By Ed Somers
May 12, 2003

On April 30, the Department of Homeland Security (DHS) announced the application process for the "State Homeland Security Grant Program - Part II" which includes two programs funded under the FY 2003 supplemental: $1.3 billion for First Responder Preparedness; and $200 million for Critical Infrastructure Protection. All of this funding will flow through the states, which have until May 30 to submit their applications to DHS based on a state plan. There is no matching requirement for any of the funding.

While DHS Secretary Tom Ridge has said he would like to change the per'state funding formula in the future to include risk factors, this round of funding will go out using the old formula of a state minimum and population.

A state-by'state breakdown as to how much is provided for both programs is available at usmayors.org, and the grant announcement can be found at www.ojp.usdoj.gov/fundopps.htm.

$1.3 Billion for First Responder Preparedness - 80 Percent Local

The Office of Domestic Preparedness (ODP) within DHS is providing $1.3 billion for state block grants. Under the law, ODP will have 15 days to act on the applications from the states once they are received by May 30. After the states get their money, they are required to sub-allocate at least 80 percent to "local communities" within 45 days.

These funds can be used for: 1) procurement of specialized emergency response and terrorism incident prevention equipment; 2) design, development, conduct and evaluation of combating terrorism exercises; 3) institutionalizing awareness and performance level training at the state and local level; and, 4) planning and administrative costs associated with updating and implementing the state's homeland security strategy. As compared to the previous round of funding, this round does provide specific breakdowns as to how much of the total funding must be used in each category.

The funding provided under this program is not available for overtime or construction related activities.

$200 Million for Critical Infrastructure - 50 Percent Local

Funds provided under the Critical Infrastructure Grant program, "may be used for: 1) public safety agency overtime costs; 2) contract security personnel costs; and, 3) state-ordered National Guard deployments required to augment security at critical infrastructure during the period of hostilities with Iraq and future periods of heightened threat. Guidance on the use of funds for future periods of heightened threat, should these arise, will be provided to each grantee by the Department of Homeland Security."

The states are required to sub-allocate at least 50 percent of their funding to "local communities" within 45 days.

The announcement says, "Grant funds awarded under this program may not be used to pay for enhanced security costs incurred prior to March 17, 2003, or after April 16, 2003, unless otherwise specified by the Department of Homeland Security." This means that the funds can be used for reimbursement for overtime costs during that time period. Also, "funds not used to cover costs of heightened security at critical infrastructure sites during the period of hostilities with Iraq as defined above may be retained through the end of the award period for use in conjunction with future periods of heightened threat." Fringe benefits on overtime hours are limited to FICA, Workman's Compensation and Unemployment Compensation.

$700 Million for High Threat Areas - No Action Yet

The Department of Homeland Security has not yet announced how it will allocate the $700 million included in the supplemental "for use in high-density urban areas, high-threat areas, and for protection of critical infrastructure."