[Congressional Record Volume 163, Number 124 (Monday, July 24, 2017)]
[Extensions of Remarks]
[Pages E1036-E1038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     COST ESTIMATE FOR H.R. 2825, THE DHS AUTHORIZATION ACT OF 2017

                                 ______
                                 

                         HON. MICHAEL T. McCAUL

                                of texas

                    in the house of representatives

                         Monday, July 24, 2017

  Mr. McCAUL. Mr. Speaker, I include in the Record the cost estimate 
from the Congressional Budget Office regarding H.R. 2825. The cost 
estimate was not available at the time of the filing of the Committee 
report.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                    Washington, DC, July 20, 2017.
     Hon. Michael McCaul,
     Chairman, Committee on Homeland Security,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 2825, the DHS 
     Authorization Act of 2017.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Mark 
     Grabowicz.
           Sincerely,
                                                    Mark P. Hadley
                                       (For Keith Hall, Director).
       Enclosure.

                H.R. 2825--DHS Authorization Act of 2017

  As reported by the House Committee on Homeland Security on June 28, 
                                  2017


                                SUMMARY

       H.R. 2825 would authorize the appropriation of nearly $11 
     billion over the 2018-2022 period for programs in the 
     Department of Homeland Security (DHS), mostly for activities 
     carried out by the Federal Emergency Management Agency 
     (FEMA), but also for programs of the Transportation Security 
     Administration (TSA) and the DHS Office of the Inspector 
     General. In addition, CBO estimates that the bill would 
     authorize the appropriation of $154 million over the five-
     year period for other DHS activities, including programs to 
     increase security at airports.
       Assuming appropriation of the authorized and estimated 
     amounts, CBO estimates that implementing H.R. 2825 would cost 
     $5.6 billion over the 2018-2022 period and $5.4 billion after 
     2022. In addition, because the legislation would affect 
     direct spending, pay-as-you-go procedures apply; however, we 
     estimate that the net effect would be negligible in every 
     year. The bill would not affect revenues.
       CBO estimates that enacting H.R. 2825 would not increase 
     net direct spending or on-budget deficits in any of the four 
     consecutive 10-year periods beginning in 2028.
       H.R. 2825 would impose intergovernmental and private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA) on airport operators and air carriers. Based on 
     information from the TSA and airport officials, CBO estimates 
     that the total costs of the mandates on public and private 
     entities would fall well below the annual thresholds 
     established in UMRA for intergovernmental and private-sector 
     mandates ($78 million and $156 million in fiscal year 2017, 
     respectively, adjusted annually for inflation).


                ESTIMATED COST TO THE FEDERAL GOVERNMENT

       The estimated budgetary impact of H.R. 2825 is shown in the 
     following table. The costs of this legislation fall within 
     budget functions 400 (transportation), 450 (community and 
     regional development), and 750 (administration of justice).

----------------------------------------------------------------------------------------------------------------
                                                          By fiscal year, in millions of dollars--
                                          ----------------------------------------------------------------------
                                             2017      2018      2019      2020      2021      2022    2017-2022
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
FEMA Programs:
    Authorization Level..................         0     2,164     2,164     1,999     1,999     1,999     10,325
    Estimated Outlays....................         0       240       606       922     1,327     1,705      4,800

[[Page E1037]]

 
TSA Programs:
    Authorization Level..................         0       122       122         0         0         0        244
    Estimated Outlays....................         0        92       116        28         6         2        244
DHS Inspector General and Office for
 Civil Rights and Civil Liberties:
    Authorization Level..................         0       198       198         0         0         0        395
    Estimated Outlays....................         0       178       198        20         0         0        395
Other Programs:
    Estimated Authorization Level........         0        53        18        24        23        31        154
    Estimated Outlays....................         0        40        24        23        27        30        144
    Total Changes:
        Estimated Authorization Level....         0     2,537     2,502     2,023     2,027     2,030     11,118
        Estimated Outlays................         0       550       943       993     1,360     1,737      5,583
----------------------------------------------------------------------------------------------------------------
Notes: Details may not sum to totals because of rounding. FEMA = Federal Emergency Management Agency; TSA =
  Transportation Security Administration; DHS = Department of Homeland Security.

                           BASIS OF ESTIMATE

       For this estimate, CBO assumes that the bill will be 
     enacted near the end of 2017.


                   Spending Subject to Appropriation

       CBO estimates that implementing H.R. 2825 would cost $5.6 
     billion over the 2018-2022 period. For this estimate, CBO 
     assumes that the authorized and estimated amounts will be 
     provided each year and that spending will follow historical 
     spending patterns for these activities.
       Programs with Specified Authorizations. H.R. 2825 would 
     authorize the appropriation of nearly $11 billion over the 
     2018-2022 period for many programs in DHS, including 
     activities carried out by FEMA, TSA, and other offices.
       FEMA Programs. Title VI of H.R. 2825 would authorize the 
     appropriation of $10.3 billion over the 2018-2022 period for 
     FEMA's domestic security programs. Specifically, the bill 
     would authorize the annual appropriation of:
       $800 million for the Urban Area Security Initiative;
       $710 million for the State Homeland Security Grant Program;
       $200 million for the Transit Security Grant Program;
       $200 million for the Port Security Grant Program;
       $50 million for grants to nonprofit organizations for 
     security enhancements to protect against terrorism;
       $39 million for the Counterterrorism Training Program; and
       About $165 for the National Domestic Preparedness 
     Consortium.
       CBO estimates that implementing those provisions would cost 
     $4.8 billion over the 2018-2022 period.
       TSA Programs. H.R. 2825 would authorize the annual 
     appropriation (through 2019) of:
       $77 million for TSA to monitor exits used by passengers 
     leaving service areas of airports; and.
       $45 million for the cost of deploying law enforcement 
     personnel to security checkpoints at airports.
       CBO estimates that implementing those provisions would cost 
     $244 million over the 2018-2022 period.
       DHS Inspector General and Office for Civil Rights and Civil 
     Liberties. H.R. 2825 would authorize, for each of 2018 and 
     2019, the appropriation of:
       $175 million for the DHS Office of the Inspector General; 
     and
       About $23 million for the DHS Office for Civil Rights and 
     Civil Liberties.
       CBO estimates that implementing those provisions would cost 
     $395 million over the 2018-2022 period.
       Other Programs. CBO estimates that carrying out other 
     activities (as described below) would require appropriations 
     of $154 million over the 2018-2022 period.
       TSA Activities. CBO estimates that implementing certain 
     provisions of title V of the bill would require 
     appropriations totaling $144 million over the 2018-2022 
     period. That amount includes:
       $56 million for a gradual expansion in the number of canine 
     teams used to detect explosives within surface and maritime 
     transportation systems;
       $43 million for a variety of activities aimed at improving 
     security at airports by enhancing the vetting and screening 
     of aviation workers and controlling their access to secure 
     areas of airports;
       $25 million for increased administrative costs related to a 
     significant expansion in the number of personnel-related 
     policies that could be included in negotiations over 
     collective bargaining agreements; and
       $20 million for the cost of implementing an automated 
     system to verify the identity and travel documents of air 
     passengers.
       CBO estimates that implementing these activities would cost 
     $134 million over the 2018-2022 period (and $10 million after 
     2022).
       Reports and Audits. H.R. 2825 would require DHS and the 
     Government Accountability Office to prepare about 30 audits 
     and reports (some annually) on various topics within the 
     department's purview. Based on the cost of similar 
     activities, CBO estimates that it would cost about $10 
     million over the 2018-2022 period for those reports and 
     audits.
       Direct Spending
       The Asia-Pacific Economic Cooperation (APEC) Business 
     Travel Cards Act of 2011 (Public Law 112-54) authorized DHS 
     to issue special cards to eligible U.S. citizens to 
     facilitate international travel to participating countries 
     (mostly in Asia). Under that act, DHS may not issue the cards 
     after September 30, 2018. H.R. 2825 would extend that program 
     permanently.
       DHS collects a fee of $70 from applicants for the APEC 
     card. Those fees are classified in the budget as offsetting 
     receipts (a reduction in direct spending) and are available 
     to DRS to spend without further appropriation. In fiscal year 
     2016 DHS collected a total of about $1 million in fees. CBO 
     estimates that enacting H.R. 2825 would have no significant 
     net effect on DHS spending because we expect the department 
     would continue to collect and spend roughly the same amount 
     in future years.


                      PAY-AS-YOU-GO CONSIDERATIONS

       The Statutory Pay-As-You-Go Act of 2010 establishes budget-
     reporting and enforcement procedures for legislation 
     affecting direct spending or revenues. CBO estimates that 
     enacting H.R. 2825 would have no significant net effect on 
     direct spending in any year. The bill would not affect 
     revenues.


           InCREASE IN LONG-TERM DIRECT SPENDING AND DEFICITS

       CBO estimates that enacting H.R. 2825 would not increase 
     net direct spending or on-budget deficits in any of the four 
     consecutive 10-year periods beginning in 2028.


              InTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

       H.R. 2825 would impose intergovernmental and private-sector 
     mandates as defined in UMRA by requiring airport operators 
     and air carriers to provide information to TSA about 
     individuals who have had their security credentials revoked. 
     Additionally, the bill would require airport operators to 
     notify applicants for security credentials about screening 
     procedures and to submit applicants' social security numbers 
     to the TSA. Those provisions would impose both 
     intergovernmental and private-sector mandates on airport 
     operators and a private-sector mandate on air carriers. Based 
     on information from the TSA and airport officials, CBO 
     expects that affected entities would probably report 
     information to the TSA electronically and estimates that the 
     costs to submit that information would be small. The bill 
     also would require airport operators to include specific 
     information, such as evacuation and communication strategies, 
     in emergency response plans. Because most airport operators 
     already include such information in their response plans 
     under current law, CBO estimates that the costs to comply 
     with the mandate would be small. In total, CBO estimates that 
     the costs on public and private entities would fall well 
     below the annual thresholds established in UMRA for 
     intergovernmental and private-sector mandates ($78 million 
     and $156 million in fiscal year 2017, respectively, adjusted 
     annually for inflation).


                         PREVIOUS CBO ESTIMATES

       CBO has prepared cost estimates in 2017 for many other 
     bills with provisions that are similar to provisions of H.R. 
     2825. For each of the bills listed below, our estimates of 
     the costs of the similar provisions are the same as in H.R. 
     2825:
       H.R. 876, the Aviation Employee Screening and Security 
     Enhancement Act of 2017 (as ordered reported by the House 
     Committee on Homeland Security on March 8, 2017);
       S. 763, the Surface and Maritime Transportation Security 
     Act (as ordered reported by the Senate Committee on Commerce, 
     Science, and Transportation on April 5, 2017);
       H.R. 2188, the Community Counterterrorism Preparedness Act 
     (as ordered reported by the House Committee on Homeland 
     Security on May 3, 2017);
       H.R. 1372, the Homeland Security of Children Act (as 
     ordered reported by the House Committee on Homeland Security 
     on March 8, 2017);
       H.R. 2169, the Improving Fusion Centers' Access to 
     Information Act (as ordered reported by the House Committee 
     on Homeland Security on May 3, 2017);
       H.R. 1249, the DHS Multiyear Acquisition Strategy Act of 
     2017 (as passed by the U.S. House of Representatives on March 
     20, 2017);
       H.R. 1294, the Reducing DHS Acquisition Cost Growth Act (as 
     passed by the U.S. House of Representatives on March 20, 
     2017);
       H.R. 1252, the DRS Acquisition Authorities Act of 2017 (as 
     passed by the U.S. House of Representatives on March 20, 
     2017);
       H.R. 1282, the DHS Acquisition Review Board Act of 2017 (as 
     ordered reported by the House Committee on Homeland Security 
     on March 8, 2017);
       H.R. 1297, the Quadrennial Homeland Security Review 
     Technical Corrections Act of

[[Page E1038]]

     2017 (as ordered reported by the House Committee on Homeland 
     Security on March 8, 2017); and
       S. 504, the APEC Business Travel Cards Reauthorization Act 
     of 2017 (as ordered reported by the Senate Committee on 
     Homeland Security and Governmental Affairs on May 17, 2017).
       In addition, on June 27, 2017, CBO transmitted a cost 
     estimate for H.R. 2548, the FEMA Reauthorization Act of 2017 
     (as ordered reported by the House Committee on Transportation 
     and Infrastructure on May 24, 2017) provisions of that 
     legislation are similar to section 615 of H.R. 2825. However, 
     CBO's estimates of the costs of those similar provisions are 
     different because different amounts are authorized to be 
     appropriated in each piece of legislation.


                          ESTIMATE PREPARED BY

       Federal Costs: Megan Carroll (TSA), Robert Reese (FEMA), 
     Mark Grabowicz (all other DHS); Impact on State, Local, and 
     Tribal Governments: Rachel Austin; Impact on the Private 
     Sector: Paige Piper/Bach.


                          ESTIMATE APPROVED BY

       Theresa Gullo, Assistant Director for Budget Analysis.

                          ____________________