Congress Passes FY 2012 CBP Funding with Decreases for Automation, C-TPAT, Etc.

On December 16-17, 2011, the House and Senate agreed to the conference report on H.R. 2055, a bill to provide appropriations for most federal government agencies¹ for the remainder of fiscal year 2012, including the DHS (which includes CBP, ICE, and TSA). Although H.R. 2055 contains $11.7 billion for CBP, an increase of $362 million over the FY 2011 level, FY 2012 funding would be reduced for automation modernization, international cargo screening, C-TPAT, etc. (Note that some press reports suggest that the President wants an agreement on the payroll tax cut before he will sign H.R. 2055 into law.)

Highlights of the conference version of H.R. 2055², the Conference Committee’s Joint Explanatory Statement³, and House Appropriations Committee’s summary regarding DHS funding include:

U.S. Customs and Border Protection

Highlights of CBP's FY 2012 funding include:

CBP funding increase would increase staffing, inspection technology, etc. CBP’s increase in FY 2012 funding would provide for the highest staffing levels in CBP’s history (including an additional 300 CBP officers at new and expanded port of entry) additional training and canine units at ports of entry, inspection and detection technology, and border security fencing, infrastructure, and technology.⁴

ITDS prior year funds would be available for ACE Cargo Release. The JES states that CBP shall use funds as necessary for the International Trade Data System (ITDS). Furthermore, prior years' balances for ITDS would be available for other priorities, such as ensuring completion of ACE Cargo Release, as planned.

(See ITT’s Online Archives 11032226 for summary of ITDS report discussing use of ITDS funding for various ACE-related projects and that more funds would be needed for ACE cargo release.)

Slight decrease in automation funding. H.R. 2055 contains $334.3 million for automation modernization, slightly less than was appropriated in FY 2011. Of that amount, not less than $140 million would be for the Automated Commercial Environment. $25 million of that funding would not be obligated for ACE until CBP submits an ACE expenditure plan to the appropriations committees.

CBP is directed to continue providing Congress quarterly reports on ACE progress and to submit multi-year invest ment and management plans for funds executed by the Office of Information Technology.

Funding decrease for international cargo screening and C-TPAT. CBP would receive less funding for international cargo screening, Customs-Trade Partnership Against Terrorism, and trusted traveler programs than it did in FY 2011. However, funding for CBP’s Automated Targeting Systems and the National Targeting Center (NTC) would be increased over FY 2011. NTC funding includes amounts for 45 new CBP officers and 20 new analysts. Inspections, trade and travel facilitation, at ports of entry and inspection and detection technology investment would also be increased in FY 2012.

The JES notes that the funds requested have instead been applied to shortfalls in the President’s budget request for the Container Security Initiative (CSI).

No funds for 100% scanning pilots. H.R. 2055 provides none of the funds for the 100% scanning pilots proposed in the President’s budget request as DHS has failed to provide any details or plans regarding how the requested funds would be used and the Administration has not yet submitted its supply chain security strategy.

Border security funding specified for northern border technology. Within the funding for Border Security Fencing, Infrastructure and Technology, $20 million is provided for northern border technology.

DHS to work with GSA, OMB on land border port of entry construction, financing. DHS is directed to work with the General Services Administration and the Office of Management and Budget on a multi-year strategy to address land border port of entry construction requirements and financing options, including the use of public-private partnerships.

Report on trade strategy, AD/CV, textile transshipment, and China. The JES states that CBP is directed to submit a three-year trade strategy on trade compliance enforcement for its Office of Trade, and reports on whether CBP can adjust its bonding requirements to protect AD/CV revenue, textile transshipment enforcement, and the circumvention of customs duties on imports from China.

Congressional briefings on outbound inspections, cargo screening, etc. CBP would be required to report to specified Congressional committees on:

• Plans for outbound inspections
• DHS trusted traveler programs
• Cargo screening, including CBP’s guidelines regarding low risk shipments and how it is improving trade processing and coordination
• Non-intrusive inspection and radiation detection equipment

Transportation Security Administration

Highlights of TSA’s FY 2012 funding include:

TSA funding increase would fund cargo inspections, etc. Under H.R. 2055, TSA would receive a $153 million increase over FY 2011 funding in order to provide for cargo inspections, explosive detection systems, security enforcement, and other TSA activities.

Air cargo funding to enhance investigation/monitoring, hire more inspectors. TSA’s Air Cargo program would receive additional funding to support enhanced air cargo inspection and other security oversight and improvements, with the expectation that this will help TSA meet its statutory requirement of 100% system-wide screening of air cargo on passenger aircraft, including those originating overseas, and to enhance inspection, investigation, and monitoring efforts on all-cargo flights, including through additional international air cargo inspectors and transportation security specialists to assess all-cargo airports and increase inspection visits at high-risk airports. TSA is to continue working with CBP, in furtherance of TSA's mission, on the application of the Automated Targeting System to screen air cargo bound for the U.S. on all-cargo and passenger flights. The air cargo expenditure plan shall include progress on these ongoing efforts.

The TSA Administrator is also required to submit biannual report on how TSA will meet the requirement to screen 100% of air cargo transportation on passenger aircraft arriving in the U.S.

Funding to increase TWIC enrollment centers by at least 50%. TSA is directed to expand the number of Universal Enrollment Centers to achieve at least a 50% increase in the number of TWIC enrollment sites and to brief the Committees no later than 180 days after the date of enactment, on resource needs, security impacts, and prospects for direct shipment of TWIC cards to participants.

Department of Homeland Security

Highlights of DHS’ FY 2012 funding include:

DHS reduction in funding would trim lower priority programs, etc. H.R. 2055 would provide $2 billion less in funding to DHS than that received in FY 2011. According to the House Appropriations Committee, this funding level sustains vital security operations, but trims spending on lower priority programs and provides strong oversight measures.

Radiation Portal Monitor Program funding reflects cancellation of ASP program. A total of $7 million, a $7 million increase from FY 2011's zero level, is provided for the Radiation Portal Monitor (RPM) program. Reductions from the amount requested by the President are made in light of the Secretary's decision to cancel the Advanced Spectroscopic Portal (ASP) program as communicate in the DHS Secretary's October 3, 2011 letter to the Committees. The bill directs DHS to notify the committees if a successor program is initiated by DHS.

(See ITT’s Online Archives 11082912 for summary of GAO report on DHS’ challenges in testing and evaluating major acquisitions, including ASP.

See ITT’s Online Archives 11031725 for summary of the discussion of DHS screening and detection technologies (including ASP) at March 2011 House hearing.

See ITT’s Online Archives 11030415 for summary of DHS’s announcement that it would be scaling back development of ASP monitors.)

Semi-annual briefings on cargo scanning technologies, etc. The Domestic Nuclear Detection Office (DNDO) is directed to brief the Committees semi-annually on program updates and to provide periodic updates on any new threats, research, and studies and assessments related to the Global Nuclear Detection Architecture (GNDA). Semi-annual program briefings shall also cover emergent technology solutions being explored by DNDO, such as the human portable tripwire program; cargo scanning technologies for air, land, and sea ports of entry; long-range detection; small vessel standoff detection; and related programs. Briefings shall include available test and evaluation results.

DHS Headquarters consolidation would receive funding. DHS would be provided $56 million for consolidation of its new headquarters at St. Elizabeth’s and consolidation of mission support activities.

Quarterly border security status reports

DHS is directed to continue submitting the quarterly Secure Border Initiative (SBI) reports, now to be called the Border Security Status Report.

Immigration and Customs Enforcement

Highlights of ICE's FY 2012 funding include:

Funding for AD/CV, IPR enforcement, 3-year AD/CV enforcement strategy required. ICE would receive a $50 million increase over FY 2011 funding. The JES directs ICE to continue to provide quarterly data on investigative activities and expenditures on a timely basis. Of the amount provided for ICE domestic investigations, $4 million is for enhancing investigations of antidumping/countervailing duty (AD/CVD) violations, intellectual property rights (IPR) investigations, and severe forms of human trafficking and smuggling activities. ICE is directed to submit a plan for expenditure of these additional, targeted resources within 90 days after the date of enactment. ICE is also directed to submit by February 13, 2012, a 3-year strategy to improve AD/CVD enforcement, per the Senate report, and the information required on the National IPR Coordination Center in the House report.

General Provisions

Buy American, etc funding prohibitions. H.R. 2055 contains certain funding restrictions for certain activities involving the Buy American Act, lighters, DHS reorganization, etc.

¹Defense, Energy and Water, Financial Services (including CPSC), Homeland Security, Interior/Environment, Labor/Health and Human Services/Education, Legislative Branch, Military Construction/Veteran’s Affairs, State and Foreign Operations.

²Also referred to as the conference report.

³The Joint Statement explains the effect of the accompanying conference report.

⁴In a December 19, 2011 press release, CBP states that in FY 2011, it grew its workforce, increasing total employees to 59,820. CBP also exceeded its goal of hiring 21,370 Border Patrol Agents before the end of the fiscal year. Press release available here.

H.R. 2055 conference report and JES available here

House Appropriations summary available here

*updated to include provision on $25 million ACE funding set aside until expenditure plans submitted.