Highlights of President Bush's FY 2005 Budget Request for the Department of Homeland Security

The following are "highlights" of the Bush Administration's FY 2005 budget request for DHS, including U.S. Customs and Border Protection (CBP), Transportation Security Administration (TSA), Coast Guard, etc.

Merchandise Processing Fees and conveyance and passenger fees. The President's FY 2005 budget request proposes the reauthorization of two user fees: the Merchandise Processing Fee (MPF) and the conveyance and passenger fees.

(Although the President's FY 2005 budget request states that the MPF and conveyance and passenger fees are set to expire on March 1, 2005, previously issued CBP documents indicate that in 2003 a bill was enacted that extended these fees until March 31, 2004.)

Regional field structure for DHS. In its summary of President Bush's FY 2005 budget request, DHS states that it will create a regional field structure that will unify the existing regional structures of DHS components, and unite Federal, state, tribal, local, and private sector homeland security resources, building on the strengths that come from each partner working together.

(The Bush Administration had previously announced its plans to create a regional structure for DHS in its FY 2004 budget request. The FY 2004 budget request stated that DHS would have a region-based structure with directors within each geographic area in charge of all operations. See ITT's Online Archives or 05/09/03 news, 03050910, for BP summary of the President's FY 2004 budget request proposal for a regional structure for DHS.)

Automated Commercial Environment and other automation modernization. President Bush's FY 2005 budget request includes approximately $450 million in funding for automation modernization, an 11% increase over his request for FY 2004. According to the Administration's request, not less than approximately $321.7 million of that amount would be for the development of the Automated Commercial Environment (ACE).

The FY 2005 budget request states that none of the appropriated funding may be obligated for ACE until the House and Senate Appropriations Committees receive a plan for expenditure prepared by the Under Secretary for Border Transportation Security (BTS) that: (1) meets the capital planning and investment control review requirements established by the Office of Management and Budget (OMB), including Circular A-11, part 3; (2) complies with CBP's enterprise information systems architecture; (3) complies with the acquisition rules, requirements, guidelines, and systems acquisition management practices of the Federal Government; (4) is reviewed and approved by the CBP Investment Review Board, DHS, and OMB; and (5) is reviewed by the General Accounting Office (GAO).

(The above restrictions appear to differ from those imposed in previous years. The previous years' restrictions required the House and Senate Appropriations Committees to receive and approve the BTS-prepared expenditure plan.)

Container Security Initiative. President Bush's FY 2005 budget request includes an increase of $25 million over the current program funding of $101 million for the Container Security Initiative (CSI), continuing both Phase I and II, as well as beginning the final phase of CSI.

(Phase I of CSI focused on implementing the program at the top 20 foreign ports; Phase II expands the program to additional ports based on volume, location, and strategic concerns; and Phase III further increases security at the highest risk ports.

DHS notes that in November 2003, Phase I of CSI was nearly completed, with CBP personnel deployed and operating in 17 of the original 20 signatories. In FY 2004, DHS states that there are plans to begin operating CSI at 12 more ports throughout the world.)

Customs-Trade Partnership Against Terrorism. According to DHS, the FY 2005 budget includes an increase of $15.2 million for C-TPAT, which would supplement recurring base resources of $23 million.

DHS notes that to date, nearly 3,000 importers, 600 carriers, and 1,000 brokers and freight forwarders are participating in C-TPAT, surpassing DHS' original goal of participation by the top 1,000 importers. DHS states that in order to accomplish C-TPAT's dual goal of improving border security while facilitating legitimate trade amidst an increasing large C-TPAT membership base, 120 additional supply chain security officers are needed as well as funding for participant validations.

Targeting systems enhancements. President Bush's FY 2005 budget request includes an increase of $20.623 million for targeting systems enhancements. DHS notes that CBP's ability to identify high-risk travelers and goods for inspection while allowing the vast majority of law abiding travelers and commerce to continue to their destination without unnecessary delay is at the core of its ability to achieve its critical border security objectives and maintain the flow of lawful commerce

According to DHS, this initiative would fund 34 positions and technology acquisition for the following systems: Automated Targeting System/Passenger, National Targeting Center, Automated Targeting System-Inbound, Automated Targeting System-Land Border, Automated Targeting System-Passenger (RESMON), and the Trend Analysis and Analytical Selectivity Program.

International Trade Data System. President Bush's FY 2005 budget request includes an increase of $5 million for the International Trade Data System (ITDS), which would supplement recurring base resources of $11 million.

According to DHS, this funding would ensure integration of ITDS with key federal agencies. (ITDS is an initiative to implement an integrated, government-wide system for the electronic collection, use, and dissemination of trade and transportation data essential to the mission of more than 100 federal agencies.)

Radiation detection technology. The FY 2005 budget request includes $50 million for radiation detection technology. According to DHS, CBP needs to screen all trucks, trains, cars, air freight, mail bags, and express consignment packages with radiation detection technology prior to release, and to screen air and sea passengers and their luggage along with land border pedestrians.

US-VISIT. President Bush's FY 2005 budget request includes $340 million for the U.S. Visitor and Immigrant Status Indicator Technology (US-VISIT) program, an increase of almost $12 million. According to DHS, the additional funding requested would enable further modernization of border management systems and capabilities as well as integrate databases to support the U.S.-VISIT program. DHS notes that during FY 2005 there will be continued implementation of operational capabilities initiated during FY 2003 and 2004. In addition, entry and exit capabilities will be deployed at the 115 remaining land ports of entry.

Enhancing transportation security. President Bush's FY 2005 budget request includes $5.3 billion for the Transportation Security Administration (TSA), an $890 million increase over FY 2004 appropriations.

According to DHS, these additional funds would be used to continue to improve the quality and efficiency of screening operations through a combination of additional screener training, stronger management controls of screener performance, and technology automation. The funding includes $400 million to continue deploying more efficient baggage screening solutions at the busiest U.S. airports to improve security while increasing operational efficiency.

DHS also notes that the budget request would provide $92 million to TSA for the implementation of credentialing programs for transportation workers, individuals seeking to transport hazardous materials, etc.

Air cargo security. The FY 2005 budget request for TSA includes $85 million for air cargo security in order to continue the deployment of a comprehensive air cargo security program started in late 2004, including research and development of screening technology started in FY 2004.

Maritime Transportation Security Act. The Administration's FY 2005 budget request includes over $100 million for the Coast Guard's implementation of the Maritime Transportation Security Act of 2002 (MTSA). According to DHS, this funding would provide 500 additional personnel to develop, review, and approve vessel and facility security plans, and provide port state control activities on foreign vessels as required by the MTSA. DHS states that this funding request would increase intelligence capacity and provide Coast Guard Maritime Safety and Security Teams underwater detection capability.

DHS' "Budget in Brief" available at http://www.dhs.gov/interweb/assetlibrary/FY_2005_BIB_3.pdf.

DHS Secretary Ridge's remarks on FY 2005 budget request (dated 02/02/04) available at http://www.dhs.gov/dhspublic/display?content=3112.

President Bush's FY 2005 budget proposal materials available at http://www.whitehouse.gov/omb/budget/fy2005/.

BP Note

After receiving the President's budget proposal, Congress can change funding levels, add or eliminate programs, etc. through a process that includes a Congressional budget resolution and passage of appropriations and other spending and receipts legislation.