<DOC> [108 Senate Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:22802.wais] S. Hrg. 108-851 DEPARTMENT OF HOMELAND SECURITY OVERSIGHT: TERRORISM AND OTHER TOPICS ======================================================================= HEARING before the COMMITTEE ON THE JUDICIARY UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS SECOND SESSION __________ JUNE 9, 2004 __________ Serial No. J-108-81 __________ Printed for the use of the Committee on the Judiciary ______ U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2005 22-802 PDF For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512-1800 Fax: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001 COMMITTEE ON THE JUDICIARY ORRIN G. HATCH, Utah, Chairman CHARLES E. GRASSLEY, Iowa PATRICK J. LEAHY, Vermont ARLEN SPECTER, Pennsylvania EDWARD M. KENNEDY, Massachusetts JON KYL, Arizona JOSEPH R. BIDEN, Jr., Delaware MIKE DeWINE, Ohio HERBERT KOHL, Wisconsin JEFF SESSIONS, Alabama DIANNE FEINSTEIN, California LINDSEY O. GRAHAM, South Carolina RUSSELL D. FEINGOLD, Wisconsin LARRY E. CRAIG, Idaho CHARLES E. SCHUMER, New York SAXBY CHAMBLISS, Georgia RICHARD J. DURBIN, Illinois JOHN CORNYN, Texas JOHN EDWARDS, North Carolina Bruce Artim, Chief Counsel and Staff Director Bruce A. Cohen, Democratic Chief Counsel and Staff Director C O N T E N T S ---------- STATEMENTS OF COMMITTEE MEMBERS Page Hatch, Hon. Orrin G., a U.S. Senator from the State of Utah...... 1 prepared statement........................................... 112 Leahy, Hon. Patrick J., a U.S. Senator from the State of Vermont. 3 prepared statement........................................... 115 WITNESS Ridge, Tom, Secretary, Department of Homeland Security, Washington, D.C................................................ 7 QUESTIONS AND ANSWERS Responses of Tom Ridge to questions submitted by Senators Biden, DeWine, Kohl, Leahy, Cornyn, Feingold, Kennedy, and Sessions... 33 SUBMISSIONS FOR THE RECORD Border Trade Alliance, Richard Cortez, Chair, Phoenix, Arizona, letter......................................................... 109 Ridge, Tom, Secretary, Department of Homeland Security, Washington, D.C., prepared statement........................... 120 DEPARTMENT OF HOMELAND SECURITY OVERSIGHT: TERRORISM AND OTHER TOPICS ---------- WEDNESDAY, JUNE 9, 2004 United States Senate, Committee on the Judiciary, Washington, DC. The Committee met, pursuant to notice, at 10:05 a.m., in room SD-226, Dirksen Senate Office Building, Hon. Orrin G. Hatch, Chairman of the Committee, presiding. Present: Senators Hatch, Grassley, Specter, Kyl, Cornyn, Leahy, Biden, Kohl, Feinstein, Feingold, Schumer, and Durbin. OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM THE STATE OF UTAH Chairman Hatch. We are here today to hold our eighth hearing since last fall to oversee our Government's attempts to protect against and respond to acts of terrorism. We heard from Attorney General Ashcroft yesterday, and today we are pleased to have Secretary Tom Ridge, the leader of our Department of Homeland Security. In the aftermath of September 11th, a new Department of Homeland Security was created. This was a massive undertaking, the likes of which this country has not seen since 1947, when President Truman reorganized our defense and security agencies. I, personally, want to thank Secretary Ridge and his colleagues at DHS for your efforts, sir, in improving our Nation's security. You are to be commended for your leadership and the initiatives that you have implemented--initiatives to increase our Nation's ability to respond in time of emergencies to emergencies, to enhance the security of our borders, to increase our ability to defend against bioterrorism, and of course to improve our intelligence-gathering and information sharing, and to integrate our local communities within our Nation's homeland defense efforts. Now, despite the daunting nature of your challenge, in just over a year, your department has successfully merged 22 agencies and 180,000 employees into a single department. That is amazing in and of itself. You have developed and implemented aviation security procedures, including explosives detection systems. You have issued new security directives, requiring enhanced rail operator protocols. You have tailored the Student VISIT Program to ensure that students who pose no threat to our country are permitted entry. You have streamlined the information-sharing process, which is a big, big move. You have established a Homeland Security Operations Center aimed at coordinating the efforts of the Federal, State and local authorities. You have enhanced port security, and you have provided substantial assistance to those on the front lines, our Nation's first responders. By no means is this a comprehensive list of your accomplishments, and all would agree there is a lot more to be done in order to ensure the security of our homeland. Most recently, however, you have proven that you are a leader willing to take the constructive criticism and recommendations of others when it comes to safeguarding our great country. By way of example, the Office of the Inspector General recently issued a report recommending a number of changes to the Visa Waiver Program. In response, the Department of Homeland Security announced that by the end of September of this year, it will extend U.S. visit requirements to travelers who visit the United States from visa-waiver countries. We have had 93 million visitors from these countries over the past 5 years, so naturally that is not going to be a very easy task. I commend you for taking this bold step forward to improve our visa waiver system and for working to secure this country against the threat of terrorists. I do want to take a few moments to challenge the administration in an area in which I think we can do much better, and that is bioterrorism. First off, let me recognize that our country is, in many ways, much better off to respond to various bioterrorism attacks than we were in the fall of 2001. Our first responders are much better equipped. There is much better coordination among the Federal, State and local Governments. We, in Utah, saw this firsthand during the Winter Olympics that went off so successfully there. I want to commend the administration and my colleagues in Congress for their work on the biofield legislation. Senators Gregg, Frist and Kennedy have consistently moved the ball forward on this issue. Vice President Cheney and Secretary Thompson have provided leadership in this area. One of the favorites of mine, Dr. Tony Fauci at the National Institutes of Health is coordinating Government, academic and private-sector scientists and, as always, is pushing the envelope of the scientific knowledge forward. Unfortunately, the results to date are simply inadequate. We know that there is a list of some 57 known bioterrorism threat agents. It is my understanding that there are only two--just two--FDA-approved countermeasures to these known threats. That is correct, just 2 of the 57 threats, have responses. And the truth of the matter is that the R&D pipeline is less than robust. That is one reason why Senator Lieberman and I have proposed bipartisan legislation whose goal is to provide a variety of incentives designed to stimulate private-sector biotechnology firms to develop new research tools, diagnostics, therapeutics, and vaccines. Our legislation includes tax incentives, intellectual property incentives, such as patent term restoration and extension of current marketing exclusivity periods and up-front liability negotiations. We should not let any politically expedient, antidrug antipathy to interfere with the attempt of the Lieberman-Hatch bill to unleash the creative genius of the private sector because that is where treatments and cures are going to have to come from. And, sure, we need to create a well-capitalized biodefense industry that will respond to our needs as any of these threats arises or evolves. Now, that is the goal of the Lieberman-Hatch bill. I commend my partner, Senator Lieberman, for his vision in this critically important area. Although the year is moving along, I hope in the weeks ahead to hold a hearing on some of the novel intellectual property and liability provisions of the Lieberman-Hatch bioterrorism bill. Now, Mr. Secretary, I hope that the administration will carefully review our bill and provide experts to participate in the hearings on that matter. Now, let me close by saying that I know that everyone on this Committee shares the common goal of protecting our country from additional terrorist attacks, and I believe we are all committed to achieving that goal, with complete respect for the fundamental freedoms of our American people. This Committee has an historical tradition of examining, debating and resolving some of the most important legal and policy issues that have been presented to Congress. Sometimes we get in fistfights on this Committee. It is one of the toughest Committees ever on Capitol Hill. It is always the fault of the other side, of course-- [Laughter.] Chairman Hatch. --but through these tough times, we are able to do a lot of great work on this Committee thanks to great Senators on both sides of the dais here. We are, once again, faced with an important task that will have a profound impact on our country's security and liberty. I have every confidence that we are up to that task, and I have every confidence in every member of this Committee to put our country first and to do what is best under the circumstances. Above all, I hope everybody in the Congress and people throughout this country cooperate with you, as you do this very almost impossible job to try and keep up with everything that possibly could occur that can damage our country, our people, and of course cause a lack of optimism in this country which we have always had. I, personally, want to thank you for the hard work that you have done. [The prepared statement of Senator Hatch appears as a submission for the record.] I turn now to Senator Leahy. STATEMENT OF HON. PATRICK J. LEAHY, A U.S. SENATOR FROM THE STATE OF VERMONT Senator Leahy. Well, thank you, Mr. Chairman. I like your analogy of the fistfights. The Chairman, of course, a former boxer, I am just the punching bag that he works out on every day. But if I can serve my country that way, I do it willingly. Chairman Hatch. Well, I am so pleased he is willing to be that punching bag and serve. [Laughter.] Senator Leahy. Well, I have now for a period of time. I want to thank my friend, Secretary Tom Ridge, for being here. Actually, I also want to thank you for your willingness to serve your country in such a difficult position. We are discussing the state of our homeland security efforts. I worry that we see the American people uneasy about their security as they enter the summer traveling season. Part of the unease may be some of the conflicting signals they are getting from their Government. Yesterday, we heard from the Attorney General, who, 2 weeks ago, took to the Nation's television screens to warn all of us of an impending al Qaeda attack, but it had the appearance of the unilateralism that we have come to expect from the Attorney General's Office. Earlier the same day, Mr. Secretary, you had appeared on many of those same television screens, and you encouraged Americans to go out and have some fun this summer. I think the American people are left to doubt whether they should be summering in fallout shelter or living their lives the way they had been accustomed before the September 11 attacks. Certainly, I would hope that people in my State, your State and all of the other States could take your advice that you gave to enjoy the summer. We are a great and good Nation blessed with so much, and we should be able to enjoy that. But the doubts that are in the American people's minds stem, in part, from the administration's failure to follow the process that Congress mandated in the Homeland Security Act of 2002. Under the act, the Secretary of the Homeland Security Department is the only person authorized to issue public threat warnings. And in broadcasting his own independent warnings, of course, the Attorney General ignored the law of the United States. And I agree with the words of Christopher Cox. He is a well-respected Republican Chairman of the House Select Committee on Homeland Security. He said, ``In the Homeland Security Act, DHS was assigned the central coordinating role in this process. The absence of Secretary Ride from the news conference held by the Attorney General and the conflicting public messages their separate public appearances delivered to the Nation suggests that the broad and close interagency consultation we expect, and which the law requires, did not take place in this case. The American public, State and local law enforcement, Governors and mayors, and private-sector officials with the responsibility for critical infrastructure all deserve crystal clarity when it comes to terrorism threat advisories.'' And I agree with Congressman Cox. I think the administration's lingering ambivalence about the Department of Homeland Security seems to be a residual byproduct even from the way the Department came about. As we review the administration's failure to hew to the charter of the Homeland Security Act, we should think about the history of the Department's founding. We know, of course, that the President initially opposed the efforts of Democrats--and we had been joined by some Republicans--when we asked to create a Department of Homeland Security. He then flipped over on the issue and embraced the creation of a new agency. Interestingly enough, timing the hurry-up announcement that he had now changed his mind and supported to coincide with the oversight hearing of Coleen Rowley, the FBI agent who accused the administration of negligence in its reaction to the arrest of Zacarias Moussaoui the month before the September 11 attacks. Even the White House admitted the timing was no coincidence. After the President's conversion, he then barnstormed the Nation. He campaigned against Democratic Senators like Max Cleland, who had, right from the outstart, had supported a Department of Homeland Security, but Senator Cleland wanted one that would respect the rights of the men and women who are working to keep our Nation safe. Well before the Department was established, the White House, for more than a year, ignored outright--without even a dialogue or an acknowledgment--the appeals many of us had made for implementing the provisions of the PATRIOT Act that authorized help to our partners in homeland security, our State and local first responders, the people that if something happens out in Utah or in Texas or in Vermont or anywhere else, the first people that are going to respond are not going to be us, here in Washington, it is going to be the first responders. So I would like to be able to tell Americans that, despite the conflicting guidance from their leaders and the President's history of playing politics with homeland security, that their Government was doing everything possible to keep them safe. We cannot say that today. There is much left undone in securing our Nation. And we have recently learned that a White House budget memorandum circulated within the administration last month states that if he is reelected, President Bush intends to cut spending for homeland security by $1 billion in his next budget--the first budget he will be able to submit knowing that he will not have to face the voters again. So, if we have gaps today, and we go ahead with the administration's plan to cut a billion dollars, there is going to be greater gaps. Apparently, this is because of the fiscal consequences of the tax cuts, but I think that we should worry first not about the wealthiest Americans, but worry about the safety of all of us. Now, I would like to share some of my most serious homeland security concerns, starting with the administration's failure to provide enough for the first responders. As the costs borne by law enforcement agencies across the country, in communities of whatever size, continue to rise, we should increase funding for our Nation's first responders. Instead, the President has proposed cutting overall funding for our Nation's first responders by $800 million. That will affect every State, large or small. The Hart-Rudman Report on Domestic Preparedness argued that the U.S. will fall approximately $98.4 billion short of meeting critical emergency responder needs over the next 5 years under the President's budget. Clearly, the domestic preparedness funds available are insufficient to protect our people. In fact, a 2003 report by the Council on Foreign Relations found a number of serious flaws in the preparedness of our first responders. They found that only 10 percent of the fire departments in the Nation have the personnel and equipment to respond to a building collapse. They also wrote that most cities do not have the necessary equipment even to determine the kind of hazardous materials they may be responding to. In February of last year, I introduced S.315, the First Responders Partnership Grant Act. I have repeatedly asked Chairman Hatch to mark up this bill. He has declined to do so. That is his choice as Chairman. But the bill would provide $4 billion annually to support our State and local public safety officers in the war against terrorism. Grants would be made directly to State and local Governments and Indian tribes for equipment, training and facilities. I think it is essential Federal support that our law enforcement officers, firefighters and emergency medical services need. I think it is unfortunate that this Committee will not even consider it. Vote it down if they want, but at least consider it. I have raised a number of concerns in my remarks. I do not mean by doing that, that I am suggesting you have an easy job. You do not. I told you at the time you got appointed I did not know whether to offer you congratulations or condolences because of the difficult job you have. I am very proud of the fact that you have made yourself so available to members of Congress on both sides of the aisle. When the calls have gone out, you have not asked whether it was a Republican or a Democrat. You have answered. I wish the Attorney General would do the same, but I admire you for doing that. I think that the administration should take into consideration these concerns. The Chairman said all of us up here, it does not make any difference our party, we want this Nation, this most wonderful, blessed Nation to be safe. But simply saying we want it safe does not make it safe. And simply saying we are safe, does not make it so. It requires really difficult work, not arbitrarily cutting the budget of our people who have to keep us secure, but working together. You, Mr. Secretary, have shown a willingness to do that. Please bring the message back to the rest of the administration that you have both Democrats and Republicans who want to work with whomever is President to keep this country safe. Thank you, Mr. Chairman. [The prepared statement of Senator Leahy appears as a submission for the record.] Chairman Hatch. Thank you, Senator. Senator Schumer. Mr. Chairman? Chairman Hatch. Sir? Senator Schumer. Thank you, Mr. Chairman. Before we begin, what is the schedule? I have heard that we are going to end this by the time the vote occurs, and some of us will not get to ask questions; is that-- Chairman Hatch. No, I intend to try and follow through. Senator Schumer. We will come back after the vote. Chairman Hatch. Try to come back. But I know the Secretary is busy, and we are going to have to end it-- Senator Leahy. If that happens, if we are not able to have all of the Senators have a chance on both sides to get the questions they want, could he come back, say, on Tuesday and continue? Chairman Hatch. I think we can finish it today. Senator Schumer. Thank you, Mr. Chairman. Chairman Hatch. We will do our best to do so. Senator Schumer. Thank you. Chairman Hatch. And I hope, Mr. Secretary, you can give the time to us. We would appreciate it. Mr. Secretary, we will be glad to take your statement. Let me just say, though, if we are going to end it, we will continue through the early part of the vote. Those who want to question are going to have to go vote and then come back real quickly so that we do not waste any time. Mr. Secretary? STATEMENT OF TOM RIDGE, SECRETARY, DEPARTMENT OF HOMELAND SECURITY, WASHINGTON, D.C. Secretary Ridge. Mr. Chairman, I would certainly be willing to accommodate that schedule, even if we have to wait a little bit to accommodate your colleagues with a Q and A. Chairman Hatch. We appreciate it. Secretary Ridge. Mr. Chairman, to you, to Senator Leahy, to members of the Committee, I certainly do appreciate the opportunity to appear before you today to discuss our progress at the Department of Homeland Security and our continued efforts working with you to help secure our Nation. As we all know, the tragic attacks of 9/11 required a swift and drastic change to our understanding of what it actually means to secure America. The Department of Homeland Security was envisioned as a means to bring together some of the most critical homeland security entities in the Federal Government under one central authority to better coordinate and to better direct our security efforts. We knew, from the outset, that our vast scope of protective measures had to build upon our existing strengths to more importantly be reconstructed in a way that unified and facilitated speed, openness and easy access for all of those involved in the hard work of securing our country every day. With that in mind, we have worked to build more integrated and coordinated homeland security, intelligence and law enforcement communities, communities that connect capabilities and people, that share information swiftly and effectively and that add layer upon layer of security to make our Nation safer and more secure. Knowledge is both a fundamental principle and instrumental resource in our efforts to secure our borders and our people. The Department has made widespread coordination and information sharing the hallmark of our approach to homeland security. Presidential initiatives like the USA PATRIOT Act and others have helped tear down the walls that prevented our policymakers from having the benefit of intelligence analysis that were based on all available information. As we have developed new tools for communication to share that information, tools that reach horizontally across Federal departments and agencies, and vertically down to our partners at the State, local, territorial and tribal levels. Within Homeland Security, we see communication as a two-way process. We collect information from the field and listen to what our partners need from us in order to do their jobs better. This means heightened awareness, better intelligence, wiser decisions, and improved coordination at every level of Government, not just within the Federal Government. First, we interface with all of the components of the intelligence community, including the Terrorist Threat Integration Center, the acronym TTIC, in which Homeland Security is a full partner in order to synthesize, analyze and apply information collected from thousands of sources. Now, let me be clear. The Department of Homeland Security is not in the traditional intelligence collection business, although many of our components collect significant amounts of information. We are definitely in the analysis and application business of that information. It is our job to turn the information into action and implementation. That happens primarily under the umbrella of the Homeland Security Advisory System. This communication tool includes not only the color-coded threat condition, as well as several projects such as the information bulletins and threat advisories that allow the Department to tailor specific information for specific recipients within the States and local communities, as well as the private sector. This communications process represents the first-ever centralized, integrated effort of its kind in the Federal Government and a vast improvement from the fragmented system that existed before. It not only outlines threats, but also recommends specific steps that can be taken to heighten readiness or improve physical protections. So this is much more than simply the dissemination of information. This is about achieving the right security outcome, supplying the necessary information and recommendations to decisionmakers on the ground who could then take appropriate action to protect the citizens of their respective communities. To accomplish this, we have created several new two-way channels of communication, including our National Infrastructure Coordination Center, created strictly to reach out and to have daily contact with the private sector, and the Homeland Security Information Network, created for use by Government entities. The National Infrastructure Coordination Center provides a centralized mechanism for the private sector, industry representatives, individual companies, and the Information Sharing and Analysis Centers--or ISACs--to share and receive situational information about a threat, an event or a crisis. The Homeland Security Information Network is a real-time collaboration system that allows multiple jurisdictions, disciplines and emergency operation centers to receive and share the same intelligence and tactical information so that those who need to act on the information had the same overall situational awareness. This year, we are expanding this information network to include senior decisionmakers such as Governors, statewide homeland security advisers and emergency operation centers in all 50 States, territories, Tribal Governments and major urban areas. And by the end of the summer, we will achieve real-time, nationwide connectivity, more information, more integration, better coordination. Both of these important communication networks support the Homeland Security Operation Center, a 24-hour-a-day, 7-day-a- week nerve center that enables the Department to monitor activity across the country. This combination of new abilities in information sharing and improved two-way communication has given the Department capabilities that the Federal Government never had before. Most importantly, it means we have improved our efforts significantly to prevent terrorist attacks and protect Americans. We have emerged from a very static security environment into a dynamic, real-time, action-oriented system of layered protections of air, land and sea and constant two- way communication with our partners at the State and local Government level, as well as within the private sector. Of course, we build layers of security designed to keep terrorists out. We must not forsake our National character as a country that is both open and welcoming to citizens of all lands. I know this is an issue of particular importance to this Committee, as it should be, and not just to members of the Committee, as it should be to all Americans. Our homeland security policies have been designed to keep our borders closed to terrorists, but open to legitimate, law- abiding visitors. And programs such as U.S. Visit and One Face at the Border are helping us do just that. And while stopping a terrorist at our border is a critical accomplishment, we want and need to go even further. We want to stop them before they ever board a plane or a ship destined for the United States. So we are hard at work with other Nations to strengthen visa processes and policies at consular offices abroad, yet we want to do so in a way that does not place an unfair burden on our allies or inhibit legitimate trade, travel and commerce. An example of this is the Visa Waiver Program which allows citizens of participating ally countries to travel to the United States for business or tourism for 90 days or less without obtaining a visa. To strengthen the security of this program, participating countries are now required to issue machine-readable passports that incorporate biometric identifiers. While this will add an important layer of security, we have learned that the deadline originally set for October of this year will be difficult, if not impossible, for many of these Nations to meet. I must say it is not because of a lack of will, but due to the difficult technical issues of putting such a system in place and, frankly, a lack right now of a consensus around the technical requirements around having a machine-readable passport with the biometric enablers within it. Secretary Powell and I support a 2-year extension of the deadline to not only give us time to work out the technological issues, but also to ensure that the systems we build is one that is interoperable for all countries. And I might add, Mr. Chairman, you noted that as of the end of September this year, even the visa waiver country entrants, because we are hoping to get this deadline, but will be part of the US-VISIT program, so they will leave a digital photograph, as well as the finger scans, with us so we can have a record of their entry while we are trying to work out the technical differences among the countries. By working with our allies and assisting them with time and resources to get this program up and running, we not only can make our Nation safer, but we can also protect the vital flow, the critical flow of travelers to and from our shores. It is this kind of commitment to cooperation and partnership that has led our homeland security efforts from the start. By working with communities, citizens, business leaders, State and local Government officials, first responders, members of Congress, we have forged a course of protection defined by the integration of our efforts. Everyone pledged to freedom's cause, everyone freedom's protector because everyone is freedom's beneficiary. And as we move forward to secure our land for future generations, we must do so with constant vigilance against our enemies, continued commitment to each other and then unwavering support for the protection of our liberties and the preservation of our freedoms. I thank the Chairman, the Ranking Member, for the opportunity to testify and appear before you today. [The prepared statement of Secretary Ridge appears as a submission for the record.] Chairman Hatch. Thank you, Mr. Secretary. Let me just ask you this question. We all know that one of your primary responsibilities is gathering threat information and communicating with the public your assessment of the threat level. Now, you performed, I believe you performed this task incredibly well during this past December's holiday season. And as you know, several weeks ago, the Department of Justice informed the public about an escalation in the chatter among al Qaeda terrorist and the possibility of a summer attack. You and your Department were criticized for not appearing with the Attorney General--unfairly, in my opinion-- and for not raising the threat level. So I would like to give you an opportunity to respond to both of those criticisms. Secretary Ridge. Thank you, Mr. Chairman. First of all, I hope everyone understands that the Attorney General, the FBI Director and I are literally on the same page with regard to sharing of information. We see the same intelligence. We meet daily, and then our organizations, along with the balance of the intelligence community, meet by secure video twice a day. And General Ashcroft and I had a lengthy conversation the other day, understanding that there was some confusion that arose between my public comments in the morning and his statement in the afternoon. Let me make it very, very clear that we understand we created some confusion and that we have pledged ourselves to make sure that the language we use describing whatever information we are sharing with the public, we are going to do a lot better job coordinating that effort. It is very important to note, however, that as the two chief law enforcement agents within this country, as the Department of Homeland Security is in the business and given the responsibility of coordinating an administration-wide effort to secure America, that there will be many, many occasions when the Attorney General and the FBI Director will talk to America about the specific law enforcement measures that are being taken as part of a nationwide administration effort. I do not think there should be anything read into the fact that I appear or did not appear with my colleagues. We admit that there was some confusion that arose from that, but we pledge to make sure that it does not happen again. Chairman Hatch. Well, thank you. As you know, the administration has asked Congress to extend the October 26th deadline for biometric passports, and you have raised that in your opening remarks. We are dealing with cutting-edge technology here, and the fact is that neither the visa waiver countries nor the United States can comply with these current deadlines. Now, Secretary Powell has also asked the Committee to extend this deadline and has called me personally about it, but time is running out. We can, and must, turn these visionary scientific breakthroughs into a reality. Now, Secretary Ridge, what might be the national security implications of extending the deadline? Secretary Ridge. Well, first of all, I think, in the long term, the national security implications are substantive in the sense that if we can reach a technical agreement within the next year and then get the compliance--there certainly is a will there. The problem right now is technological not a matter of commitment--then it will have very long-term and very positive implications for homeland security. Our ability to be able to use biometrics to identify those who enter the United States, confirm both their identity, as well as validate their passport, is extremely helpful to us. As you well know, Senator, Congress, well over 10 years ago, had asked the Executive Branch to establish an entry/exit system. It was not until the Department of Homeland Security was created, and then within the Department the decision made was to not only create an entry/exit system, but also to include biometrics. That is the technology of the 21st century that will significantly enhance security. So it is our hope that Congress will give us sufficient time--our request is for 2 years--so that these countries we can all work out to our mutual satisfaction the technical requirements. But while we are doing that, we plan on, and we have told these 27 countries who benefit from the Visa Waiver Program, that their citizens will still be subject to the US-VISIT identification, verifying their entrance and, as we work on the exit model, verifying their exit as well. So I think it is a very positive step. If we extend it so we can reach agreement on the technical requirements and, in the meantime, we will have them participate in the US-VISIT program, so we will have of a biometric identification of their entry. Chairman Hatch. Thank you. I reserve the balance of my time and turn to Senator Leahy. Senator Leahy. Thank you, Mr. Chairman. You did not want to use your remaining 50 seconds? Senator Grassley. Do not encourage him. [Laughter.] Senator Leahy. Mr. Secretary, just parenthetically, when Secretary Powell called me about extending the biometric, and we probably will, I recalled some urgency in getting that bill signed in the first place. I wish that some of the thoughts had been raised I suggested to him at that time. But I also understand the technology, and it is very complex--digital photographs and digital fingerprints, and you want to get it right so you do not have a lot of people turned back. We had 100-percent certainty from the Department of Justice that they had the digital fingerprint of a man out on the West Coast, supposedly involved with the bombing in Madrid, and they seized all of his property, his computers, and totally disrupted his life, locked him up and all, and then after a while said, ``Whoops, now we are 100-percent certain we have the wrong fingerprint.'' I do not think we want to, in this beckoning country, to have that sort of thing going on. Incidently, the impression may have been given that you were criticized about the warning given a couple of weeks ago. You were not the one criticized here by Republicans, and Democrats and the media, it was the Attorney General who was criticized for stepping outside--I just want to make that clear--the criticism was not made of you, it was made of the Attorney General for stepping outside the rules of the homeland security law, which gives you exclusive authority to issue threat warnings to the public. Do you believe, today, that it constitutes a threat warning to state that, ``Credible intelligence from multiple sources indicates al Qaeda plans to attempt an attack on the United States in the next few months,'' as the Attorney General said in May? Secretary Ridge. I think not only has the Attorney General said that, I have said it, other members of the administration have said that there are reports from credible sources, the talk of the intent, whether it is in response to what they perceive to be the influence on the outcomes of the elections in Madrid or not remains to be seen, but there are reports from credible sources that indicate that that is a desire or an intent. There is no-- Senator Leahy. Do you feel it was a high enough level to go from what you said in the morning about enjoying our summer to-- Secretary Ridge. No, I do not. I do not. I mean, we are at an elevated level of risk. The threat is fairly substantial. But our job every day within the Department, Senator, there is the normal pace of operations, and you will understand because that is a requirement the Congress gave to the Department, we do not need to raise the threat level to continue to improve security and enhance protection around the country, and that is what we are doing every single day. If the intelligence dictates, and there is a consensus within the President's Homeland Security Council that we would raise the threat level, then obviously that is a recommendation we would make to the President, and if he agreed, then I would be the one to announce it. But the Attorney General and I had a good conversation about what transpired and admit the confusion that arose. But substantively, his piece, his discussion of the be on the lookout and the photographs, as well as the task force that he was putting together, again, was part of an administrationwide effort that we would be doing, and are doing, regardless of raising the threat level. Senator Leahy. So you would agree with Congressman Cox that the broad and close consultation that the Act requires did not take place in this instance. Secretary Ridge. In this particular instance, again, the consultation on the substance occurred. I knew very well that the Attorney General was going to talk about the BOLOs. We have been working with the Attorney General's office and the FBI about the task force. Again, it is part of the administration- wide effort. But we also decided that not only do we worry about sharing information on the substance, but the tone that need to be projected. We need to make sure that we do a better job with our language, both of us. Senator Leahy. I am not trying to play ``gotcha'' here, but the American people have a great deal of--they give you a great deal of credibility, as I believe they should. And we cannot live in constant fear every day. This Nation, just as most of Europe and a lot of the Asian nations have for decades, we will face terrorist threats probably for the rest of your life and my life, if not from these people, from others. Secretary Ridge. Correct. Senator Leahy. We are the most powerful Nation on Earth, and we are not having to face, thank God, the threat of armies or air forces or navies coming against us because we are too powerful for that. But there are always going to be those who are going to resent us, for whatever reason, theocratic, political, or anything else, who will come after us. So there will always be a threat. But I would hate to think that in this great and good country that we are always running, cowering from that. I think we rely on people like you to follow those threats, do everything possible to protect us, wherever they come from. But, you know, we sometimes use too loosely this ``we are at war.'' I was just in Normandy over the weekend with the President and others. That was a war. This is a threat that we will always face, and we will do our best to stop it. But it is a lot different than the war we were at during that time when all of Western civilization as we know it could have disappeared. Last weekend, Defense Secretary Rumsfeld spoke in Asia about the war on terrorism. The Associated Press reported that he said that the troubling unknown was whether the extremists, whom he termed zealots and despots bent on destroying the global system of nation states, are turning out newly trained terrorists faster than the United States can capture or kill them. He said, ``It is quite clear to me that we do not have a coherent approach to this.'' These concerns are similar to what he had said in his earlier, well-publicized memo in the war on terror. Do you agree, one, that the revelations of torture and abuse are providing strong motivation for terrorist recruiters? And have you seen any evidence during the 15 months you have held your current posts that the number of terrorists seeking to harm the United States has declined? Secretary Ridge. Senator, I am not sure anyone around the world can actually put a firm figure on the number of terrorists that have been generated, not just in the past year or two but over the past 10 or 15 or 20 years, as extremist schools have been funded around the world and there has been a concerted effort within that extremist jihadist community to attract terrorists. I would like to think that we have made it certainly more difficult for them to operate with the destruction of much of their leadership core, at least al Qaeda and the difficulty we have created for them in terms of access to money and communication. But I don't think we should kid ourselves that--at the very least, I think it is better to think of it in terms of a more permanent condition that you have talked about. We are going to be dealing with this threat, whether it is bin Laden and al Qaeda or a successor to bin Laden and successive organizations to al Qaeda, for the foreseeable future. In my judgment, that is years and decades. Secondly, I think it defies common sense to suggest that these extremists wouldn't use the unfortunate events around the treatment of the prisoners to try to improve their recruitment. Senator Leahy. Thank you, Mr. Secretary, and I will submit my other questions for the record, Mr. Chairman. Chairman Hatch. Well, thank you, Senator Leahy. Senator Grassley? Senator Grassley. Mr. Secretary, the first point I want to make you can't know anything about, but I would like to call it to your attention and have you see if we could get answers to some letters by the end of the week: a March 4th letter, questions to the Bureau of Immigration and Customs Enforcement regarding money laundering; February the 12th, question to Under Secretary Hutchinson regarding your Department's handling of illegal border crossings other than Mexicans, OTMs; and July 23, 2003, questions regarding whether the Department has followed recommendations from internal reports about border security issues, including letting a suspected terrorist under investigation become a citizen. I would appreciate answers to those letters. Now, my first question to you: money laundering and terrorist financing. Yesterday I asked the Attorney General what role the Department of Justice plays in identifying and confronting the vulnerabilities in our financial system that terrorists and money launderers use to finance their operations. What role do you believe the Department of Homeland Security should play in identifying these vulnerabilities? And, two, who should be responsible for coordinating our Government's response to these vulnerabilities? And how is this responsibility being executed? Secretary Ridge. Senator, the overall coordination responsibility rests with Justice and the FBI by specific direction of the President. The GAO commented just a couple of weeks ago on the integration of the efforts between the Department of Homeland Security and the FBI as it relates to terrorist financing. As you now, we inherited that traditional responsibility in our Department that used to reside in Treasury to go in and explore financial vulnerabilities within the financial services community. Oftentimes, the exploration of those potential vulnerabilities, if you follow the chain of evidence, led to the possibility that the vulnerability was being exploited by a terrorist organization. To make sure that we would harmonize our approach and to ensure that the FBI would have overall coordinating responsibility, we entered into a memorandum of understanding with the Department of Justice and the FBI nearly a year ago, and the GAO took a look at the relationship since that time and concluded that it is working very effectively. And I think that is a feeling that is shared by both and within both Departments. The lead responsibility for coordinating is the FBI. Oftentimes, our investigations, based on traditional responsibilities to examine vulnerabilities within the financial institutions, leads us into a potential terrorist financing investigation. We coordinate with the FBI, give them information. Oftentimes, we continue that investigation, sometimes with their support, sometimes without it. But it is all coordinated through the memorandum of understanding, and it is working quite well. Senator Grassley. Okay. Information sharing, I hear complaints--I suppose I should say continue to hear complaints from local law enforcement that criminal intelligence does not flow to them from the Federal level. I know that both your Department and Justice are attempting to address the problem. However, I am concerned that various strategies compete rather than cooperate with each other. Three questions: Which agency is the lead for sharing information with State and local law enforcement? How do your Department's and Justice's strategies fit within the national criminal information-sharing plan? And how does the Department of Homeland Security's strategy work with the regional information-sharing system? Secretary Ridge. The FBI historically, through the Joint Terrorism Task Forces, has had an infrastructure that dealt with the police and law enforcement community of not only the major metropolitan areas, but generally to the States and to the local police chiefs through that system. We have a compatible system that we have developed because of our need to--and more often than not, we coordinate our message with the FBI, to establish a linkage with State and local law enforcement as well. I would say in response to your question that there are times when, depending on the kind of information we are sharing, the primary responsibility may fall either to the FBI or to us. Generally, we work very hard to coordinate those messages so when they are going down either through the FBI's chain or through ours, we have basically signed off and feel it is necessary to send the same message. We don't want to be inconsistent, again, in delivering the message to the State and local governments. I would tell you that we are developing through the Homeland Security Information Network the ability to connect via the Internet by the end of July real-time Internet-based exchange of information with our Homeland Security Operation Centers for the 50 largest urban centers in this country. During the December time frame, when we went up and raised the threat level, we actually had that kind of connectivity with Los Angeles and New York City. We will have it with the 50 major areas by the end of July, and we will have secure channels to pass that information by the end of the year. So the objective is to coordinate information, which we do on a regular basis. There are times when we will send out independent pieces of information, depending on the kind of information we are trying to share; some may be far more law enforcement-intense than what we might otherwise send out. We send out bulletins and advisories to State and locals all the time. We coordinate it with the FBI. And, again, we took a look at this Internet-based system, which was the Joint Regional Information Exchange System--JRIES was the acronym. It was actually something they were doing in California and New York-- and said this is a system that ought to be national, it ought to be hooked up to our Operations Center, and we are going to use it to stay in touch with the Governors, the homeland security advisers, the Operations Centers, and the chiefs in the law enforcement community in the 50 largest centers, and we will build out from there. But that is the goal, and that will be the information exchange system that we use within the Department. Senator Grassley. I have two questions I will submit for answers in writing. Chairman Hatch. Thank you, Senator. We will turn to Senator Kohl. Senator Kohl. Thank you, Mr. Secretary. A little more than a month ago, I wrote to you about potential security breaches at General Mitchell Airport in Milwaukee. An investigation by a local news reporter indicated problems, including the fact that passengers are able to easily identify Federal air marshals. In Milwaukee, the marshals were, or perhaps still are, required to show their badges and register for duty in full view of the general public. I was troubled by this security gap, and I met with Thomas Quinn, who, as you know, is Director of the Federal Air Marshals Service. I commend Director Quinn for quickly meeting with me, and through his cooperation I believe there have been some improvements. But, to your knowledge, has the situation been resolved in Milwaukee? And on the national scale, what more can we do to make the check-in process for the marshals more discreet, that is, a process whereby an air marshal does not have to report to duty in front of the very people that he is supposed to be protecting? Secretary Ridge. First of all, Senator, thank you for the graceful way you pointed it out to us by the letter and the discussion you had with Director Quinn. It is pretty clear that that is not in anybody's interest that we identify for all potential passengers who the Federal air marshals are. I am afraid that the condition that you reported in Milwaukee was not unique to other airports. We do a better job some places than others, and it is leading to a full-scale review of how we can effect the--nationwide, how we can effect the entrance of the Federal air marshals on to these aircraft. We don't want to do it in a fashion that indicates who they are and what their purpose for securing a seat on the flight is. So it is something that we are grateful you brought to our attention. We are doing a better job in some airports than others, but we are looking at a systemwide change. And as we effect those changes, we would be pleased to report to you, either publicly or privately. Senator Kohl. I appreciate your interest. Director Quinn said it was his number one priority. And usually when somebody of his stature and influence to be able to move the system indicates a number one priority, there is some reason to believe that there will be some action and on a fairly quick-- Secretary Ridge. It is. And it has become-- Senator Kohl. He, in fact, said that with respect to Milwaukee, he would give it particular attention. And I do not believe the problem has yet been rectified. And while I am not trying to make this, you know, into a huge, huge issue that needs to be taken care of this morning, I would like to ask whether or not I could hope to see Director Quinn give that airport and other airports, which, as you point out, are equally important, his attention. As you said, it doesn't make any sense to have Federal air marshals known to the public. It defeats in a large way the purpose, doesn't it? Secretary Ridge. Yes, sir, it does. And, again, to your point, it has become his number one priority as it relates to the FAMS and, therefore, as it relates to the FAMS, our number one priority in the Department. And based on his conversation with you and an assessment of some of the procedures at other airports, we have clearly determined that we need to make some significant improvements in that whole process. And we will be pleased to report you what we intend on doing and then give you a schedule as to when it will be done. Senator Kohl. I do appreciate. Secretary Ridge. Yes, sir. Senator Kohl. Thank you. Thank you very much, Mr. Chairman. Chairman Hatch. Thank you. We will turn to Senator Cornyn next. Senator Cornyn. Thank you, Mr. Chairman. Secretary Ridge, my questions relate to the US-VISIT program and implementation, but first I want to refer to the letter that you and the Secretary of State wrote with regard to the need to extend the deadline for the implementation of the biometric passports under the visa waiver program. You make some persuasive points in the letter, one of which I want to highlight, though. In addition to the security concerns, which are paramount, there is a concern that the need to acquire individual visas might suppress demand for travel to the United States with tremendous economic consequences in the country. The last sentence said ``possibly resulting in multi- billion-dollar losses to our economy and reducing employment in one of our economy's most dynamic sectors.'' My question with regard to the US-VISIT program is the implementation of that program along our Southern borders. And, of course, in Texas, as you know, we have about a 1,200-mile border with Mexico. I am sure that Senator Feinstein and Senator Kyl perhaps have similar concerns to make sure that not only that our border security is established, which, again, is our paramount concern--and I know yours as well--but that it be done in a way that does not adversely impact the economy in South Texas, for example, along the border, which are traditionally some of the poorer counties in parts of our State. Since the advent of NAFTA about 10 years ago, fortunately, we have seen huge economic growth in South Texas. But out of all of the entries into the United States--I believe INS inspects more than half a billion entries into the U.S. each year, but about 80 percent of those, as you no doubt know, are at land borders, and about 800,000 alone occur between the United States and Mexico. I must tell you that I have been struck by the differences in comprehension of life along our U.S.-Mexican border, between that area which I know so well and Washington, D.C., because I think we tend to think in global, sort of broad-brush terms. But, specifically, what I would like to ask for your help on-- and your staff has been very attentive to these concerns, but I just want to make the point with the boss. There is a tremendous concern about the use of the laser visa, which, ironically, does provide the kind of biometric identifier that US-VISIT hopes to ultimately accomplish for all entries, but with limitations on the time that non-immigrant visa holders, these laser visa holders, can come into the United States to shop and conduct business, which provides a tremendous economic benefit to the border region of the United States, including South Texas. So I would like to ask for your continued attention and cooperation and just raise this matter to your attention because it is a profound important issue to my State, and particularly the South Texas border region. And it corresponds precisely with the concerns that you and Secretary Powell raised in your letter with regard to the implementation of the visa waiver program. If you have any comments on that, I would appreciate it. Secretary Ridge. I do, Senator. Thank you. I can recall giving very specific directions within a couple of weeks after I came to Washington to initially serve as the Assistant to the President for Homeland Security, when he related the facts associated with making security paramount as of September 11, 2001, at both our Canadian and Mexican borders. We made it paramount, and we basically shut down travel and commerce. We had traffic backed up for literally miles and delays that sometimes went almost as long as a day, if not longer. So it is pretty clear that along our land borders we have to layer in different means of identifying the people and the products that come across to make sure that they are legitimate and lawful and that the people coming across are law-abiding. And we began that in the Smart Border Accord where we have identified--pre-screened certain people, pedestrian traffic, people coming across in commercial traffic, pre-screened shipping companies and the truck drivers that bring that traffic across, looking at various kinds of technology to really apply to the border, again, as part of the layered effort to provide security so we can move literally hundreds of thousand of people across the border back and forth every day. One of the other things we are looking at is to extend the time and the distance that people with the laser visa can travel, which, again, is part of our effort to--we can legitimize they are coming over for legitimate purposes, but if we make them go back and forth every single day when, in fact, they plan on staying for two or three or 4 days, whatever it may be, it will reduce the pressure on the border. So we want to layer in different levels of security at the border, and we will continue to work with you and your colleagues on the Southern border, but as well the colleagues on the Northern border, to effect the outcomes that we want, and that is a successful US-VISIT system by the end of this year at the land borders, at the 50 largest land borders in America. Senator Cornyn. Thank you, sir. Secretary Ridge. You are welcome. Chairman Hatch. Thank you, Senator. Senator Feinstein? Senator Feinstein. Thank you very much. And welcome, Governor Ridge. I wanted to spend my time discussing the visa waiver program because I have carefully read the May 13th report of the Office of Inspector General, and you have got a program that is very sloppy and is in great disarray. It involves 27 countries and 13 million people in 2003 that came into this country without a visa. We know that this program has been used by terrorists. Specifically, Richard Reid, the shoe bomber, used a British passport; Ramzi Yousef, the 1993 World Trade Center bomber, used a British passport; Mr. Moussaoui used a French passport under the visa waiver program; and Ahmed Ajaj used a Swedish passport. And this report details many others as well. So it is a point of maximum exposure for terrorist intrusion. The management is sloppy, and it goes on and on and on from there. I wrote you a letter last month, and I referred you to a specific FBI classified memo involving the thefts of large numbers of travel documents relating to this program. Now, the only reason for the theft of large numbers, well in the thousands, of these documents is really to sell them to people who want to fraudulently use them. The report points out that even when they find a fraudulent passport, the passport is returned to the individual because the individual has to return to their country. So that fraudulent passport is still out there. I was part of this Committee when we considered the timeline for the biometric passports, and we carefully considered it, and it has already been extended, as you know, a year. Secretary Ridge. Correct. Senator Feinstein. And now the October date is coming up, so the proposal is extended another 2 years. I am one that won't vote for that extension of 2 years because I believe this is an enormous security risk for our country. If the management problems can't be remedied, I am one that believes we should declare a moratorium on the program. And I know this has raised the ire of the business community, and the concern. But if you measure concern to concern, the concern about terrorist intrusion, which we know this program has been used exactly for that, is much greater, in my view, than the concern about loss of business because somebody has to get an actual visa to come to this country. We know the problem in US-VISIT. They are documented here. So my question of you specifically on the concerns in this May 11th OIG report is: How much of it has been remedied? How can you assure this Committee that this program cannot be used as an entry program for terrorists? Secretary Ridge. Senator, first of all, I think it is important to note as just a matter of public record that the visa waiver program is not a creation of the Department of Homeland Security. We are obliged under an Act of Congress to allow these citizens from the 27 countries in without a visa. So if there is going to be any change in the visa waiver program, it would probably require an Act of Congress to do so since Congress set it up. The concerns you raise, notwithstanding the origin of the program, are legitimate and very much I believe the reason that this Committee and I think Congress generally supported the requirement that citizens from visa waiver countries on a particular date start appearing at our borders with machine- readable passports with biometric enablers within it. I would share with you, Senator, that I do not believe that there is anything other than agreement that is growing, I think even internationally, that using biometrics to protect not just our borders but borders of other countries is something that the international community has begun to embrace holistically. It is interesting, the nature of the conversations that have occurred, and I have seen the evolution over the past 12 to 18 months. The Attorney General and I just concluded a couple of days with our colleagues from the G-8 countries. I just had a luncheon with 25 Ambassadors from the European Union. Everyone is focused now not just on America's borders but the use of biometrics to secure their borders as well. So I would say to you that, one, we will get compliance, and we are hoping to get the extension, and we will push very, very hard to get the compliance and an agreement around the technical solutions. Two, in our discussions with the EU and the G-8, this notion of fraudulent passports and stolen passports was a critical part of that discussion, and we are working with them to use your poll as a central repository of information about stolen passports and trying to work within their law enforcement communities as well so that we get immediate notice of any of these lost passports. And as you know, one of the requirements for a country to continue to be on the visa waiver list is that they report to us as quickly as possible lost or stolen passports. And we are going through that whole process now. Senator Feinstein. Let me just respectfully interrupt you there. Secretary Ridge. Sure. Senator Feinstein. This report points out that even when they report to you the serial numbers of the stolen passports, you can't pick them up unless it is done manually. And I think that is the soft underbelly. Secretary Ridge. Well, again, as we develop the technology at our ports of entry, I would tell you, Senator, I believe we are transferring--we are beginning to transfer that information via technology. But we have turned away people at the borders who appeared with a stolen European passport. We do get that information. Senator Feinstein. Why don't you confiscate the passport? Why do you give them back the fraudulent passport? Secretary Ridge. Senator, I am not--on that specific matter, I am going to be discussing that and some other things with my IG this afternoon, and I am not sure that is the case across the board. But I am going to-- Senator Feinstein. It is according to this. Secretary Ridge. I understand, and that is why I wanted to discuss that issue with the Inspector General to make sure that if that is--if that is not an aberration, that that is policy, then we change the policy. Senator Feinstein. Page 25 of the report. Secretary Ridge. I understand. We read it. Senator Feinstein. Okay. Secretary Ridge. He and I are going to have a conversation this afternoon. Chairman Hatch. Senator, your time is up. Let me just say this: This is a very significant and important day. They have asked that we all be in our seats to vote from our seats on this resolution. The vote is to begin at 11:30, so what I would suggest is that we head over to the floor. As soon as that vote is over, we will come right back. I apologize for this interruption, but it is an important one. And I think by the time we go through one more, some of us would be late to get to the floor. Secretary Ridge. I understand, Senator. Chairman Hatch. And I think we need to show that kind of respect at this particular time. So, with that, we will recess until we can return from the floor, which I hope will be, you know, within a half-hour. Senator Specter. Mr. Chairman, before we break, may I just say a word of welcome to Secretary Ridge, distinguished former Governor of Pennsylvania, now distinguished Secretary of Homeland Security. Nice to see you, Mr. Secretary. Secretary Ridge. Good to see you again. Thank you, Senator. Chairman Hatch. For that we apologize to you, Mr. Secretary. Secretary Ridge. I understand, Senator. Been there, done that. Chairman Hatch. If you would like to come over with us, we would-- Secretary Ridge. I have been on the other side. Not a problem. Chairman Hatch. We will recess until we can get back. [Recess from 11:05 a.m. to 11:45 a.m.] Chairman Hatch. Mr. Secretary, I am sure you have enjoyed this interlude. I apologize to you. I never thought it would take 40 minutes, but we are grateful for your patience, and we appreciate your being here. And we are going to try and go through this as quickly as we can. So Senator Kyl will be next, and then we will go to Senator Feingold. Secretary Ridge. Thank you. Thank you, sir. Senator Kyl. Thank you, Mr. Chairman. Thank you, Mr. Secretary, and please convey to all of the folks with whom you work how appreciative we are of the work that they do to help provide security for this country. I would like to return to a subject that Senator Feinstein raised, and others have raised, and it has to do with the Visa Waiver Program. And just to remind folks, if they need reminding, how important this program is. While we work cooperatively now with I believe 27 different countries to ensure that their citizens can gain fairly easy access to this country without obtaining a waiver, there are security issues with that as well. People like Zacarias Moussaoui, Richard Reid, the shoe bomber, Ahmed Ajaj, one of the 1993 World Trade Center bombing organizers, these are the kind of people who came into this country under this Visa Waiver Program. So it is an important program for commercial and other purposes, and yet there are terrorist concerns about it. One of the things that we asked is that a biometric identifier be created--we did not ask, we legislated--that a biometric identifier on the passports of these people be put into place so that we could ensure that security would be maintained notwithstanding the fairly lax standard with respect to these 27 countries. The State Department and your department, have asked for a 2-year delay in the implementation of that program because of the inability of the other countries to come together on a standard that we agree with and to implement that standard, as I understand it. Tentatively, we have a hearing scheduled for next Tuesday, the 15th, in the afternoon. We would like to hear from somebody from the State Department and from Homeland Security to talk to us about precisely how it is that we are going to get our other countries, the 27 countries here, to succeed within that time frame in meeting our objectives--in other words, not to simply say we need an extension, but to come up with a plan on how we are going to succeed in getting the job done by the end of that period of time, if not before. So I will be interested in hearing from the State Department and from your folks about how we can ensure that we can get the job done and not simply have another delay. Now, you have done a lot of things in response to this IG report, and I want to complement you for that. I know one thing, and you commented on, it was the US-VISIT program. I have two basic questions, and let me just ask them and then you can take the rest of the time to respond. It is well and good that the VISIT program will be applying in this interim period of time, but of course the question is whether it will also apply after. And that is what I understand the law requires; in other words, that both the entry and the exit aspects of US-VISIT will apply, even after the Biometric Identification Passport Program is completed. I assume that is the case. We would like to get confirmation of that. Second, there were some other things in the IG report that raise questions about compliance with law. For example, one of the legal requirements is that there be a biennial review to evaluate each country and whether or not they should be maintained on the list and, as a matter of fact, a couple of countries have been dropped as a result of the review. And in the case of Belgium, they have been put on provisional status. But that requirement under law is not being routinely carried out, and we need to know whether the Department will be able to comply with the legal requirement that every 2 years the effects of the Visa Waiver Program are evaluated with respect to each country, specifically as to law enforcement and security interests. I note, in that regard, for example, that some of the countries like Belgium, and Sweden and Denmark have very liberal naturalization laws, which the Inspector General noted allows third-country nationals to obtain citizenship in as little as 3 years. Other countries like Ireland and Italy allowed derivative citizenship. And so there are good reasons for evaluating whether, in each case, we want to continue the Visa Waiver Program for these particular countries. And then just a final point. According to the Inspector General report, there is no DHS department with clear responsibility for the Visa Waiver Program. I do not know that to be the case. If it is, obviously, you are going to be correcting it. If that is not correct, then I would like for you to tell us. So, if you could respond generally to what I have said and then the specific questions, I would appreciate it very much. Secretary Ridge. Thank you, Senator, very much. I am glad we have an opportunity to come back to the question that the Senator from California raised because it is an important question, and we do deal with millions and millions of visitors from visa waiver countries. So I am glad to continue to explore not only the IG's report, but what we are doing about it, particularly since we are the ones that requested an extension. First of all, it is my belief that the US-VISIT system has been refined to a point where it is not inconvenient at all. It is very much accepted by people coming across our borders. And even when the countries comply with our requirement for a machine-readable, biometrically enabled passport, I see no reason why we would not want to just continue to have them comply with the entry/exit system. I mean, I just think it makes a lot of sense. Congress mandated that we come up with an entry/exit system, and I do not think, in light of 9/11, that you are going to draw an exception for anybody. And I think it is easily done. I think it is easily done. Secondly, as you know, Senator, the legislation that created the Visa Waiver Program initially said we ought to conduct a review of the status of these visa waiver countries every 5 years. The initial legislation was in 2000. In 2002, Congress said, under the circumstances, every 2 years--very appropriate. I do not know the Inspector General's reference to his data point, but that is a process of review that we are presently conducting and have been conducting or began conducting before the date of his report. But notwithstanding that, we will have those reviews of those countries completed by I believe September 30th of this year. To the point you made with regard to the unique qualities associated with the policies of 4 or 5 countries--I think you mentioned Belgium, Ireland, places like that--that is something over which we have no legislative or regulatory authority to include in our assessment as to whether or not these countries should have visa waiver status. Congress has been very prescriptive. They said you need to look at these five or six different things, and based on these particular components of your report, then you need to make a decision as to whether or not they are eligible to remain on the visa waiver list. I do not need to remind my colleagues, but the Visa Waiver Program is basically administered by the Department of State. Our responsibility within the Department of Homeland Security is the biennial review. And Senator Feinstein made an interesting point. I went back to check it--actually, I was glad to have the break--with regard to getting the passport, discovering that it is fraudulent, and then handing the passport back to the visitor. As I understand it, first of all, we did not set that requirement, and it is done on a case-by-case basis because some of the countries will not let the offending citizens, the person that tried to get into our country with a fraudulent passport, back into their country unless they have the passport with them. Now, the State Department has seen that as a vulnerability and has identified and going back on a country-by-country basis and saying, look, I suspect they are saying it is a fraudulent passport. We want you to let your citizen back, but we do not want to put the fraudulent passport back into circulation. So at least I had a little opportunity to find that information and share it with you. And then, finally, Senator, Secretary Hutchinson, who is the Under Secretary for Border and Transportation Security, really has been overseeing the visa waiver requirements that the legislation has imposed on us in a very, very aggressive way, and I would be happy to send you--we have taken a look at the recommendations. Some of the data points we do not think were particularly accurate. But notwithstanding that, there are things that need to be changed. There are things that we need to do. We are doing them, and it will take a lot longer than 6 minutes to respond to your question, but I would be happy to send back to you and members of the Committee an answer in writing--a recommendation of what we are doing. I think you will be satisfied that we took the report seriously and are taking action on it. Chairman Hatch. That would be great. Senator Kyl. Appreciate that very much. Thank you. Chairman Hatch. Thank you, Senator. We would appreciate having that information. Senator Feingold? Senator Feingold. Thank you, Mr. Chairman. Secretary Ridge, good morning. Secretary Ridge. Good morning. Senator Feingold. Thank you for coming back and spending all of this time here. Your testimony for today's hearing includes many positive steps the Department has taken to keep America safe. However, as you are aware, the administration has continued to place a tremendous burden on our Nation's first responders, many of whom work in law enforcement. The administration has again proposed slashing many of the most critical law enforcement programs like COPS, Byrne grants and local law enforcement block grants. As it has in previous years, the administration's current budget proposal would consolidate several law enforcement grant programs into one program--the Justice Assistance Grant Program. The request for the Justice Assistance Grant Program is $284 million less than is currently appropriated for these programs with regard to the time when they continue to be separate. In addition, the administration has proposed a $1-billion cut in the Homeland Security Grant Program from the fiscal year 2004 appropriations and $250 million from the Fire Act grants. These grant programs are essential in providing funds to our first responders, police officers, ambulance drivers, doctors, nurses, fire workers and EMT workers, and I do oppose these dramatic cuts. I believe we need to do more, not less, to support our first responders if we want them to be successful. There has never been, obviously, a more critical time for adequate resources, specialized training, and sufficient equipment for first responders. Local law enforcement, fire departments and community organizations in Wisconsin have repeatedly expressed to me their need for upgraded equipment so they may better communicate, especially in times of emergency. Mr. Secretary, do you support these proposed cuts, and how can this administration justify these repeated attempts to cut assistance to those who put their lives on the line for the rest of us day in and day out? Secretary Ridge. Senator, first of all, I think you know that we have about $8 billion in the pipeline, and right now we are working, frankly, with your State and all of the other States and the territories to break the logjam that has I think frustrated the immediate disbursement of these dollars. That is a real challenge we have, and I think we can find some ways to get the dollars that you have appropriated out. That has been part of their frustration. Secondly, Senator, the President, in his 2005 budget, requested, in the aggregate amount, the same amount of money he requested in the 2004 budget. And the reductions that you refer to are the difference, by and large, between what the President requested in his 2004 budget and what Congress decided to appropriate. It is an interesting challenge that executives have. I had the same experience when I was Governor. There were certain programs that I knew that, regardless of the baseline, the legislature would probably add a few dollars onto it. And in trying to control the budget, oftentimes I just went back to the number in the preceding year, anticipating that there would probably be some increase in the following year. But I just wanted to dispel the notion that there has actually been a cut. I think if you take a look at the aggregate in 2005, while the President did not request in his budget the dollars that Congress ultimately appropriated, the line items for most of those are precisely the requests in 2004. We will, whatever Congress chooses to do with those line items, add, subtract or shift, we will obviously deal with. But right now I would tell you one of the biggest challenges we have, Senator, is getting a couple of billion dollars that seems to be cut in between the States and the locals distributed to your colleagues in your State and around--we have got a real solid group of people working on some very specific recommendations which we hope to have--no, not hope--we will have delivered to me by the end of June. We still have a couple billion dollars out there that some of the mayors and the Governors have legitimately expressed some public concerns about. It is not the Federal Government. You told us get ready to allocate that money within 45 days. We are ready to write the checks, but there is a maze of different ordinances, laws, depending on the different States. So we will continue to work on that and hopefully improve the flow of those dollars. Senator Feingold. I hate to interrupt you, but I have very limited time. Secretary Ridge. I am sorry. Senator Feingold. Just a couple of points. First of all, I can tell you that, at least with regard to the Byrne grants, and I do understand the role an executive has to play in trying to budget, but it is not a useful exercise to have the administration propose cutting this each time and then having to go around and say how terribly important the Byrne grants are for local law enforcement. This is one at least where the administration should just acknowledge the tremendous support for the program. Let me also say I know there are some pipeline issues in some parts of the country. But in my State, our experience has been that our people know how to take the fire grants and take the resources for first responders and use them very, very effectively. So I do not want our people painted with that brush, and I think, frankly, States that show that they are able to use the money efficiently should be acknowledged in that regard. And I think it is very important for the safety of the people in my State, as well as the people in the country. Secretary Ridge. Senator, I appreciate the correction. There are some States that are doing a lot better job of getting the dollars out the door, and it is those best practices that we want to share with the other States. I apologize for that. I did not mean to paint everybody with the same brush. Senator Feingold. Fair enough. As you may know, Senator Lautenberg has introduced a common-sense piece of legislation, Senate Bill 921, the State and Local Reservist First Responders Assistance Act of 2003. I have cosponsored the bill. It would authorize the Secretary of Homeland Security to make grants to reimburse State and local Governments and Indian tribes for certain costs relating to the mobilization of reserves who are first responder personnel. Under the bill, grants can be sought to replace reservists who serve six or more consecutive months of active duty. The administration's decision to extend the deployments of our men and women who are serving in these situations is obviously understandable, but I am wondering what your reaction would be to this sort of a piece of legislation. Secretary Ridge. Senator, I cannot give you a public reaction, but would be happy to once I took a look at the legislation. As a former Governor, I appreciate the direction the legislation goes, but I do not have a position one way or the other. I would be happy to review the legislation and share it with you. Senator Feingold. I look forward to it. I thank you, Mr. Chairman. Secretary Ridge. Thank you. Chairman Hatch. Yes, Senator. We will go to Senator Schumer now. Senator Schumer. Thank you, Mr. Chairman. I want to thank you, Mr. Secretary. As you know, we go back a long time. I have tremendous respect for you. But I have to tell you the frustration in New York at these funding formulas is just through the roof--bipartisan frustration, mayor, Governor, myself, our whole delegation. And so I have to ask you some questions about it. Secretary Ridge. Please. Senator Schumer. When we have talked, you have always been very positive, but so far nothing has happened, and that is the problem. First, on the State Homeland Security Grant Program. This was from the PATRIOT Act originally. Secretary Ridge. Correct. Senator Schumer. This was DOJ. The act mandated a .75- percent State minimum. That means about 40 percent of the money went out by formula, and New York and Wyoming got the same amount of money. But then we granted the Executive Branch the ability to give out the money, the rest, the 60 percent any way they wanted. And DOJ decided to do it on a per-capita basis, compounding the problem because we all know that high-need areas should get this money if it is not going to be just pork. I know everyone has a problem. That is why we have a set for everybody. You have never said a thing on this. Do you think the formula should be changed? It is now something that you would have a lot of say over because this occurred before your department. We have not seen any real leadership on that. It results in New York getting $5.47 per capita, Wyoming getting $38.31 per capita. Secretary Ridge. First of all, Senator, I have said publicly, time and time again, I do believe that every State, regardless of the size, regardless of the population, regardless of the risk, should receive from the Congress some financial support to build up, over a period of time, the kind of infrastructure that we are trying to build up nationwide. But I think the President's budget reflects, in a very dramatic way, when we have shifted, I think, if I recall correctly, about $700 million from the pot that would have been distributed simply based on the formula over to the Urban Area Security Initiative is where we think most of those dollars should go. Senator Schumer. Yes, I will get to that in a minute, but I had--I understand that. Secretary Ridge. We have tried to work, recognizing having, because we do go back such a long time, trying to work out a formula with 535 members of Congress in terms of how you distribute those dollars. We have been up here talking and working on it. We have not been able to find the magic formula yet, Senator, but we do think more money should go to high urban areas. Senator Schumer. Would you support changing, though, these grants away from a per-capita basis, the 60 percent in your discretion? If you could give me a yes or no on that because I have two more questions, and we have limited time. Secretary Ridge. I will support whatever formula, within existing fund, puts more dollars into an urban area, but how you go about making sure that everybody gets a certain amount of money-- Senator Schumer. But, sir, this is done per capita. You made the--your administration, not Congress--made the decision that 60 percent should be per capita. That sends a State without any rural areas getting the same exact amount as to--I mean without any urban areas--the same amount of money per capita as a highly urbanized State. It contradicts what you are saying here. Secretary Ridge. But in the aggregate, Senator, in the aggregate, what these smaller States receive, in comparison to what the large urban areas receive, as I said, there is a stark contrast. And all I am saying to you is-- Senator Schumer. There is not, not on this formula. Secretary Ridge. Not on the per capita. I understand that. I have not been able to come up with a formula that gets 218 votes in the House or 51 votes in the Senate in order to get it done, and as soon as I-- Senator Schumer. In all due respect, sir. Secretary Ridge. --as soon as I do, I will make the proposal. Senator Schumer. With all due respect, we have not heard a peep. When we tried to lobby this last year, we did not hear a peep out of the administration about what they wanted, how to change it, et cetera. It is not, frankly, that you failed to persuade Congress. You have not attempted to persuade Congress. You sort of let it happen. But I am going to ask a second one. This is on the High- Threat Urban Area Fund and which you mentioned. We had set aside some money for high urban funding and, again, before you were there, Mitch Daniels was sort of the guy in charge, and I negotiated with him that. And he had promised me that this would go to the high-threat areas. And the first year it did. Of the $800 million, New York City got $160 million. In 2004, the next round, you gave it out to 50 cities and 30 transit areas, and New York's share dropped to 9 percent. That was on your watch. Secretary Ridge. Right. Senator Schumer. Different than the previous year. Secretary Ridge. Correct. Senator Schumer. And do you think that New York's threat percentage went down so much that New York, relative to the rest of the Nation, became so much safer? For New York City, which has been the focal point, the only two international major terrorist incidents have had in this country have been aimed at New York City, for New York City to get 9 percent of that is a disgrace, and that was again totally--that had nothing to do with Congress. That was totally your discretion. And so I would ask you to comment on that, and then I am going to ask you just on two other things because my time is running out. Secretary Ridge. Sure. Senator Schumer. There are two bills in the House. One is by Young and Latourette. It continues to give homeland security funding on a per-capita basis regardless of threat of terrorism. That is the Latourette bill. And it also, an amendment--that is the bill in the Transportation Committee. It also allows these homeland security funds to go to all hazards--tornadoes and fires. There is an alternative bill that Congressman Cox has put together which directs them on the real basis of need. What is the administration's position on, A, the transportation bill, the per-capita bill; B, the Cox bill, which is the Energy and Commerce bill, which is on need; and, C, the provision that allows this money now, which is supposed to go to homeland security, to go to tornadoes and forest fires? Chairman Hatch. Senator, your time is up, but if you would answer the question. Secretary Ridge. I would like to, Senator, and I am not trying to avoid a public answer. I need to get back to you because I do not believe we have a--we have been working with Congressman Cox on the formula, but we have not come up with a position on either measure, but I will get back to you within 24 hours to tell you specifically what we are doing. Senator Schumer. And with a position, I hope. Chairman Hatch. That would be great. Senator Durbin? Senator Schumer. Because the problem, if I just might, Mr. Chairman, is the administration says they are for good things and never takes a position on any of these things. Secretary Ridge. And I just did want to say, Senator, we have, on both occasions, whether it was on somebody else's watch or our watch, recognized the importance, and the vulnerability, and the sensitivity to New York City's needs. I think, over the past 2 years, they have received twice as much as any other city. Senator Schumer. Nine percent. Do you think 9 percent is fair, when we received 20 percent the year before? Chairman Hatch. Let him answer the question. Secretary Ridge. It is in excess of $300 million, and they would be the primary beneficiary where they would benefit more than any other city if Congress would accept the President's proposal. And if you can keep the funding formula per capita, the argument is diminished substantially, if you reduce that pool and keep the formula, which would probably be the easiest political solution, and just reduce that pool and take substantial dollars over and put it in the Urban Area Security Initiative Program. And, again, the city that is at the top and the city that will get proportionately more than everybody else is New York City because of population density, because of critical infrastructure. Senator Schumer. I would just say, in conclusion, it is not even close to the needs, and it is not a fair formula. No one thinks it is, and we need your voice and your activity on the Hill, which we have not seen thus far. Chairman Hatch. Senator Durbin? Senator Durbin. Thank you very much, Mr. Chairman. Governor Ridge, thank you for being here today and for your service to our country. We spoke briefly before about the interoperable information systems, which has been an issue of concern. I met with your chief information officer, Steve Cooper, on March 3rd. He really was impressive. I think things are moving the right direction. In your appropriation bill, I asked for a report. I am sure you are always glad to have a request from Congress for a report. If you would be kind enough to take a look at it and ask your people to respond, I would appreciate that very much. Secretary Ridge. Sure. Senator Durbin. If I could ask you two specific areas. One of your responsibilities now, of course, with the new consolidated department, is in the area of immigration. There is only one immigration reform proposal that has been reported to the floor in the 108th Congress, and it came from this Committee. And it relates to a measure known as the DREAM Act, which Senator Hatch and I are co-sponsoring. It passed from this Committee on a 16-to-3 vote, and it relates to providing immigration relief to a select group of students of good moral character who want to pursue college education or military service for example. This bill has a lot of support, 48 sponsors and cosponsors, but the administration has not taken a position on it. Do you know what the administration position is on the DREAM Act? Secretary Ridge. I think you just told me officially there is none, but I would prefer to have the opportunity to review it myself and get back to you, as I have tried to do with some of your other colleagues on some of the other pieces of legislation. Senator Durbin. If you would, please. Secretary Ridge. Sure. Senator Durbin. I have certainly had a lot of differences with this administration, but I have publicly saluted the President for raising the immigration issue, a difficult, difficult issue, but one that we cannot ignore. And I think Senator Hatch and I have found a reasonable way to deal with a specific group of young people who will make a great contribution to America given that chance. So I hope that you would ask the President when you see him and get back to me. That would be very helpful. Now, I want to speak to an area that is a little more controversial--the Special Registration Program. That explicitly targeted Arab and Muslim males, requiring them to register with your department. Secretary Ridge. Right. Senator Durbin. The Justice Department created the program. You inherited it. We found that singling out a large group of Arabs and Muslims, it turned out that the vast, overwhelming majority of them were innocent people and really did not, that effort did not help in our efforts to combat terrorism. We, in doing so, though, have alienated a very important community of people in our country. Due to inadequate publicity, and misinformation from the Department of Justice, many of those who were supposed to register did not or registered late. More than 83,000 people have registered so far. Almost 14,000 have been placed in deportation hearing proceedings because of this. Many were here in the country legally and are being deported simply because they failed to comply with all of the requirements of special registration. Over the past year-and-a-half a lot of people have expressed concerns about this program. I wrote to you on January 23rd to ask a number of questions about this program. I think this program has failed us, in terms of making America safer, and in fact has created an undue hardship on innocent people. Will you terminate the Special Registration Program? Secretary Ridge. Senator, first of all, because you h v paid very close attention to the program, you know that it was our department that did inherit it, but eliminated the 30-day call-back and the annual review. And I would tell you that we are presently, because we now have a good and a robust entry/ exit system, we think our long-term goal should be to treat everybody the same way as they come across our borders, not targeting anyone. And so we are looking at some of the changes, some of the adjustments we made to visa policy and some of the adjustments we made immediately after 9/11 to see the impact of that. And one of the areas we are looking at very, very carefully is what, if anything, we should do to either modify or eliminate the NSEERS program--that is what you are talking about--with the goal being that regardless of the country of origin, regardless of ethnicity, you will be treated, when you come to our borders, you will be treated the same way. And that review is ongoing. It would be my intention to make some recommendations not only on that, but other areas of visa policy, to the administration within the next 35 to 45 days. And once that review is completed, I would be happy to, either by phone call or by visit, to tell you what we intend to do about it. We share the same goal. If you come to the United States, we are an open, welcoming country. We benefit from that kind of openness, and we all know the enormous benefits which treat everybody the same way. In order to do that, we have to make some adjustments to things that we did right after 9/11, for which we are not going to make an apology, but it is time to look at them and see if they really served the purpose for which they were intended, with the goal being one policy applied universally regardless of country of origin. Senator Durbin. That is a fair standard, and I think it is one that all of us would applaud. And I commend you for aspiring to that goal in a timely fashion. I would ask you, as you take a look at this program, that you pay special attention to several things. Individuals who are under this Special Registration Program can still only leave the United States from certain points of departure and have to register their departure with an immigration officer. And I guess the most troubling aspect is that there were many who were placed in deportation proceedings, and face deportation, not because they were here illegally, but simply because they either registered late or failed to register under the terms of the program. I think I detected in your remarks the notion that perhaps there were decisions made soon after 9/11 which we can now reflect on and say, all right, now, we were doing those in our best efforts to make America safe. Some achieved their goals, some did not. Now, let us be honest about those that did not and not punish people if we created a program which, in effect, has led to their deportation or some punishment that they did not deserve. And I hope, when you take a look at it, you will take a look at that particular aspect. Secretary Ridge. I will. Senator Durbin. Because I think that is a hardship that we ought to try our best to alleviate. Secretary Ridge. I think it makes very good sense for us to, on a regular basis, review what we do in terms of our borders, with an eye toward always enhancing security, but that the outcomes we hope to achieve, the benefits we hope to achieve, did we actually realize them? Again, that is tied to the larger goal of we have historically been as open, and as welcoming, and as diverse a country as there is on the face of the earth, and we do not want to let the terrorists change that rather unique, extraordinary quality of America. That is why the goal, as we review the adjustments we made in a post-9/11 world, is to bring back that universality of application of whatever the policy might be. I would be pleased to reflect on both these particular elements in that review process. Chairman Hatch. Thank you. Senator Durbin. Let me say, in closing, Mr. Chairman, Governor, thank you for your hard work and your accessibility. I know there are some who are troubled by Congressional meddling in your Executive Department, but you have been patient, to a fault, and submitted to questions time and again. It makes a real difference. And I think it increases the confidence level and the level of dialogue, and I think that is very important for our country. Thank you. Secretary Ridge. Thank you, Senator. Chairman Hatch. Well, thank you, Mr. Secretary. We really appreciate your taking the time. You have been very patient and especially with that delay, but it was in honor of former President Reagan, and I think we all understand that. But you were very gracious about it, and I personally appreciate it. And I appreciate the way you have answered all of the questions here today, and I appreciate the terrific job you are doing. It is almost an impossible job to do it completely, but if anybody can, you can, and we are very grateful to you. With that, we will recess until further notice. Secretary Ridge. Thank you, Senator. 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