if we could do that under another---- Mr. Carter. A secure situation? Okay, that is fair. But I know we are all aware that you were actively involved in that. And we commend you and the Mexican authorities for that take down. It is very good. Mr. Edge. Thank you very much. We are very proud of our agents who participated in that investigation. Mr. Carter. Now let us talk about the matter at hand, the budget request. The funds included in the fiscal year 2015 request, can you maintain the same level of effort as you did last year? Can you maintain an effective and healthy rotation for your existing investigative teams? What are your plans for hiring staff with the additional funds provided by Congress in 2014? How many agents and support staff will ICE be able to bring on board with the additional funding from Congress in 2014? And can we expect to see an increase in investigative staffing or will funds be used only to backfill attrition? I'll stop there. Mr. Edge. Certainly. Thank you very much for the opportunity to answer that question. We had a record year as far as investigative hours, well over a couple of hundred thousand hours that we have been able to affect our border security responsibility. And we also will find ourselves with this year's budget being able to hire at least 24 special agents. We also hope to be able to backfill some positions due to attrition. Now the challenge for us will be to sustain those positions in the out years. But working with the Department of Homeland Security as well as your subcommittee we look forward to making sure that we will be able to continue some growth down the road. Over the past couple of years we have had to watch our pennies, so to speak, and have done a good job of that in preparing for, you know, leaner years. As the ranking member indicated, this is an era of limited resources. And we certainly recognize that at HSI and have done our due diligence to make sure that we are going to be in a good place moving forward. Mr. Carter. So we can get a picture of what your needs are, describe for us the template you followed for manning an investigative team? What are some of the support functions critical to an investigator who has to develop a water tight case? Compare HSI's template to the FBI, the DEA. And do you believe investigative hours are lost because agents are conducting administrative functions? Mr. Edge. Well certainly with our more than 6,000 special agents we would want all of those agents to conduct long term transnational border related investigative work. Unfortunately we do have a cadre of agents that do conduct administrative tasks but those tasks are necessary for us to move forward as an organization. We have numerous positions, for example, intelligence analysts. Right now our ratio is 15 to one. The ideal ratio would be nine to one for us. We require technical enforcement officers to assist us in our investigative work. And right now we have, we would like to get to a ratio of 50 to one. So we are definitely, we recognize that it is great to have special agents but it is also important for us to be able to hire those with other expertise. Mr. Carter. Well and your whole goal is to make your case solid and strong. And these investigative people, these associates that help you with these various templates are important to this overall picture of making your case to go to trial. We all watch the television and see what these support personnel do to help make the case. Mr. Edge. Absolutely. I mean, as you are well aware there is more to an investigative effort than just one case agent working the case. Mr. Carter. And your goal and my goal and our goal is to make sure that every special agent has all the tools he needs to be the most effective special agent he or she can be. Mr. Edge. Absolutely. And analyzing that information is also important, too. That is why the---- Mr. Carter. Well that 50 to one ratio, and those ratios are important for us to know so that as we look at support personnel and so forth and make funding decisions we can try to come up with solutions to make sure that every special investigator is able to have the support necessary to make a very effective case. And that is why I ask these questions. How many more investigative hours would be possible if you had more adequate support staff? Mr. Edge. Well certainly if we had more adequate support staff we could increase our hours. We had a record number of hours this year and we certainly could better able, be in a better place to increase our hours in the future. Mr. Carter. And as I have told you when we have met before in my office, I think ICE does a heck of a job. They do a heck of a job with what they have got. And we want to reinforce it. Both David and I want to reinforce this effort so knowing what support staff you need, that kind of information is important to us. And I thank you for that. Mr. Ragsdale. Sir, if I may just add, one of the other things they have done sort of very well, it is not simply just about the volume of investigative hours, it is really driven by outcomes as we look at dismantling transnational criminal organizations as opposed to simply lower level cases. HSI has done a very good job in terms of prioritizing that work, and we would also like to share that with the committee in terms of, you know, bigger cases have bigger outcomes with bigger impacts on law enforcement. Mr. Carter. Certainly. And we appreciate that. Mr. Price. Thank you, Mr. Chairman. Mr. Ragsdale, I just want to take another minute with this case we were talking about and then turn to other matters. But I do bring up Mr. Alfredo, not because we want to revisit that case in detail but because of the light it might shine on some of these priorities that you are setting, some of the discretion that you have, some of the allegations that we hear about how enforcement authority is being exercised. I really think it is important for us and the American public to have a better understanding. Mr. Alfredo, I believe, fell under your priority three, according to the information I have, a very low priority normally. And you said that. You said this is not a guy you would go after in the normal course of things. It is low within priority three. This is a previously removed alien. He was removed 15 years ago, and has not been convicted of any crime. Now I wonder if you could walk us through how this would have happened, or how this seems to have happened? I would wonder why as a passenger in a car when the driver was pulled over for an infraction, why Mr. Alfredo would have been booked in the first place. But he was. And supposedly information was obtained on him that would have revealed this removal 15 years ago. At that point, what discretion does ICE have? Would ICE at that point have made the decision to detain or not to detain? How is that decision related to the decision to prosecute or not prosecute by the judicial officials? To repeat the question I posed a while ago, how would it happen that a passenger in a vehicle would have ended up where he has ended up? Mr. Ragsdale. So a couple of things. First of all, you know, every state and local law officer who stops a car by the side of the road, we want that officer to have as much information about who is in the vehicle, you never know who you are going to run up against. So that is obviously, you know, a question of identification documents. And then also by statute ICE is required to respond to inquiries from state and local officers, we use the LASC in Vermont to respond, and that can be done by phone, by radio, as well as there is an automated way to make those queries. So by statute we are required to respond to those inquiries. So, you know, once that gentleman's immigration history was made apparent either ICE or Customs and Border Protection, it would be a Border Patrol Agent, it could be someone from field operations, could also sort of bring, you know, get an Assistant United States Attorney on the phone to present that case for prosecution. Under the facts as you have described them, and again I do not know the precise facts of that case, but someone who has been ordered removed and has reentered the United States subsequent to being removed without the permission of the Attorney General or the Secretary is amenable for prosecution for a federal felony. Now---- Mr. Price. Well he could be prosecuted. Mr. Ragsdale. As I said---- Mr. Price. You established that. Obviously that is true. But it begs the question, doesn't it, of what kind of discretion you have. Whether you were compelled in this case to move forward? Mr. Ragsdale. Right. And again, since I am not familiar with the facts of the case---- Mr. Price. Well---- Mr. Ragsdale [continuing]. Don't know if it was an ICE case or a CBP case. But I will just tell you that, you know, I think that is one of the things that we, as we enter the, sort of the immigration debate is, you know, when we find folks that have, you know, been removed, been warned, you know, by an immigration judge not to reenter the United States, and then we find them again, for I think folks both from ERO, HSI, and I will say at CBP, that is not always the most easy thing to walk away from. Mr. Price. I am aware that it is not. And we will leave it at that. We may want to make sure we understand the details of this particular case for the light that it might shed on these broader issues. But surely something is amiss when a man, assuming that facts that we have are correct, is separated from his family, and shipped out of the country. That certainly is not what the kind of guidelines that you have been working with envisioned. Yes, sir. Mr. Homan. Sir, if I can address our prioritization. First of all, I did start my law enforcement career as a police officer. And there are times when depending on the circumstances you want to know everybody in that vehicle. It is an officer safety issue. But talking about prioritization, what ICE does, I have been in this game for over 30 years. You know, I have seen the entire life cycle of illegal immigration. I started out in the Border Patrol on the front line. I became a special agent investigating alien smuggling organizations, and traffic vendors. Now I am on the end of the game, I am on the detention and removal game. So I understand immigration enforcement. And I also understand the need for prosecutorial discretion and clear priorities. You know, we must operate, ICE must operate and execute a mission within a framework provided to me, whether that is policies, resources, money, whatever. Prioritization is important in what we do. And my officers out in the field, my agents out in the field who enforce these laws are doing almost a perfect job in executing the mission that was given to them. Last year, if you look at our removal numbers as Mr. Ragsdale testified earlier, 98 percent of the people we removed fell into one of the priority buckets. That is almost perfect execution within the framework provided for us. So there is a need for prosecutorial discretion. I have been a law enforcement officer for 30 years and we cannot arrest everybody, we cannot prosecute everybody, we cannot remove everybody. It only makes sense. And two years ago we had a record year, 409,000 removals. If you put that in contrast with 11 million or 12 million illegal aliens in this country, we have shown hitting on all cylinders, working within the framework provided for us, given the resources we have gotten, we are touching less than four percent of those people. It is my opinion those four percent need to count. Should it be the first 400,000 in the door, first 400,000 we encounter? I think it would be the first 400,000 that affects community safety. So prioritization when it comes to criminal aliens, fugitive reentries, and recent border incidents with Border Patrol, that is where we need to focus our prioritization. So me, I know that is not popular amongst many people. And my old boss had a favorite saying that 50 percent of the population do not like what we do 100 percent of the time. But I think the prioritization we do makes sense. I think it is the way we have got to do business. And I think we are very successful working within the framework that we are working within. Mr. Price. Well I appreciate that statement. And believe me, that has been a theme of this subcommittee for years. That there need to be priorities set in immigration enforcement. That we need to focus on the dangerous people, the people who are a threat to the community who need to be out of this country. And you know, we have had sometimes trouble on the House floor convincing our colleagues of the legitimacy of this. But as a matter of fact it is basic. And any prosecutor in the country is going to exercise their discretion, and certainly ICE needs to exercise discretion. So to the extent we are focusing more and more sharply and more and more effectively on the people who really pose that kind of threat and who need to be targeted, then that is exactly the job I think you are called on to do. The question I am raising today I suppose is a subset of that: how tight, how effective is this targeting? And are there ways in which some of these anomalous cases are being pursued that really should not be? But my intent here is to underscore the importance of discretion and of targeting, certainly not the contrary. Mr. Homan. Well I would say that 98 percent falling into priority buckets is almost perfect execution. I would say for those cases that come up where they may be a priority apprehension, we take a case by case consideration. The field officers have that authority. If you have U.S. citizen kids, you have health issues, if you have a U.S. citizen child serving in the U.S. military, these are all factors that come into consideration on prosecutory discretion. Mr. Price. And they most certainly should come into consideration. Mr. Chairman, do I have any more time to shift to another topic? Or should I wait until the next round? I'm out, all right. I will hang around. Thank you. Mr. Carter. Mr. Culberson. Mr. Culberson. Director Homan, if I could follow up on your point? I thought I heard you say, and I want to make sure I understood, that you only touch about four percent of the entire population of folks that are here---- Mr. Homan. If you believe the estimate there is 11 or 12 million illegal aliens in this country and we on our best year removed 409,000. We are removing a little less than four percent of the reported illegal alien population. Mr. Culberson. Okay. When you say removal, essentially these are folks that are deported, taken out of the country? Mr. Homan. Yes, sir. Mr. Culberson. And do you include in those numbers of deportations, the 400,000 that you are referring to, you are counting, as we learned, as I learned yesterday from the Secretary of Homeland Security, you are counting among those folks border patrol turn backs and turn arounds? Mr. Homan. Well---- Mr. Culberson. That is part of the 400,000 that you are counting? President Obama said so publicly, and then yesterday the Secretary of Homeland Security confirmed that within that 400,000 are included individuals who have been stopped by the Border Patrol and then they are immediately put back across the border? Mr. Homan. There is not a yes or no to that question. Let me explain something. Back in 1984, I became a Border Patrol agent. I told the president, we have always claimed removal for somebody that was arrested by the Border Patrol, that if we transported, detail, provided medical services, put them in front of the immigration judge and removed. What you are speaking about, sir, is what they call the alien--it is called ATEP program, that we worked with the Border Patrol on and I think it was good border enforcement strategy. What we were doing with the Border Patrol under the ATEP, Alien Transfer Exit Program, was that aliens that were arrested in Texas, we would take custody of those aliens, we would detain them and remove them to another state---- Mr. Culberson. Sure. Mr. Homan [continuing]. Separating that alien from the smuggling organization. Mr. Culberson. Yeah. They are turned around, sent back across the border. But I mean you are--that 400,000---- Mr. Homan. We detained them---- Mr. Culberson. Yes, sir. Mr. Homan [continuing]. And we remove them. So we have always claimed those arrests. Mr. Culberson. Those that are removed and put back across the border in a completely different sector? Mr. Homan. Yes, sir. Mr. Culberson. But I understand from the secretary, yesterday in the numbers that we have seen, that you are counting among that 400,000, folks that are the put back across the--they are basically picked up by a Border Patrol agent at the border and returned to the other side of the border within that sector as well. Does that 400,000 include any of those? Mr. Homan. No, sir. As a matter of fact---- Mr. Culberson. They have to be--the 400,000---- Mr. Homan. Yeah, we suspended the ATEP program, flying these aliens to other states and separating them from their organizations, because we needed to use those airframes to increase Central American removals in Rio Grande Valley. We are still assisting the Border Patrol in moving the aliens from one sector to another. We do not claim those removals because we haven't detained them. We haven't transported them by airframe. So as that program remains, removing them from one sector to another--we do not claim those removals because we are not expending a mass amount of resources to do that work. Mr. Culberson. Okay. So the 400,000 then, those folks are actually being---- Mr. Homan. The 409,000, approximately 54,000 of those were in the ATEP program where we took custody by somebody arrested by the Border Patrol. We detained them in one of our beds. We used our transportation assets either a day or two later to remove them to another state. My resources--my money, yes, those removals---- Mr. Culberson. So they, then, could be put back across the border? Mr. Homan. Yes, sir. Mr. Culberson. Okay. If I could also, very quickly, ask about--because, obviously, you want to make sure that you are focusing on the right four percent, doing your best to handle the ones that are the most dangerous, I want to turn to something that you said in response to Chairman Carter's question on levels one and two, dealing with individuals who are convicted of a State criminal offense, they are here in the country illegally, and they serve their sentence. How many, if you could, again, just ballpark--and we will submit these for the record, as well, so you can give us a more precise number--I understood you to say that essentially those who are in level one or two category, what happens to those? I thought I understood you to say that levels one--these are jurisdictions honoring ICE detainers. In those jurisdictions which honor ICE detainers--that are not honoring ICE detainers, excuse me, what happens to those level one or two, how many are there and what happens to them? Mr. Homan. I don't have those numbers available. We just started tracking, electronically tracking that. What we do for those counties that don't honor detainers, for those jurisdictions, we still send a detainer. Once we realize they have an alien in custody that is removable that has been convicted of a crime, we will still send a detainer. They may not honor them, but we are going to continue sending detainers so we can track what they are responding to and what they are not responding to. Once they hit the streets--we find out they hit the streets because they did not honor the detainer, they released them without us there--I have to assign a fugitive operations team or a criminal alien program team to go look for them, which I testified earlier, presents an increase in officer safety threat---- Mr. Culberson. Sure. Mr. Homan [continuing]. Because once they leave the facility, I am looking for them on the streets. Mr. Culberson. Yeah, for all of us as the public. And you said, I think it was 22 jurisdictions, approximately? Mr. Homan. Last count I believe it was 22 jurisdictions. We are actually tracking that. We can get back to you with what we know. Some jurisdictions don't honor detainers at all, others limit what they do honor. Mr. Culberson. But in those jurisdictions that don't honor them, levels one and two are just essentially walking? Mr. Homan. They are walking until we go out and look for them and try to find them. Mr. Culberson. And, of course, that is what the Secure Communities initiative was designed to stop because it is a real concern to all of us that these are folks who have committed a violent crime of some sort or another. They have obviously been deemed by the State, and a judge like Judge Carter and a jury, dangerous enough to lock them up and they are just gone. What, in your opinion, sir, do we need to do to help you in that effort? Mr. Homan. Secure Communities was a great tool because it gives us a virtual presence in over 4,000 jails where I don't have the resources to have people there. But I can tell you in more and more counties that choose to not honor our detainers takes that efficiency away from us, takes that leverage away from us. I would like to see our detainers honored, of course. I mean if we have technology, we have a virtual presence, we can identify who these people are, I would much rather my law enforcement officers arrest these people in a safe setting than be out in the streets looking for them, especially for the ones that have a significant public safety threat conviction. Mr. Culberson. Thank you, sir. Mr. Chairman. Mr. Carter. Mr. Cuellar. Mr. Cuellar. Thank you, Mr. Chairman. One statement and two questions: The first statement is I would ask you all to ask at this last omnibus bill that we passed, appropriation bill. There is a provision that we added that says that every agency now for the first time, as they make their budget requests, the funding request to Congress, in consultation with the GAO, that they have to tie in for the first time the request to the performance measures, so that way we know that if we give you one dollar, that we are getting a bang for that one dollar that we give you. I saw your performance measures, the ones that you have up there in performance.gov--it is part of the overall Homeland-- and some of them are good, but some of them need to be worked out, because, as you know, we should look at what is your mission? What are your goals and objectives? And what are the measures that we should look at to see if we are measuring results? So I would ask you all to go back and anytime you want to send anybody, we will send out with you. Mr. Ragsdale. Sure, sir. And we--the Department gets to submit the second quadrennial Homeland Security review, we have done quite a bit of work, particularly in HSI, to redo our performance measures more on outcomes, and as well with ERO, focusing on sort of not just the process and measures of process, but actual outcomes. Mr. Cuellar. You are the first one to set that and I appreciate that because we ought to be measuring outcomes and not activity, but the results, so thank you for doing that. My first question is: How much money does ICE get for the ATD, the Alternative to Detention program, and have you used all of the money from this last appropriations? Mr. Ragsdale. It was approximately--so I don't have to guess---- Mr. Cuellar. Because I think you all are asking for an additional $2.6 million. Mr. Ragsdale. It was $94 million. I think the increase for 2015 is a little over $2 million. Mr. Cuellar. Okay. Have you all used all of it? Mr. Ragsdale. It ebbs and flows, just like our detention spending. You know, one of the things that we are doing in the Alternative to Detention program---- Mr. Cuellar. But how can it be ebb and flow if you can't detain--I think you said you need probably a hundred thousand beds--we are at 34--so there is a big difference between that. I mean you can use the monitors and a whole bunch of people with that up and down. Mr. Ragsdale. Sir, the important thing to note in there is until we can make--in other words, an immigration judge makes a decision--in other words, once a person is in removal proceedings, ICE cannot make a decision to remove them, right; we have to wait for the judge. So if someone gets a court hearing on one day and the date is far, far away, you know, even something as an Alternative to Detention that has a unit cost that is very long, if you keep them on that too long, it also sort of--well, should I say it doesn't help our execution. We are just sort of not using our resources efficiently. So what we try and do is as people go through that process, take them in and out of the ATD program depending on sort of a recalculation of flight risk. Someone may be more likely to appear when they get an interim decision, as opposed to a final decision. So Tom's folks, you know, take a look at that as the case is processed. Mr. Cuellar. I understand, and the detention beds that we have, we have to put the more that would cause more risk to the public, I understand that, but I would ask you to try to use the alternatives as much as possible. The third question is more of a curiosity. I support comprehensive immigration reform. I support the right to protest. I support all of those concepts and ideas, but I have curiosity--something happened last year in my district. You have folks who are here and they purposely--I don't think all of them were DREAMers--but purposely, they went across the river and by coincidence--and I said ``by coincidence'' because they told me it was by coincidence--they came in across--they went to the Laredo Bridge. Even one of them took a snapshot of Gene Garza, he used to be there, and they all claim credible fear, okay? It was a--and by the way, they were there with their attorneys and they were being led ironically by--the organizer was an Iranian under an asylum thing, I believe. They went from the bridge, the ones that were able to get out, they went straight to my congressional office to protest and they did a sit-in. I talked to them on a videoconference, and no matter what I said, they were there on a purpose. They were on a mission and they kept asking, are you going to arrest us? Arrest us. Arrest us. Arrest us. I, they wanted to be arrested on that. And I know that was a planned organization, a planned protest, but I just find it odd that somebody can purposely cross--cross the bridge; have attorneys waiting for them; claim the credible fear--some were sent up to El Paso, but the ones came straight to a congressional office to protest and disrupt. They were there for a couple of days and they went up to San Antonio and they barged in. They hide in bathrooms and they snuck in through security and they got into my office again. I just find it interesting that somebody who is not here with the riot board--and I support all of this, I understand what they were trying to do--but I just find it curious that they can go straight--claim credible fear--and end up in a congressional office and--I just--any thoughts on that? I guess it is more of a question--it is more of a thoughts. I just thought it was--and they did that to a republican member in Arizona--I am trying to remember who it was. And I am sure they are going to do more of it again. I know yesterday there were several of them in McCarthy's office who were different. You know, I am talking about crossing the bridge and all that, but any thoughts on that? Mr. Ragsdale. So, generally speaking, obviously someone who has no status in the United States is making an application for admission has no valid Visa, is not permitted to enter the United States, then CBP would detain that person. If they find a credible fear, that person is subject to management or detention until Citizenship and Immigration Services makes a decision. For the other gentleman you described, somebody who was already found to be an asylee, that person---- Mr. Cuellar. No, I am talking about the ones that--the people from Mexico that claimed to be DREAMers that actually-- they went through the paperwork--one of them snapped a picture of them there getting with their attorneys and Gene Garza and they ended up in my office, not only in Laredo, but in San Antonio, and one of them is a Federal building; they were able to sneak in there. I just find it--and I support full immigration; I support DREAMers--but I just find it curious that how can somebody that does all that end up in a congressional office and disrupt and for two days they were, literally, disrupting. Mr. Ragsdale. Well, I don't know of the precise facts. I would agree, though, they shouldn't. Mr. Cuellar. Well, anyway, just a thought. Members, if you ever get one of those, call me up, I will tell you what to do. (Laughter) Mr. Carter. That is real--Mr. Cuellar, arrest them and put them in jail. Mr. Cuellar. Well, they--I won't say what they put on blogs-- but they are a very sophisticated group of folks, the organizers. Mr. Carter. They are also disrupting Federal offices and insubordination shouldn't be tolerated. Mr. Cuellar. And I am sorry, and I asked--and I support their right to protest, but I asked them, well, if they get arrested, will they be sent back? You know, it was a thought, but they said it was--it would not be considered. You all would not consider it a--such a violation that they would be sent off, they would just basically--in talking to some of your ICE folks that I talked to, they said that even if they got arrested--because they wanted to be arrested to do immediate publicity, but ICE told me, folks that I talked to, you know, even if we arrest them, nothing is going to happen to them. They will just stay here in the U.S. Mr. Ragsdale. There is challenge on that. It takes more people to make those decisions. Mr. Cuellar. I appreciate your thoughts. Mr. Carter. First off, a comment, Mr. Homan, a lot of these people who are not taking your detainers, they got jail problems and quite honestly, we don't reimburse them as adequately as we should from the federal level for the people that they all--on behalf of the Federal Government--and they get--having been there, they get upset about it. I don't think they dishonor your detainer for any purpose against you or agency. I understand the Visa Security Program is a valuable counterterrorism tool in ICE's frontline operations. Please describe, briefly, how the program operates; tell us how many countries the program operates in; what percentage of visas is ICE able to screen at this time; and how many visas have been refused because of the program to date. Mr. Edge. Well, currently, sir, there are 20 Visa Security Programs around the world and at each Visa Security Program that is set up, we have special agents who are actually assigned. They are working with their counterparts at the Department of State and conducting the interviews of those visa applicants. Once the applicants are interviewed, their applications and all the information that is inherent in the applications is vetted through the new IT solution called Patriot, and that resides here in the United States. The applications are fully vetted and a determination is made whether or not a visa should be granted to the applicant who is still in that foreign country. Currently, like I said, we have 20 posts and we ideally, down the road, would like to expand the program and it is going pretty well. The IT solution has made it very, very efficient for us to get all this work done before anyone even boards a plane on their way to the United States. Mr. Carter. Any idea what the cost would be to expand the program to the areas where you think you need to expand it to? Mr. Edge. Well, based on our estimates--I will give you some exact numbers--we would hope to expand it to----currently we have 20 posts. We would like to expand it to at least a total of 56 and that number, if you'll excuse me---- Mr. Ragsdale. Sir, at 1.3 per post. Mr. Edge [continuing]. 1.3 per post. And to open an additional 36 posts totaling 56 would be $72.2 million. Mr. Carter. And this whole concept is to stop the bad guys before they get here? Mr. Edge. That's correct, sir. Mr. Carter. Yeah, which makes a lot of sense. Mr. Edge. It is a valuable process, and again, the IT solution, Patriot, has made it even more efficient because people are denied visas before they even leave their country. Mr. Ragsdale. Sir, just one thing to note, that is a separate PPA, the Visa Security Program, but the automated solution that we are working with CBP and the National Targeting Center, as well as the Department of State, will allow that information to be pushed to all our attache posts. So there is obviously a blended set of an automated solution and personnel. Because of the interviews, I mean there is some work you can automate and there is some work that, obviously, has to be done by an agent in person. Mr. Carter. Yeah, but the information is shared across the board, so if they try to go from one door to the next---- Mr. Ragsdale. We have a very useful solution; that's correct. Mr. Carter [continuing). You have a way to flag them. Very good. Mr. Price. Let me just follow up quickly on that. I'm not sure I understood your answer in terms of the current budget proposal. How far along toward your goal is that likely to get you? What would it take to get there and what is the time frame? Mr. Edge. Currently, we have 20 visa security posts and the current budget calls for the expansion of $37 million to expand Patriot to all 67 HSI posts. Mr. Price. All right. So that is in the 2015 budget submission, that the money sufficient to do that is part of your proposal? Mr. Edge. If I am not mistaken, yes, sir. Mr. Price. All right. And does that include the personnel. Mr. Ragsdale. No, that is just the automated solution. Mr. Edge. That is just the automated solution for Patriot. Mr. Price. Okay. Well, that does raise the question of whether this will be operative, even given the full funding. Mr. Edge. Excuse me, if we are going to be able to deploy it to the current posts that we have, we already have personnel there, so we would be able to allocate personnel to those posts. Mr. Price. But you would eventually need additional personnel to execute this? Mr. Edge. Well, if we are going to go to the posts where we already have special agents, we would have agents already at those posts, so it would be kind of collateral duty for them. Mr. Price. Uh-huh. Mr. Ragsdale. We have a high risk list, an inventory--I think it is 57 posts. Mr. Edge. Correct. Mr. Ragsdale. Of those 57 posts, we are not at all of them; we are at approximately 20. So if we had simply gone for the full, sort of, personnel lay down, that would obviously be a gap of 37 places. That would be the $1.3 million. What we have been able to automate is some of the back-end process. So when someone goes to a Department of State consulate officer, submits a non-immigrant visa application, that visa application is automatically vetted, you know, by a targeting solution. That information, under the current IT solution, will be at least shared to the 20 visa security posts, as well as the other posts that HSI is already at. Mr. Price. All right. That is getting clearer. I think I am going to ask you, though---- Mr. Ragsdale. Certainly. Mr. Price [continuing]. To clarify for the record what you are saying here about the equipment, the personnel, the money that is in the budget proposal, and how far that would get you toward being fully deployed at the posts that you are talking about. If there is a shortfall, let us know what that is. Okay. Let me ask you about investigations. You, of course, do lots of investigations. As I said in my opening statement, this is very, very important work that is often underappreciated. You investigate across-the-border trafficking of weapons, illicit drugs, other contraband, money laundering, fraudulent trade practices, identity and benefit fraud, human trafficking, and child exploitation. But despite the importance of Homeland Security investigations, your budget doesn't necessarily reflect that, or it appears to me that it does not. The fiscal 2015 budget proposes a reduction of 336 on-board FTEs, compared to the current FTE level. Funding for domestic investigations will be cut by $27.7 million, and if you back out all the annual adjustments for things like pay inflation and rent, then it is really a cut of greater than that, something like $72 million from HSI activities or 4.3 percent off the fiscal 2014 appropriation. That $72 million, as it turns out, is precisely the amount of the increase Congress appropriated for HSI above the 2014 request to hire additional personnel to investigate things like money laundering and illegal firearms and drug trafficking and child exploitation. So that raises the obvious question, Mr. Edge or Mr. Ragsdale, am I correct in understanding that under the 2015 request, having hired these additional HSI agents in the current year, we would really run the risk of turning right around and cutting all of those net personnel gains in the next Congress? If that is true or even approximately true, I wonder if you could comment on the impacts this would have on HSI investigations. I am asking about the impact of your budget submission on your investigation capacity and how much funding would be required in fiscal 2015 to annualize the costs for all the new hires planned for the current year. Mr. Edge. Well, we certainly would have our challenges in meeting the requirements of our investigative efforts and the budget certainly is less than our levels that we have enjoyed in the past few years, so we would have to make some adjustments. We would have to work smarter. We would have to assess and prioritize extensively to determine our capabilities. And we have worked, as you are well aware, we are a border security agency; we respond to the border. Drug smuggling is a significant priority for us and it is 25 percent of our workload. It is 24 hours a day, seven days a week. So we would certainly find ourselves with fewer FTE, stretching ourselves a little bit. Mr. Price. Yes, that is what I am assuming in asking the question, but after all, this is your budget. I mean you are proposing this and I would think would have a little more precise notion, at this point, of the consequences of the request, the likely impact of the request. I think we are going to need that. Mr. Ragsdale. So, we sure didn't get that to you. I would say--to use the sort of term as before--this is, I mean, making difficult choices. You know, what the budget allows us to do is preserve our most important resource, is our people. So we would hope to--you know, with this budget proposal--maintain a new class and hire some attrition. The struggle, of course, is, and I think what we see is, complex cases that take, you know, years to complete are expensive. That is certainly one of the challenges. As we also talked about, having the adequate support structure for agents. If you look at the cost of getting a special agent on board through an academy and equipped, they are more expensive than some of the other positions that we have talked about. So, you know, we certainly have those models that we talked in terms of having adequate support personnel, but we also recognize, that, you know, this is a challenge and we are trying to, I want to say harmonize, you know, automated solutions, our most important resource, our personnel, and then general expense funding that let's us run cases and that is sort of the balance that has been struck, which is not to say it is a difficult or an ideal one. Mr. Price. Well, I do think we are going to need more information. You clearly have, from our side, a good deal of support for these functions, for these investigations. That has been mirrored in plus ups we have done in past years in terms of personnel and we don't want to see that undone. But to evaluate this, we obviously need a more precise estimate of the impact on specific investigative areas, so we will expect that from you before we write our bill. Thank you. Thank you, Mr. Chairman. Mr. Culberson [presiding]. Thank you very much, Mr. Price. There are frequent stories of individuals who are not eligible to attain some legal status at the time of their arrest--at some point afterwards they either marry a U.S. citizen or healthcare issues, U.S. citizen children after, you know, years on the non-detained docket; thereby, they are basically exempt from being removed. How many people do you believe, how many cases are there like that out there that you are aware of this? How many cases, potentially, are there out there like that? Mr. Ragsdale. I don't think I fully understand the question. Mr. Culberson. Well, that you have got folks--for example, they are not eligible at the time they are arrested. They later, however, either get married or have children; you know, once a child is born in the United States, they are a citizen. Or there is some healthcare humanitarian issue involved, so they are no longer--they are essentially exempt from being removed. Have you ever encountered that? Are you familiar with folks that fall into that category and how many are we talked about? Mr. Homan. I wouldn't say they are exempt from being removed. What I can say is the longer they are in the country, the more equities they are obviously---- Mr. Culberson. On the non-detained docket. Mr. Homan. On the non-detained docket, I can say is over a million. You know, I don't know how many have built up equities, but I think it makes sense that the longer they are in the United States, the more equities they will have, whether it is USC children, homes, jobs---- Mr. Culberson. Sure. Mr. Homan [continuing]. And so forth, but I don't have a number. Mr. Culberson. Yeah, we will submit it for the record so you can have your folks look at it. Let me also ask if you have a shortfall, for example, you know how the committee has estimated in order to fund the bed space that the law requires you to maintain of 34,000, we are calculating about $119 a day. If you run short of funds in order to detain the criminal aliens and other mandatory detainees, do you plan to submit a reprogramming request to the subcommittee if that is necessary? Mr. Ragsdale. Is this for fiscal year 2014? Mr. Culberson. Yes, sir. Mr. Ragsdale. Yeah, at this point, what we are looking at is some efficiencies to bring our execution in line with our funding. We hope to be able to end the year like we did last year at meeting that mandate. Mr. Culberson. So you are going to try to achieve the mandate simply through efficiencies? You would not ask the committee in 2014 for a reprogramming request? Mr. Ragsdale. Again, I am hopeful that we live within the means that you have already provided to us. You know, we are slightly over our target execution, but we will obviously-- there are a couple of efficiencies that we think we can find and we certainly don't want to sit here, given, you know, the dollar amount, and say we are operating perfectly. Mr. Culberson. Okay. Mr. Ragsdale. We are going to look at some lower-cost beds, some of our detainee-to-staff ratio in terms of contract guards, some of our transportation contracts. One of the big examples of having that five-year funding, recognizing as we go to contract partners who have to sort of rely on us year to year on contracts, opposed to who can contract for a longer period of time, to the extent that we lower their risks in terms of us doing business with them, we might see better pricing. Mr. Culberson. Sure. What about in 2015? Mr. Ragsdale. 2015? Mr. Culberson. In fiscal year 2015, would you anticipate submitting reprogramming requests to allow you to utilize more beds? Mr. Ragsdale. I guess I would be reluctant to speculate about what will happen that far ahead. Mr. Culberson. I understand. And as long as you are looking at efficiencies, you are going to have the president's request that he's given us for asking the Congress to allow you to reduce the number of beds to 30,359, which I don't think the committee is likely to do, but I am just interested because we would certainly be open to a reprogramming request. Mr. Homan. If I could add to what Mr. Ragsdale said about efficiencies, we have already done a lot of work in efficiencies such as the Rio Grande Valley. The apprehension rate has not dropped, but we are down to like 31,000 in the tents right now because the efficiencies we have identified in the Rio Grande Valley. We are working with the Governments of Guatemala and Honduras to get travel documents within ten days, so the ALOS, the average length of stay, we dropped from like 30 days down to like ten, so we are moving the beds over faster. When we are talking about efficiencies is doing more work like that to move the beds quicker and to get people removed quicker. As I said earlier, we got away from the air flights, ATEP program, to add more flights for those Central American countries that we got travel documents for quicker. So we turn those beds over quicker. So that is the efficiencies Mr. Ragsdale is talking about, is to continue to look at ways as to the taxpayers' money that we can identify the efficiencies. Mr. Culberson. In the Rio Grande Valley sector, though, I see from looking at the number of folks that are prosecuted by sector, you have only got--the most recent numbers I have seen is there is only an 8.2 percent prosecution rate in the Rio Grande Valley. So I would want to visit more with you about that because I don't think you are seeing an accurate, complete picture of how many people are actually potential customers for you there. Because you have got 91.8 percent of the folks that are actually apprehended suffer for consequence at all. Let me ask, if you could, specifically-- and, Mr. Price, if you got any follow-up, we are delighted to do it. David Price is a dear, good friend and someone I admire immensely. I do want to ask about Title 8, Section 1227 that talks about deportable aliens and your obligation, the obligation of the Agency to deport and to remove individuals who fall within these categories. For those jurisdictions in the country that do honor your detainers, these folks that fall within Title 8, Section 1227, you know, the criminal violations, aggravated felony, failure to register as a sex offender--I mean you have got some really dangerous, bad characters in here that you know that you all are concerned about as law enforcement officers. In those jurisdictions that do honor the detainers, what percentage of the individuals that fall within this category in 1227, what percentage of those individuals in those jurisdictions that do honor the detainers are actually removed and deported in compliance with the law? Mr. Ragsdale. So 1227 is the entire universe of the class of deportable aliens and those are aliens who were admitted into the United States and have become deportable thereafter. Mr. Culberson. Right. Right. Mr. Ragsdale. So it, obviously, is going to be sort of a-- what I will say is a difficult number to calculate because you could actually fall into several of those classes and not necessarily be charged with every one of them. Mr. Culberson. Oh, I understand and there are waivers and humanitarian cases and public interest and whatnot, but that is the Attorney General who does that. Mr. Ragsdale. That's right. Mr. Culberson. But the law, from your perspective, as officers sworn to uphold the law, is nondiscretionary. The law is mandatory from your perspective. On your part the law is mandatory. Mr. Ragsdale. I think that is where you end up seeing the image where you described before of having some one point some odd million folks in the non-detained docket. From the DHS enforcement perspective, we are putting many, many more people into proceedings than what you heard the Department of Justice is able to prosecute--excuse me, adjudicate quickly. So what we are trying to do is balance the class of deportable aliens you see in that Chapter 1227 with resources. Because in our appropriations line, which I think was in there last year and it is again in the 2014 bill, that as we execute our enforce removal mission, we are to prioritize based on, essentially, level of criminality. So that is why, even though every class in that book is sort of amenable to removal, we are trying to prioritize in a way that not only your committee has told us, but in a way that makes sense of public safety. Mr. Culberson. Well, of those, for example, that are convicted of an aggravated felony---- Mr. Ragsdale. They would be level ones; they are our top priority. Mr. Culberson. Of those that are in these categories, the particularly dangerous ones, in those jurisdictions that do honor detainers, what percentage of those individuals that meet these criteria are actually picked up, removed and deported? Mr. Ragsdale. Sir, I think I will have to sort of give you a little time to submit that to the record. In other words, that is a massive number---- Mr. Culberson. Sure. I understand. Mr. Ragsdale [continuing]. because it includes close to 4,000 jails, so I wouldn't want to sort of haphazardly---- Mr. Culberson. Yes, of course. I understand. That is why I just want to put it in your mind. So we will submit it in writing. Mr. Homan. I can tell you, as Mr. Ragsdale said, that is our top priority. So we would most certainly put them in proceedings, and again, from then it is an immigration court proceeding, but we will try to come up with that data for you. Mr. Culberson. But based on what you have seen and heard, is it 100 percent? Mr. Ragsdale. There are certainly in some places. I mean we have great coverage in the Bureau of Prisons systems. You know, again, places that share with us. Certainly, the State of Texas is another great partner. So it sort of varies, and I think that most folks in the law enforcement business would say, you know, anybody that falls into the category you have identified there as an alien felon is reasonable to be seen as a top priority. Mr. Culberson. Accurate to say, though, that in these categories of aggravated felons, you are not achieving 100 percent? Mr. Ragsdale. I can't really speculate. One hundred percent is a lofty goal, but, certainly, we want to do the best we can. Mr. Homan. The majority of those people that come in our custody, though, if they are a serious criminal to public safety, that would be--especially the aggravated felons--would be--most of them would remain in detention until--you know, we would be detaining those people. Mr. Culberson. Sure. Mr. Homan. We would have to wait until the DOJ, you know, EOIR to give us a removal order. But they certainly are our priorities, certainly the first thing we look at, certainly we are concentrating most of our resources on those that are a public safety threat. Mr. Culberson. But you rely on the Department of Justice to actually---- Mr. Homan. In many circumstances, we have to have a removal order from---- Mr. Culberson. Okay. One other thing, very quickly, are you utilizing the language, the authority the committee has encouraged you to use in committee report to use private detention beds to contract out to find the least expensive alternative? I know in the state of Texas, for example, private beds typically cost about half of what you are--you know, this $119--I know, for example, that you can contract beds for about $63 a day in the state of Texas. Mr. Ragsdale. That is exactly right. The thing is what you are seeing in that $119 number is a fully loaded number. It includes medical care, food service, transportation; it is a whole range of value in that $119 number. We certainly can go into the marketplace and buy beds for less than that, but then there is a question of whether we provide medical care, whether we contract for medical care. Mr. Culberson. Sure. Mr. Ragsdale. So we just need to make sure that we are comparing apples to apples. Mr. Culberson. Thank you very much. I genuinely appreciate it. These questions will be submitted into the record so you can have an opportunity to answer them more precisely. But above all, we want to thank you for your service to the country and defending us and enforcing the laws of the United States. We will do our part to make sure you have the resources you need to do your job in a way that you know that you all want to do. Thank you very much, and the committee is adjourned. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] I N D E X ---------- Page DEPARTMENT OF HOMELAND SECURITY (DHS)............................ 1 Air Cargo Advanced Screening Program......................... 41 Airport Wait Times, Decreasing............................... 40 Aviation Fees................................................ 44 Biggert-Waters............................................... 55 Border Security.............................................. 50 Budget Process Reform........................................ 45 Checkpoint Security, Improving............................... 32 Coast Guard Budget Cuts' Effect on Drug Interdiction......... 28 Counterterrorism: Performance Measures....................... 38 Customs and Border Protection (CBP) Officers................. 43 CBP Officers, Public-Private Partnerships.................... 53 Cybersecurity................................................ 41 Detention Beds............................................... 33 Detention Beds, Removals..................................... 48 Disaster Relief Fund......................................... 51 Domestic Nuclear Detection Office's Securing the Cities Program.................................................... 31 Federal Air Marshals Program................................. 30 Immigration: Catch-and-Release Policy................................. 24 Reform................................................... 46 Late Reports................................................. 45 Morale, Filling Vacancies.................................... 55 National Preparedness Grant Program.......................... 26 Opening Statement: Secretary Johnson......................... 17 Personnel Screening Programs................................. 38 Preclearance Offices......................................... 43 Screening Partnership Program................................ 37 State Department Diplomatic Security Training................ 54 Transportation Security Officers, Female..................... 31 Urban Areas Security Initiative.............................. 30 [all]