The House Select Committee on Homeland Security has unanimously approved H.R. 3266, Faster and Smarter Funding for First Responders Act of 2004. Citing concern for the almost $9 billion that has been appropriated or budgeted since 2001 but not yet expended by state and local governments, the committee endorsed this legislation to change the criteria for distributing funds for two existing grant programs: the State Homeland Security and the Urban Area Security Initiative; and authorize $3.4 billion for first responder grants in fiscal year 2006. Grant programs from agencies other than the Department of Homeland Security (DHS) and firefighter assistance grants are not affected by this legislation.

The existing State Homeland Security grant program distributes three-quarters of one percent of the amount appropriated to each state. Remaining funds are distributed according to state population. The Urban Area Security Initiative program provides grants to high threat areas of the country, initially seven municipalities, now expanding to 50. Under H.R. 3266 these two programs would be consolidated and funds would be distributed based on threats, vulnerabilities, and risk assessments. States would be required to disburse 80 percent of the grant money to local governments within 45 days of receiving funds from the federal government or face penalties as well as pay 25 percent of the grant activities. Federal funds could be provided directly to local recipients if states fail to perform.

Eligible grant recipients are states or regions, defined as any area consisting of 2 or more contiguous states, counties, municipalities, or other local government that have a combined population of at least 1,650,000 or have an area of not less than 20,000 square miles, or any other combination of local government units recognized by DHS as a region.

Grant funds may be used for a wide range of service and equipment costs. However, grants funds may not be used for buildings and other physical facilities, land acquisition, or to supplant traditional services of law enforcement, firefighting, emergency medical, or public health. Additional personnel costs for responding to terrorism alerts are specifically cited as an eligible grant activity. A 25% non-federal match is required and may be satisfied with in-kind contributions.

The House bill has been referred to three other committees, which share jurisdiction with the Homeland Security Committee. Those committees must complete their consideration of the bill by June 7th. When the legislation goes to the floor for a vote later this summer, expect to see an amendment to authorize grants directly to local governments. Some members remain convinced that is the only way to ensure timely implementation of grants.

A similar Senate bill, S. 930, the Emergency Preparedness and Response Act, was reported out of the Senate Environment and Public Works Committee in February. The Senate bill guarantees the same basic level of funding as existing law and sets aside at least 10 percent of the appropriated funds for direct assistance to local governments recommended by the governor. The 28 existing Urban Search and Rescue teams are guaranteed $1.5 million annually, and no additional teams may be established until all existing teams are trained and equipped for two teams to be deployed simultaneously. The bill is ready for floor consideration in the Senate.