I 
108TH CONGRESS 
2D SESSION 
H. R. 4333
To provide for homeland security grant coordination and simplification, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2004
Ms. HOOLEY of Oregon (for herself, Mr. STENHOLM, Mr. CASE, Mr. EMAN-
UEL, Mr. GRIJALVA, Mr. FARR, Mr. HOEFFEL, Mr. MCINTYRE, Mr. 
DEFAZIO, Mr. SANDLIN, Mr. TOWNS, and Ms. LEE) introduced the fol-
lowing bill; which was referred to the Select Committee on Homeland Se-
curity, and in addition to the Committees on Transportation and Infra-
structure, Judiciary, Energy and Commerce, and Science, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To provide for homeland security grant coordination and 
simplification, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Homeland Security 
Grant Enhancement Act of 2004’’.
‘‘(IV) interoperable communica-
tions grants; 
‘‘(V) Urban Search and Rescue 
task forces; and 
‘‘(VI) other Federal Emergency 
Management Agency assistance pro-
grams, except those grants intended 
to reimburse States, localities, and 
other applicants for costs resulting 
from disasters or emergencies de-
clared under to the Disaster Relief 
Act of 1974 (42 U.S.C. 5121 et seq.); 
‘‘(iii) Transportation Security Admin-
istration assistance programs, such as port 
security grants; 
‘‘(iv) Department of Justice assist-
ance programs, such as—
‘‘(I) the Local Law Enforcement 
Block Grant; 
‘‘(II) the Byrne Memorial For-
mula Grant Program; and 
‘‘(III) the Community Oriented 
Policing Services program;
‘‘(v) 
Department 
of 
Health 
and 
Human Services assistance programs, such 
as—
‘‘(I) the Public Health Bioter-
rorism Preparedness program, admin-
istered by the Centers for Disease 
Control and Prevention; and 
‘‘(II) the Hospital Bioterrorism 
Program, administered by the Health 
Resources and Services Administra-
tion; 
‘‘(vi) related Federal assistance pro-
grams, such as—
‘‘(I) the Hazardous Materials 
Emergency Preparedness Program of 
the Department of Transportation; 
and 
‘‘(II) the water security assist-
ance programs administered by the 
Environmental 
Protection 
Agency; 
and 
‘‘(vii) any related grant or assistance 
program, as determined by the Interagency 
Committee; and
‘‘(B) identify all homeland security plan-
ning requirements contained in homeland secu-
rity emergency preparedness, and public safety 
programs administered by Federal agencies, in-
cluding—
‘‘(i) terrorism preparedness plans, 
such as those required by the Office for 
Domestic Preparedness and other entities 
within the Department; 
‘‘(ii) all hazards emergency prepared-
ness plans, such as those required in the 
Emergency 
Management 
Performance 
Grants administered by the Federal Emer-
gency Management Agency; 
‘‘(iii) bioterrorism response plans, 
such as those required in bioterrorism pre-
paredness programs administered by the 
Department of Health and Human Serv-
ices; 
‘‘(iv) hazardous materials response 
plans, such as those required by the Envi-
ronmental Protection Agency and the De-
partment of Transportation; 
‘‘(v) critical infrastructure security 
plans, such as those required by—
‘‘(I) the Transportation Security 
Administration; 
‘‘(II) the Environmental Protec-
tion Agency; 
‘‘(III) the Department of Trans-
portation; and 
‘‘(IV) the Nuclear Regulatory 
Commission; 
‘‘(vi) law enforcement and public safe-
ty plans administered by the Department 
of Justice, such as those required by—
‘‘(I) the Local Law Enforcement 
Block Grant; 
‘‘(II) the Byrne Memorial For-
mula Grant Program; and 
‘‘(III) the Community Oriented 
Policing Services program; and 
‘‘(vii) any other planning requirement 
identified by the Interagency Committee; 
‘‘(5) not later than 120 days after the effective 
date of the Homeland Security Grant Enhancement 
Act of 2004, review—
‘‘(A) all application, reporting, and other 
administrative requirements contained in grant 
programs under paragraph (4)(A) and report
all redundant and duplicative requirements to 
the appropriate committees of Congress and the 
agencies represented in the Interagency Com-
mittee; and 
‘‘(B) all homeland security planning and 
other administrative requirements under para-
graph (4)(B) and report all redundant and du-
plicative requirements to the appropriate com-
mittees of Congress and the agencies rep-
resented in the Interagency committee; 
‘‘(6) not later than 150 days after the effective 
date of the Homeland Security Grant Enhancement 
Act of 2004, provide recommendations to—
‘‘(A) the agencies with the requirements 
identified under paragraph (4)(A) to streamline 
and standardize application, reporting, and ad-
ministrative requirements to eliminate duplica-
tion and promote coordination of homeland se-
curity planning grants; and 
‘‘(B) the agencies involved with the grant 
programs under paragraph (4)(B) to streamline 
and standardize planning requirements to elimi-
nate duplication and promote coordination; and 
‘‘(7) not later than 250 days after the effective 
date of the Homeland Security Grant Enhancement
Act of 2004, issue a report to Congress regarding its 
actions under this subsection. 
‘‘(b) MEMBERSHIP.—The Interagency Committee 
shall be composed of a representative of—
‘‘(1) the Department of Homeland Security; 
‘‘(2) the Department of Health and Human 
Services; 
‘‘(3) the Department of Transportation; 
‘‘(4) the Department of Justice; 
‘‘(5) the Environmental Protection Agency; and 
‘‘(6) any other department or agency deter-
mined to be necessary by the President. 
‘‘(c) ADMINISTRATION.—The Department shall pro-
vide administrative support to the Interagency Committee, 
which shall include—
‘‘(1) scheduling meetings; 
‘‘(2) preparing agenda; 
‘‘(3) maintaining minutes and records; and 
‘‘(4) producing reports. 
‘‘(d) CHAIRPERSON.—The Secretary shall designate 
a chairperson of the Interagency Committee. 
‘‘(e) MEETINGS.—The Interagency Committee shall 
meet—
‘‘(1) at the call of the Secretary; or
‘‘(2) not less frequently than once every 1 
month.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The table of contents for the Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.) is amended by inserting after 
the item relating to section 801 the following:
‘‘Sec. 802. Interagency Committee To Coordinate and Streamline Homeland 
Security Grant Programs.’’.
SEC. 3. STREAMLINING FEDERAL HOMELAND SECURITY 
GRANTS. 
(a) DIRECTOR OF STATE AND LOCAL GOVERNMENT 
COORDINATION.—Section 801 of the Homeland Security 
Act of 2002 (6 U.S.C. 101 et seq.) is amended—
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—There is established within 
the Office of the Secretary the Office for State and 
Local Government Coordination, which shall oversee 
and coordinate departmental programs for, and rela-
tionships with, State and local governments. 
‘‘(2) DIRECTOR.—The Office established under 
paragraph (1) shall be headed by the Director of 
State and Local Government Coordination, who shall 
be appointed by the President, by and with the ad-
vice and consent of the Senate.’’;
(2) in subsection (b)—
(A) in paragraph (3), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (4), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) administering the firefighter assistance 
grant program established under section 33 of the 
Federal Fire Prevention and Control Act of 1974 
(15 U.S.C. 2229) by—
‘‘(A) coordinating grant making activities 
with—
‘‘(i) emergency preparedness and re-
sponse personnel; 
‘‘(ii) grants made under section 4 of 
the Homeland Security Grant Enhance-
ment Act of 2004; and 
‘‘(iii) grants made under other Fed-
eral programs to enhance emergency pre-
paredness; 
‘‘(B) awarding grants on a competitive 
basis directly to fire departments of a State, in 
consultation with the chief executive of the 
State, for the purpose of protecting the health
and safety of the public and firefighting per-
sonnel against fire and fire-related hazards; 
‘‘(C) complying with the administrative re-
quirements set forth in section 33 of the Fed-
eral Fire Prevention and Control Act of 1974 
(15 U.S.C. 2229) and retaining the administra-
tive requirements set forth under part 152 of 
title 44, Code of Federal Regulations; and 
‘‘(D) ensuring that all equipment pur-
chased with grant funds for which there are vol-
untary consensus standards meet such stand-
ards.’’; and 
(3) by adding at the end the following: 
‘‘(c) REFERENCE.—All references to ‘Director’ in 
section 33 of the Federal Fire Prevention and Control Act 
of 1974 (15 U.S.C. 2229) shall be deemed to refer to the 
Director for State and Local Government Coordination.’’. 
(b) OFFICE FOR DOMESTIC PREPAREDNESS.—The 
Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) 
is amended—
(1) by redesignating section 430 as section 803 
and transferring that section to the end of subtitle 
A of title VIII, as amended by section 2; 
(2) in section 803, as redesignated by para-
graph (1)—
‘‘(9) managing the Homeland Security Informa-
tion 
Clearinghouse 
established 
under 
section 
801(c).’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of contents for the Homeland Security Act of 
2002 (6 U.S.C. 101 et seq.) is amended— 
(1) by striking the item relating to section 430; 
and 
(2) by inserting after the item relating to sec-
tion 802, as added by this Act, the following: 
‘‘803. Office for Domestic Preparedness.’’. 
(d) ESTABLISHMENT OF HOMELAND SECURITY IN-
FORMATION CLEARINGHOUSE.—Section 801 of the Home-
land Security Act of 2002 (6 U.S.C. 101 et seq.) is amend-
ed by adding at the end the following: 
‘‘(c) HOMELAND SECURITY INFORMATION CLEAR-
INGHOUSE.— 
‘‘(1) ESTABLISHMENT.—There is established 
within the Office for State and Local Government 
Coordination a Homeland Security Information 
Clearinghouse (referred to in this section as the 
‘Clearinghouse’), which shall assist States, local gov-
ernments, and first responders in accordance with 
paragraphs (2) through (5). 
‘‘(2) HOMELAND
SECURITY
GRANT
INFORMA-
TION.—The Clearinghouse shall create and maintain
802(a)(4)(A), and make such information, and infor-
mation regarding voluntary standards of training, 
equipment, and exercises, available to States, local 
governments, and first responders. 
‘‘(6) OTHER
INFORMATION.—The Clearing-
house shall provide States, local governments, and 
first responders with any other information that the 
Secretary determines necessary.’’. 
SEC. 4. HOMELAND SECURITY GRANT PROGRAM. 
(a) DEFINITION.—In this section, the term ‘‘State’’ 
has the meaning given that term in section 2 of the Home-
land Security Act of 2002 (6 U.S.C. 101 et seq.). 
(b) GRANTS AUTHORIZED.—The Secretary of Home-
land Security (in this section referred to as the ‘‘Sec-
retary’’) may award grants to States to enhance homeland 
security. 
(c) USE OF FUNDS.— 
(1) IN GENERAL.—Grants awarded under sub-
section (b)— 
(A) shall be used to address homeland se-
curity matters related to acts of terrorism or 
major disasters and related capacity building; 
and
(B) shall not be used to supplant ongoing 
first responder expenses or general protective 
measures. 
(2) ALLOWABLE USES.—Grants awarded under 
subsection (b) may be used to— 
(A) develop State plans or risk assess-
ments (including the development of the home-
land security plan) to respond to terrorist at-
tacks and strengthen all hazards emergency 
planning in coordination with the requirements 
under section 201 of the Disaster Relief Act of 
1974 (42 U.S.C 5131), and community-wide 
plans for responding to terrorist or all hazards 
emergency events that are coordinated with the 
capacities of applicable Federal, State, and local 
governments, first responders, and State and 
local government health agencies; 
(B) build and sustain comprehensive all- 
hazards emergency management capacity, such 
as planning, training, exercises, personnel, oper-
ational activities, equipment, early warning, 
public information and education, mutual aid, 
and other preparedness, response, and recovery 
activities;
(C) develop State, regional, or local mutual 
aid agreements; 
(D) purchase or upgrade equipment based 
on State and local needs as identified under a 
State homeland security plan; 
(E) conduct exercises to strengthen emer-
gency preparedness of State and local first re-
sponders including law enforcement, fire fight-
ing personnel, and emergency medical service 
workers, and other emergency responders iden-
tified in a State homeland security plan; 
(F) pay for overtime expenses relating to 
training activities consistent with the goals out-
lined in a State homeland security plan; and 
(G) promote training regarding homeland 
security preparedness including— 
(i) emergency preparedness responses 
to a use or threatened use of a weapon of 
mass destruction; and 
(ii) training in the use of equipment, 
including detection, monitoring, and decon-
tamination equipment, and personal pro-
tective gear. 
(3) PROHIBITED USES.—
(A) 
CONSTRUCTION.—Grants 
awarded 
under subsection (b) may not be used to con-
struct buildings or other physical facilities, ex-
cept those described in section 611 of the Dis-
aster Relief Act of 1974 (42 U.S.C. 5196), or 
to acquire land. 
(B) COMPENSATION.—Not more than 5 
percent of grant funds provided under this sec-
tion may be expended for the compensation of 
emergency planning personnel authorized under 
paragraph (2)(B). The amount of any such 
grant expended for the compensation of per-
sonnel shall not exceed the amount of State or 
local government funds made available to in-
crease such compensation. 
(C) OVERTIME
EXPENSES.—Not more 
than 5 percent of grant funds provided under 
this section may be used for overtime expenses 
for training carried out under paragraph 
(2)(F). 
(D) COST
SHARING.—Grant funds pro-
vided under this section shall not be used for 
any State or local government cost sharing con-
tribution request under this section. 
(d) APPLICATION.—
(1) SUBMISSION.—A State may apply for a 
grant under this section by submitting to the Sec-
retary an application at such time, and in such man-
ner, and containing such information the Secretary 
may reasonably require. 
(2) REVISIONS.—A State may revise a home-
land security plan certified under subsection (e) at 
the time an application is submitted under para-
graph (1) after receiving approval from the Sec-
retary. 
(3) APPROVAL.—The Secretary shall not award 
a grant under this section unless the application 
submitted by the State includes a homeland security 
plan meeting the requirements of subsection (e). 
(4) RELEASE OF FUNDS.—The Secretary shall 
release grant funds to States with approved plans 
after the approval of an application submitted under 
this subsection. 
(e) HOMELAND SECURITY PLAN.— 
(1) IN
GENERAL.—An application submitted 
under subsection (d) shall include a certification that 
the State has prepared a 3-year State homeland se-
curity plan (referred to in this subsection as the 
‘‘plan’’) to respond to terrorist attacks and strength-
en all hazards emergency planning that has been ap-
proved by the Secretary. 
(2) CONTENTS.—The plan shall contain meas-
urable goals and objectives that— 
(A) establish a 3-year strategy to set prior-
ities for the allocation of funding to political 
subdivisions based on the risk, capabilities, and 
needs described under paragraph (3)(C); 
(B) provide for interoperable communica-
tions; 
(C) provide for local coordination of re-
sponse and recovery efforts, including proce-
dures for effective incident command in con-
formance with the National Incident Manage-
ment System; 
(D) ensure that first responders and other 
emergency personnel have adequate training 
and appropriate equipment for the threats that 
may occur; 
(E) provide for improved coordination and 
collaboration among police, fire, and public 
health authorities at State and local levels; 
(F) coordinate emergency response and 
public health plans;
(G) mitigate risks to critical infrastructure 
that may be vulnerable to terrorist attacks; 
(H) promote regional coordination among 
contiguous local governments; 
(I) identify necessary protective measures 
by private owners of critical infrastructure; 
(J) promote orderly evacuation procedures 
when necessary; 
(K) ensure support from the public health 
community for measures needed to prevent, de-
tect and treat bioterrorism, and radiological and 
chemical incidents; 
(L) increase the number of local jurisdic-
tions participating in local and statewide exer-
cises; 
(M) meet preparedness goals as deter-
mined by the Secretary; and 
(N) include a report from the relevant ad-
visory committee established under paragraph 
(3)(D) that documents the areas of support, 
disagreement, or recommended changes to the 
plan before its submission to the Secretary. 
(3) DEVELOPMENT PROCESS.— 
(A) IN GENERAL.—In preparing the plan 
under this section, a State shall—
(i) provide for the consideration of all 
homeland security needs; 
(ii) follow a process that is continuing, 
inclusive, cooperative, and comprehensive, 
as appropriate; and 
(iii) coordinate the development of the 
plan with the homeland security planning 
activities of local governments. 
(B) COORDINATION
WITH
LOCAL
PLAN-
NING ACTIVITIES.—The coordination under sub-
paragraph (A)(iii) shall allow input from local 
stakeholders, including— 
(i) local officials; 
(ii) first responders and emergency re-
sponse providers; and 
(iii) private sector companies, such as 
railroads and chemical manufacturers. 
(C) SCOPE
OF
PLANNING.—Each State 
preparing a plan under this section shall, in 
conjunction with the local stakeholders under 
subparagraph (B), address all the information 
requested by the Secretary, and complete a 
comprehensive assessment of— 
(i) risk, including a— 
(I) vulnerability assessment;
(II) threat assessment; and 
(III) public health assessment, in 
coordination with the State bioter-
rorism plan; and 
(ii) capabilities and needs, including— 
(I) an evaluation of current pre-
paredness, mitigation, and response 
capabilities based on such assessment 
mechanisms as shall be determined by 
the Secretary; 
(II) an evaluation of capabilities 
needed to address the risks described 
under clause (i); and 
(III) an assessment of the short-
fall between the capabilities described 
under subclause (I) and the required 
capabilities described under subclause 
(II). 
(D) ADVISORY COMMITTEE.— 
(i) IN
GENERAL.—Each State pre-
paring a plan under this section shall es-
tablish an advisory committee to receive 
comments from the public and the local 
stakeholders identified under subparagraph 
(B).
(ii) 
COMPOSITION.—The 
Advisory 
Committee shall include local officials, local 
first responders, and emergency response 
providers that are representative of the 
counties, cities, and towns within the 
State. 
(4) PLAN APPROVAL.—The Secretary shall ap-
prove a plan upon finding that the plan meets the 
requirements of— 
(A) paragraphs (2) and (3); 
(B) the interim performance measurements 
under subsection (h)(1), or the national per-
formance standards under subsection (h)(2); 
and 
(C) any other criteria the Secretary deter-
mines necessary to the approval of a State plan. 
(5) REVIEW
OF
ADVISORY
COMMITTEE
RE-
PORT.—The Secretary shall review the recommenda-
tions of the advisory committee report incorporated 
into a plan under subsection (e)(2)(N) to ensure co-
operation and coordination between local and State 
jurisdictions in planning the use of grant funds 
under this section. 
(f) DISCRETIONARY GRANT PROGRAM.—
(1) IN GENERAL.—The Secretary shall use 10 
percent of the funds appropriated under this section 
to make discretionary grants to local governments 
that the Secretary considers to be high threat areas 
based upon the criteria under paragraph (2). 
(2) HIGH THREAT AREA CRITERIA.—The Sec-
retary shall ensure that an award of a grant under 
this subsection is based upon the consideration of 
the local government’s— 
(A) population and population density; 
(B) location, risk, or vulnerability of crit-
ical infrastructure or key national assets; and 
(C) any other factors determined by the 
Secretary. 
(3) CONSISTENCY.—Any grant awarded under 
this subsection shall be used to supplement and sup-
port, in a consistent and coordinated manner with, 
those activities and objectives described under sub-
section (b) or a State homeland security plan. 
(4) COORDINATION.—The Secretary shall en-
sure that any grants made under this subsection en-
courage multiple contiguous units of local govern-
ment and mutual aid partners to coordinate any 
homeland security activities. 
(g) FUNDING.—
(1) IN GENERAL.—The Secretary shall make 
awards of grant funds in accordance with para-
graphs (2) through (7). 
(2) MAINTAINING A BASELINE LEVEL OF SECU-
RITY.—Each State whose application is approved 
under subsection (c), including the District of Co-
lumbia and the Commonwealth of Puerto Rico shall 
receive .75 percent of the total amount appropriated 
in any fiscal year. The United States Territories (in-
cluding American Samoa, the Commonwealth of 
Northern Mariana Islands, Guam, and the United 
States Virgin Islands) shall receive .25 percent of 
the total amount appropriated in any fiscal year. 
(3) ASSESSMENT.—The Secretary shall dis-
tribute any remaining available grant funds, after 
distribution of funds for grants under subsections 
(d) and (f), based on— 
(A) population and population density; 
(B) threat, risk, and vulnerability of crit-
ical infrastructure or key national assets identi-
fied in the State homeland security plan; and 
(C) any other factors identified by the Sec-
retary. 
(4) FUNDING FOR LOCAL ENTITIES AND FIRST 
RESPONDERS.—The Secretary shall require grant re-
cipients to provide local governments, first respond-
ers, and other local groups, consistent with the ap-
plicable State homeland security plan, with not less 
than 80 percent of the grant funds, the resources 
purchased with such grant funds, or a combination 
thereof, not later than 60 days after receiving grant 
funds under this section. 
(5) STATE AND LOCAL MATCH.— 
(A) IN GENERAL.—The Secretary shall re-
quire a recipient of a grant under this section 
to make available non-Federal contributions in 
an amount equal to 25 percent of the Federal 
funds provided under the grant. 
(B) EFFECTIVE DATE.—The matching re-
quirement under subparagraph (A) shall take 
effect 2 years after the date of enactment of 
this Act. 
(6) REPORT ON HOMELAND SECURITY SPEND-
ING.—Each recipient of a grant under this section 
shall annually submit a report to the Secretary that 
contains— 
(A) an accounting of the amount of State 
and local funds spent on homeland security ac-
tivities under the applicable State homeland se-
curity plan; and
(B) information regarding the use of grant 
funds by units of local government as required 
by the Secretary. 
(7) SUPPLEMENT
NOT
SUPPLANT.—Amounts 
appropriated for grants under this section shall be 
used to supplement and not supplant other State 
and local public funds obligated for the purposes 
provided under this Act. 
(h) ACCOUNTABILITY.— 
(1) INTERIM PERFORMANCE MEASURES.— 
(A) IN GENERAL.—Before establishing per-
formance standards under paragraph (2), the 
Secretary shall assist each State in establishing 
interim performance measures based upon— 
(i) the goals and objectives under sub-
section (e)(2); and 
(ii) any other factors determined by 
the Secretary. 
(B) ANNUAL REPORT.—Before establishing 
performance measures under paragraph (2), 
each State with an approved State plan shall 
submit to the Secretary a report detailing the 
progress the State has made in meeting the in-
terim performance measures established under 
subparagraph (A).
(2) NATIONAL PERFORMANCE STANDARDS.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary shall set national performance standards 
based in part on the goals and objectives under 
subsection (e)(2) and any other factors the Sec-
retary determines relevant. 
(B) COMPLIANCE.—The Secretary shall 
ensure that State plans are in conformance 
with the standards set under subparagraph (A). 
(C) ANNUAL REPORT.—After the establish-
ment of performance standards under subpara-
graph (A), each State with an approved State 
homeland security plan shall submit to the Sec-
retary a report on the progress the State has 
made in meeting such standards. 
(3) GENERAL ACCOUNTING OFFICE ACCESS TO 
INFORMATION.—Each recipient of a grant under this 
section and the Department of Homeland Security 
shall provide the General Accounting Office with full 
access to information regarding the activities carried 
out under this section. 
(4) AUDIT.—Grant recipients that expend 
$300,000 or more in Federal funds during any fiscal 
year shall submit to the Secretary an organization
wide financial and compliance audit report in con-
formance with the requirements of chapter 75 of 
title 31, United States Code. 
(i) REMEDIES FOR NON-COMPLIANCE.— 
(1) IN GENERAL.—If the Secretary finds, after 
reasonable notice and an opportunity for a hearing, 
that a recipient of a grant under this section has 
failed to substantially comply with any provision of 
this section, the Secretary shall— 
(A) terminate any payment of grant funds 
to be made to the recipient under this section; 
(B) reduce the amount of payment of 
grant funds to the recipient by an amount equal 
to the amount of grants funds that were not ex-
pended by the recipient in accordance with this 
section; or 
(C) limit the use of grant funds received 
under this section to programs, projects, or ac-
tivities not affected by the failure to comply. 
(2) DURATION
OF
PENALTY.—The Secretary 
shall apply an appropriate penalty under paragraph 
(1) until such time as the Secretary determines that 
the grant recipient is in full compliance with this 
section.
(j) REPORTS TO CONGRESS.—The Secretary shall 
submit an annual report to Congress that provides— 
(1) findings relating to the performance stand-
ards established under subsection (h); 
(2) the status of preparedness goals and objec-
tives; 
(3) an evaluation of how States and local gov-
ernments are meeting preparedness goals and objec-
tives; 
(4) the total amount of resources provided to 
the States; 
(5) the total amount of resources provided to 
units of local government; and 
(6) a list of how these resources were expended. 
(k) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section. 
SEC. 5. FLEXIBILITY IN UNSPENT HOMELAND SECURITY 
FUNDS. 
(a) REALLOCATION OF FUNDS.—The Director of the 
Office for Domestic Preparedness, Department of Home-
land Security, shall allow any State to request approval 
to reallocate funds received pursuant to appropriations for 
the State Homeland Security Grant Program under Public 
Laws 105–277 (112 Stat. 2681 et seq.), 106–113 (113
Stat. 1501A–3 et seq.), 106–553 (114 Stat. 2762A–3 et 
seq.), 107–77 (115 Stat. 78 et seq.), or the Consolidated 
Appropriations Resolution of 2003 (Public Law 108–7), 
among the 4 categories of equipment, training, exercises, 
and planning. 
(b) APPROVAL OF REALLOCATION REQUESTS.—The 
Director shall approve reallocation requests under sub-
section (a) in accordance with the State plan and any 
other relevant factors that the Secretary of Homeland Se-
curity determines to be necessary. 
(c) LIMITATION.—A waiver under this section shall 
not affect the obligation of a State to pass through 80 
percent of the amount appropriated for equipment to units 
of local government. 
Æ