By Larry Jones
August 5, 2002

President Bush is expected to sign into law soon a $28.9 billion supplemental appropriations bill which provides the Administration the additional support it requested to help fight the war against terrorism at home and abroad. The package includes $14.4 billion for the Department of Defense, $6.7 billion for homeland security, and $5.5 billion to assist New York City in its recovery efforts from the September 11 terrorists attacks.

During negotiations on a final bill, the White House was successful in convincing House and Senate conferees to keep the total cost of the supplemental closer to the President's $27.1 billion request rather than the $31.6 billion proposed by the Senate. This meant that some of the spending called for in the Senate proposal had to be scaled back. Consequently, some Conference priorities such as airport security, Amtrak and highway funding received additional support while others such as housing and workforce assistance did not.

Homeland Security Funding

Under funds set aside for homeland security, $3.85 billion will be made available for the new Transportation Security Administration to enhance security at the nation's airports and port security. Included are funds for the following:

• $738 million for installing checked baggage explosive detection systems at commercial service airports;
• $23 million for the replacement of magnetometers at airport passenger screening locations in commercial service airports;
• $125 million for improving port security and conducting port incident training and exercises; and
• $15 million for grants and contracts to enhance security for intercity bus operations.

Other homeland security funding include $201 million for first responders grants funded through the Department of Justice; $50 million to establish a Community Oriented Policing Services- (COPS) Interoperable Communications Technology Program to combat terrorism by providing grants to states and localities to improve communications within and among law enforcement agencies; $150 million for grants to compensate airports for the direct cost associated with new or additional requirements imposed on airports by the Federal Aviation Administration following the September 11 terrorists attacks; $150 million for the fire grant program funded through the Federal Emergency Management Agency (FEMA); and $100 million for emergency preparedness grants at FEMA.

Additional Support for Other Programs

The Supplemental also includes additional support for a number of other programs unrelated to the federal government's response to the September 11 terrorist attacks. These include:

• $205 million to keep financially struggling Amtrak, the federally subsidized passenger rail system, operating;
• the bill includes language that will restore a $4.3 billion reduction in highway funding under the Transportation Equity Act Century 21st (TEA21) program; and
• $1 billion to help the Pell Grant program avert an estimated shortfall.

Programs Reduced

The supplemental rescinds $738 million in FY 2002 housing funds. This includes a $388 million reduction in the Housing Certificate Fund, a $300 million reduction in the interest reduction payments program and a $50 million reduction in HOME, a down payment assistance initiative.

House and Senate conferees also decided to drop from the supplemental proposed increases for worker assistance. The House version called for a total increase of $300 million while the Senate version called for an increase of $400 million. This included $110 million which was included in both versions of the bill to restore funds rescinded from the dislocated worker program last year. It also included proposed increases for National Emergency Grants provided through the U.S. Department of Labor to assist laid off workers, the dislocated worker formula funds, and the economic development assistance program at the U.S. Department of Commerce.