June
4, 2002
(Senate)
S.
2551 - Making Supplemental Appropriations for Further
Recovery From and Response to Terrorist Attacks on the
United States, FY 2002
(Sen. Byrd (D) West Virginia)
This
Statement of Administration Policy provides the Administration's
views on the FY 2002 Emergency Supplemental Bill as reported by
the Senate Appropriations Committee.
While
the Senate Committee bill funds the Defense request at the President's
level, it exceeds the President's request for other programs by
more than $4 billion and funds numerous lower priority non-emergency
programs as "emergency" needs. The Administration strongly
opposes this bill and also would strongly oppose any amendment to
further increase spending above the President's request. For instance,
the recently enacted Farm Bill provides an historically high level
of agriculture spending that can accommodate funding for emergencies,
economic assistance, rural development, and other purposes. The
Administration supported the Farm Bill to ensure farmers have the
resources they need. The Farm Bill breaks the bad fiscal habit of
needing to pass emergency agricultural spending bills including
drought assistance and other supplemental payments that make it
difficult for Congress to live within its budget leading to uncertainty
for farmers, ranchers and their creditors. The Administration strongly
opposes any new agriculture spending.
In
addition, the bill severely constrains the President's ability to
fund emergency homeland requirements by compelling him to release
non-emergency money provided in the bill. If the supplemental appropriations
bill were presented to the President in its current form, his senior
advisers would recommend that he veto the bill.
Overall
Funding Level
The
proposals for emergency funding included in the President's request
were crafted to provide critical resources to support the war on
terrorism, secure the homeland, and help dislocated workers as the
Nation continues to recover and rebuild following the September
11, 2001, terrorist attacks. It is important to note that Congress
has already provided $40 billion since September 11th and only half
of those funds have been spent. The President's FY 2002 emergency
supplemental request was targeted at this year's immediate emergency
needs and funding in addition to this request is not warranted at
this time.
The
Senate bill includes scores of unneeded items that total billions
of dollars -- all classified as an "emergency." The bill
adds unrequested funds for numerous programs and projects throughout
nearly all of the Federal agencies. While some of these items relate
to homeland security, many do not, including: $11 million to the
National Oceanic and Atmospheric Administration (NOAA) for economic
assistance to New England fishermen and fishing communities; $26.8
million for the U.S. Geological Survey for urban mapping activities;
$2 million for the Smithsonian to begin design of an alcohol storage
facility for specimens away from the Mall (President's FY 2003 Budget
already includes funding for this project in FY 2003); and, a directive
for the Department of Energy to construct duplicate waste treatment
plants in Ohio and Kentucky that will cost at least $100 million
more than necessary. In addition, without regard to the quality
of the awards, the bill requires $26 million more new Advanced Technology
Program awards than the Administration recommends for 2002. These
awards are not related to homeland security needs, may not meet
the Federal Government's standard of peer review, and over their
duration are likely to cost the government over $75 million.
While
the Administration is pleased that the Senate Committee provided
$1 billion of the $1.3 billion needed to finance the Pell grant
shortfall, the Administration objects to the provision that designates
these funds as an "emergency." The Administration urges
the Senate to follow the House's lead and offset this funding. The
Administration will continue to work with Congress to identify offsets
necessary to finance this and any other non-emergency activities
that have not been fully paid for in the bill.
The
Administration believes the funding requested for assistance to
Colombia is crucial to support the struggle against drugs and terrorism
in that country. The reductions in funding and the restrictions
on the requested expansion of counternarcotics authorities in Colombia
will impede the Administration's prospects of defeating these twin
threats.
Homeland
Security Needs
While
the Senate Committee bill fully funds the President's request for
the Transportation Security Administration (TSA), the Senate version
of the bill provides $2.6 billion more than the Administration requested
for homeland security-related funding. This funding could not possibly
be obligated in the remaining months of this fiscal year, and therefore
is not an emergency.
The
Senate bill provides $175 million in new, unrequested funding for
the Agriculture Department for research, inspection, and monitoring
activities related to bioterrorism. Significant resources have already
been provided through the Emergency Response Fund (ERF) as well
as in the FY 2003 President's Budget request. For example, funding
provided for the construction and renovation of an Ames, Iowa facility
is redundant because a total of $90 million has been provided for
FY 2002 as part of the ERF and regular appropriations, so that additional
funding is not needed in FY 2002 and FY 2003.
The
Senate Committee also added $100 million for nuclear non-proliferation
activities for the National Nuclear Security Agency (NNSA). It is
not possible for NNSA to use these funds in the remaining four months
of the current fiscal year. The Senate bill also provides $315 million
in unrequested funds for Centers for Disease Control and Prevention
(CDC) buildings and facilities, including $278 million for accelerated
planning, design, and construction of new facilities, of which $28
million is designated as bioterrorism-related. CDC will not be able
to obligate this additional funding in FY 2002 since they may not
even be able to obligate all of the $250 million they already received
in FY 2002 for buildings and facilities. To date, CDC has obligated
approximately $18 million (7 percent) of its FY 2002 funding. In
addition, the appropriate analyses have not yet been completed for
many of these activities making it unlikely that these funds would
be spent until well into FY 2003.
The
bill also includes $85 million for the Justice Department's COPS
program to create a new grant program to finance communications
equipment for local first responder agencies. Communications equipment
is a major focus of the $3.5 billion first responder initiative
the President has proposed for FEMA in his FY 2003 budget. The creation
of a new grant program for these purposes in the Department of Justice
runs counter to the Administration's proposal to consolidate First
Responder programs in FEMA, and in any event is duplicative of efforts
currently underway in the Office of Justice Programs and FEMA.
The
Administration also objects to the proposed creation of a Principal
Associate Deputy Attorney General for Counter-terrorism. While well-intentioned,
the creation of this position would hinder, rather than enhance,
the Administration's counter-terrorism efforts by creating another
unnecessary layer of bureaucracy. In addition, this position would
complicate recently announced restructuring plans by the Federal
Bureau of Investigation to enhance counterterrorism efforts.
Restrictions
on Presidential Authorities
The
Senate version of the bill also unduly restricts the President's
prerogatives in numerous areas. First, it requires the President
to designate "all or none" of the non-defense funding
contained in the bill as an emergency. The Budget Enforcement Act
provides that the President retain control over the release of emergency
funds added by the Congress to ensure that the funds respond to
critical emergency needs. By contravening this long-established
budget enforcement mechanism, the Senate would require the President
to waste taxpayers' dollars on low-priority, non-emergency items
in order to access vital high-priority homeland security and recovery
funding.
The
Senate version of the bill also requires payment of $34 million
to the United Nations Population Fund (UNFPA) by July 10, 2002.
On May 26, 2002, a three-member team returned from a two-week investigation
of UNFPA activities in China, designed to provide information relevant
to the determination whether UNFPA is in compliance with the Kemp-Kasten
law barring support for any program involving coercion. The team
is in the process of completing a report outlining their findings.
Thus the Senate version would remove the flexibility provided to
the President under P.L. 107-115, the FY 2002 Foreign Operations
Appropriations Act, to weigh the report's findings in his consideration
of funding levels. As has been U.S. policy and law since 1985, no
support should be provided to UNFPA if that organization's programs
in China support coercion.
In
addition, the bill requires that the Director of Homeland Security
be confirmed by the Senate, and makes the provision of $5 million
in homeland security funding for the White House contingent upon
that confirmation. The Administration recognizes Congress' need
to receive information on homeland security, and the Administration
continues to take all steps possible to ensure that this is the
case while protecting the confidentiality of Presidential counsel.
The President has said that the initial structure for organizing
and overseeing homeland security may evolve over time and the National
Strategy Review now underway may recommend an arrangement different
from the current one. The Administration does not want to prejudge
the outcome of the review process and strongly urges the Senate
to drop this objectionable provision.
The
Administration appreciates the Committee's support for the $420
million in military assistance for Pakistan and Jordan. However,
we urge the Senate to provide these funds to the Defense Department,
as requested, to allow the Defense Department to compensate coalition
partners for costs incurred directly related to support of U.S.
military operations in the war on terror. The Administration does
not believe the State Department should be held accountable for
managing or disbursing funds directly related to military operations.
Assistance
to Dislocated Workers
The
Administration appreciates that the Committee provided $400 million
of the President's $750 million request to help dislocated workers
return to work. However, the Administration is concerned that the
Committee provided insufficient funds for National Emergency Grants
(NEGs); provided an unrequested $80 million for State Dislocated
Worker formula grants; and did not provide adequate funds for community
economic adjustment and a targeted, high-growth job training demonstration.
The Administration looks forward to working with the Senate to ensure
that adequate assistance is available to displaced workers, through
National Emergency Grants, and distressed communities to address
higher unemployment levels resulting from the recession.
New
York
The
Administration appreciates the Senate support for the request for
additional disaster relief efforts for New York in response to the
September 11th terrorist attacks. However, we are concerned about
language that expands FEMA's Mortgage and Rental Assistance program
and proposes to redirect $90 million from FEMA to the Centers for
Disease Control. The Administration believes that the program expansion
is unnecessary because FEMA has sufficient authority to address
the needs of homeowners and renters and that the President's full
$2.75 billion request for FEMA is needed.
Funding
for Global HIV/AIDS
The
Administration appreciates the intent of the Senate in recognizing
this very important issue. The United States is committed to providing
a total of $500 million to the Global Fund to fight AIDS, Tuberculosis
and Malaria (Global Fund) and we look forward to continuing to work
with the Congress on this issue.
The
Administration is committed to working with the Congress to enact
an emergency supplemental appropriations bill as expeditiously as
possible. The Administration looks forward to working with the Senate
to address its concerns.
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