TO:	All State Administrative Agency Heads All State Administrative Agency Points of Contact All State Homeland Security Directors
FROM:	C. Suzanne Mencer
	Director
SUBJECT:	Funding for Operational Activities in Fiscal Year (FY) 2004

In a continued effort to relieve the financial requirements of states and local governments, funds from the FY 2004 Urban Area Security Initiative (UASI) and the FY 2004 Law Enforcement Terrorism Prevention Program (LETPP) portion of the Homeland Security Grant Program (HSGP) may be used to support select operational activities. Grantees and sub grantees may use no more than 25% of the gross amount of the award for select operational expenses associated with increased security measures at critical infrastructure sites, incurred during the most recent DHS-declared Orange Alert, from December 21st to January 9th as well as future periods of DHS-declared Orange Alert.

Funds may only be used in any of four authorized categories: backfill and overtime expenses for staffing state or local EOCs, hiring of contracted security for critical infrastructure sites, public safety overtime and National Guard deployments to protect critical infrastructure sites. This does not include consumable costs such as fuel expenses.

In order to accommodate operational cost reimbursement during the most recent Orange Alert, the FY 2004 project periods and budget periods within the grants will be dated December 1, 2003. This is not the grant award date, which will be determined by the OJP Office of the Comptroller (OC), and will be noted on the grant award package. Initial Spending Implementation Plans (ISIPs) will still be due to ODP sixty days after the grant award date. Also, states are reminded that they must submit an SF269a and a Categorical Assistance Progress Report (CAPR) for the period of December 1- 31, 2003, or the Comptroller may withhold funds. As a reminder, the states must still obligate not less than 80 percent of the total amount of the grant to local units of government and/or the urban area within 60 days of the grant award.

Questions related to this information bulletin may be directed to your ODP Preparedness Officer at (800) 368-6498. Thank you for your continued efforts and cooperation.