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