By Ed Somers
April 28, 2003

On April 16, President George W. Bush signed into law the $79 billion war supplemental that includes more than $2.34 billion for first responder programs. While the Act does not contain direct formula assistance to cities — as had been actively sought by the Conference of Mayors — significant gains were made such as increased overall funding, the inclusion of $700 million for high-threat areas, and the allowance of some overtime costs.

There remains much to be determined by the Department of Homeland Security (DHS) as to how this funding will be allocated. The Conference has requested a meeting with DHS Secretary Tom Ridge, and on April 22 Conference Executive Director J. Thomas Cochran hosted a live webcast with Josh Filler, Director of State and Local Government Coordination at DHS. Following is a summary of the key first responder provisions in the bill, the deadlines for implementation, and news from the webcast. An archive of the webcast is available at usmayors.org.

$1.3 Billion for State ODP Grants

The Department of Homeland Security's Office of Domestic Preparedness (ODP) was allotted $1.3 billion for state block grants by the war supplemental appropriations bill. Applications are required to be made available to the states within 15 days of enactment; the states then have 30 days to apply for the money; and ODP must then act on the applications within another 15 days. This means that the money must reach the state level within 60 days.

After the states get their money, they are required to sub-allocate at least 80 percent to local governments within 45 days, so funding should become available to local governments through this program no later than 105 days after April 16, which would be the end of July.

As to the per-state distribution formula, the law says that all states must receive a minimum of 0.75 percent of the total, but leaves the issue of the remaining funding up to the Secretary of Homeland Security. Secretary Ridge has said that he would like to develop a new formula, which also takes into account threat, but will probably use a population-based formula for this round of funding due to the time constraints. During the webcast, Mr. Filler said that no final determination had been made on this issue.

The funding provided under this program is not available for overtime or construction-related activities. There is no match requirement for this funding.

$700 Million for High-Threat Area Grants

The Secretary of Homeland Security is provided $700 million in discretionary funding "for use in high-density urban areas, high-threat areas, and for protection of critical infrastructure." The Administration had requested $50 million for this program.

There appears to be some ambiguity in the language as to whether this funding will be provided directly to these areas, or run through the states. However, there is language that ensures that if this money flows through the states, 80 percent will go to local governments within 45 days.

During the webcast, Mr. Filler said that it is likely that the Secretary will use the states to help coordinate this funding.

The report language says, "In making grants to state and local governments, the conferees further direct the Secretary of Homeland Security to take into consideration credible threat, vulnerability, the presence of infrastructure of national importance, population, and identified needs of public agencies." In addition, the language states, "Grants may be made to single or multiple jurisdictions in the same urban area."

The report language also says, "overtime expenses incurred and related to heightened security levels are an eligible use of funds." It appears that it will be up to the Secretary of Homeland Security to define how much of the funding will be actually available for overtime, and the conferees direct ODP to submit a plan to Congress within 120 days as to how it will measure and reimburse for overtime.

During the April 22 webcast, Mr. Filler stated that a portion of the overtime funding will be used to reimburse for costs related to the recent orange alert and war, which had not previously been announced. However, he said that it is unlikely that costs prior to the war would be covered. Construction or renovation of facilities is not allowed, and there is no match requirement.

$200 Million for State Critical Infrastructure Grants

The law provides $200 million for critical infrastructure grants, which will go to the states under the formula program within 60 days of enactment. 50 percent of the state money must be sub-allocated to local governments within 45 days. The Administration had requested that one-third of the critical infrastructure funding go to local governments. This funding is available for overtime, but not construction, and there is no match requirement.

$109 Million for Interoperable Communications Grants

The final bill contains $109 million for interoperable communications equipment grants, $54.75 million through the Federal Emergency Management Agency within DHS, and $54.75 million through the COPS Office within the Department of Justice. This funding is to improve State and local law enforcement cross'jurisdictional communication and information sharing. The issue of matching requirements for this funding remains unclear.

$30 Million for State Technical Assistance

The Act provides "$30 million for direct technical assistance to States."

Direct Funding Campaign Continues

The Conference of Mayors will continue to monitor the implementation of this new funding, and will be hosting additional webcasts as the Department of Homeland Security and the Department of Justice move forward.

In commenting on the supplemental and next steps, Homeland Security Task Force Chair Baltimore Mayor Martin O'Malley said in a letter to mayors, "As we move forward, it is important to say that The U.S. Conference of Mayors remains dedicated to securing direct formula assistance for cities. This supplemental moves us in that direction, but we will have to work even harder with our first responders to push Congress and the Administration to authorize and then fund a truly direct formula program."