sistency of the tribe’s application with the 
State’s homeland security plan. Any such com-
ments shall be submitted to the Secretary con-
currently with the submission of the State and 
tribal applications. 
‘‘(C) FINAL
AUTHORITY.—The Secretary 
shall have final authority to determine the con-
sistency of any application of a directly eligible 
tribe with the applicable State homeland secu-
rity plan or plans, and to approve any applica-
tion of such tribe. The Secretary shall notify 
each State within the boundaries of which any 
part of such tribe is located of the approval of 
an application by such tribe. 
‘‘(D) TRIBAL
LIAISON.—A tribal liaison 
designated under paragraph (4)(G) shall— 
‘‘(i) coordinate with Federal, State, 
local, regional, and private officials con-
cerning terrorism preparedness; 
‘‘(ii) develop a process for receiving 
input from Federal, State, local, regional, 
and private sector officials to assist in the 
development of the application of such 
tribe and to improve the tribe’s access to 
covered grants; and 
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‘‘(iii) administer, in consultation with 
State, local, regional, and private officials, 
covered grants awarded to such tribe. 
‘‘(E) LIMITATION ON THE NUMBER OF DI-
RECT GRANTS.—The Secretary may make cov-
ered grants directly to not more than 20 di-
rectly eligible tribes per fiscal year. 
‘‘(F) TRIBES
NOT
RECEIVING
DIRECT 
GRANTS.—An Indian tribe that does not receive 
a grant directly under this section is eligible to 
receive funds under a covered grant from the 
State or States within the boundaries of which 
any part of such tribe is located, consistent with 
the homeland security plan of the State as de-
scribed in subsection (c). If a State fails to 
comply with section 2006(g)(1), the tribe may 
request payment under section 2006(h)(3) in 
the same manner as a local government. 
‘‘(7) EQUIPMENT STANDARDS.—If an applicant 
for a covered grant proposes to upgrade or purchase, 
with assistance provided under the grant, new equip-
ment or systems that do not meet or exceed any ap-
plicable national voluntary consensus standards es-
tablished by the Secretary, the applicant shall in-
clude in the application an explanation of why such 
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equipment or systems will serve the needs of the ap-
plicant better than equipment or systems that meet 
or exceed such standards. 
‘‘SEC. 
2004. 
RISK-BASED 
EVALUATION 
AND 
PRIORITIZATION. 
‘‘(a) PRIORITIZATION OF GRANT APPLICATIONS.— 
‘‘(1) FACTORS TO BE CONSIDERED.—The Sec-
retary shall evaluate and annually prioritize all 
pending applications for covered grants based upon 
the degree to which they would, by achieving, main-
taining, or enhancing the capabilities of the appli-
cants on a nationwide basis, lessen the threat to, 
vulnerability of, and consequences for persons (in-
cluding transient commuting and tourist popu-
lations) and critical infrastructure. Such evaluation 
and prioritization shall be based upon the most cur-
rent risk assessment available by the Office of Intel-
ligence Analysis and the Office of Infrastructure 
Protection of the threats of terrorism against the 
United States. In establishing criteria for evaluating 
and prioritizing applications for covered grants, the 
Secretary shall coordinate with the National Advi-
sory Council established under section 508, the Di-
rector of the Federal Emergency Management Agen-
cy, the United States Fire Administrator, the Chief 
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Intelligence Officer of the Department, the Assistant 
Secretary for Infrastructure Protection, and other 
Department officials as determined by the Secretary. 
‘‘(2) CRITICAL
INFRASTRUCTURE
SECTORS.— 
The Secretary specifically shall consider threats of 
terrorism against the following critical infrastructure 
sectors in all areas of the United States, urban and 
rural: 
‘‘(A) Agriculture and food. 
‘‘(B) Banking and finance. 
‘‘(C) Chemical industries. 
‘‘(D) The defense industrial base. 
‘‘(E) Emergency services. 
‘‘(F) Energy. 
‘‘(G) Government facilities. 
‘‘(H) Postal and shipping. 
‘‘(I) Public health and health care. 
‘‘(J) Information technology. 
‘‘(K) Telecommunications. 
‘‘(L) Transportation systems. 
‘‘(M) Water. 
‘‘(N) Dams. 
‘‘(O) Commercial facilities. 
‘‘(P) National monuments and icons. 
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The order in which the critical infrastructure sectors 
are listed in this paragraph shall not be construed 
as an order of priority for consideration of the im-
portance of such sectors. 
‘‘(3) TYPES OF THREAT.—The Secretary spe-
cifically shall consider the following types of threat 
to the critical infrastructure sectors described in 
paragraph (2), and to populations in all areas of the 
United States, urban and rural: 
‘‘(A) Biological threats. 
‘‘(B) Nuclear threats. 
‘‘(C) Radiological threats. 
‘‘(D) Incendiary threats. 
‘‘(E) Chemical threats. 
‘‘(F) Explosives. 
‘‘(G) Suicide bombers. 
‘‘(H) Cyber threats. 
‘‘(I) Any other threats based on proximity 
to specific past acts of terrorism or the known 
activity of any terrorist group. 
The order in which the types of threat are listed in 
this paragraph shall not be construed as an order of 
priority for consideration of the importance of such 
threats. 
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‘‘(4) CONSIDERATION
OF
ADDITIONAL
FAC-
TORS.—The Secretary shall take into account any 
other specific threat to a population (including a 
transient commuting or tourist population) or crit-
ical infrastructure sector that the Board has deter-
mined to exist. In evaluating the threat to a popu-
lation or critical infrastructure sector, the Secretary 
shall give greater weight to threats of terrorism 
based upon their specificity and credibility, including 
any pattern of repetition. 
‘‘(5) MINIMUM
AMOUNTS.—After evaluating 
and prioritizing grant applications under paragraph 
(1), the Department shall ensure that, for each fis-
cal year— 
‘‘(A) each of the States, other than the 
Virgin Islands, American Samoa, Guam, and 
the Northern Mariana Islands, that has an ap-
proved State homeland security plan receives no 
less than 0.25 percent of the funds available for 
covered grants for that fiscal year for purposes 
of implementing its homeland security plan; 
‘‘(B) each of the States, other than the 
Virgin Islands, American Samoa, Guam, and 
the Northern Mariana Islands, that has an ap-
proved State homeland security plan and that 
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meets one or both of the additional high-risk 
qualifying criteria under paragraph (6) receives 
no less than 0.45 percent of the funds available 
for covered grants for that fiscal year for pur-
poses of implementing its homeland security 
plan; 
‘‘(C) the Virgin Islands, American Samoa, 
Guam, and the Northern Mariana Islands each 
receives no less than 0.08 percent of the funds 
available for covered grants for that fiscal year 
for purposes of implementing its approved State 
plan; and 
‘‘(D) directly eligible tribes collectively re-
ceive no less than 0.08 percent of the funds 
available for covered grants for such fiscal year 
for purposes of addressing the needs identified 
in the applications of such tribes, consistent 
with the homeland security plan of each State 
within the boundaries of which any part of any 
such tribe is located, except that this clause 
shall not apply with respect to funds available 
for a fiscal year if the Secretary receives less 
than 5 applications for such fiscal year from 
such tribes or does not approve at least one 
such application. 
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‘‘(6) ADDITIONAL HIGH-RISK QUALIFYING CRI-
TERIA.—For purposes of paragraph (5)(B), addi-
tional high-risk qualifying criteria consist of— 
‘‘(A) having a significant international 
land border; or 
‘‘(B) adjoining a body of water within 
North America through which an international 
boundary line extends. 
‘‘(b) EFFECT OF REGIONAL AWARDS ON STATE MIN-
IMUM.—Any regional award, or portion thereof, provided 
to a State under section 2003(e)(5)(C) shall not be consid-
ered in calculating the minimum State award under sub-
section (a)(5) of this section. 
‘‘(c) RELATIONSHIP
TO OTHER PROGRAMS.—This 
section shall be carried out in consultation with the Sec-
retary of Health and Human Services. Nothing in this sec-
tion affects the scope of authority of the Secretary of 
Health and Human Services, including such authority 
under the Public Health Service Act. 
‘‘SEC. 2005. USE OF FUNDS AND ACCOUNTABILITY RE-
QUIREMENTS. 
‘‘(a) IN GENERAL.—A covered grant may be used 
for— 
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‘‘(1) purchasing or upgrading equipment, in-
cluding computer hardware and software, to enhance 
terrorism preparedness; 
‘‘(2) exercises to strengthen terrorism prepared-
ness; 
‘‘(3) training for prevention (including detec-
tion) of, preparedness for, response to, or recovery 
from attacks involving weapons of mass destruction, 
including training in the use of equipment and com-
puter software; 
‘‘(4) developing or updating State homeland se-
curity plans, risk assessments, mutual aid agree-
ments, and emergency management plans to enhance 
terrorism preparedness; 
‘‘(5) establishing or enhancing mechanisms for 
sharing terrorism threat information; 
‘‘(6) systems architecture and engineering, pro-
gram planning and management, strategy formula-
tion and strategic planning, life-cycle systems de-
sign, product and technology evaluation, and proto-
type development for terrorism preparedness pur-
poses; 
‘‘(7) additional personnel costs resulting from— 
‘‘(A) elevations in the threat alert level of 
the Homeland Security Advisory System by the 
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Secretary, or a similar elevation in threat alert 
level issued by a State, region, or local govern-
ment with the approval of the Secretary; 
‘‘(B) travel to and participation in exer-
cises and training in the use of equipment and 
on prevention activities; 
‘‘(C) the temporary replacement of per-
sonnel during any period of travel to and par-
ticipation in exercises and training in the use of 
equipment and on prevention activities; and 
‘‘(D) the hiring of staff to serve as intel-
ligence analysts to strengthen information and 
intelligence sharing capabilities; 
‘‘(8) the costs of equipment (including software) 
required to receive, transmit, handle, and store clas-
sified information; 
‘‘(9) protecting critical infrastructure against 
potential attack by the addition of barriers, fences, 
gates, and other such devices that are constructed 
consistent with the requirements of section 6(j)(9) of 
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5196(j)(9), except 
that the cost of such measures may not exceed the 
greater of— 
‘‘(A) $1,000,000 per project; or 
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‘‘(B) such greater amount as may be ap-
proved by the Secretary, which may not exceed 
10 percent of the total amount of the covered 
grant; 
‘‘(10) the costs of commercially available inter-
operable communications equipment (that, where ap-
plicable, is based on national, voluntary consensus 
standards) that the Secretary, in consultation with 
the Assistant Secretary for Emergency Communica-
tions, deems best suited to facilitate interoperability, 
coordination, and integration between and among 
emergency communications systems, and that com-
plies with prevailing grant guidance of the Depart-
ment for interoperable communications; 
‘‘(11) educational curricula development for 
first responders to ensure that they are prepared for 
terrorist attacks; 
‘‘(12) training and exercises to assist public ele-
mentary and secondary schools in developing and 
implementing programs to instruct students regard-
ing age-appropriate skills to prevent, prepare for, re-
spond to, mitigate against, or recover from an act of 
terrorism; 
‘‘(13) paying of administrative expenses directly 
related to administration of the grant, except that 
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such expenses may not exceed 3 percent of the 
amount of the grant; 
‘‘(14) Public safety answering points; 
‘‘(15) paying for the conduct of any activity 
permitted under the Law Enforcement Terrorism 
Prevention Program, or any such successor to such 
program; and 
‘‘(16) other appropriate activities as determined 
by the Secretary. 
‘‘(b) PROHIBITED USES.—Funds provided as a cov-
ered grant may not be used— 
‘‘(1) to supplant State or local funds; 
‘‘(2) to construct buildings or other physical fa-
cilities; 
‘‘(3) to acquire land; or 
‘‘(4) for any State or local government cost- 
sharing contribution. 
‘‘(c) INTELLIGENCE ANALYSTS.—An individual hired 
to serve as an intelligence analyst under subsection 
(a)(7)(D) must meet at least one of the following criteria: 
‘‘(1) The individual has successfully completed 
training that meets the standards of the Inter-
national Association of Law Enforcement Intel-
ligence Analysts to ensure baseline proficiency in in-
telligence analysis and production. 
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‘‘(2) The individual has previously served in a 
Federal intelligence agency as an intelligence analyst 
for at least two years. 
‘‘(d) MULTIPLE-PURPOSE FUNDS.—Nothing in this 
section shall be construed to preclude State and local gov-
ernments from using covered grant funds in a manner 
that also enhances first responder preparedness for emer-
gencies and disasters unrelated to acts of terrorism, if 
such use assists such governments in achieving capabilities 
for terrorism preparedness established by the Secretary. 
‘‘(e) REIMBURSEMENT OF COSTS.— 
‘‘(1) PAID-ON-CALL
OR
VOLUNTEER
REIM-
BURSEMENT.—In addition to the activities described 
in subsection (a), a covered grant may be used to 
provide a reasonable stipend to paid-on-call or volun-
teer first responders who are not otherwise com-
pensated for travel to or participation in training 
covered by this section. Any such reimbursement 
shall not be considered compensation for purposes of 
rendering such a first responder an employee under 
the Fair Labor Standards Act of 1938 (29 U.S.C. 
201 et seq.). 
‘‘(2) PERFORMANCE OF FEDERAL DUTY.—An 
applicant for a covered grant may petition the Sec-
retary for the reimbursement of the cost of any ac-
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tivity relating to prevention (including detection) of, 
preparedness for, response to, or recovery from acts 
of terrorism that is a Federal duty and usually per-
formed by a Federal agency, and that is being per-
formed by a State or local government (or both) 
under agreement with a Federal agency. 
‘‘(f) ASSISTANCE
REQUIREMENT.—The Secretary 
may not require that equipment paid for, wholly or in part, 
with funds provided as a covered grant be made available 
for responding to emergencies in surrounding States, re-
gions, and localities, unless the Secretary undertakes to 
pay the costs directly attributable to transporting and op-
erating such equipment during such response. 
‘‘(g) FLEXIBILITY IN UNSPENT HOMELAND SECU-
RITY GRANT FUNDS.—Upon request by the recipient of 
a covered grant, the Secretary may authorize the grantee 
to transfer all or part of funds provided as the covered 
grant from uses specified in the grant agreement to other 
uses authorized under this section, if the Secretary deter-
mines that such transfer is in the interests of homeland 
security. 
‘‘(h) STATE, REGIONAL, AND TRIBAL RESPONSIBIL-
ITIES.— 
‘‘(1) PASS-THROUGH.—The Secretary shall re-
quire a recipient of a covered grant that is a State 
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to obligate or otherwise make available to local gov-
ernments, first responders, and other local groups, 
to the extent required under the State homeland se-
curity plan or plans specified in the application for 
the grant, not less than 80 percent of the grant 
funds, resources purchased with the grant funds 
having a value equal to at least 80 percent of the 
amount of the grant, or a combination thereof, by 
not later than the end of the 45-day period begin-
ning on the date the grant recipient receives the 
grant funds. 
‘‘(2) COST SHARING.— 
‘‘(A) IN GENERAL.—The Federal share of 
the costs of an activity carried out with a cov-
ered grant to a State, region, or directly eligible 
tribe awarded after the 2-year period beginning 
on the date of the enactment of this section 
shall not exceed 75 percent. 
‘‘(B) INTERIM RULE.—The Federal share 
of the costs of an activity carried out with a 
covered grant awarded before the end of the 2- 
year period beginning on the date of the enact-
ment of this section shall be 100 percent. 
‘‘(C) IN-KIND MATCHING.—Each recipient 
of a covered grant may meet the matching re-
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quirement under subparagraph (A) by making 
in-kind contributions of goods or services that 
are directly linked with the purpose for which 
the grant is made, including, but not limited to, 
any necessary personnel overtime, contractor 
services, administrative costs, equipment fuel 
and maintenance, and rental space. 
‘‘(3) CERTIFICATIONS
REGARDING
DISTRIBU-
TION OF GRANT FUNDS TO LOCAL GOVERNMENTS.— 
Any State that receives a covered grant shall certify 
to the Secretary, by not later than 30 days after the 
expiration of the period described in paragraph (1) 
with respect to the grant, that the State has made 
available for expenditure by local governments, first 
responders, and other local groups the required 
amount of grant funds pursuant to paragraph (1). 
‘‘(4) QUARTERLY REPORT ON HOMELAND SECU-
RITY SPENDING.—The Federal share described in 
paragraph (2)(A) may be increased by up to 2 per-
cent for any State, region, or directly eligible tribe 
that, not later than 30 days after the end of each 
fiscal quarter, submits to the Secretary a report on 
that fiscal quarter. Each such report must include, 
for each recipient of a covered grant or a pass- 
through under paragraph (1)— 
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‘‘(A) the amount obligated to that recipient 
in that quarter; 
‘‘(B) the amount expended by that recipi-
ent in that quarter; and 
‘‘(C) a summary description of the items 
purchased by such recipient with such amount. 
‘‘(5) ANNUAL
REPORT
ON
HOMELAND
SECU-
RITY SPENDING.—Each recipient of a covered grant 
shall submit an annual report to the Secretary not 
later than 60 days after the end of each Federal fis-
cal year. Each recipient of a covered grant that is 
a region must simultaneously submit its report to 
each State of which any part is included in the re-
gion. Each recipient of a covered grant that is a di-
rectly eligible tribe must simultaneously submit its 
report to each State within the boundaries of which 
any part of such tribe is located. Each report must 
include the following: 
‘‘(A) The amount, ultimate recipients, and 
dates of receipt of all funds received under the 
grant during the previous fiscal year. 
‘‘(B) The amount and the dates of dis-
bursements of all such funds expended in com-
pliance with paragraph (1) or pursuant to mu-
tual aid agreements or other sharing arrange-
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