Spacelift Washington: Homeland Security Needs Will Squeeze Budget Further

Update: Congress May pass Three-Month Budget Extension

WASHINGTON – 13 September – Faced with addressing terrorism issues, Congress is seriously considering putting the FY02 budget debate on hold until early next year by passing a three-month Continuing Resolution that would extend the 2001 budget numbers until January 1st, Congressional sources indicate. The CR would fund the federal departments from the October 1st beginning of the 2002 fiscal year until January 1st.

This would mean in all likelihood that the House and Senate might not pass the final version of the new budget until late fall or early December, prior to their adjournment.
The actions as contemplated are not unique. Congress has repeatedly passed extensions of the federal budgets when they have been unable to agree on new fiscal year spending. Those spending bills likely to pass during the next few weeks are a $20 billion supplement that the Bush administration can spend at will, primarily on intelligence, defense, and airport security issues, and possibly a beefed-up defense bill containing additional security spending.

The only obstacle there is Democratic resistance to higher spending on a national missile defense system. That project could turn out to be an additional casualty of the Sept. 11th terrorist attack, as focus may shift to other forms of homeland defenses.

WASHINGTON – 12 September – A reconvening U.S. Congress will face additional funding requirements for stepped up homeland security in the wake of Tuesday’s terrorist attacks in New York and Washington. The ramifications will further increase the already tight budget pressures facing agencies like NASA.

While members of the House and Senate are united in their outrage over the attacks, any perceived shortcomings in the existing U.S. intelligence infrastructure are likely in for some quick funding increases.

Already members of the Senate Select Committee on Intelligence are considering closed-door hearings in the next week to address what short-term budget boosts could do to increase terrorist monitoring and other technology-intensive steps. The FAA budget could also see an increase to cover unplanned security needs at the nation’s major airports. These responses to the Sept. 11th destruction of the World Trade Center in New York City, and the attack on the Pentagon building in Arlington, Virginia will likely require shifts in the current budget planning for FY2003.

Washington political sources suggest one proposal made by the Office of Management and Budget (OMB) for an across-the-board budget cut to all non- defense and education spending will get increased support. The cuts as suggested could be in the range of three to ten percent of an agency’s 2002 budget and could be continued into more than one budget cycle, sources suggest. If so, the cuts if applied to NASA may endanger the Space Launch Initiative project and other areas where the space agency has received increased funding. It would also make more difficult a recovery from the cost overruns facing full configuration of the International Space Station.

No matter who is determined responsible for Tuesday’s events, greater funding for – and reforms to – the intelligence infrastructure for the nation is most likely the first in a series of coordinated responses by the various congressional oversight committees.
With the nation’s security at stake, this is likely to be one area of increased federal spending that will receive bipartisan if not unanimous support.