Testimony
of Robert S. Mueller, III, Director, FBI
Before
the House Appropriations Committee, Subcommittee on the
Departments of Commerce, Justice, and State, the Judiciary
and Related Agencies
March 27, 2003
"FBI's Fiscal Year (FY) 2004 Budget"
Good
morning Chairman Wolf, Representative Serrano and members
of the Subcommittee. I welcome the opportunity to appear before
you to discuss the FBI's Fiscal Year (FY) 2004 budget request.
The FBI is undergoing extraordinary, positive change, to better
meet the threats posed by terrorists, foreign intelligence
services, and criminal enterprises. We have changed our organizational
structure to address the greatest threats facing our country,
to be more dynamic and flexible, and to ensure accountability.
And we are dramatically upgrading our information technology.
These changes, and many others that are ongoing, will ensure
that the FBI stays on top of current and future threats well
into the 21st century.
The FBI's
FY 2004 budget request will give us the resources we need
to keep this positive momentum. Our total request is $4.6
billion. We are requesting program changes totaling $513 million,
including 2,346 new positions, 503 of which are Special Agents.
This morning, I would like to briefly walk you through our
progress to date, our assessment of the threat and the changes
we are making to align our organization and resources to address
the threat.
Before
beginning, let me make one caveat to my testimony. We are
still analyzing the impact of the 2003 Omnibus Appropriations
Act on our 2004 request. It is possible that some changes
to the request may be required to reflect the 2003 enacted
level. We will be working with the Appropriations Committee
on this analysis.
COUNTERTERRORISM
PROGRESS
The prevention
of another terrorist attack remains the FBI's top priority.
We are thoroughly committed to identifying and dismantling
terrorist networks, and I am pleased to report that our efforts
have yielded major successes over the past 17 months. Over
212 suspected terrorists have been charged with crimes, 108
of whom have been convicted to date. Some are well-known --
including Zacarias Moussaoui, John Walker Lindh and Richard
Reid. But, let me give you just a few recent examples:
- In
March, Khalid Shaikh Mohammed was located by Pakistani officials
and is in custody of the US at an undisclosed location.
Mr. Mohammed was a key planner and the mastermind of the
September 11th attack. Since the arrest, the FBI worked
with other agencies to disrupt his financial network in
the UAE and Pakistan and we are continuing to get extremely
valuable information from him.
- On
March 16, Abdullah al-Kidd, a US native and former University
of Idaho football player, was arrested by the FBI at Dulles
International Airport en route to Saudi Arabia. The FBI
arrested three other men in the Idaho probe in recent weeks.
And the FBI is examining links between the Idaho men and
purported charities and individuals in six other jurisdictions
across the country.
- In
February, members of the Palestinian Islamic Jihad, including
Professor Sami Al-Arian, were arrested by the FBI and charged
under Racketeering Influence and Corrupt Organizations with
operating a racketeering enterprise from 1984 until the
present that engaged in violent activities.
- Six
individuals in Portland, Oregon, were arrested by the FBI
and charged with conspiracy to join al Qaeda and Taliban
forces fighting against US and allied soldiers in Afghanistan.
All six have entered plea negotiations.
- And,
in Buffalo, the FBI arrested seven al-Qaeda associates and
sympathizers. These individuals, members of a suspected
sleeper cell, were indicted in September 2002 for providing
material support to terrorism.
In addition,
we are successfully disrupting the sources of terrorist financing,
including freezing $113 million from 62 organizations and
conducting 70 financial investigations, 23 of which have resulted
in convictions.
COUNTERTERRORISM THREAT
Despite
these successes, tangible terrorist threats remain. During
this period, we are clearly focused on immediate threats to
the nation because of the war in Iraq. In order to respond
to potential threats, our Strategic Information and Operations
Center at FBI Headquarters and our field special command posts
are operating on a 24 hour basis. We established an Iraqi
Task Force. And, our agents have interviewed over 5,000 individuals
and are obtaining important information to help protect the
American public.
But,
even as we guard against this potential Iraqi threat, we believe
that for the foreseeable future, the al-Qaeda network will
remain one of the most serious threats facing this country.
While the US has made progress in disrupting al-Qaeda at home
and overseas, the organization maintains the ability and the
intent to inflict significant casualties in the US with little
warning.
CHANGING TO MEET TERRORIST THREATS
As al-Qaeda
and other terrorist organizations change their tactics, the
FBI, too, must evolve. And we are evolving.
Our new
Analysis Branch in the Counterterrorism Division has produced
30 in-depth analytical assessments, including a comprehensive
assessment of the terrorist threat to the homeland. We have
also improved analyst training and dramatically beefed up
our language translation capabilities.
I am now focusing on long-term strategies to enhance our ability
to collect, analyze, and disseminate intelligence. I have
put in place a new, formal structure that will enable the
FBI to assess gaps and to establish formal policies and strategic
plans for intelligence collection. As the President announced
in his State of the Union address, a new Executive Assistant
Director for Intelligence (EAD/I) will have direct authority
for the FBI's national intelligence program, and will ensure
that we have optimum intelligence strategies, structure, and
policies in place.
We are
establishing, in every field office, Intelligence units staffed
with Reports Officers. These specially-trained individuals
collect and extract intelligence from FBI investigations and
share that information with our law enforcement and intelligence
partners.
FY
2004 COUNTERTERRORISM REQUEST
Our FY
2004 request includes approximately $1 billion in direct support
for counterterrorism. Nearly 50% of all requested program
changes, or $250 million, supports counterterrorism. In particular,
the 430 positions proposed in the FY 2004 budget will strengthen
operational support around the country and improve CT management
and coordination at FBI Headquarters. New personnel would
provide an increased level of guidance, legal advice, and
operational support to investigators on the front line of
the war on terrorism. We must also continue to grow our cadre
of strategic analysts. The number of FBI counterterrorism
cases more than doubled last year, and with the recent capture
of high-ranking al-Qaeda operatives, the number of cases will
continue to climb.
The requested
amounts would support 66 JTTFs - critical multi-agency task
forces that facilitate cooperation and information sharing,
and act as a "first line" for preventing terrorist
attacks. It would expand vital international partnerships
by adding new FBI Legal Attaches in Sarajevo, Bosnia; Kuwait
City, Kuwait; Tashkent, Uzbekistan; Kabul, Afghanistan; and
Belgrade, Serbia, and by enhancing our presence in several
existing locations to handle a growing workload.
Approval
of this budget request would also improve FBI crisis response
capabilities, so we are prepared to respond to the scene of
a terrorist attack at home or abroad quickly and effectively,
with the equipment we need.
COUNTERINTELLIGENCE
PROGRESS
Mr. Chairman,
so far this morning I have focused on the terrorist threats
facing this country. Our counterintelligence efforts are also
vital to national security. I want to emphasize that the FBI
is thoroughly engaged in fighting the serious threat from
foreign intelligence services and their assets. The FBI had
several successful investigations in this area. Last month,
Brian Regan agreed to accept a life sentence for attempted
espionage and unlawful gathering of defense information. In
October 2002, Ana Montes was sentenced to 25 years in prison
following her plea of guilty to one count conspiracy to commit
espionage on behalf of Cuba.
COUNTERINTELLIGENCE
THREATS
Intelligence
threats fall into four general categories. The most significant
- and our top counterintelligence priority -- is the potential
for an agent of a hostile group or nation to enhance its capability
to produce or use weapons of mass destruction. A second threat
is the potential for a foreign power to penetrate the U.S.
Intelligence Community. A third threat is the targeting of
government supported research and development. The individuals
awarded research and development contracts in support of ongoing
operations and war-making capabilities constitute the highest
risk. The fourth threat is the potential compromise of Critical
National Assets (CNAs). The nation's CNAs are those persons,
information, assets, activity, R&D technology, infrastructure,
economic security or interests whose compromise would do damage
to the survival of the United States.
CHANGING
TO MEET INTELLIGENCE THREATS
Just
as we have worked to transform ourselves within the counterterrorism
program, we have made significant changes to the FBI's counterintelligence
program. Last May, when I announced the second phase of the
FBI reorganization, I indicated that we would be refocusing
our counterintelligence program to focus on the four threats
I outlined. That effort is progressing with a centralized,
nationally directed program. We established a Counterespionage
Section responsible for overseeing all of the FBI's counterespionage
efforts, including economic espionage, and we clarified our
priorities and objectives in a "National Strategy for
Counterintelligence."
With
your support, we reprogrammed 216 positions from criminal
investigations to counterintelligence, and we now have full-time
counterintelligence squads in 48 of the 56 field offices.
FY
2004 COUNTERINTELLIGENCE BUDGET REQUEST
For FY
2004, we ask your support for program changes totaling $63
million and 599 positions, including 94 agents, to further
our counterintelligence strategy. These resources would provide
the necessary investigators, analysts, and surveillance capabilities
needed to address emerging global threats, bolster both our
fixed and mobile surveillance capabilities, and improve our
ability to detect espionage activities targeting national
assets and universities.
CYBER
CRIME PROGRESS
Next,
I would like to discuss our third priority - cyber. We have
created a consolidated new Cyber Division at Headquarters
to manage investigations into Internet-facilitated crimes,
to support investigations throughout the Bureau that call
for technical expertise, and to help us coordinate with public
and private sector partners.
Forty-seven
of our field offices have, or will soon have, a specialized
cyber squad; eight will have multiple cyber squads. Cyber
Action Teams assist with specialized expertise. And the FBI
now participates in over 30 investigative task forces dedicated
to cyber crime.
This
strategy is proving successful. Our computer intrusion program,
for example, has identified 2,554 compromised computers, and
resulted in 95 convictions and $186 million in restitutions.
During 2002, Innocent Images National Initiative investigations
resulted in 692 arrests, 648 indictments/informations, and
646 convictions. And despite using only 5% of all FBI resources,
the Cyber Program is facilitating investigative activities
across all Bureau programs.
CYBER
CRIME THREAT
Unfortunately,
we are seeing explosive growth in cyber crime - both traditional
crimes such as fraud and copyright infringement that have
migrated on-line, and new crimes like computer intrusions
and denial of service attacks.
To date,
terrorists have posed only low-level cyber threats, but some
organizations are increasingly using information technology
for communication. Terrorist groups are increasingly computer
savvy, and with publicly available hacker tools, many have
the capability to launch nuisance attacks against Internet-connected
systems. As terrorists become more computer savvy, their attack
options will increase.
CHANGING
TO MEET CYBER THREATS
Looking
forward, our Cyber Program will focus on identifying and neutralizing:
(1) individuals or groups conducting computer intrusions and
spreading malicious code; (2) intellectual property thieves;
(3) Internet fraudsters; and (4) on-line predators that sexually
exploit or endanger children. Our success will depend on maintaining
state-of the art technical capabilities to handle complex
investigations and forming and maintaining public/private
alliances.
FY
2004 BUDGET REQUEST
For FY
2004, the FBI is requesting $234.4 million to protect the
US against cyber-based attacks and high-technology crimes.
This request represents program changes of $62 million and
194 positions, including 77 agents. These resources will enable
the FBI to staff computer intrusion squads in field offices,
enhance technical capacities to identify persons illegally
accessing networks, and provide funding for the training and
equipment we need to more aggressively investigate cyber incidents.
The requested resources will enable the FBI to increase its
efforts to detect the sexual exploitation of children on the
Internet. Over the past six years we have seen these cases
grow in number from 113 to over 2,300. We must increase our
commitment here. Finally, the resources would allow us to
expand our ability to conduct computer forensics examinations.
Right now, 6 out of 10 investigations require some level of
computer forensics support. History tells us that the number
of cases requiring this support will continue to grow and
that the number of forensic examinations required per investigation
will also continue to grow.
TECHNOLOGY
PROGRESS
I would
like to touch on our efforts to upgrade FBI technology. Over
the past two years the FBI has made significant progress in
modernizing our information technology infrastructure to better
support our investigative needs. As part of our Trilogy project
to date, 21,025 new desktop computers and High-speed Local
Area Networks have been deployed to 622 FBI locations; 3,408
printers and 1,463 scanners were provided; our wide area network
is scheduled to come on-line at the end of this month and
524 sites of 594 are now operating on Trilogy representing
92% of our US employees; and the Enterprise Operations Center
becomes operational early this spring to manage data, network,
hardware, software applications and security access. The wide
area network will connect computers throughout the entire
FBI. We are now focused on implementing a corporate data warehousing
capability that is key to FBI intelligence, investigative,
and information sharing initiatives as well as to our records
management system.
Trilogy
will change the FBI culture from paper to electronic. It will
replace redundant searches of stove-piped systems. Agents
will search multiple databases - linking thousands of data
points of evidence, leads and suspects - through a single
portal. Trilogy is the base for a modern computer architecture.
Trilogy computers, servers, and networks will support state-of-the-art
applications. Using Trilogy to transport, the Integrated Data
Warehouse will link 31 FBI databases for single-portal searches
and data mining. The Collaborative Capabilities program will
allow electronic data sharing with other agencies.
FY
2004 BUDGET REQUEST
We are
now at the point in our information technology upgrade where
it is essential that we preserve these investments by ensuring
there is sufficient funding for life-cycle operations and
maintenance of systems and for technology refreshment. The
FY 2004 request includes program changes of $82 million to
fund technology refreshment and operations and maintenance.
These resources will ensure that the equipment we have deployed
stays in good working order, and that it is replaced in an
orderly manner. The FBI can never again allow its equipment
to become obsolete.
OTHER
PROGRAMS
We are
completely restructuring our internal security programs and
processes. We have created a dedicated Security Division and
are consolidating security functions under a single management
structure. As we implement these changes to improve security,
we are addressing recommendations in the Webster and Rand
reports. The FY 2004 request includes program changes of $37
million and 126 positions, including 32 agents. These resources
will fund polygraph examinations, guard services, and other
security expenses.
The FBI
Laboratory's R&D efforts generated more than 120 projects,
providing more than 100 deliverable products to the operational
units, 58 technical publications, and 126 scientific presentations,
in the last three years. The FBI's Combined DNA Index System
software is used by 185 domestic and 23 foreign laboratories.
The FY 2004 request includes $3.28 million and 32 positions
funding nuclear DNA and the Federal Convicted Offender Program.
I will
conclude with the FBI's Criminal Program. We have opened more
than 85 major corporate fraud investigations. At the end of
FY 2002, the FBI had five corporate fraud investigations with
losses in excess of $1 billion. Currently, this number has
increased to eight. Forty-five FBI field offices are participating
in multi-agency corporate fraud working groups. The FY 2004
request includes $16 million and 164 positions, including
54 agents. The request will fund additional financial analysts
and investigators to support this initiative.
CLOSING
The FBI
has turned a corner in its history. With the support of Congress,
we have been able to make dramatic and substantive changes.
Our transformation continues because the threats facing the
U.S. homeland continue to evolve. I want to reassure you that
we are committed to protecting this country from those who
seek to harm us through acts of terror, espionage, cyber attacks,
or criminal acts. Every citizen must be able to enjoy the
basic freedoms this great nation provides. The men and women
of the FBI understand their roles in these challenging and
uncertain times. With your support, we can give them the resources
and tools they need to carry out our mission.
Thank
you.
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