P.L. 108-334 Signed Into Law. OnOctober 18, 2004, the President signed P.L. 108-334 into law providing $33.1 billion in newobligational budget authority with a direct appropriation of $30.1 billion. The conference report to H.R. 4567 was approved by the House on October 9, 2004, by a vote of 368-0; andapproved by voice vote in the Senate on October 11. H.R. 4567 Passed in the Senate in Lieu of S. 2537. On September 14, 2004, the Senate passed H.R. 4567 afterstriking the House-passed language and inserting the language of S. 2537 . TheSenate-passed version of H.R. 4567 provides a total appropriation of $33.8 billion for theDepartment of Homeland Security (DHS); an increase of $1.3 billion over the Administration'srequest, and an 11.5% increase over the enacted FY2004 level of $30.3 billion. H.R. 4567 Passed in the House. On June 18, 2004, H.R. 4567 was passed in the House by a vote of 400-5. The bill would providea total appropriation of $33.1 billion for the Department of Homeland Security (DHS); an increaseof $500 million over the Administration's request, and a 9.2% increase over the enacted FY2004level of $30.3 billion. S. 2537 Reported. On June 17, 2004, S. 2537 was introduced in the Senate. The bill would provide a total appropriation of$33.1 billion for (DHS); an increase of $500 million over the Administration's request, and a 9.2%increase over the enacted FY2004 level. S. 2537 was accompanied by Senate Report, S.Rept. 108-280 , which was reported by the Senate Appropriations Committee on June 17, 2004,by a vote of 29-0. President's FY2005 Budget Submitted. On February 2, 2004, the President submitted the FY2005 budget request to Congress, proposing $32.6billion in appropriations for the DHS. This represents a 7.7% increase over net enacted FY2004funding of $30.3 billion. (1) Table 1 summarizes the legislative status of DHS appropriations for FY2005. Table 1. Legislative Status of Homeland Security Appropriations Note: vv = voice vote a. House Appropriations Subcommittee for Homeland Security held a markup on June 3, 2004. b. Senate Appropriations Subcommittee for Homeland Security held a markup on June 16, 2004. c. House Appropriations Committee reported by voice vote the report ( H.Rept. 108-541 ) to theFY2005 DHS Appropriations bill ( H.R. 4567 ). d. The House passed H.R. 4567 June 18, 2004 by a vote of 400-5. e. Senate Appropriations Committee reported by a vote of 29-0, the report ( S.Rept. 108-280 ) to theFY2005 DHS Appropriations bill ( S. 2537 ). f. The Senate passed its own version of H.R. 4567 after striking the House-passed textand inserting the text of S. 2537 . The Senate also adopted several amendments priorto passage. Note on Most Recent Data. The data in this report are based on the P.L. 108-334 , the conference report to H.R. 4567 ( H.Rept. 108-774 ); House report ( H.Rept. 108-541 ) to H.R.4567; the House-passed version of H.R. 4567; the Senate-passed version of H.R.4567; and on Senate report ( S.Rept. 108-280 ) to S. 2537 . 302(a) and 302(b) Allocation Ceilings. The maximum budget authority for annual DHSappropriations is determined through a two-stage congressional budget process. Inthe first stage, the Congress agrees to overall spending totals in the annual concurrentresolution on the budget. Subsequently, these amounts are allocated among thevarious committees, usually through the statement of managers for the conferencereport on the budget resolution. These amounts are known as the 302(a) allocations. They include the discretionary totals available to the House and Senate Committeeson Appropriations for enactment in annual appropriations through the 13subcommittees responsible for the development of the appropriation bills specific toeach. In the second stage of the process, the appropriations committees allocate the 302(a) discretionary funds among their subcommittees for each of the 13 annualappropriation bills. These amounts are known as the 302(b) allocations. Theseallocations must add up to no more than the 302(a) discretionary allocation, and formthe basis for enforcing budget discipline, since any bill reported with total above theceiling is subject to a point of order. 302(b) allocations may be adjusted during theyear as the various appropriations bills progress toward final enactment. On May 19,2004, the House agreed to the conference report on the FY2005 budget resolution S.Con.Res. 95 . The Senate did not pass the FY2005 budget resolution(S.Con.Res. 95). On June 15, 2004, House Appropriations Committee ChairmanYoung submitted H.Rept. 108-543 , which included subcommittee 302(b) allocationsbased on the amounts agreed to in the conference report on S.Con.Res. 95 . The 302(a) allocation in the House version of S.Con.Res. 95 is $821 billion, andthe discretionary 302(b) allocation listed in H.Rept. 108-543 for Homeland Securityis $32 billion. On September 8, 2004, the Senate Appropriations Committeeapproved its 302(b) allocations with a total budget authority for Homeland Securityof $32 million. Table 2 shows the 302(b) discretionary allocations for DHS, thus farin the process. Table 2. FY2005 302(b) Discretionary Allocations for DHS (budget authority in billions of dollars) Source: H.Rept. 108-543 , Suballocation of Budget Allocations for FY2005 ,submitted June 15, 2004, and Senate Appropriations Committee press release,September 8, 2004, available at http://appropriations.senate.gov/releases/Allocations%202005.pdf . This report describes the President's proposal for FY2005 appropriations forDHS programs, as submitted to the Congress on February 2, 2004, and thecongressional response to that proposal. It compares the FY2005 amounts proposedin the President's budget, the current estimates of the FY2004 amounts for programsand activities that were transferred to DHS after its establishment on January 24,2003. This report tracks legislative action and congressional issues related to theFY2005 DHS appropriations bill, with particular attention paid to discretionaryprograms. However, the report does not follow specific funding issues related tomandatory DHS programs -- such as retirement pay -- nor does it systematicallyfollow any legislation related to the authorization or amendment of DHS programs. FY2005 represents the second annual appropriations cycle for DHS. Of the 13 annual appropriations bills, the DHS bill is estimated to be the fifth largest source ofdiscretionary funds, accounting for approximately 3.5% of the estimated $818.4billion total for all federal discretionary budget authority, as reported in the Budgetof the United States Government Fiscal Year 2005 , Table S-5. (2) Though not the focus of this paper, it is important to note that not all federal spending on homeland security is funneled through DHS. According to a recentCongressional Budget Office (CBO) report, (3) theAdministration has requested $47.3billion in FY2005 gross budget authority for federal homeland security activities. Ofthis total, according to CBO, $40 (4) billion or 86%is allocated to DHS. However, itis also important to note that DHS performs many missions that are not related tohomeland security. (5) According to CBO,approximately $27.1 billion or 68% of thetotal FY2005 requested gross budget authority for DHS is devoted to homelandsecurity missions. Therefore, the requested DHS homeland security budget authorityfor FY2005 ($27.1 billion) represents approximately 57% of the total federalresources ($47.3 billion) sought by the Administration for homeland securityactivities in FY2005. (6) The Homeland Security Act of 2002 ( P.L. 107-296 ) transferred the functions, relevant funding, and most of the personnel of 22 agencies and offices to the newDHS created by the act. The act organized DHS into four major directorates: Borderand Transportation Security (BTS); Emergency Preparedness and Response (EPR);Science and Technology (S&T); and Information Analysis and InfrastructureProtection (IAIP). During congressional debate on the FY2004 appropriations cycle, the structure of accounts and titles under the bill ( H.R. 2555 ) was reorganized severaltimes. The House and Senate Appropriations Committees each organized theappropriations slightly differently, and the Conference committee decided upon thefinal organization, which was adopted in P.L. 108-90 . The House and Senate tablescontained within H.Rept. 108-541 and S.Rept. 108-280 for FY2005 generally reflectthe organization adopted in P.L. 108-90 , and is the organization used in this report. Table 3 is a summary table comparing appropriations for FY2004 and the requested amount for FY2005.