For Immediate Release
Office of Management and Budget
October 17, 2001
OMB Director's Letter on Emergency Spending Measure
107th Congress, 1st Session
The President
The White House
Submitted for your consideration are emergency funding requests,
totaling $20.0 billion, for various Federal Departments and agencies, as
well as the Legislative and Judicial Branches. Also included are several
language proposals, including legislation for the Department of Defense,
the U.S. Agency for International Development, and the Small Business
Administration.
P.L. 107-38, the Emergency Supplemental
Appropriations Act for Recovery from and Response to Terrorist Attacks
on the United States, FY 2001, provided $40.0 billion to the Emergency
Response Fund in the Executive Office of the President. The
Act provides that $10 billion would be available without any further
congressional action. Of that amount, you have made
available to date a total of $7.2 billion. In addition,
P.L. 107-38 included $10.0 billion that would be available 15 days
after OMB has submitted proposed allocations to the House and Senate
Committees on Appropriations. The $20.0 billion proposed for
your consideration today would not be available for obligation until
enactment in a subsequent emergency appropriations bill.
The $40 billion in emergency expenses
enacted in P.L. 107-38 was provided to assist victims of the attacks
and to deal with other consequences of the attacks, including the costs
of: (1) providing Federal, State, and local preparedness for mitigating
and responding to the attacks; (2) providing support to counter,
investigate, or prosecute domestic or international terrorism; (3)
providing increased transportation security; (4) repairing public
facilities and transportation systems damaged by the attacks; and (5)
supporting national security. Further, pursuant to the Act,
not less than one half of the $40 billion is to be for "disaster
recovery activities and assistance related to the terrorist attacks in
New York, Virginia, and Pennsylvania."
The requests in this transmittal follow an
extensive review of individual agency proposals to identify those
requirements that are immediate and near-term. The current
proposals support identified requirements and represent the crucial
initial steps toward recovery. We will not seek additional
supplemental funding for either domestic or defense needs for the
remainder of this session of Congress. If further
requirements become clear, we will work with the Congress on additional
needs that may arise during the Second Session of the 107th Congress.
As described below and in more detail in
the enclosures, the requests include the following:
Department of Agriculture (USDA)
The funding proposed for USDA would
support: enhanced security for USDA facilities ($17.2
million); design and construction of a facility in Ames, Iowa to store
and conduct research on biohazardous material ($14.1 million);
technical assistance to State, local, Federal, and private sector
entities to improve the identification and response to a bioterrorist
attack ($5.0 million); and training to improve response to food supply
threats, implement countermeasures, improve data collection and
dissemination, and other bioterrorism protection activities ($8.9
million).
Department of Commerce (DOC)
The $26.9 million in funding proposed for
DOC would largely be used for emergency grants to assist public
broadcasters in restoring facilities and capabilities that were
destroyed in the collapse of the World Trade Center towers and to
support departmental security enhancements, both at home and abroad.
Department of Defense (DOD)
A total of $7.4 billion is now requested
to support DOD's crisis and recovery operations and national security
responsibilities. These resources
include: $2,938.0 million for increased worldwide posture;
$1,735.0 million for increased situational awareness; $925.0 million
for repair and upgrade of the Pentagon; $881.0 million for enhanced
force protection; $545.0 million for offensive counterterrorism; $219.0
million for improved command and control; and $106.0 million for
initial crisis response.
Department of Education
This proposal would provide $10.0 million
to enable the Department of Education to provide crisis recovery
services in New York and other jurisdictions for students, educators,
and their families under the Safe and Drug-Free Schools and Communities
National Programs Project SERV (School Emergency Response to
Violence).
Department of Energy (DOE)
Of the $117.7 million requested for DOE,
$106.0 million would be used to improve the security of the Nation's
nuclear stockpile and infrastructure, including $91.0 million for
additional on-site security measures and plant reconfiguration at
defense-related national laboratories and production plants and $15.0
million for additional transportation safeguards and security to
protect and prevent sabotage of stockpile components and material while
in transit.
Department of Health and Human Services (HHS)
An additional $1.6 billion is proposed for
HHS' Public Health and Social Services Emergency Fund. These
emergency resources include expenses necessary to support activities
related to countering potential biological, disease, and chemical
threats to civilian populations. Among the funds now requested, $643.6
million would be used to acquire medicines, supplies, and equipment for
the National Pharmaceutical Stockpile to treat an additional 10 million
persons exposed to anthrax and other bacterial infections, as well as
providing an enhanced ability to treat victims of chemical attacks;
$509.0 million would be used to accelerate production of the smallpox
vaccine; and $61.0 million to enhance the frequency and quality of
imported food inspections, and modernize the import data system.
Department of the Interior (DOI)
A total of $85.5 million is proposed for
DOI largely to increase security and enhance preparedness for attacks
against: key national park sites ($53.0 million); Bureau of
Reclamation dams, power plants, and other critical facilities ($30.3
million); and DOI headquarters buildings ($2.2 million).
Department of Justice (DOJ)
A total of $1.1 billion is now requested
to support DOJ's responsibilities arising from the September 11th
terrorist attacks. The funds include: $538.5
million for extraordinary expenses incurred by the Federal Bureau of
Investigation; $399.4 million for operations of the Immigration and
Naturalization Service; $101.7 million for U.S Attorneys, U.S.
Marshals, and other legal activities, including the Office of the
Special Master; $68.1 million for the Office for Victims of Crime; and
$4.4 million for a grant to the Utah Olympic Public Safety Command for
the 2002 Winter Olympics.
Department of Labor (DOL)
The funding proposed for DOL would provide
$2.0 billion for National Emergency Grants, authorized under section
173 of the Workforce Investment Act, to States to assist workers who
were dislocated by the attacks of September 11, 2001. The
Administration will request an additional $1.0 billion for the National
Emergency Grants with the FY 2003 Budget submission. Grants
may provide employment and training assistance, including assistance in
paying to continue health coverage to dislocated workers, as authorized
under the Consolidated Omnibus Budget Reconciliation Act (COBRA), if
the Governor certifies in the grant application to the Secretary of
Labor that the attacks of September 11th contributed importantly to
closures or layoffs. An additional $12.6 million would
support needs of various DOL bureaus in recovering from damage incurred
in the attacks in New York, as well as other security measures.
Department of Transportation (DOT)
Of the $733.5 million now requested for
DOT, $408.5 million is proposed for the Federal Aviation Administration
to fund upgrades to airplane cockpit security and permit the
accelerated purchase of planned security equipment for airport baggage
and passenger screening; $203.0 million is proposed for the Coast Guard
to fund reservists activated to support national defense and homeland
security functions, and increased port security; $85.0 million is
proposed for the Federal Highway Administration, including funding that
would fund repairs and reconstruction of Federal-aid highways, which
were damaged or destroyed by the collapse of the World Trade Center
buildings; $23.5 million is proposed for the Federal Transit
Administration, including funds to replace buses and transit kiosks
that were destroyed by the collapse of the World Trade Center; and
$13.5 million for rail and other security-related measures.
Department of the Treasury
The $315.2 million in funding proposed for
the Treasury Department would provide: $114.2 million for
the Customs Service to improve and expand airport and aviation security
as well as increase efforts of inspectors at high-risk seaports and
land borders; $104.8 million for the Secret Service to fund necessary,
additional expenses incurred due to the attacks, and $96.2 million for
other Treasury Department emergency expenses, including $37.2 million
for the Internal Revenue Service to replace damaged equipment in their
New York offices.
Corps of Engineers
An additional $139.0 million is requested
to support increased security at over 300 critical Army Corps of
Engineers owned and operated infrastructure facilities (e.g., dams and
navigation facilities), including enhanced physical security and
facility vulnerability assessments to determine further facility
security needs.
Environmental Protection Agency (EPA)
A total of $76.0 million is proposed for
EPA and would support activities such as drinking water assessments,
replacement of equipment destroyed in New York, and various security
enhancements.
Executive Office of the President
This proposal would provide $50.0 million
to enable the Executive Office of the President to meet additional
requirements in response to the September 11th terrorist attacks and to
ensure the continuity of support and services to the President and Vice
President of the United States.
Federal Emergency Management Agency (FEMA)
Of the $5.5 billion now requested for
FEMA, $4.9 billion would support additional disaster relief efforts in
New Jersey, New York, and Virginia, and would be used to help
individual victims, remove debris from the World Trade Center site, and
assist in the rebuilding of critical public
infrastructure. An additional $0.6 billion would enable FEMA
to provide equipment and training grants to States and localities to
improve terrorism and chemical-biological response capabilities, as
well as support the Office of National Preparedness in its efforts to
improve terrorism preparedness coordination and liaison between
Federal, State, and local governments.
General Services Administration
A total of $200.5 million is requested for
the Federal Buildings Fund to increase security services nationwide at
Federal buildings, for replacement space costs in New York City, for
additional security equipment nationwide, and other security costs.
National Aeronautics and Space Administration (NASA)
An additional $93.1 million is proposed
for NASA in order to maintain a heightened state of security at 10
field centers and at NASA headquarters in FY 2002. These
funds will provide resources for the costs of: additional security
personnel and overtime compensation; modifications to security
perimeters; construction of additional checkpoints; additional security
monitoring and communications equipment; relocation of critical
functions and personnel; and increased air and sea patrols at the
Kennedy Space Center in Florida.
Small Business Administration (SBA)
This proposal would provide $150.0 million
for SBA's disaster loan program to support $600.0 million in low
interest loans to businesses impacted by the terrorist
attacks. In an accompanying request in this
transmittal, the Administration proposes to raise the $1.5 million
aggregate cap on loans to a single borrower to $10.0 million for
businesses directly impacted by the disasters in New York, Virginia,
and Pennsylvania. In addition, the Administration would allow
non-profit organizations and non-depository financial companies to
receive economic injury loans from SBA.
Other Agencies
For costs associated with reconstruction
of offices destroyed during the attacks, increased security measures,
and certain investigative activities, the following amounts are
requested: $1.0 million for the Department of Housing and Urban
Development; $2.0 million for the Department of Veterans Affairs; $0.3
million for the National Science Foundation; $7.5 million for the
Social Security Administration; $6.5 million for the Commodity Futures
Trading Commission; $25.0 million for the District of Columbia; $1.3
million for the Equal Employment Opportunity Commission; $7.0 million
for the National Archives and Records Administration; $0.8 million for
the National Capital Planning Commission; $0.2 million for the National
Labor Relations Board; $0.8 million for the National Transportation
Safety Board; $20.7 million for the Securities and Exchange Commission;
and $28.2 million for the Smithsonian Institution, including the John
F. Kennedy Center for the Performing Arts and the National Gallery of
Art.
Legislative Branch
This proposal would provide $256.1 million
to the Legislative Branch to enhance the security posture of the
Capitol Hill complex, the Government Printing Office, and the General
Accounting Office, and to perform actions that can be taken to reduce
the risk and potential damage to life and property caused by future
terrorist events.
Judicial Branch
Of the $31.5 million proposed for the
Judicial Branch, $17.5 million would cover the costs of additional
court security officer hours; $10.0 million would be used to enhance
the security posture of the Supreme Court building; and $4.0 million
would support a Supervisory Deputy Marshal responsible for coordinating
security in each judicial district and circuit.
I have carefully reviewed these proposals
and am satisfied that they are necessary at this
time. Therefore, I join the heads of the affected
Departments and agencies in recommending that you transmit the
proposals to the Congress. In addition, I recommend that you
designate the funds in the individual proposals enclosed as emergency
funding requirements pursuant to section 251(b)(2)(A) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended. In addition, I recommend that you designate the
funds in or credited to the Defense Cooperation Account during FY 2002
as emergency requirements pursuant to section 251(b)(2)(A) of such
Act.
Sincerely,
Mitchell E. Daniels, Jr.
Director
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