The $18 billion figure is based on one of several possible conclusions that might reasonably be reached about which federal programs are relatively closely and directly related to homeland defense and combating terrorism. This rough and preliminary estimate derived by CSBA includes about:

• $10 billion for combating terrorism, including defense against weapons of mass destruction (WMD);

• $2-3 billion for critical (cyber and physical) infrastructure protection (CIP);

• $4 billion for the development of a national missile defense (NMD) system; and

• $1 billion to help prevent the diversion of WMD capabilities from the states of the former Soviet Union.

• $29 billion for combating terrorism, including the prosecution of the war in Afghanistan; and

• $11 billion in assistance to victims and businesses affected by the attacks of September 11.

Some Confusion Over Terms: Homeland defense and combating terrorism are related, but not synonymous missions. Administration estimates of funding to combat terrorism include programs and activities intended to protect US personnel and facilities located both in the United States and overseas from terrorist attack. Likewise, not all programs and activities related to homeland defense (e.g., NMD) are directed at countering attacks by terrorist groups.

Wide Range of Threats: Attacks on the United States and terrorist attacks at home or abroad could involve a wide variety of different threats. For example, such strikes could involve the use of conventional explosives to blow up buildings, airliners or ships, as have many past terrorist attacks. Or such strikes could be aimed at potentially much more dangerous targets, such as nuclear power plants and related facilities. Alternatively, attacks on the United States might involve the use of WMD (e.g., nuclear, biological, chemical, or radiological weapons) that could, at the extreme, lead to tens of thousands of casualties. Attacks could also be made against the nation’s computer systems.

Wide Range of Agencies Involved in Countering Threats: Given the wide variety of potential threats, not surprisingly, effectively protecting the United States from attack and combating terrorism requires the participation and cooperation of a large number of US departments and agencies. Over 40 different departments and agencies have received funding for programs related to homeland defense and combating terrorism in the recently enacted regular and emergency appropriations measures.

Largest Share of Funding Allocated to National Security Community (NSC): Although funding for homeland defense and combating terrorism is divided among dozens of different departments and agencies, by far the largest share of that funding is provided to the Department of Defense (DoD) and other elements (primarily intelligence-related agencies) of the NSC. More than half of the funding included for these missions in the regular annual appropriations bills is allocated to the NSC (primarily DoD), as is over 44 percent of the funding in the emergency supplemental.

Homeland Defense and Combating Terrorism Account for Only Small Share of NSC Funding: Although DoD and other NSC elements account for the largest share of federal spending related to homeland defense and combating terrorism, this funding accounts for only a small fraction of the overall DoD and NSC budgets. For example, only about $13 billion, or less than 4 percent of the regular FY 2002 defense budget appears to be allocated to programs and activities closely and directly related to homeland defense and combating terrorism.¹

Prior to September 11, Federal Efforts to Combat Terrorism Focused on the Physical Protection of Federal Facilities and Law Enforcement: Before the terrorist attacks of September 11, the vast majority of federal funding for combating terrorism was allocated to physical security measures designed to protect federally-owned facilities (especially overseas military bases and embassies) from terrorist attack, and law enforcement and investigative activities. These priorities accounted for, respectively, 49 percent and 35 percent of the $10.3 billion the administration requested for combating terrorism in its regular FY 2002 budget submission.² Only a tiny fraction of federal funding to combat terrorism included in this request was allocated to physical security measures aimed at protecting the general public and non-federal facilities and infrastructure, preparing for and responding to terrorist attacks, and related research and development efforts. Although it is difficult to precisely track congressional action on these programs, Congress appears to have approved roughly the level of funding the administration requested for combating terrorism in the regular FY 2002 annual appropriations bills. (See Tables).

Critical Infrastructure Protection: Critical infrastructure consists of those physical and cyber-based systems essential to national security, national economic security, and public health and safety. CIP is not included in the administration’s own estimate of funding for combating terrorism because it is intended to provide protection against not only terrorist attacks, but equipment failure, weather, natural disasters, and criminal attacks. Nevertheless, CIP efforts could prove critical to countering certain kinds of terrorist attacks. Thus, the CIP budget, totaling some $2.5 billion in the FY 2002 request, is included in CSBA’s estimate of funding for homeland defense and combating terrorism.³

National Missile Defense: The FY 2002 defense budget approved by Congress provides some $8 billion for ballistic missile defense programs, at least $4 billion of which is allocated to NMD programs intended to protect the US homeland from attack by ballistic missiles. (The remainder of the funding is accounted for by theater missile defense programs, and technology and support programs and activities).

Cooperative Threat Reduction (CTR) and Related Funding: The regular annual FY 2002 defense budget approved by Congress also provides roughly $1 billion for various programs administered by DoD, the Department of Energy (DoE) and the Department of State designed to assist the states of the former Soviet Union with the dismantlement and safeguarding of WMD, and preventing the spread of WMD materials or knowledge to other countries or terrorist groups. As such, these programs may play a critical role in combating terrorism and homeland defense.⁴

$40 Billion Emergency Supplemental: A few days after the terrorist attacks of September 11, 2001, Congress passed, and the President signed, a $40 billion emergency supplemental appropriation to assist with response and recovery efforts. The President was given full authority to spend $10 billion of that funding as he saw fit without further congressional action. He was given the authority to spend another $10 billion of that funding at his discretion after giving Congress 15 days notice of how the funds would be allocated. The emergency supplemental provided that the remaining $20 billion could be spent only after the administration submitted a formal request to Congress identifying how it proposed to spend the money, and the request was approved by Congress. In other words, the last $20 billion increment was essentially treated as a second request for supplemental appropriations.⁵

The biggest change Congress made to this request was to cut $3.8 billion from the administration’s proposed funding level for DoD in order to provide additional funding for security infrastructure ($1.453 billion), bioterrorism ($1.256 billion) and investigation and law enforcement activities ($1.091 billion).⁶ Table 2 shows the how the $40 billion in supplemental appropriations was divided among various departments and agencies. Table 3 shows the funding broken down into different activity and program categories.(See Tables).⁷

Funding for Defense in the Emergency Supplemental Appropriation: The $17.5 billion provided for defense in the emergency supplemental appropriations is divided among more than half a dozen different funding categories.⁸ Almost two-thirds of the funding is allocated to improving intelligence and related activities, and fighting the war in Afghanistan.

• Increased Situational Awareness ($5.1 billion/29 percent): funds programs and activities, such as surveillance aircraft, sensors and classified programs, designed to improve intelligence, targeting and related activities.

• Increased Worldwide Posture ($5.1 billion/29 percent): covers the cost of the war in Afghanistan and the higher operational tempo of US forces.

• Offensive Counterterrorism ($1.8 billion/10 percent): funding for additional precision-guided and other munitions.

• Enhanced Force Protection ($1.5 billion/9 percent): pays for improving the ability of US forces to defend themselves against terrorist attack through the acquisition of self-defense weapons, and other security measures.

• Pentagon Repair and Upgrade ($1.5 billion/8 percent): covers the cost of removing debris, and repairing and upgrading the Pentagon after the attack of September 11.

• Improved Command and Control ($1.4 billion/8 percent): funds improvements in military communications and communications connecting federal, state and local authorities.

• Initial Crisis Response ($0.7 billion/4 percent): covers the cost of DoD’s response in the immediate aftermath of the September 11 attacks, including the cost of flying combat air patrols off the US coast and supporting efforts in New York City.

• Airport Security ($0.2 billion/1 percent): provides funding for National Guard presence at airports.

• Other ($0.2/1 percent): covers the cost of certain military construction projects and potential increases in fuel costs.

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For more information, contact Steven Kosiak at (202) 331-7990.

The Center for Strategic and Budgetary Assessments (CSBA) is an independent policy research institute established to promote innovative thinking about defense planning and investment strategies for the twenty-first century. CSBA is directed by Dr. Andrew F. Krepinevich. See our website at www.csbaonline.org.

1. This estimate includes about $5.7 billion in NSC funding to combat terrorism, including defending against WMD, $1.9 billion in NSC-related CIP funding, roughly $4 billion for NMD programs, and some $1 billion for CTR and related programs.

2. Office of Management and Budget (OMB), Annual Report to Congress on Combating Terrorism, August 2001, p. 7

3. Methodologically, it might be preferable to allocate only some share of CIP funding to the missions of homeland defense and combating terrorism, since CIP programs are aimed at countering other kinds of dangers as well. But such a distinction is not possible based on available data.

4. The emergency supplemental appropriation also included some $277 million for DoE threat reduction related efforts.

5. Although the $40 billion emergency supplemental appropriation was enacted in FY 2001, much of the funding, including at least the last $20 billion provided by Congress through a subsequent vote (i.e., the second supplemental) will presumably be scored as FY 2002 funding.

6. Amy Belasco and Larry Nowels, “Terrorism Funding: Congressional Debate on Emergency Supplemental Allocations,” Congressional Research Service (CRS), January 7, 2002, pp. 6-7. The reduction to the administration’s request for DoD emergency funding was partly offset by the addition of $478 million for activities related to combating terrorism included in the regular FY 2002 defense appropriations bill. Ibid., p. 19.

7. The FY 2002 defense appropriations conference report also provides that as much as 1.5 percent of the funding approved in DoD’s procurement and R&D budget titles may be transferred to support operations in Afghanistan or DoD homeland defense activities. Ibid., p. 21.

8. The following funding breakdown and category descriptions are taken from CRS, pp 23-26.