Summary and Analysis of the
President's 2005 Budget

Homeland Security

The homeland security budget spans more than a dozen agencies, the largest of which are the new Department of Homeland Security (57.4 percent of total resources), the Department of Defense (16.9 percent), the Department of Health and Human Services (9.0 percent), and the Department of Justice (5.5 percent). Seventeen of the 19 budget functions contain at least some funding for homeland security activities. The largest amounts for homeland security are contained in Function 050 (National Defense), Function 400 (Transportation), Function 450 (Community and Regional Development), Function 550 (Health), and Function 750 (Administration of Justice).

Overall Funding Levels

• Overall Funding for Homeland Security — The President's budget includes $47.4 billion in total resources for homeland security activities for 2005 — $2.3 billion for mandatory programs and $45.1 billion for discretionary programs. Achieving this funding level for discretionary programs requires $41.0 billion in appropriations, with the remaining $4.1 billion in resources expected to come from offsetting fee collections. Out of this $41.0 billion net appropriated total, the budget includes $10.4 billion for national defense activities (primarily at the Department of Defense) and international affairs programs. The remaining $30.6 billion for domestic appropriated homeland security programs is an increase of 11.7 percent above the 2004 enacted level.
  
  

Homeland Security Funding
(Budget Authority in Billions of Dollars)

All numbers based on OMB estimates. Numbers may not add exactly due to rounding. Totals do not include $107 million in supplemental appropriations for 2004. Totals for appropriated programs include funding for Project BioShield.

• Totals Include Funding for Project BioShield — These discretionary funding figures for 2005 include $2.5 billion in advance appropriations for Project BioShield already approved by the Congress and available for the period 2005 through 2008. (In total, Congress provided $5.6 billion for this program over the period 2004-2013.) If 2004 and 2005 totals for Project BioShield are removed from the totals above — as the Administration does in its budget presentation — the remaining domestic appropriations total $25.7 billion — a 9.4 percent increase over last year's enacted level.

Program Highlights

• First Responders — The budget includes a total of $3.8 billion within the Department of Homeland Security for first responder funding, which is $648 million (14.7 percent) less than the amount enacted for 2004. Within this total, the budget doubles funding for specific high-threat urban areas to $1.5 billion, but decreases formula-based grants to $1.4 billion, $821 million (36.5 percent) less than enacted for 2004. The budget provides $500 million for firefighter assistance grants, $246 million (33.0 percent) less than the 2004 enacted level. (Elsewhere in the budget, in the budget for the Department of Justice, law enforcement grant programs are reorganized and their funding sharply reduced.)
  
  
• Port Security Grants — The budget includes up to $46 million for grants to port authorities for security upgrades — $79 million (63.2 percent) less than the $125 million enacted for 2004. Port security grants from the Department of Homeland Security provide funds for port agencies to install the fencing, surveillance technologies, and other measures needed to prevent terrorists from gaining access to docks and other port facilities. The Coast Guard reports needs in this area totaling $4.4 billion over ten years.
  
  
• Health Homeland Security Activities — Health homeland security activities are spread across the Departments of Health and Human Services, Homeland Security, Labor, and Agriculture. These activities include protection of the nation's food supply; preparation against potential bioterrorism attacks, including development and procurement of vaccines; research to develop countermeasures; and preparations for public health emergencies. The budget provides $6.8 billion for health homeland security activities in 2005, an increase of $1.8 billion over the 2004 enacted level. However, the budget's level for 2005 is not the best representation of actual spending because the 2005 amount includes four year's worth of funding for the BioShield program (2005 to 2008). Excluding Bioshield from the spending totals provides a better method of comparison. When Bioshield is excluded, the budget provides $4.3 billion, an increase of $138 million (3.3 percent) above the 2004 enacted level. For more details, see Function 550 (Health).
  
  
• Transportation Security Agency (TSA) — The budget includes $5.3 billion in total resources (including fees) for TSA, now part of the Department of Homeland Security. This amount is $892 million (20.2 percent) more than what was enacted in 2004. This is primarily the result of increased spending on airport security and screening operations. Funding for air cargo security, however, is frozen at last year's level, $85 million.
  
  
• Coast Guard — The President's budget provides $7.5 billion for all activities of the Coast Guard — now part of the Department of Homeland Security — with this total split roughly evenly between homeland security and non-homeland security activities. Of this amount, $6.3 billion is appropriated funding and $1.2 billion is for mandatory spending, which consists mostly of retirement pay. The 2005 budget provides appropriated funding that is $235 million (3.9 percent) higher than the level required to maintain purchasing power at the 2004 level and $470 million (8.1 percent) higher than the 2004 enacted level of appropriations. As was the case with last year's budget, the funding increase is attributable to the Coast Guard's expanded role in homeland security.
  
  
• Customs and Border Protection — The budget includes $5.1 billion in appropriated funding for U.S. Customs and Border Protection at the Department of Homeland Security, $224 million (4.6 percent) more than the 2004 enacted level. Customs and Border Protection consists of the inspection forces of the former Customs Service and the former Immigration and Naturalization Services, the Agriculture Quarantine and Inspection program, and the Border Patrol.
  
  
  

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