Appropriations for FY2002: Treasury, Postal Service, Executive Office of the President, and General Government

CRS Report for Congress
Appropriations for FY2002: Treasury, Postal
Service, Executive Office of the President, and
General Government
Updated January 16, 2002
Sharon S. Gressle, Coordinator
Government and Finance Division

Congressional Research Service ˜ The Library of Congress

Appropriations are one part of a complex federal budget process that includes budget
resolutions, appropriations (regular, supplemental, and continuing) bills, rescissions, and
budget reconciliation bills. The process begins with the President’s budget request and is
bound by the rules of the House and Senate, the Congressional Budget and Impoundment
Control Act of 1974 (as amended), the Budget Enforcement Act of 1990, and current program
authorizations.
This report is a guide to one of the 13 regular appropriations bills that Congress considers
each year. It is designed to supplement the information provided by the House and Senate
Appropriations Subcommittees on Treasury, Postal Service, and General Government. It
summarizes the current legislative status of the bill, its scope, major issues, funding levels,
and related legislative activity. The report lists the key CRS staff relevant to the issues
covered and related CRS products.
This report is updated as soon as possible after major legislative developments, especially
following legislative action in the committees and on the floor of the House and Senate.
NOTE: A Web version of this document with active links is
available to congressional staff at:
[http://www.crs.gov/products/appropriations/apppage.shtml].

Appropriations for FY2002: Treasury, Postal Service,
Executive Office of the President, and General
Government
Summary
The Treasury, Postal Service, Executive Office of the President, and General
Government FY2002 appropriation, P.L. 107-67, totals $32.4 billion. Congressional
Budget Office scorekeeping puts the totals at $32.8 billion ($15.7 billion mandatory
and $17.1 discretionary. The House passed an appropriation totaling $32.7 billion.
The Senate-passed bill would have funded the accounts at $32.8 billion. The
conference agreement would provide a 4.6% pay adjustment in January 2002 for
federal civilian employees. Several of the accounts within the bill are also receiving
funding through the Emergency Response Fund under P.L. 107-38 and P.L. 107-117.
On April 9, 2001, President George W. Bush submitted his FY2002 budget to
Congress. The budget documents show, for accounts funded through the Treasury,
Postal Service, and General Government appropriations bill, a proposed FY2002
discretionary budget authority of $16.6 billion and proposed outlays of $16.3 billion.
This represents a $1 billion increase over the FY2001 enacted estimates (estimates do
not reflect the enacted FY2001 supplemental). Realistically, the estimates which
were offered earlier in the year are no longer current. Several of the covered accounts
fund activities affected either directly by, or as a consequence of response to, the
attacks of September 11.
Accounts in the Department of the Treasury, Bureau of Alcohol, Tobacco, and
Firearms, U.S. Customs Service, U.S. Secret Service, and the General Services
Administration usually receive funding for functions related to countering terrorism.
Emergency Response Fund allocations, as provided by P.L. 107-38, the Emergency
Supplemental Appropriations Act for Recovery from and Response to Terrorist
Attacks on the United States, FY2001, have gone to accounts in the Department of
the Treasury, the Executive Office of the President and the General Services
Administration. To date, those accounts have been allocated $147.5 million from the
Emergency Response Fund. Those allocations are not included in the totals above.
Pursuant to recent negotiations, between the White House and Congress, on
new overall funding levels, the October 9 House allocation for the spending
allocations for the Treasury and General Government accounts remain at $17.022
billion. The Senate Appropriations Committee allocated $17.118 billion on October

11.

Key Policy Staff
CRS
Area of ExpertiseNameDivisionTel.
Bureau of Alcohol, Tobacco, and FirearmsWilliam KrouseDSP7-2225
Council of Economic AdvisersPauline Smale G&F7-7832
Customs ServiceWilliam KrouseDSP7-2225
CubaMark SullivanFDT7-7689
Department of the TreasuryGary GuentherG&F7-7742
Debt ManagementJames BickleyG&F7-7794
Executive Office of the PresidentBarbara SchwemleG&F7-8655
Federal Child CareMelinda GishDSP7-4618
Federal Election CommissionJoseph CantorG&F7-7876
Federal Employee Health Care PolicyCarolyn MerckDSP7-7320
Federal Employee Pension PolicyPatrick PurcellDSP7-7571
General Services AdministrationStephanie SmithG&F7-8674
Independent AgenciesSharon GressleG&F7-8677
Internal Revenue ServiceGary GuentherG&F7-7742
National ArchivesHarold RelyeaG&F7-8679
Office of Government EthicsMildred AmerG&F7-8304
Office of Personnel ManagementBarbara SchwemleG&F7-8655
Olympic GamesGary GalemoreG&F7-8671
Postal ServiceNye StevensG&F7-0208
Presidential SalarySharon GressleG&F7-8677
Procurement ReformStephanie SmithG&F7-8674
Secret ServiceStephanie SmithG&F7-8674
TerrorismSharon GressleG&F7-8677

Contents
Most Recent Developments........................................1
Introduction ................................................... 1
Rescissions ................................................ 3
Performance Plans...........................................3
Status and Legislative History......................................5
Hearings ............................................... 5
House Committee Action..................................5
House Rule............................................5
House Consideration and Passage...........................6
Senate Committee Action..................................7
Senate Consideration and Passage...........................7
Conferees Appointed.....................................8
Conference Agreement....................................8
Presidential Action.......................................9
Continuing Resolution...........................................10
Treasury and General Government Appropriations, FY2002..............10
Budget and Key Policy Issues.................................10
Department of the Treasury...................................10
Bureau of Alcohol, Tobacco, and Firearms (ATF)..............12
Customs Service.......................................13
Internal Revenue Service (IRS)............................17
U. S. Secret Service.....................................18
U.S. Postal Service.........................................19
Semipostals ........................................... 20
Shipping Day-Old Poultry................................21
Conference Directives...................................21
Executive Office of the President and Funds Appropriated to
the President..........................................21
Compensation of the President.............................22
White House Office.....................................22
Executive Residence (White House).........................22
Special Assistance to the President (Office of the Vice President)
and Official Residence of the Vice President..............23
Council of Economic Advisers (CEA).......................24
Office of Policy Development..............................24
National Security Council (NSC)...........................24
Office of Administration..................................24
Office of Management and Budget (OMB)....................25
Office of National Drug Control Policy (ONDCP)..............25
Federal Drug Control Programs............................25
Unanticipated Needs....................................26
Independent Agencies.......................................27
Federal Election Commission (FEC).........................27
Federal Labor Relations Authority (FLRA)...................28

Merit Systems Protection Board (MSPB).....................31
National Archives and Records Administration (NARA)..........31
Office of Government Ethics (OGE).........................33
Office of Personnel Management (OPM).....................33
Office of Special Counsel (OSC)...........................34
General Provisions..........................................35
Administration General Provision Proposals...................37
Terrorism .................................................... 39
Counterterrorism Activity Funding — OMB Annual Report...........39
Emergency Response Fund...................................41
Emergency Supplemental Authorized Under P.L. 107-38.............41
Office of Homeland Security..................................42
Federal Personnel Issues.........................................53
Pay ..................................................... 53
General .............................................. 53
Federal Wage System....................................53
Members of Congress, Judges, and Other Officials.............54
President ............................................. 54
Federal Employees Health Benefits Program......................55
Federal Child Care..........................................56
Federal Retirement..........................................56
Privacy Provisions..............................................57
2002 Winter Olympics and Paralympics..............................57
Cuban Travel Restrictions........................................60
Major Funding Trends...........................................60
General Government Function (800)................................68
Department of the Treasury...................................68
Internal Revenue Service.................................68
Financial Management Service (FMS).......................68
Bureau of the Public Debt................................68
U.S. Mint.............................................69
Bureau of Engraving and Printing...........................69
General Services Administration...............................69
Office of Personnel Management...............................69
Office of Management and Budget..............................70
Tax Incentives.............................................70
Glossary of Budget Process Terms.................................71
For Additional Reading..........................................73
Congressional Documents....................................73
CRS Products.............................................73
Other Readings............................................76
Selected World Wide Web Sites................................77

List of Tables
Table 1. Status of FY2002 Appropriations for the Treasury, Postal Service,
Executive Office of the President, and General Government............9
Table 2. Department of the Treasury and General Services Administration Funding
to Combat Terrorism Including Defense Against
Weapons of Mass Destruction.................................40
Table 3. Emergency Response Fund Allocations ......................44
Table 4. Emergency Supplemental Allocation Request and Enactment......48
Table 5. Appropriations for the Treasury, Postal Service, Executive Office
of the President, and General Government, FY1997 to FY2001.......62
Table 6. Treasury, Postal Service, Executive Office of the President, and General
Government Appropriations, FY2002, by Title and Major Accounts....63
Table 7. Department of the Treasury, Postal Service, Executive Office
of the President, and General Government Appropriations ...........64

Appropriations for FY2002: Treasury, Postal
Service, Executive Office of the President,
and General Government
Most Recent Developments
P.L. 107-67 (H.R. 2590), Department of the Treasury, Postal Service, Executive
Office of the President, and General Government Appropriations for FY2002, was
approved by the President November 12.
Congress has received several messages from the President allocating funds
from the Emergency Response Fund by P.L. 107-38, the Emergency Supplemental
Appropriations Act for Recovery from and Response to Terrorist Attacks on the
United States, FY2001. P.L. 107-38 also authorized additional emergency funding
which was enacted under P.L. 107-117, Division B, FY2002 Defense Appropriation.
Several accounts in the Treasury and General Government appropriation are
affected. (See Terrorism section of this report for more details.)
On December 28, the President signed Executive Order 13249, establishing the
federal pay schedules effective January 2002.
Introduction
The President, through the Office of Management and Budget (OMB), is
required to submit to Congress, annually, the Budget of the United States¹
Government. The FY2002 budget was submitted to Congress on April 9, 2001. In
late February 2001, the President and the Office of Management Budget released A
Blueprint for New Beginnings, A Responsible Budget for America’s Priorities.² It
is intended to present a 10-year budget plan and provides more of an overview than

¹ U.S. Office of Management and Budget, Budget of the United States Government, Fiscal
Year 2002, April 9, 2001(Washington: GPO, 2001). Hereinafter the budget documents will
be cited as FY2002 Budget with the specific document noted.
² U.S. Executive Office of the President, Office of Management and Budget, A Blueprint for
New Beginnings, A Responsible Budget for America’s Priorities (Washington: GPO, 2001),

207 p. Available at [http://www.gpo.gov/usbudget/index.html].

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accounts in the Treasury and General Government appropriations legislation at $16.6
billion (discretionary).⁴ This is more than a $1 billion over the estimated FY2001
funding levels, not taking into consideration the supplemental funding subsequently
enacted.
Under the budget procedures, Congress adopts a concurrent resolution
establishing the congressional budget for the government and setting forth budgetary
levels for several years in the future. The House and Senate Appropriations
Committees then allocate the discretionary funding levels (302(b)) allocations to each
of the subcommittees. Those allocations are subject to change. Subsequent to the
September 11 attacks and the need for reordering funding priorities, Congress and the
White House negotiated and new allocations were developed. For accounts covered
in this bill the House allocated, on October 9, $17.022 billion and the Senate, on
October 11, allocated $17.118 billion.
With the FY2001 supplemental⁵ funding factored in, the total FY2001 estimated
funding for these accounts is $16.7 billion in discretionary funding. The conference
agreement would provide $17.069 billion in discretionary funding. This falls between⁶
the House and Senate allocations.
Appropriations for the Department of the Treasury, in addition to funding the
operations of the department, fund the work of a group of law enforcement
organizations, which include the Bureau of Alcohol, Tobacco, and Firearms; the
Customs Service; the Secret Service; the Financial Crimes Enforcement Network; and
the Federal Law Enforcement Training Center. Treasury appropriations also cover
the Internal Revenue Service, the Financial Management Service, and the Bureau of
the Public Debt.
For the most part, the U. S. Postal Service has become self-supporting. Federal
contributions are limited to payments to the Postal Service Fund to compensate for
revenues forgone (e.g., free postal service for the blind.)
Appropriations for the Executive Office of the President provide salaries and
expenses for the White House Office, operations of the residences of the President
and Vice President, and most other agencies within the Executive Office of the
President (EOP). Organizations such as the Council of Economic Advisers, the
National Security Council, the Office of Management and Budget, and the Office of
National Drug Control Policy (ONDCP) are funded through these provisions.

³ For discussion of the of the accounts in the FY2001 Treasury, Postal Service, Executive
Office of the President, and General Government appropriations, see CRS Report RL30502,
Appropriations for FY2001: Treasury, Postal Service, Executive Office of the President,
and General Government, coordinated by Sharon S. Gressle.
⁴ FY2002 Budget, Budget, Table S-7, p. 227.
⁵ P.L. 107-20; July 24, 2001; 115 Stat. 155.
⁶ Based on data provided by the House Committee on Appropriations, Oct. 26, 2001.
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entities by the ONDCP.
Among the independent agencies financed through this appropriation are the
Federal Election Commission, the General Services Administration, the National
Archives and Records Administration, the Office of Personnel Management, the
Office of Special Counsel, and the United States Tax Court.
The Treasury and General Government appropriation always has at least two
titles in addition to the four covering the funding for specific agencies. These general
titles apply restrictions or “rules of the road” governmentwide and, quite often,
contain authority for defined actions. For example, each year, there is standard
language which prohibits the use of any appropriated funds for the purpose of
employing individuals who are not U.S. citizens or citizens of nations either specified
in that section of the act or on the State Department list of nations covered by
treaties; which requires that all agencies maintain drug-free workplaces; and which
authorizes the expenditure of funds appropriated under any act to be used to pay the
travel expenses of immediate family members if a federal employee serving overseas
has died or has a life-threatening illness.
Rescissions
As part of the Consolidated Appropriations Act of 2001, P.L. 106-554, there
was a .22% across-the-board rescission of FY2001 discretionary budget authority and⁷
obligation limitations funds (section 1403, H.R. 4577/H.R. 5666). All accounts in
the Treasury and General Government appropriations are affected. The Office of
Management and Budget (OMB) is required to report on the implementation of the
rescission when the FY2002 budget is submitted. On January 5, 2001, the Office of⁸
Management Budget issued guidelines to the agencies.
The budget documents submitted to Congress April 9, 2001 provide account-by-
account details on the rescission.⁹ The total rescission of FY2001funds was
$1,088,962,000. The rescission amounts for the accounts discussed in this report will
be presented in the context of the account presentation below.
Performance Plans
The funding decisions for agencies are increasingly referencing the performance
plans, goals, and measures set by the agencies. Some of the general goals are
discussed below in the “General Government Function” section. Specific goals and

⁷ See: CRS Report RS20758, The .22 Percent Across-the-Board Cut in FY2001
Appropriations, and CRS Report RS20756, FY2001 Consolidated Appropriations Act:
Reference Guide, both by Robert Keith.
⁸ U.S. Office of Management and Budget, Rescission of FY2001 Discretionary Budget
Authority, Bulletin No. 01-03 to the heads of executive departments and agencies, Jan. 5,

2001. [http://www.whitehouse.gov/OMB/bulletins/b01-03.html]

⁹ FY2002 Budget, Analytical Perspectives, pp. 337-358.
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example, the Internal Revenue Service in the Department of the Treasury sets out a
substantial series of “Key Operational Measures and Performance Indicators.” These
are organized by FY2000 actual, the FY2001 Performance Plan, and the FY2002
President’s Budget.¹⁰
The FY2001 funding levels in the text and tables in this report were
provided by the House Appropriations Committee, reduced by the rescission
data found in the FY2002 budget. The FY2002 funding levels in the text and
tables are, unless otherwise noted, those provided by the House Committee on
Appropriations. These figures, rather than those found in the budget
submission, are used because they are the basis on which appropriators make
their decisions and provide the most recent updated information.
The Budget documents provided by the Office of Management and Budget
and the appropriations bills do not necessarily follow the same organization of
accounts. For example, not all of the agencies which are organizationally within
the Executive Office of the President, as found in the budget, are funded
through the Treasury, Postal Service, and General Government appropriations
legislation. Also, the FY2002 and FY2001 individual account data in this report
do not reflect scorekeeping by the Congressional Budget Office.
See the glossary for definitions of discretionary and mandatory spending.
In some instances, the mandatory levels drive up the percent of increase
represented in the appropriation. The appropriators are bound by those
entitlements under permanent law and control only the discretionary spending
levels. The data in the tables and the funding levels provided in the text, unless
otherwise noted, reflect the mandatory and discretionary funding combined.
FTE, or full-time equivalent, is a budgetary term and does not represent
the number of personnel employed by, or the number of actual positions allowed
in, a department or agency. The FTE number is calculated by dividing the total
number of staff hours worked in a given 12-month period (usually the fiscal
year) by the total number of hours in a workyear (2087). The number of on-
board personnel at any given time and the total number of people working in the
organization during the course of the year are two entirely different statistical
results. Seasonal employment and part-time employment are two factors which
make the FTE and actual employment figures differ.

¹⁰ FY2002 Budget, Appendix, p. 861.
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Status and Legislative History
Bills are introduced in the House and Senate when the Committees on
Appropriations have completed markup on the provisions. Usually the Treasury,
Postal Service, Executive Office of the President, and General Government
Subcommittees draft legislation and the accompanying reports. The full committees
use these documents as a basis for discussion and mark up. From the time legislation
is introduced, and through enactment, the status will be noted in Table 1.
Hearings. Hearings in the House subcommittee began March 21, with nine¹¹
scheduled between then and May 10. Hearings in the Senate began April 26, with
three additional sessions through May 17.¹²
House Committee Action. On July 11, 2001, the Subcommittee on
Treasury, Postal Service, and General Government, by voice vote, approved a
spending measure. The full House Committee on Appropriations, also by voice vote,
approved the measure on July 17, 2001. H.R. 2590 was introduced July 23, 2001,¹³
accompanied by H.Rept. 107-152.
House Rule. On July 24, the House Committee on Rules issue a special rule¹⁴
(H. Res. 206) for the consideration of H.R. 2590. It was an open rule providing one
hour of general debate equally divided and waiving all points of order against the bill.
It provided that the amendments printed as part of the rule (one related to Olympics
funding and one related to the Department of the Treasury Expanded Access account)
would be considered as adopted. Points of order were waived against provisions of
the bill for failure to comply with rule XXI (prohibiting unauthorized or legislative
provisions in a general appropriations bill) and against amendment number 5 (affecting
travel between the United States and Cuba), if it properly offered. It provided that
the bill will be considered by paragraph and instructed the Chairman of the Committee
of the Whole to accord priority in recognition to Members who have pre-printed their¹⁵
amendments in the Congressional Record. The rule was adopted July 25 (Roll No.

267, 293-129, H4549-53).

¹¹ The House subcommittee’s hearing schedule can be found at
[http://www.house.gov/appropriations/hearings/hear02tp.htm].
¹² The Senate subcommittee’s hearing schedule can be found at
[http://www.senate.gov/~appropriations/hearing.htm].
¹³ U.S. Congress, House Committee on Appropriations, Treasury, Postal Service, and
General Government Appropriations Bill, 2002, a report to accompany H.R. 2590, 107^t^h^st
Cong., 1 sess., H. Rept. No. 107-152, July 23, 2001 (Washington: GPO, 2001). Referred
to hereafter as House Report.
¹⁴ H. Res. 206, H. Rept. 107-158. See [http://www.house.gov/rules/107rule2590.htm].
¹⁵ See, “Amendments,” Congressional Record, 107^th Cong., 1^s^t sess., July 24, 2001, p.
H4542.
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on July 25, 2001, the House considered and passed, amended, H.R. 2590.¹⁶ The
amendments agreed to were
!an amendment offered by Rep. Istook which would consolidate appropriations
for various accounts with Title, III, the Executive Office of the President
(H4570-71),
!an amendment offered by Rep. Collins making available $14 million from the
Federal Buildings Fund for a National Archives and Records Administration
building in Georgia (H4588-89),
!an amendment offered by Rep. Traficant which would prohibit funds to any
person or entity that have been convicted of violating the Buy American Act
(H4589-90),
! an amendment offered by Rep. Barney Frank that would prohibit payments to
persons appointed to positions, for which he or she had been nominated, after
the Senate has voted not to confirm the appointment (H4590-92),
!an amendment offered by Rep. Sanders that would prohibit the release of
merchandise for which the U.S. Customs Service has a detention order on th
basis that is was made by forced or indentured child labor (H4593-94),
!an amendment offered by Rep. Flake, as a substitute to an amendment offered
by Rep. Smith, that would prohibit funding to administer the Cuban Assets
Control Regulations with respect to any travel or travel-related transaction
(Roll No. 270, 240-186, H4599-H4604, H4607), and
!the Smith amendment, as amended by the Flake amendment (H4598-H4604,
H4607). (See discussion below under “Cuban Travel Restrictions.”)
The House rejected
!an amendment offered by Rep. Inslee that would have stricken the provision
(see section 634 under general provisions discussion below) which would
clarify that the Department of the Navy is responsible for the costs of utilities
at the residence of the Vice President (Roll No. 268, 141-285, H4577-86,
H4595)
!an amendment offered by Rep. Hinchey that would have stricken the provision
(see section 635 under general provisions discussion below) which would
authorize the Secretary of the Navy to accept consumable goods for use at
official functions at the residence of the Vice President (Roll No. 269, H4586-

88, H4595-96),

!an amendment offered by Rep. Wynn that would have prohibited funding for
any new service procurement arrangements unless competed under the
provisions of the Federal Activities Inventory Reform Act of 1998 (P.L. 105-

270) (H4596-98),

!an amendment offered by Rep. Rangel that would have prohibited funding to
implement, administer, or enforce the economic embargo of Cuba except for
provisions that relate to the denial of foreign tax credits or the implementation

¹⁶ “Treasury and General Government Appropriations Act, 2002,” Congressional Record,
107^th Cong., 1^st sess., July 25, 2001, pp. H4553-46222. Hereafter referred to as House
Passage.
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227, H4604-07, H4607-08),

!an amendment by Rep. Traficant that would have prohibited bonus or incentive
payments to senior officials of the Internal Revenue Service (Roll No. 272, 24-
401, H4608-09, H4620-21), and
!an amendment offered by Rep. Filner that would have prohibited funding to
implement the final report of the President’s Commission to Strengthen Social
Security (Roll No. 273, 188-238, H4614-20, H4621).
Two amendments were withdrawn (Rep. Weldon (FL) prohibiting
implementation of certain proposed IRS regulations and Rep. Hastings (FL)
increasing funding for the Federal Elections Commission for updated state and local
voting systems). A point of order was sustained against a proposal to establish a
commission to oppose the privatization of Social Security (Rep. Kucinich). Also
rejected was a motion to report the bill back to the House for the purpose of striking
the enacting clause (Rep. Obey).
Senate Committee Action. On July 26, the Senate Committee on
Appropriations, by a vote of 29-0, approved a spending measure. S. 1398 was
introduced September 4, 2001, accompanied by S. Rept. 107-57.¹⁷
Senate Consideration and Passage. On September 19, the Senate, by
voice vote, passed H.R. 2590, amended.¹⁸ All offered amendments were agreed to:
!Amendment No. 1570, offered by Senators Dorgan and Campbell which would
substitute the language of S. 1398 for that of H.R. 2590, as referred by the
House (S9477),
!Amendment No. 1575, offered by Senators Dorgan and Campbell which would
make“technical amendments and further improvements” by language changes
in the National Archives account text, by adding new general provisions
sections in the General Services Administration section (striking language in
the FY2001 statute and directing deed transfer action for a specific parcel),
stipulating a portion of Federal Law Enforcement Training Center funds for
participant per diem, adding a new general provision section changing the
reporting deadline of the United States-China Security Review Commission,
changing the allocation for the Midwest HIDTA under the federal drug control
program, amending the appointing authority of the Archivist of the United
States with regard to the directors of the presidential archival depositories, by
adding a funding allocation in the U.S. Customs Service account for
developing a curriculum for the training of law enforcement dogs to combat
and respond to terrorist activities, and by adding a general provisions section

¹⁷ U.S. Congress, Senate, Committee on Appropriations, Treasury and General Government
Appropriation Bill, 2002, a report to accompany S. 1398, 107^th Cong., 1^st sess., S.. Rept. No.
107-57, September 4, 2001 (Washington: GPO, 2001). Referred to hereafter as Senate
Report.
¹⁸ “Treasury and General Government Appropriations Act, 2002,” Congressional Record,

107^th Cong., 1^st sess., Sept. 19, 2001, pp. S9470-77, S9485-86, S9489-90, and S9491-9497.

Hereafter referred to as Senate Passage.
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and S9489-90 consideration and adoption),
!Amendment No. 1576, offered by Senators Bingaman and Domenici which
would authorize state, regional, or local transportation authorities that receive
Federal Transit Administration assistance or grants, to purchase heavy-duty
transit buses through GSA (S9491),
!Amendment No. 1578, offered by Senator Dorgan for Senator Kohl for the
purpose of improving the collection of information relating to the introduction
of foreign animal disease (S9491-92),
!Amendment No. 1577, offered by Senator Dorgan for Senator Campbell to
provide that the Postal Service may require any air carrier to accept as mail
shipments of day-old poultry and such other live animals as postal regulations
allow to be transmitted as mail matter (S9491-92),
!Amendment No. 1573, offered by Senators McConnell and Burns to authorize
the Secretary of the Treasury to issue War Bonds in support of recovery and
response efforts relating to the September 11, 2001 highjackings and attacks
on the Pentagon and the World Trade Center (S9485-86, S9493, S9526
(text)),
!Amendment No. 1574, as modified, offered by Senator Dorgan for Senator
Johnson to authorize the Secretary of the Treasury to issue Unity Bonds in
support of recovery and response efforts relating to the September 11, 2001
highjackings and attacks on the Pentagon and the World Trade Center (S9487-

88, S9493, S9526 (text)),

!Amendment No. 1579, offered by Senator Dorgan for Senator Hollings to
designate the G. Ross Anderson, Jr. Federal Building and Courthouse in
Anderson, South Carolina (S9493),
!Amendment No. 1583, offered by Senator Dorgan for Senator Clinton, et al,
to provide that the Postal Service may issue a special commemorative postage
stamp in order to provide financial assistance to the families of emergency
relief personnel killed or permanently disabled in the line of duty in connection
with the terrorist attacks against the United States on September 11,
2001(S9494-95, S9547(text)), and
!Amendment No. 1584, offered by Senator Dorgan for Senator Hatch to
designate the state of Utah as a High Intensity Drug Trafficking Area and to
provide funding (S9495, S9547 (text)),
Conferees Appointed. On September 19, the Senate insisted on its
amendment and requested a conference with the House. Senate conferees were
named: Senators Dorgan, Mikulski, Landrieu, Reed, Byrd, Campbell, Shelby,
DeWine, and Stevens. On October 5, House conferees were named: Representatives
Istook, Wolf, Northrup, Sununu, Peterson (Pennsylvania), Tiahrt, Sweeney,
Sherwood, Young (Florida), Hoyer, Meek, Price, Rothman, Visclosky, and Obey.
Conference Agreement. On October 26, 2001 the conferees filed the report
reflecting their agreement on H.R. 2590.¹⁹ The Senate version of the bill was used as

¹⁹ U.S. Congress, House of Representatives, Making Appropriations for the Treasury
Department, the United States Postal Service, the Executive Office of the President, and
(continued...)
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House and Senate reports are to be fulfilled. Dates, since gone, specified in the
provisions as passed were extended to January 2, 2002. There were several funding
differences in the two versions and those are discussed below in the Budget and
Policy Issues section for the various organizations.
On October 31, 2001, the House, on a vote of 339-85 (Roll No. 413), agreed²⁰
to the conference language. The previous day the House had agreed that it would
be in order to consider the conference report at any time and to waive all points of²¹
order against the conference report and its consideration. Following an unanimous
consent agreement providing for consideration, the Senate, on November 1, agreed²²
to the conference report on a vote of 83-15 (Vote No. 321).
Presidential Action. President Bush approved P.L. 107-67 on November 12,²³

2001.

Table 1. Status of FY2002 Appropriations for the Treasury,
Postal Service, Executive Office of the President, and General
Government
(See Table 7 for breakdown of accounts within bills.)
^Subcommittee^Conference
^Markup^House^House^Senate^Senate^Conf.^{Report Approval}
^Report^Passage^Report^Passage^Report^{Public Law}^House^Senate^House^Senate
^{July 17}^{July 25}^{Sept. 4}^{Sept. 19}^{Oct. 26}
^July^H.Rept.^vote:^S.Rept.^voice^{H. Rept.}^{Oct. 31}^{Nov. 1}^{Nov. 12}
¹¹^--^107-152^334-97^107-57^vote^107-253^339-85^83-15^{P.L. 107-67}

¹⁹ (...continued)
Certain Independent Agencies, for the Fiscal Year ending September 30, 2002, and for^th^st
Other Purposes, a conference report to accompany H.R. 2590, 107 Cong., 1 sess., H. Rept.
107-253, Oct. 26, 2001 (Washington: GPO, 2001). Referred to hereafter as Conference
Report.
²⁰ “Conference Report on H.R. 2590, Treasury and General Government Appropriations Act,

2002,” Congressional Record, daily edition, vol. 147, Oct. 31, 2001, pp. H7536-45, H7557-

58.

²¹ “Making in Order at Any time Consideration of Conference Report on H.R. 2590, Treasury
and General Government Appropriations Act of 2002," Congressional Record, daily edition,
vol. 147, Oct. 30, 2001, p. H7380.
²² “Treasury and General Government Appropriations Act, 2002 – Conference Report,”
Congressional Record, daily edition, vol. 147, Nov. 1, 2001, pp. 11329-33, S11344-45.
²³ P.L. 107-67; Nov. 12, 2001; 115 Stat. 514.
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Continuing Resolution
On September 28, 2001 the President approved P.L. 107-44²⁴ The continuing
resolution funded unappropriated accounts through October 16. The funding is
available for programs in effect during FY2001 and funded at the rates current as of
the close of FY2001. On October 12, P.L. 107-48 (H. J. Res. 68) was signed,
extending the funding through October 23. P.L. 107-53 (H. J. Res. 69, October 22,

2001) further amended P.L. 107-44 to fund the accounts through October 31. P.L.

107-58 (October 31, H. J. Res. 70) provided funding through November 16. With
the approval of P.L. 107-67, the accounts in the Treasury and General Government
Appropriation were no longer subject to the continuing resolutions.
Treasury and General Government Appropriations,
FY2002
Budget and Key Policy Issues
Department of the Treasury
The Department of the Treasury performs four basic functions: (1) formulating,
recommending, and implementing economic, financial, tax, and fiscal policies; (2)
serving as the financial agent for the federal government; (3) enforcing federal
financial, tax, tobacco, alcoholic beverage, and gun laws; and (4) producing all
postage stamps, currency, and coinage. Viewed at its most basic level, the
department consists of two components: departmental offices and operating bureaus.
The departmental offices are responsible for the formulation and implementation of
policy and the management of the department as a whole, while the operating bureaus
carry out specific duties assigned to the department. The bureaus accounted for 98%
of Treasury Department employment and 97% of its funding in FY2001. With one
exception, the bureaus can be separated into those having financial duties and those
engaged in law enforcement. Financial duties are handled by the Comptroller of the
Currency, U.S. Mint, Bureau of Engraving and Printing, Financial Management
Service, Bureau of Public Debt, Community Development Financial Institutions Fund,
and Office of Thrift Supervision. Law enforcement is done by the Bureau of Alcohol,
Tobacco, and Firearms, U.S. Secret Service, Federal Law Enforcement Training
Center, U.S. Customs Service, Financial Crimes Enforcement Network, and Treasury
Forfeiture Fund. The sole exception to this simple dichotomy is the Internal Revenue
Service (IRS), which performs both financial functions and law enforcement through
its administration of federal tax laws.
Under P.L. 107-67, funding for Treasury operations in FY 2002 totals $15.042
billion, which is about $1 billion more than the department received in FY 2001.
Perpetuating a longstanding trend, the IRS constitutes the single largest account in
the department’s FY 2002 budget, accounting – as it did in FY 2001 – for 63% of
total enacted funding. Other major accounts are the budgets for the Customs Service

²⁴ P.L. 107-44; Sept. 28, 2001; 115 Stat. 253; H.J. Res. 65 (107^th Congress).
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Firearms (5%). Compared to FY 2001, the largest percentage increase in funding is
for the Financial Crimes Enforcement Network (FinCen), whose budget is 41%
greater. Large increases have also been enacted for the Customs Service (18%
greater), Secret Service (11% greater), and Treasury Department Systems and Capital
Investments Programs (11% greater). Part of the year-to-year increase in funding for
FinCen is to cover expenses related to its involvement in security planning and
operations for the 2002 Winter Olympics. Several Treasury Department accounts are
being funded at reduced levels in FY 2002 compared to FY 2001. The largest
percentage cuts are for spending on the Expanded Access to Financial Services (or
First Accounts) program (80% smaller), the Counterterrorism Fund (17% smaller),
and the Financial Management Service (17% smaller). The First Accounts program
is intended to make it easier for low- and middle-income individuals to gain access to
a variety of financial services.
The Treasury Department plays an important role in federal efforts to combat
terrorism through its statutory missions and law enforcement responsibilities.
Treasury bureaus are responsible for protecting the President; designing and
implementing security at special events like the 2002 Winter Olympics; investigating
incidents involving arson and the use of explosives and firearms; monitoring and
analyzing the financing of terrorist activities; preventing weapons of mass destruction
from entering the country; and implementing sanctions against terrorist organizations.
With one exception, however, none of the bureaus has an appropriation account
designated specifically for counterterrorism. That exception is the Counterterrorism
Fund, which is intended mainly to respond to unanticipated emergencies by covering
costs related to efforts to counter, investigate, or prosecute domestic or foreign
terrorism, and to rebuild the operational capabilities of federal offices, facilities, or
other properties damaged or destroyed as a result of terrorist incidents. The Fund can
be used only with the advance approval of the House and Senate Appropriations
Committees. While the exact size of the department’s budget for counterterrorism
in FY 2002 is unclear, it is thought to be at least $419 million (see Table 2). Please
see the section on “Terrorism” for further details on funding for counterterrorism
within the Treasury Department.
There is reason to believe that the terrorist attacks of September 11, 2001 are
resulting in expansion of the department’s involvement in counterterrorism. On
September 14, 2001, the Bush Administration announced that the Treasury
Department’s Office of Foreign Asset Control (OFAC) is leading an interagency
group devoted to disrupting fundraising by foreign terrorists. On October 25, 2001,
a multi-agency effort to investigate the financing of terrorist groups known as
Operation Green Quest was launched, and some of the agencies involved are the IRS,
Customs Service, FinCen, Secret Service, and OFAC. And on October 26, 2001,
President Bush signed the USA PATRIOT Act of 2001 (P.L. 107-56), which expands
the power of the Treasury Department to combat money laundering and investigate
suspicious foreign financial transactions. It is reasonable to expect that these efforts
and others that may arise in coming months could lead the Bush Administration to
request a significant increase in the department’s funds for counterterrorism in FY

2003.

CRS-11

enforcement agency that regulates the manufacture, importation, and distribution of
alcohol, tobacco, firearms, and explosives. The ATF also enforces federal laws
related to arson. ATF’s mission is focused on three goals: (1) reducing crime, (2)
collecting revenue, and (3) protecting the public. Among ATF’s activities, the
regulation and enforcement of laws related to firearms commerce and possession have²⁵
been the most controversial. In FY1999, ATF collected $12,135,929,000 in taxes,
penalties, fines, and other related revenues. From FY1992 to FY2000, Congress
increased ATF’s direct appropriations from $336,040,000 to $604,573,000, an 80%
increase. For FY2001, Congress appropriated $771,143,000²⁶ in direct funding for
ATF, a 28% increase over the agency’s FY2000 appropriation. The FY2001
appropriation supports 4,642 full time equivalent positions.²⁷
For FY2002, Congress has provided ATF with $823,316,000, a 6.8% increase
over the agency’s FY2001 appropriation. This amount, $19,795,000 more than the
Administration’s request, includes the following budget increases: (1) $9,655,000 for
non-pay inflation costs, (2) $3,140,000 for pay adjustments, (3) $500,000 to improve
licensing and regulatory operations, (4) $3,000,000 to expand the Integrated Violence
Reduction Strategy, and (5) $3,500,000 to upgrade the National Tracing Center.
By comparison, the Senate-passed measure would have provided ATF with
$821,421,000, a 6.5% increase over the agency’s FY2001 appropriation. This
amount, $17,900,000 more than the Administration’s request, included the following
budget increases: (1) $6,400,000 for non-pay inflation costs, (2) $2,000,000 to
support the National Integrated Ballistics Information Network, (3) $5,000,000 to
bolster the Integrated Violence Reduction Strategy, (4) $3,500,000 to retrofit and
upgrade the National Tracing Center facilities, and (5) $1,000,000 for unspecified
purposes.
Meanwhile, the House-passed measure would have provided ATF with
$824,199,000, a 6.9% increase over the agency’s FY2001 appropriation. This
amount, $20,678,000 more than the Administration’s request, included the following
budget increases: (1) $9,655,000 for non-pay inflation costs, (2) $10,523,000 for
security at the 2002 Winter Olympics, and (3) $500,000 to improve recordkeeping at
the National Firearms Act Branch, the Imports Branch, and the National Licensing
Center. Moreover, the House measure would have fully funded last year’s budget
enhancements for the Integrated Violence Reduction Strategy ($73,500,000), the

²⁵ For further information on gun control-related legislation and issues, see CRS Issue Brief
IB10071, Gun Control Legislation in the 107^th Congress, by William Krouse.
²⁶ This amount reflects the 0.22% across-the-board rescission required by the Consolidated
Appropriations Act of FY2001 (P.L. 106-554).
²⁷ One full time equivalent is equal to 2,080 hours worth of funding, or the amount of funding
necessary to fund one position over the course of a single year. Usually, newly funded
positions are only funded at one-half a full time equivalent, since those positions will not be
filled for the entire year, and hiring will occur incrementally over the course of that year.
CRS-12

Integrated Ballistics Information Network ($25,200,000).²⁸
The Administration’s FY2002 budget request included $803,521,000 for ATF,
a 4.2% increase over the agency’s FY2001 appropriation. The Administration’s
request anticipated reductions in non-recurring costs and other savings in the base
budget of $19,968,000 that would have partially offset increases to the agency’s base
budget of $52,346,000, which would have supported 340 additional full time
equivalents needed to fully fund positions that were newly authorized and partially
funded in FY2001. According to the Administration, this increase would have
brought the agency’s overall FY2002 full time equivalent level up to 4,982, would
have met the agency’s FY2002 baseline funding requirements, and would have
allowed ATF to maintain it’s FY2001 anticipated level of services and activities in
FY2002. As earmarks for non-pay inflation costs and pay adjustments in the
conference report language indicate, these reductions in non-recurring costs
anticipated in the President’s budget were not included in the conference agreement.
In A Blueprint for New Beginnings, the Bush Administration singled out the
Youth Crime Gun Interdiction Initiative (YCGII) as one of Treasury’s law
enforcement bureaus’ best practices. To expand the YCGII to 12 additional cities in
FY2001, Congress provided ATF with $19,078,000 to hire 72 agents and 98
inspectors. This increase brings total funding for this program to $76,400,000 and
will be used to expand its presence to 50 cities. The objective of the YCGII is to
reduce youth firearm violence and firearms trafficking among youth by making federal
resources, such as ATF’s firearms tracing and ballistics technology, available to state
and local law enforcement agencies, and by providing coordination of these efforts.
As described above, the House-passed measure would have brought total funding for
YCGII to $85,000,000 in FY2002. The Senate-reported measure would have
increased total funding for this program by $5,000,000. While the conference
agreement report language was silent on increases for YCGII, it stated that the Gang
Resistance Education and Training program would remain funded at $13,000,000, as
proposed by the Senate.
Customs Service. The U.S. Customs Service, the federal government’s
oldest revenue collecting agency, is responsible for regulating the movement of
persons, carriers, merchandise, and commodities between the United States and other²⁹
countries. In FY1999, Customs collected $22,405,800,000 in trade-related duties,
taxes, and fees. From FY1992 to FY2000, Congress has increased direct
appropriations for the U.S. Customs Service from $1,454,337,000 to $1,935,915,000,
a 33% increase. In addition to appropriated funding, the Customs Service collects
COBRA fee receipts that are available to the agency for expenditure ($298,592,461

²⁸ For further information on ballistics imaging and crime gun tracing, see CRS Report
RL31040, National Integrated Ballistics Information Network (NIBIN) for Law
Enforcement, by William C. Boesman and William J. Krouse.
²⁹ U.S. Customs Service Authorization, FY2002 Budget, and Related Border
Management Issues, CRS Report RL31230, by William J. Krouse.
CRS-13

17,479 full time equivalent positions. This amount represents an 18% increase over
the agency’s FY2000 appropriation. Additionally, COBRA fees and other offsetting
receipts are anticipated to support an additional 1,988 full time equivalents in
FY2001, bringing the agency’s overall level of full time equivalents to 19,467.
For FY2002, Congress has provided the U.S. Customs Service with
$2,688,049,000, a 17.9% increase over the agency’s FY2001 appropriation. This
amount includes (1) $2,079,357,000 for the salaries and expenses account, (2)
$177,860,000 for the air and marine interdiction account, (3) $427,832,00 for the
automation modernization account, and (4) $3,000,000 for the harbor maintenance
fee account.
By comparison, the Senate-passed measure would have provided Customs with
$2,555,922,000, a 12.1% increase over the agency’s FY2001 appropriation. This
amount included (1) $2,022,453,000 for the salaries and expenses account, (2)
$172,637,000 for the air and marine interdiction account, (3) $357,832,000 for the
automation modernization account, and (4) $3,000,000 for the harbor maintenance
fee account.
Meanwhile, the House-passed measure would have provided Customs with
$2,673,848,000 in total funding, a 17.3% increase over the agency’s FY2001
appropriation. This amount included (1) $2,059,170,000 for the salaries and expenses
account, (2) $183,853,000 for the air and marine interdiction account, (3)
$427,832,000 for the automation modernization account, and (4) $2,993,000 from
the harbor maintenance fee account. In addition, the House adopted a Customs-
related amendment offered by Representative Bernard Sander that would prohibit the
use of any funding provided by the FY2002 Treasury-Postal appropriations act from
being used to remove detention orders placed on imports by the Customs Service,
because the agency determined that these imported products were mined, produced,
or manufactured by forced or indentured child labor.
By contrast, the Administration’s FY2002 request included $2,385,233,000 for
the Customs Service, a 4.6% increase over the agency’s FY2001 appropriation. This
amount included: (1) $1,961,764,000 for the salaries and expenses account, (2)
$162,637,000 for the air and marine interdiction account, (3) $257,832,000 for the
automation modernization account, and (4) $3,000,000 from the harbor maintenance
fee account.
For salaries and expenses, the Administration’s request anticipated $59,101,000
in reductions to the base budget in non-recurring costs and other savings that would
have partially offset an increase of $142,308,000 over the base budget. This increase,
according to the Administration, would have fully funded positions that were newly

³⁰ This amount reflects the 0.22% across-the-board rescission required by the Consolidated
Appropriations Act of FY2001 (P.L. 106-554). It also includes monies appropriated into four
accounts: 1) $1,878,557,000 in salaries and expenses account, 2) $139,919,000 in air and
marine interdiction program account, 3) $257,832,000 in automation modernization account,
and 4) $3,000,000 in the harbor maintenance fee account.
CRS-14

full time equivalents, and would have brought the agency’s overall FY2002 full time
equivalent level supported by direct funding to 17,849. According to the
Administration, this increase would have met the agency’s FY2002 baseline funding
requirements and allowed Customs to maintain it’s FY2001 anticipated level of
services and activities in FY2002. Additionally, the Administration’s request
anticipated that offsetting receipts would fund another 1,808 full time equivalents in
FY2002, bringing the total anticipated full time equivalent level to 19,657. As
earmarks for non-pay inflation costs and pay adjustments in the conference report
language indicate, these reductions in non-recurring costs anticipated in the
President’s budget were not included in the conference agreement.
For the salaries and expenses account, Congress has provided $117,593,000
more than the Administration’s request. Conference report language includes the
following earmarks: (1) $33,476,000 for non-pay inflation costs, (2) $9,247,000 for
pay adjustment costs, (3) $33,151,000 for non-obtrusive inspection technology, (4)
$28,152,000 for a northern border hiring initiative, and (5) $13,567 for other assorted
purposes. The Senate-reported measure included $60,689,000 more than the
Administration’s request, and included the following budget increases: (1)
$20,216,000 for non-pay inflation costs, (2) $25,000,000 for additional staffing on the
northern border, (3) $5,000,000 for child labor efforts, (4) $5,000,000 for an
intellectual property law center, and (5) $5,473,000 for various other projects. The
House-passed measure included $97,406,000 more than the Administration’s request,
and included the following budget increases: (1) $33,476,000 for non-pay inflation
costs, (2) $13,81300 for security at the 2002 Winter Olympics, (3) $30,000,000 for
non-intrusive inspection technology, (4) $15,000,000 for additional positions to cover
decreases in offsetting fee receipts (COBRA), (5) $3,000,000 to field Pulsed Fast
Neutron Analysis inspection technology, (6), $800,000 for anti-tobacco smuggling
efforts, and (7) $1,317,000 to assist African nations in trade compliance under the
African Growth and Opportunity Act.
For the air and marine interdiction program account, Congress has provided
Customs with $177,860,000, a 33.8% increase over the account’s FY2001
appropriation. This amount is $15,223,000 over the Administration’s FY2002
request. By comparison, the Senate-reported measure would have provided
$10,000,000 more, and the House-passed measure $21,216,000 more than the
Administration’s request to fund non-pay inflation costs and other program
investments.
For the automation modernization account, Congress has provided Customs with
$427,832,000, the same amount as in the House-passed bill. This amount is
$170,000,000 more than the Administration’s FY2002 request of $257,832,000,
which was the amount appropriated by Congress for FY2001 ($5,400,000 for the
International Trade Data System, and not less than $130,000,000 for the continued
development of the Automated Commercial Environment). For FY2002, the Senate
measure would have provided $100,000,000 more than the Administration’s request.
As anticipated in the Administration’s request, the conference agreement would
provide Customs with $3,000,000 in offsetting receipts in the harbor maintenance fee
account. The Senate measure would have appropriated the same amount, while the

CRS-15

obligation under this account.
In recent years, Customs’ Automated Commercial System (ACS), the system
Customs uses to track, control, and process all commercial goods imported into the
United States, has proven inadequate and has suffered from “brownouts” that inhibit
international commerce. The General Accounting Office (GAO) has testified that the
current import processes handled by ACS are “paper-intensive, error-prone, and
transaction based, and out of step with just-in-time inventory practices of the trade³¹
community.” Since 1994, Congress has increased funding for Customs to upgrade
ACS and continue development of its replacement, the Automated Commercial
Environment (ACE), but Customs has struggled with the upkeep of ACS and the
development of ACE.
In the FY2000 conference report, Congress directed Customs to provide a
revised blueprint, schedule, and budget for ACE. This report was delivered to the
Appropriations committees, but late in the fiscal year. For FY2001, Congress
provided over $257,832,000 in a direct appropriation, which includes $5,400,000 to
continue the development of the International Trade Data System and at least
$130,000,000 to continue the development of ACE. It was reported in Government
Executive magazine that the development, operation, and maintenance of ACE over
7 years will cost between $1.4 and $1.8 billion, and that Customs would begin taking
bids to develop the new system in FY2001.³² The Senate-reported measure would
have brought total FY2002 funding for ACE to $230,000,000, whereas the House-
passed measure would have brought the total funding to $300,000,000. The
conference agreement matches the House amount.
In addition to appropriated funding, Customs generates offsetting receipts from
two user fee programs. The first fee program consists of seven conveyance- and
passenger-related user fees established by the 1985 Consolidated Omnibus Budget
Reconciliation Act (COBRA) and the user fee for processing bulk cargo from Mexico
and Canada established by the 1986 Tax Reform Act. The second fee program
consists of the commerce-related merchandise processing fee (MPF) established by
the 1986 Omnibus Budget Reconciliation Act (OBRA). Customs generally has no
control over the allocation of MPF fee receipts. COBRA fee receipts, on the other
hand, are not appropriated for obligation by Congress, and they account for a
substantial portion of funding available to Customs for expenditure each year. From
FY1992 to FY1999, COBRA fee receipts have ranged from about $176,000,000 to
$274,000,000.
There are codified limitations on the use of COBRA fee receipts, and initially
they were used principally to pay overtime costs for inspectors and canine

³¹ U.S. General Accounting Office, Testimony before the House Committee on Government
Reform Subcommittee on Government Management, Information and Technology, U.S.
Customs Service: Observations on Selected Operations and Program Issues, T-
GGD/AIMD-00-150 (Washington, April 20, 2000), p. 7.
³² Joshua Dean, “Funding Battles Delay Customs Modernization Project,” Government
Executive Daily Briefing, (Washington, December 1, 2000), at [http://www.govexec.com/].
CRS-16

to the next. Such carryover has been used to fund recurring costs in positions and
equipment from previous years. As a result, COBRA fee receipts have funded an
increasing share of permanent inspector positions and information technology costs.
In FY2000, however, there were reports of a drop-off in air passenger processing fee
receipts. Consequently, the growing reliance on COBRA fee receipts to fund base
positions in conjunction with a drop-off in receipts may prove problematic in FY2001,
as Customs may not have allocated enough to pay overtime for Customs officers. To
address the decline in COBRA fee receipts, the House-passed measure would provide
$15,000,000 for additional positions. The conference agreement was silent on this
issue. The authorization for the COBRA fees expires at the end of FY2003.
Internal Revenue Service (IRS). The federal government levies individual
and corporate income taxes, social insurance taxes, excise taxes, estate and gift taxes,
customs duties, and other miscellaneous taxes and fees. The federal agency mainly
responsible for administering these taxes and fees is the IRS. In carrying out that
responsibility, it receives and processes tax returns and other related documents,
processes payments and refunds, enforces compliance through audits and other
methods, collects delinquent taxes, and provides a variety of services to taxpayers in
an effort to help them understand their responsibilities and resolve problems. In FY
2000, the IRS collected $2,077 billion, the largest component of which was individual
income tax revenue of $1,117 billion.
Under P.L. 107-67, the IRS is funded at $9.437 billion in FY 2002, or $548
million more than it received in FY 2001. With this increase, the agency has the
authority to add 600 individuals to its staff in FY 2002. Of the total amount
appropriated, $3.798 billion is for tax processing, assistance, and management; $3.538
billion for tax law enforcement; $1.563 billion for information systems; and $146
million for the earned income tax compliance initiative. In addition, the IRS is
receiving $391.6 million for its Information Technology Investment Account (ITIA)
through September 30, 2004. Funds can be drawn from the account only with the
prior approval of the House and Senate Appropriations Committee, and they are
allocated on a project or milestone basis. In June 2001, the committees authorized
the release of $128 million from the ITIA to enable the IRS to continue its program
to modernize its information system. No additional money is being provided for the
Staffing Tax Administration for Balance and Equity initiative (STABLE) in FY 2002,
however, contrary to the wishes of the Bush Administration. STABLE is intended
to improve the IRS’s customer service and bolster its capability to enforce federal tax
laws; Congress approved initial funding for the initiative in FY 2001. P.L. 107-67
also gives the Treasury Inspector General for Tax Administration $123.7 million in
FY 2002. It specifies that $500,000 of this amount is to be used for bimonthly audits
of IRS taxpayer assistance centers.
P.L. 107-67 directs the IRS to improve its customer service by increasing its
staffing of its toll-free help-line service, and to take steps to further safeguard the
confidentiality of taxpayer information. Moreover, it expresses concern about the
ability of the IRS to coordinate and integrate its spending on business system
modernization projects with its “development-related” investments in information
systems.

CRS-17

it to the Office of Management and Budget for review. Reportedly, the agency is
seeking an increase in funding of $800 million over FY 2002 and the authority to hire
another 1,800 staff. These additional resources would be channeled into improving
customer service, modernizing information systems, and bolstering taxpayer audits
and other compliance efforts. A key player in the IRS appropriations process is the
IRS Oversight Board. The Board is required by law to review the IRS budget and
make its own recommendations directly to Congress. Based on the Board’s
recommendations for the FY 2002 budget, some expect the Board to back the
agency’s request for increased funding in FY 2003 and to request that Congress
approve two years of funding for the ITIA.
U. S. Secret Service. The U.S. Secret Service is mandated by statute to carry
out two distinct missions: the protection of designated government officials and
individuals, and criminal investigations. It is also responsible for the enforcement of
laws relating to counterfeiting.
Under P.L. 107-67, the Secret Service is funded at $920,615,000. The
conference agreement increased the salaries and expenses account by over $4 million
beyond the higher of the two versions with the other Secret Service account being
funded at the higher of the two, the House-passed version of $3,457,000. The House
had approved an appropriation of $923,569,000 for the Secret Service. As passed by
the Senate, $902,967,000 would have been appropriated for the Secret Service, with
$899,615,000 provided for salaries and expenses, and $3,352,000 available for repair
and construction of facilities. The conference report explains the funding by stating
that
This includes the costs of non-pay inflation and the anticipated pay adjustment.
The conferees also provide $1,633,000 for forensic support to the National Center
for Missing and Exploited Children (NCMEC), and $3,009,000 for grants to³³
NCMEC.
No further explanation for the increase is offered. Under the emergency supplemental
the Service would be allocated further funding. See the section on terrorism below.
On July 17, the House Committee on Appropriations approved an appropriation
of $947,234,000 for the Secret Service. This is an increase of $118,892,000 over
FY2001 enacted and $86,660,000 over the President’s request. The House
subcommittee had recommended an appropriation of $943,777,000, an increase of
$118,891,749 above the FY2001 enacted level and an increase of $86,660,000 above
the President’s request. The increase included $13,624,000 for non-pay inflation;
$27,530,000 for security planning and operations for the 2002 Winter Olympics;
$45,000,000 to complete the staffing re-balancing initiative, and $506,000 in
additional support for the National Center for Missing and Exploited Children.
For FY2002, the President has requested $857,117,000 for salaries and expenses
related to protective functions, research and development, and the purchase of

³³ Conference Report, p. 57.
CRS-18

resulting in a net increase of $32,232,000 over the FY2001 funding level of
$824,885,000. Of the FY2002 budget request, $1,633,000 is for activities related to
the investigations of exploited children; and $3,352,000 is for acquisition and
construction costs.
P.L. 106-554 funded the Secret Service salaries and expenses account at $823.8
million in FY2001. The acquisitions, construction, and related expenses account
funded at $8.9 million. P.L. 106-346 provided supplemental funding of $2.9 million
for the salaries and expenses account. The rescission reduced Secret Service funding
by $1.853 million.
U.S. Postal Service
The U.S. Postal Service (USPS) generates nearly all of its funding through the
sale of products and services. It does receive an appropriation from Congress,
however, to compensate for revenue forgone in providing free and reduced rate mail
for the blind and visually impaired and for overseas voting. Under the Revenue
Forgone Reform Act of 1993, Congress is required to reimburse USPS $29 million
each year until 2035, for services performed but not paid for in the 1990s. (See also,
CRS Report RS21025, The Postal Revenue Forgone Appropriations: Overview and
Current Issues.)
In FY2001, USPS received an appropriation of $96.093 million, including
$67.093 million for revenue forgone in FY2001 but not payable until October 1,

2002, and the $29 million due under the Revenue Forgone Reform Act of 1993.

P.L. 107-67 maintains the advance appropriation practice, with $29,000,000 in
current funding, $67,093,000 in FY2002 advance funding, and $47,619,000 in
FY2003 advance funding. This reflects the House-passed version. The Senate, on
the other hand, acceded to the Administration’s request with regard to advance
appropriations. All of the $143.7 million the Senate approved on September 19
would be available to the Postal Service in FY2002. The conference committee
adopted the House provision, making $47,619,000 of the appropriation unavailable
for obligation until October 1, 2002.
In its FY2002 Budget, the Administration proposed to reverse the practice of
providing USPS advance appropriations to avoid annual spending limitations. It
proposed an appropriation of $56.303 million for revenue forgone in fiscal 2002, and
$29 million for the FY2002 installment under the Revenue Forgone Reform Act of
1993, reduced by $8.684 million as a reconciliation adjustment to reflect actual versus
estimated free mail volume in 1999, for a total of $76.729 million. USPS will also
have available for obligation the $67.093 million provided for revenue forgone in
fiscal 2001, for a total of $143.7 million.
The Postal Service has experienced a significant rise in costs subsequent to the
September 11, 2001 attacks and the continuing crisis involving anthrax exposure. The
Postmaster General told both House and Senate oversight committees that several
billions of dollars will be necessary for crisis response and to install devices designed

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Congress that , under the provisions of P.L. 107-38, $175 million would be allocated
to the Postal Service from the Emergency Response Fund as of November 20.³⁵
These resources include: $100 million for an initial purchase of irradiation equipment
to sanitize the mail; and $75 million for the costs of personnel protection equipment
(e.g., gloves, masks, barrier creams), first response/environment testing kits and
services, site clean-up and medical goods and services, and public education materials.
The Senate Committee on Appropriations recently heard from the Postmaster General
as to the perceived financial needs of the Postal Service.³⁶ P.L. 107-117 appropriates
an additional $500 to the U.S. Postal Service. See Table 4, below, for more detailed
explanations.
Semipostals.³⁷ P.L. 107-67 has three new provisions affecting the issuance
of semipostal stamps and bypassing the selection procedure set forth in the Semipostal
Authorization Act of 2000. (Semipostals enable postal customers to pay a surcharge
over regular postage for the benefit of a worthy cause.) (See also CRS Report
RS20921, Semipostal Stamps: Authorization, Revenue, and Selection Criteria.) The
Senate had added an amendment that would extend the Breast Cancer Research
Stamp beyond its current expiration date of July 29, 2002, to July 29, 2008. It also
would exempt the breast cancer stamp from the USPS regulation issued under the
authority of the Semipostal Authorization Act that had limited the circulation of
semipostals to one at any one time. The conferees agreed to an extension, but only to
December 31, 2003 (section 650).
The Senate also had added language, that was included in the conference report
(section 652), authorizing another semipostal to assist the families of rescue workers
killed or disabled in the September 11 terrorist attacks. USPS already had underway
a selection process for a semipostal to replace the breast cancer stamp, and the
amendment would permit USPS to designate the “Heroes” stamp as the one to be
issued, or to issue it as a third semipostal in circulation.
Finally, the conference added language (Section 653) authorizing a semipostal
to be issued before 2004, and to be in circulation no later than December 31, 2006,
for the benefit of domestic violence programs administered by the Department of

³⁴ Hearings before the House Committee on Government Reform on Oct. 30 and before Senate
Committee on Governmental Affairs on Oct. 30 and 31, 2001. Postmaster General’s prepared
statement can be accessed through http://www.senate.gov/~gov_affairs/hearings.htm. For
selected press accounts related to the USPS situations see Government Executive Magazine
Daily Briefing, Oct. 31, 2001 and Oct. 29, 2001:
http://www.govexec.com/dailyfed/1001/103101w1.htm and
http://www.govexec.com/dailyfed/1001/102901w1.htm
³⁵ Communication from the Office of Management and Budget, with a cover letter from
President George Bush to the Speaker of the House of Representatives, dated Nov. 5, 2001
(Estimate No. 21), as required under P.L. 107-38.
³⁶ “USPS Seen Requesting at Least $5 Billion,” Washington Post, Nov. 7, 2001, p. A27.
³⁷ Conference Report, pp. 44-46, 73.
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for a semipostal under the Semipostal Authorization Act.
Shipping Day-Old Poultry. The conferees also accepted (section 651) a
Senate provision authorizing USPS to require any contract air carrier to accept day-
old poultry and a few other live animals as mail, and to charge mailers a reasonable
surcharge to cover the extra costs involved. The amendment will not affect air
carriers that do not normally accept live animals as cargo, a category that includes its
new transportation partner FedEx.
Conference Directives.³⁸ Noting that the state of Hawaii has only one mail
sorting facility, the H.R. 2590 conferees urged the Postal Service “to develop a
procedure by which mail that originates on the same island to which it is addressed
can be kept and sorted on that island.” Intra-island mail deliveries had been disrupted
by the flights delayed after the September 11 attack. The conferees agreed to direct
the U.S. Postal Service to conduct a 90-day study on the feasibility of the USPS “to
introduce and provide new products and services (including the introduction and
provision of new products and services on an experimental or market test basis) and
to enter into negotiated service agreements with individual customers or groups of
customers.”
Executive Office of the President and Funds Appropriated to
the President
The Treasury and General Government appropriations act funds all but three
offices in the Executive Office of the President (EOP). Of the three exceptions, the
Council on Environmental Quality (including Office of Environmental Quality) and
the Office of Science and Technology Policy are funded under the Veterans Affairs,
Housing and Urban Development, and Independent Agencies appropriations; and the
Office of the United States Trade Representative is funded under the Commerce,
Justice, State, and the Judiciary and Related Agencies appropriations. Funding for
these agencies is not included in this report.
P.L. 107-67 provides an appropriation of $747,531,000 for EOP agencies funded
under the Treasury and General Government appropriations.
The President’s FY2002 budget proposed an appropriation of $731,725,000, an
increase of 4.26% over the $701,815,000 (less a $575,000 rescission) appropriated
in FY2001.
The House of Representatives passed EOP funding of $751,967,000, an increase
of $50,727,000 over FY2001 enacted (including the rescission) and $20,242,000 over
the President’s request. An amendment, agreed to by the House by voice vote, would
have consolidated 10 of the 18 appropriations accounts into one account, arguably to
provide the President with more flexibility in allocating funding. During the floor
debate, the chairman and ranking member of the House Appropriations Committee
noted that this provision was being accepted as a placeholder for further discussion

³⁸ Conference Report, p. 59.
CRS-21

rather than a consolidated account.
The Senate passed, EOP funding of $755,519,000, an increase of $54,279,000
over FY2001 enacted (including the rescission) and $23,794,000 over the President’s
request.
During his September 20, 2001 speech before a joint session of Congress on the
September 11, 2001 terrorist attacks on America, President George W. Bush
announced that he was creating the Office of Homeland Security as a Cabinet-level
position reporting directly to him. For a brief discussion of the position and office,
see the “Terrorism” section below. More funding details will be provided as they are
available. That section also discusses funds provided to EOP accounts through
allocations from the Emergency Response Fund.
Compensation of the President. P.L. 107-67 provides an appropriation
of $450,000, which includes an expense allowance of $50,000. The request is a
15.4% increase over the $390,000 appropriated in FY2001. The salary of the
President is $400,000 per annum, effective January 20, 2001. This was the amount
proposed by the President’s budget, recommended by the House and Senate
committees, passed by the House and Senate, and agreed to by the conference
committee.
White House Office. This account provides the President with staff
assistance and administrative services.
P.L. 107-67 provides an appropriation of $54,651,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $54,165,000, an increase of 1.6% over the $53,288,000 (less a $118,000
rescission) appropriated in FY2001. The Senate committee recommended and the
Senate passed the same amount as the President requested.
Executive Residence (White House). This account provides for the care,
maintenance, and operation of the Executive Residence.
P.L. 107-67 provides an appropriation of $11,695,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $11,914,000, an increase of 9.3% over the $10,900,000 (less a $24,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
For repairs and restoration at the White House, P.L. 107-67 provides an
appropriation of $8,625,000. This was the amount requested by the President, and
was an increase of 791% over the $968,000 (less a $2,000 rescission) appropriated
in FY2001. Of the total, $1,306,000, is for six projects for required maintenance,
safety and health issues, and $7,319,000 is for three projects for required maintenance

³⁹ House Passage, pp. H4570-4571.
CRS-22

Administration, the Secret Service, the Office of the President, and other agencies
involved with the White House. The House and Senate committees recommended
and the House and Senate passed this amount as well.
Maintenance and repair costs for the White House are also funded by the
National Park Service as part of that agency’s responsibility for national monuments.
Entertainment costs for state functions are funded by the Department of State.
Reimbursable political events in the Executive Residence are to be paid for in advance
by the sponsor, and all such advance payments are to be credited to a Reimbursable
Expenses account. The political party of the President is to deposit $25,000 to be
available for expenses relating to reimbursable political events during the fiscal year.
Reimbursements are to be separately accounted for and the sponsoring organizations
billed, and charged interest, as appropriate. The staff of the Executive Residence
must report to the Committees on Appropriations, after the close of each fiscal year,
and maintain a tracking system on the reimbursable expenses.
Special Assistance to the President (Office of the Vice President)
and Official Residence of the Vice President. This account funds the Vice
President in carrying out the responsibilities assigned to him by the President and by
law. It also provides for the care and operation of the Vice President’s official
residence and includes the operation of a gift fund for the residence.
P.L. 107-67 provides an appropriation of $3,925,000 for salaries and expenses.
This was the amount recommended by the House committee, passed by the House,
and agreed to by the conference committee. The President’s FY2002 budget
proposed an appropriation of $3,896,000, an increase of 6.1% over the $3,673,000
(less a $9,000 rescission) appropriated in FY2001. The Senate committee
recommended and the Senate passed the same amount as the President requested.
The law also provides an appropriation of $318,000 for the operating expenses
of the Official Residence of the Vice President. This was the amount recommended
by the House committee, passed by the House, and agreed to by the conference
committee. The President requested $314,000, an 11.3% decrease over the $354,000
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
Section 635 of the law (section 634 of the House version and section 638 of the
Senate version) authorizes the Department of the Navy to pay the utility bills,
including the electric bill, for the Vice President’s residence, thereby shifting the
expenses from the EOP account. (The entire property, of which the residence is part,
is owned and operated by the Navy.) House committee and floor amendments to
maintain the costs in the EOP account were rejected.
Section 636 of the law (section 635 of the House version and section 636 of the
Senate version) authorizes the Department of the Navy to accept gifts of consumable
items (i.e., food or liquor), or funds for them, for use at official functions at the Vice
President’s residence, including the hosting of foreign dignitaries. House committee
and floor amendments to prohibit this practice were rejected.

CRS-23

budget.
Council of Economic Advisers (CEA). The three-member council was
created in 1946 to assist and advise the President in the formulation of economic
policy. The council analyzes and evaluates the national economy, economic
developments, federal programs, and federal policy to formulate economic advice.
The council assists in the preparation of the annual Economic Report of the President
to Congress.
P.L.107-67 appropriates $4,211,000, an increase of 2.4% over the $4,110,000
appropriated in FY2001; of which $9,000 was subsequently rescinded. The Senate
approved an appropriation of $4,192,000, the amount requested by the President.
The House approved an appropriation of $4,211,000 and this was the amount agreed
to by the conference committee.
Office of Policy Development. The Office supports the National Economic
Council and the Domestic Policy Council in carrying out their responsibilities to
advise and assist the President in formulating, coordinating, and implementing
economic and domestic policy. The Office also supports other domestic policy
development and implementation activities.
P.L. 107-67 provides an appropriation of $4,142,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $4,119,000, an increase of 2.2% over the $4,032,000 (less a $9,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
National Security Council (NSC). The NSC advises the President on
integrating domestic, foreign, and military policies relating to national security.
P.L. 107-67 provides an appropriation of $7,494,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $7,447,000, an increase of 3.9% over the $7,165,000 (less a $15,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.
Office of Administration. The Office of Administration provides
administrative services, including financial, personnel, library and records services,
information management systems support, and general office services, to the
Executive Office of the President.
P.L. 107-67 provides an appropriation of $46,955,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $46,032,000, an increase of 5.2% over the $43,737,000 (less a $96,000 rescission)
appropriated in FY2001. The Senate committee recommended and the Senate passed
the same amount as the President requested.

CRS-24

allocated funding for the relocation of personnel and enhanced security. See the
“Terrorism” section below for further details.
Office of Management and Budget (OMB). OMB assists the President
in discharging budgetary, management, and other executive responsibilities. The
agency’s activities include preparing the budget documents; examining agency
programs, budget requests, and management activities; preparing the government-
wide financial management status report and five-year plan (with the Chief Financial
Officer Council); reviewing and coordinating agency regulatory proposals and
information collection requirements; and promoting economical, efficient, and
effective procurement of property and services for the executive branch.
P.L. 107-67 provides an appropriation of $70,752,000. This was the amount
recommended by the House committee, passed by the House, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $70,521,000, an increase of 2.5% over the $68,786,000 (less a $151,000
rescission) appropriated in FY2001. The Senate committee recommended and the
Senate passed an appropriation of $70,519,000.
Office of National Drug Control Policy (ONDCP). The ONDCP
develops policies, objectives, and priorities for the National Drug Control Program.
The account also funds general policy research to support the formulation of the
National Drug Control Strategy.
P.L. 107-67 provides an appropriation of $25,263,000 for salaries and expenses.
This was the amount agreed to by the conference committee. The President’s
FY2002 budget proposed an appropriation of $25,100,000, an increase of 1.4% over
the $24,759,000 (less a $55,000 rescission) appropriated in FY2001. The House
committee recommended and the House passed an appropriation of $25,267,000.
The Senate committee recommended and the Senate passed an appropriation of
$25,096,000.
The Counterdrug Technology Assessment Center (CTAC). The
CTAC is the central counterdrug research and development organization for the
federal government.
P.L. 107-67 provides an appropriation of $42,300,000. Of the total,
$20,064,000 is for the basic research and development program and $22,236,000 is
for the continued operation of the technology transfer program. This was the amount
agreed to by the conference committee. The President’s FY2002 budget proposed
an appropriation of $40,000,000, an increase of 10.9% over the $36,053,000 (less a
$79,000 rescission) appropriated in FY2001. The House committee recommended
and the House passed the same amount as the President requested. The Senate
committee recommended and the Senate passed an appropriation of $42,000,000.
Federal Drug Control Programs. The High Intensity Drug Trafficking
Areas (HIDTA) program provides assistance to federal, state, and local law
enforcement entities operating in those areas most adversely affected by drug

CRS-25

local, state, and federal initiatives.
P.L. 107-67 provides an appropriation of $226,350,000. This was the amount
recommended by the Senate committee, passed by the Senate, and agreed to by the
conference committee. The President’s FY2002 budget proposed an appropriation
of $206,305,000⁴⁰ a decrease of 0.1% over the $206,500,000 appropriated in
FY2001. The House committee recommended an appropriation of $231,500,000.
The House passed an appropriation of $233,882,000.
The Senate adopted an amendment (Senator Dorgan, Amendment No. 1584)
which would designate a HIDTA in the State of Utah and apportion $2,500,000 of
those funds to be used for it. The conference report states:
As ONDCP reviews proposals for the increased HIDTA funding provided, the
conferees direct it to consider the following: increases for Central Florida, Rocky
Mountain, Midwest (for Missouri, Iowa, and North Dakota), Chicago, Southwest
Border (for Arizona, New Mexico, and West Texas), Southeast Michigan,
Appalachian, Lake County, Gulf Coast, Hawaii, Philadelphia/Camden, Oregon,
and Milwaukee HIDTAs; and funding for expansion of HIDTAs in North Texas
(to Oklahoma counties), and the Northwest (to counties in southwest and eastern
Washington); and possible designation of Arkansas and North Carolina, which⁴¹
have sought designation in recent years.
The Special Forfeiture Fund. The Fund, administered by the director of
ONDCP, supports high-priority drug control programs. The funds may be transferred
to drug control agencies or directly obligated by the ONDCP director.
P.L. 107-67 provides an appropriation of $239,400,000. This was the amount
agreed to by the conference committee. The President’s FY2002 budget proposed
an appropriation of $247,600,000, an increase of 6.0% over the $233,600,000
appropriated in FY2001. The House committee recommended and the House passed
an appropriation of $238,600,000. The Senate committee recommended and the
Senate passed an appropriation of $249,400,000.
Unanticipated Needs. The account provides funds for the President to meet
unanticipated needs in furtherance of the national interest, security, or defense.
In FY2001, $3,500,000 (less an $8,000 rescission) was appropriated, of which
$2,500,000 was for the Elections Commission of the Commonwealth of Puerto Rico
to be used for objective, nonpartisan citizens’ education and a choice by voters
regarding the islands’ future status.
P.L. 107-67 provides an appropriation of $1,000,000 for FY 2002. This was the
amount proposed by the President’s budget, recommended by the House and Senate

⁴⁰ The President’s budget shows an appropriation of $206,305,000, but the House and Senate
Committees on Appropriations reports state that the amount requested was $206,350,000.
⁴¹ Conference Report, p. 63.
CRS-26

committee.
The President allocated $51,000,000 from the Emergency Response Fund to the
Unanticipated Needs account. The communication to Congress provides no further
explanation. See the section on “Terrorism” below for information on the allocations.
Independent Agencies
Federal Election Commission (FEC). The FEC administers federal
campaign finance law, including overseeing disclosure requirements, limits on
contributions and expenditures, and the presidential election public funding system;
the agency retains civil enforcement authority for the law. The Office of Election
Administration, which serves as a clearinghouse for information on voting laws and
procedures for state and local election officers, is another part of the FEC .
P.L. 107-67 appropriates $43,689,000, the same as the House-passed level.
Also as proposed by the House, the act includes a new general provision (section 642)
extending FEC authority to assess administrative fines for straightforward violations
of reporting deadlines, from December 31, 2001 to December 31, 2003.
The Administration’s budget proposal for FY2002 called for $41,411,000 for the
FEC, an increase of $1,000,100 over the $40,410,900 appropriated under P.L.

106-554 for FY2001 (which reflected $40,500,000, minus an across-the-board .22%

rescission). Of the $41.4 million requested, no less than $4,453,000 shall be available
for internal automated data processing systems ($236,500 less than the amount
targeted for the previous year) and no more than $5,000 may be used for reception
and representational expenses. The Administration’s budget called for a full-time
equivalent staffing authorization of 357, the same as for FY2001.
In the FEC’s separate submission to OMB, the agency requested $47,671,000,
or $6,260,000 more than the Administration proposes. The FEC also asked for 375
personnel, which was 18 more than requested in the President’s budget proposal. In
justifying its request for additional funding and staff, the agency cited, among other
things, the heightened demands on the election clearinghouse for assistance on
election administration issues in the wake of the 2000 presidential election.
The House-passed version would have provided an appropriation of
$43,689,000, exceeding the Administration’s proposed level by more than $2.2
million. Of the total, no less than $5,128,000 would be available for internal
automated data processing systems and no more than $5,000 would be available for
reception and representation expenses. In addition, the measure would include a new
general provision extending authority for the FEC to assess administrative fines for
straightforward violations of reporting deadlines, from December 31, 2001 to
December 31, 2003.
The Senate-passed version recommends an appropriation of $43,993,000, some
$304,000 more than the House-passed figure and $2,582,000 more than the
Administration’s request. This higher figure would incorporate $582,000 for the
government-wide pay adjustment and $2 million for improvements to state and local

CRS-27

authorizing legislation for such a program. No less than $4,453,000 of the
recommended amount would be required to be devoted to internal automated data
processing systems. No provision was included regarding administrative fines.
Federal Labor Relations Authority (FLRA). The agency serves as a
neutral party in the settlement of disputes that arise between unions, employees, and
agencies on matters outlined in the Federal Service Labor Management Relations
Statute; decides major policy issues; prescribes regulations; and disseminates
information appropriate to the needs of agencies, labor organizations, and the public.
The FLRA also engages in case-related interventions and training and facilitates labor-
management partnerships. It has three components: the Authority which adjudicates
labor-management disputes, the Office of the Inspector General which conducts and
supervises audits and investigations related to FLRA’s functions, and the Federal
Service Impasses Panel which resolves impasses which occur during labor
negotiations between federal agencies and labor organizations.
P.L. 107-67 provides an appropriation of $26,524,000 for the FLRA. This was
the amount passed by the House and agreed to by the conference committee. The
President’s FY2002 budget proposed an appropriation of $26,378,000. The request
was 5.5% above the FY2001 funding minus the rescission. The House and Senate
committees recommended and the Senate passed the same amount as the President
requested.
The agency’s FY2001 appropriation was $25,058,000. P.L. 106-554 also
provided for a 0.22% or $55,000 across-the-board cut in the FY2001 funding.⁴² After
this reduction, the FY2001 funding was $25,003,000.
General Services Administration (GSA). The General Services
Administration administers federal civilian procurement policies pertaining to the
construction and management of federal buildings, disposal of real and personal
property, and management of federal property and records. It is also responsible for
managing the funding and facilities for former Presidents and presidential transitions.
GSA is one of several agencies covered by this bill which are involved in
counterterrorism activities. Please see the “Terrorism” section below for further
details.
Under P.L. 107-67, GSA is funded at $472,081,000 for FY2002. The funding
includes $284,000,000 to the Federal Buildings Fund, $143,139,000 to policy and
operations, $36,346,000 to the Office of Inspector General, $5,000,000 to the
Electronic Government (E-Gov) Fund, and $3,196,000 to the allowances and office
staff for former Presidents. Sections 401 through 413 relate to GSA general
provisions. Sections 408-413 are new provisions which relate to vehicle policy
management, naming of specific federal buildings, road construction and property
transfer.

⁴² FY2002 Budget, Analytical Perspectives, p. 355.
CRS-28

total, $276,400,000 would be provided for the Federal Buildings Fund; $137,947,000
for policy and operations; $36,378,000 for the Office of Inspector General; and
$3,196,000 for allowances and office staff for former Presidents. The House
committee had approved an appropriation of $458,401,000.
S. 1398, as introduced in the Senate and as reported by the Senate committee,
would have provided $276,400,000 for the Federal Buildings Fund; $145,749,000 for
policy and operations; $36,025,000 for the Office of Inspector General; and
$3,376,000 for allowances and office staff for former Presidents. The Senate
approved those amounts.
The President’s FY2002 budget contained a request for $138,499,000 for policy
and operations; $36,025,000 for the Office of Inspector General; and $3,552,000 for
allowances and office staff for former Presidents.
Three different laws provide FY2001 funding to the General Services
Administration. P.L. 106-554 provides $632,211,000 for GSA in FY2001. Of this
total, $464,154,000 is appropriated for the Federal Buildings Fund; $123,920,000 for
policy and operations; $34,520,000 for the Office of Inspector General; $2,517,000
for benefits to former Presidents; and $7,100,000 for the presidential transition. An
additional $2,070,000 is to be deposited into the Federal Buildings Fund. An advance
FY2002 appropriation of $276,400,000 is also provided for the Federal Buildings
Fund. P.L. 106-346 appropriated $11,350,000 in FY2001 funds to the Federal
Buildings Fund and $13,789,000 for the policy and operations account. P.L. 106-
275, as amended provided $7,100,000 for presidential transition, releasing funds
needed after the election for that purpose. GSA FY2001 is reduced, through the
rescission, by $1,470,000, with $1,053,000 coming out of the Federal Buildings Fund.
P.L. 107-20 added an additional $25,757,000 to GSA’s FY2001 appropriation.
Federal Buildings Fund (FBF). The act includes the $276,400,000
appropriated in FY2001 as advance appropriations for the FBF and an additional
$8,000,000 for FY2002. The House and Senate had determined that there would be
no additional direct appropriation into the Federal Buildings Fund for FY2002. A
total of $276,400,000 for the Federal Buildings Fund is the amount included in
FY2001 direct appropriations which was designated to become available on October
1, 2001. The House agreed to an amendment making available $14 million from the
Fund for a National Archives and Records Administration building in Georgia.
Since the FY2001 advance appropriation provided $276,400,000, no additional
funds were requested. Of the $6,107,891,000 deposited in the FBF, the President’s
FY2002 budget requests that $386,289,000 shall remain available until expended for
construction, and that $826,676,000 shall remain available until expended for repairs
and alterations.
Revenue to the FBF is the principal source of funding. Congress, however,
directs the GSA as to the allocation (or limitation on spending) of funds. The
conference agreement would provide $386,280,000 for construction and acquisition
of facilities; $826,676,000 for repairs and alternations; $186,427,000 for installment
acquisitions payments; $2,952,050,000 for rental of space; and $1,748,949,000 for
building operations. All of these levels meet or fall just below the Administration

CRS-29

except the Senate would have provided over $90,000,000 more for the spending
allotment in the construction and acquisition of facilities account. The conferees
direct the Federal Buildings Fund managers on specific issues with regard to the
spending of the funds.⁴³
Electronic Government Fund. In advance of his proposed budget for
FY2002, the President released, on February 28, 2001, A Blueprint for New
Beginnings: A Responsible Budget for America’s Priorities. Intended as a 10-year
budget plan, the Blueprint, among other innovations, proposed the establishment of
an electronic government account, seeded with “$10 million in 2002 as the first
installment of a fund that will grow to a total of $100 million over three years to
support interagency electronic Government (e-gov) initiatives.” Managed by OMB,
the fund was foreseen as supporting “projects that operate across agency boundaries,”
facilitating “the development of a Public Key Infrastructure to implement digital
signatures that are accepted across agencies for secure online communications,” and
furthering “the Administration’s ability to implement the Government Paperwork
Elimination Act of 1998, which calls upon agencies to provide the public with
optional use and acceptance of electronic information, services and signatures, when
practicable, by October 2003.”⁴⁴ About one month later, on March 22, OMB Deputy
Director Sean O’Keefe announced that the Bush Administration had decided to
double the amount to be allocated to the e-gov fund, bringing it to $20 million.⁴⁵
As included in the President’s budget, the fund was established as an account
within the General Services Administration, to be administered by the Administrator
of General Services “to support interagency projects, approved by the Director of the
Office of Management and Budget, that enable the Federal Government to expand its
ability to conduct activities electronically, through the development and
implementation of innovative uses of the Internet and other electronic methods.” The
Senate bill, as approved by the Senate, provided $5 million, to remain available until
expended, as did the House bill adopted by the House. Also, the Senate bill, like the
House bill, stipulated that transfers of monies from the fund to federal agencies may
not be made until 10 days after a proposed spending plan and justification for each
project to be undertaken using such monies has been submitted to the Committee on
Appropriations. Ultimately, the House and the Senate accepted the conference
agreement on H.R. 2590 retaining both the $5 million appropriation for the fund and
the requirement for a proposed spending plan and justification for each project using
fund monies. Expressing general support for the purposes of the fund, the conferees
had recommended, and both chambers accepted, that the administration work with
the House Committee on Government Reform and the Senate Committee on

⁴³ Conference Report, pp. 64-65.
⁴⁴ U.S. Executive Office of the President, Office of Management and Budget, A Blueprint for
New Beginnings, pp. 179-180.
⁴⁵ William Matthews, “Bush E-gov Fund to Double,” Federal Computer Week, vol. 15, Mar.

26, 2001, p. 8.

CRS-30

request for the fund was $20 million, to remain available until September 30, 2004..⁴⁶
Merit Systems Protection Board (MSPB). The MSPB assists federal
agencies in running a merit-based civil service system. The agency carries out its
mission on a case-by-case basis through hearings and decisions on employee appeals,
and on a systematic basis by reviewing the significant actions and regulations of the
Office of Personnel Management (OPM) and studying the civil service and other merit
systems. MSPB’s work is to ensure that personnel actions are processed within the
law and that the actions of OPM and other agencies support and enhance merit
principles.
P.L. 107-67 provides an appropriation of $30,555,000 for the MSPB. In
addition, $2,520,000 would be transferred from the Civil Service Retirement and
Disability trust fund to provide for administrative expenses to adjudicate retirement
appeals. This was the amount passed by the House and agreed to by the conference
committee. The President’s FY2002 budget proposed an appropriation of
$30,375,000. The request, not including the trust fund transfer, was 3.4% above the
FY2001 funding minus the rescission. The House and Senate committees
recommended and the Senate passed the same amount as the President requested.
The agency’s FY2001 appropriation, not including the trust fund transfer, was
$29,437,000. P.L. 106-554 also provided for a 0.22% or $65,000 across-the-board
cut in the FY2001 funding.⁴⁷ After this reduction, the FY2001 funding was
$29,372,000.
National Archives and Records Administration (NARA). The
custodian of the historically valuable records of the federal government since its
establishment in 1934, NARA also prescribes policy and provides both guidance and
management assistance concerning the entire life cycle of federal records. It also
administers the presidential libraries system; publishes the laws, regulations, and
presidential and other documents; and assists the Information Security Oversight
Office (ISOO), which manages federal security classification and declassification
policy; and the National Historical Publications and Records Commission (NHPRC),
which makes grants nationwide to help nonprofit organizations identify, preserve, and
provide access to materials that document American history.
Under P.L. 107-67, NARA will receive $276,602,000. This represents an
appropriation of $283,214,000 offset by debt reduction in the amount of $6,612,000.
Of the $244,247,000 for NARA operating expenses, $22,302,000 is for an electronic
records archive, $16,337,000 of which shall be available until September 30, 2004.
The funding reflects both the Senate- and House-passed funding levels. The House
amount was a $700,000 increase, effected through a Rules Committee amendment,
in the $243,547,000 allocated by the bill as reported from the Appropriations

⁴⁶ William Matthews, “Bush E-gov Fund to Double,” Federal Computer Week, vol. 15, Mar.

26, 2001, p. 8.

⁴⁷ FY2002 Budget, Analytical Perspectives, p. 356.
CRS-31

FY2002 budget.
P.L. 107-67 provides $39,143,000 for repairs and restoration, $28,500,000 of
which was designated for a new Southeast regional archives facility to be constructed
on land to be acquired by direct payment or the provision of site improvements from
the State of Georgia or Clayton County or some other governmental authority
thereof. The Senate had provided $30,500,000 for construction of a NARA facility
in Georgia and $41,143,000 for repairs and restoration of NARA facilities,. The
House had allocated $24,643,000 for repairs and restoration of NARA
facilities—$10,643,000 as requested in the President’s budget and $14 million made
available, through the adoption of an amendment during floor debate, from the
General Services Administration Federal Buildings Fund for the NARA facility to be
built in Georgia.
P.L. 107-67 provides $6,436,000 for the NHPRC grants program, as requested
in the President’s budget. This was the amount approved by the Senate. The Senate
Appropriations Committee report on the bill had noted the interest of two libraries in
preserving and making accessible their particular holdings of the papers of John
Adams and Calvin Coolidge, and had encouraged the NHPRC to work with the
officials of those institutions to develop competitive grant proposals. Similarly, within
the funds provided, the Committee had recommended that the NHPRC work closely
with the University of Hawaii and the University of Alaska to develop a proposal for^t^h
cataloging the historic records relating to statehood in preparation for the 50
anniversary statehood celebrations in Hawaii and Alaska. The House had provided
$10 million for the NHPRC grants program, which was an increase of $5,564,000
above the President’s request. Of the grants funds allocated by the House,
$1,700,000 was specified for assisting the Oklahoma Centennial Commission with
memorializing the Oklahoma Land Run, and $1 million was specified for the Boston
Public Library to assist with preserving and enhancing its holdings of materials related
to John Adams.
Also accepted in the final version of the bill was conferee report language
amending section 2105 of Title 44, United States Code, to allow the Archivist to
appoint directors at presidential archival depositories as qualifying for Senior
Executive Service positions. During Senate consideration of the bill, a floor
amendment (amendment No. 1575) authorizing the Archivist to appoint directors at
presidential archival depositories as qualifying for Senior Executive Service positions
was adopted.
The total amount appropriated for NARA by the House, $278,290,000, was
adjusted by $6,612,000 for debt reduction, making the allocation $272,278,000.
Drawing upon funds made available to him by the Emergency Supplemental
Appropriations Act for Recovery from and Response to Terrorist Attacks on the
United States, FY2001, President Bush, on October 16, 2001, allocated $7 million to
NARA, $4.8 million for the operating expenses account for additional guard services
at NARA-owned facilities, and $2.2 million for the repairs and restoration account.
(See the Terrorism section of this report.)

CRS-32

a small agency within the executive branch, was established by the Ethics in
Government Act of 1978. Originally part of the Office of Personnel Management,
OGE became a separate agency on October 1, 1989, as a result of the Office of
Government Ethics Reorganization Act of 1988. The Office of Government Ethics
exercises leadership in the executive branch to prevent conflicts of interest on the part
of government employees, and to resolve those conflicts of interest that do occur. In
partnership with executive branch agencies and departments, OGE fosters high ethical
standards for employees and strengthens the public's confidence that the government's
business is conducted with impartiality and integrity.
P.L. 107-67 funds OGE at $10,117,000, an increase of $454,000 from FY
2001 funding. This is the amount approved by the House of Representatives. The
FY2002 request had been $10,060,000, an actual increase from FY2001 of $397,000.
Although the House approved the $10,117,000, the Senate approved $10,060,000l.
For FY2001, P.L. 106-554 appropriated the requested amount of $9,684,000,
which was subject to a .22% rescission of $21,000. Accordingly, the net funding for
FY2001 was $9,663,000.
On December 20, 2001, legislation (S. 1202) reauthorizing the OGE through
FY2006 was cleared for the President’s approval.
Office of Personnel Management (OPM). The budget for OPM is
comprised of budget authority for both permanent and current appropriations. This
report discusses the budget authority for current appropriations. The agency is
responsible for administering personnel management functions. Among the activities
OPM engages in are helping agencies develop merit-based human resources
management accountability systems to support their missions; managing the federal
government’s merit-based employment system; administering the retirement, health
benefits, and life insurance programs for current and retired federal employees;
developing and implementing policies on pay and leave administration; and developing
and administering policies, regulations, and guidelines on employee relations. The
Office of Inspector General (OIG) conducts audits, investigations, evaluations, and
inspections throughout the agency and may issue administrative sanctions related to
the operation of the Federal Employees Health Benefits Program.
P.L. 107-67 provides an appropriation of $15,508,134,000 for OPM. This total
includes discretionary funding of $99,636,000 for salaries and expenses and
$1,498,000 for OIG salaries and expenses. It also includes mandatory funding of
$6,145,000,000 for the government payment for annuitants of the employees health⁴⁸
benefits program, $33,000,000 for the government payment for annuitants of the
employee life insurance program, and $9,229,000,000 for payment to the civil service
retirement and disability fund. Not included in this total are trust fund transfers of
$115,928,000 for salaries and expenses (of which $21,777,000 would remain available
until expended for the cost of automating the retirement record-keeping systems) and

⁴⁸ The President’s budget shows an appropriation of $6,102,000,000, but the House
Appropriations committee report states that the amount requested was $6,145,000,000.
CRS-33

and expenses and $9,745,000 for OIG salaries and expenses were transferred from
trust funds.) The P.L. 107-67 amounts were passed by the House and agreed to by
the conference committee.
The President’s FY2002 budget proposed an appropriation of $15,507,434,000
for the agency. This total included discretionary funding of $99,036,000 for salaries
and expenses; $1,398,000 for the OIG; and the same amounts as P.L. 107-67 provides
for the other accounts. The request, not including the trust fund transfers, was 7%
above the FY2001 funding minus the rescission. The House and Senate committees
recommended, and the Senate passed, the same amount as the President requested.
The agency’s FY2001 appropriation, not including the trust fund transfers, was
$14,497,672,000. P.L. 106-554 also provided for a 0.22% or $462,000 across-the-
board cut in the FY2001 funding.⁴⁹ After this reduction, the FY2001 funding was
$14,497,210,000.
The House committee’s report:
directs the Office of Personnel Management to submit a report within 120 days of
enactment on the cost of administering the FWS, [Federal Wage System] including
the cost of data collection, the cost of analyzing FWS data and its transformation
into FWS pay lines and wage schedules, the cost of operating the Federal
Prevailing Rate Advisory Committee, and the number of FWS workers in each
Federal agency. This information will help to determine whether the data used by
the FWS justifies its cost, and whether other mechanisms for setting federal blue⁵⁰
collar worker pay would be more effective.
In its report, the Senate committee expressed support for “providing the
technology necessary to modernize the Federal employee retirement system,” but:
recommends that OPM reach out to GAO for guidance and support on this
initiative and encourages the establishment of a relationship for the duration of the
project. The Committee expects to be informed regularly by OPM and GAO on⁵¹
the progress of this IT [information technology] project.
Office of Special Counsel (OSC). The agency investigates federal
employee allegations of prohibited personnel practices and, when appropriate,
prosecutes matters before the Merit Systems Protection Board; provides a channel for
whistle blowing by federal employees; and enforces the Hatch Act. In carrying out
the latter activity, the OSC issues both written and oral advisory opinions. The OSC
may require an agency to investigate whistleblower allegations and report to the
Congress and the President as appropriate.

⁴⁹ FY2002 Budget, Analytical Perspectives, p. 353.
⁵⁰ House Report, p. 83.
⁵¹ Senate Report, p. 83.
CRS-34

the amount passed by the House and agreed to by the conference committee. The
President’s FY2002 budget proposed an appropriation of $11,784,000. According
to the budget, “this request will enable OSC to continue its efforts to reduce its long-
standing case processing backlogs.” The agency’s revised FY2002 strategic plan
“place[s] more emphasis on prioritizing cases by category and resource allocation,
while improving quality.”⁵² The request was 6.0% above the FY2001 funding minus
the rescission.
The House committee recommended an appropriation of $11,823,000. The
Senate committee recommended, and the Senate passed, the same amount as the
President requested.
The agency’s FY2001 appropriation was $11,147,000. P.L. 106-554 also
provided for a 0.22% or $25,000 across-the-board cut in the FY2001 funding.⁵³ After
this reduction, the FY2001 funding was $11,122,000.
General Provisions
This section of the report discusses, briefly, general provisions such as
government-wide guidance on basic infrastructure-like policies. Examples would be
provisions related to the Buy America Act, drug-free federal workplaces, and
authorizing agencies to pay GSA bills for space renovation and other services which
are annually incorporated into the Treasury and General Government appropriations
legislation. Quite frequently, additionally, there will be provisions which relate to
specific agencies or programs. For both Title V and VI, with noted exceptions, the
sections discussed here will be those which are new or contain modified policies. The
Administration’s proposed language for general provisions in Title VI is found the
Appendix.⁵⁴ The amendments adopted and rejected during House consideration and
passage of H.R. 2590 July 25 and the Senate amendments considered and adopted
September 19, are presented in the section of the report entitled “Status and
Legislative History.”
Under Title V, P.L. 107-67 includes a new provision (section 515) regarding
prohibiting the use of funds to any person or entity convicted of violating the Buy
American Act.
Title VI contains several new or significantly modified, provisions as agreed to
by the conferees.
Section 619 modifies and continues the provision prohibiting the importation of
any goods manufactured by forced or indentured child labor.

⁵² FY2002 Budget, Appendix, p. 1203.
⁵³ FY2002 Budget, Analytical Perspectives, p. 357.
⁵⁴ FY2002 Budget, Appendix, pp. 9-14.
CRS-35

to provide childcare in federal facilities. (See discussion below.)
Section 634 extends the authorization for franchise fund pilots for one year.
Section 635 clarifies that the Department of the Navy will provide and pay for
utilities for the official residence of the Vice President without reimbursement.
This provision was proposed in the President’s budget. An amendment to strike this
language was defeated during House consideration and debate.
Section 636 authorizes the Secretary of the Navy to accept gifts of consumable
items, or funds for the, to be accepted for use at official functions at the Vice
President’s residence, including the hosting of foreign dignitaries. This provision was
proposed in the President’s budget. A amendment to strike this language was
defeated during House consideration and debate.
Section 637 clarifies that certain Title 5 authorities are available with respect to
civilian personnel of the White House Office, the Executive Residence at the White
House, the Office of the Vice President, the Domestic Policy council, and the Office
of Administration. This provision was proposed in the President’s budget.
Section 638 requires the Office of Personnel Management to submit a report
regarding telecommuting centers.
Section 639 continues and modifies a provision prohibiting the use of funds to
monitor personal information relating to the use of Federal internet sites. Applies
provision government-wide.
Section 640 amends Title 5 to clarify retirement benefits for air traffic
controllers.
Section 641 amends 5 U.S.C. 4507 to make federal employees in senior technical
positions eligible for Presidential rand awards.
Section 642 extends authority for the FEC to assess administrative fines for
straightforward violations of reporting deadlines from December 31, 2001 to
December 31, 2003.
Section 643, while continuing the contraceptive coverage in health plans
participating in the Federal Employees Health Benefits Program (see discussion under
federal personnel issues below), deletes the name of a provider no longer participating
in the program. The requirement (section 630, FY2001), first enacted in FY1999, has
been highly controversial. The Bush administration recommended eliminating the
requirement.
Section 644 clarifies that the U.S. Anti-Doping Agency is the official anti-doping
agency for the Olympic games.
Section 645 clarifies the status of certain employees of the United States-China
Security Review Commission.

CRS-36

employees. The rule (H. Res. 206) on the bill provided for approval of an amendment
which would provide $27.9 million for partial costs associated with pay parity for
civilian employees.
Section 647 directs departments and agencies to comply with the Rural
Development Act of 1972.
Section 648 extends the deadline for the submission of annual reports by the
United States-China Security Review Commission, as proposed by the Senate.
Section 649 allows the National Archives to establish SES positions at
Presidential Libraries.
Section 650 extends authorization of the “Breast Cancer Research Stamp.”
Section 651 relates to the shipment by the U.S. Postal Service of day-old
poultry.
Section 652 authorizes the “9/11 Heroes Stamp” as a semipostal.
Section 653 authorizes the “Stamp Out Domestic Violence” stamp.
Administration General Provision Proposals.
The Bush Administration recommended elimination of the provision (section
609, FY2001) which prohibits payment to political appointees functioning in jobs for
which they have been nominated, but not confirmed. This provision has been in the
bill for at least twenty years. The previous administration also recommended its
elimination. The House adopted an amendment which would reinstate that language.
The Bush Administration also recommended elimination of the provision (section
612, FY2001) which prohibits use of funds to “implement, administer, or enforce any
regulation” which has been disapproved through statutorily authorized means. If the
provision were eliminated, conceivably the executive could continue regulatory
activities which Congress had disapproved, through resolution of disapproval or the
Congressional Review Act. The provision, in the bill since the early 1980s, had been
recommended for elimination by the previous administration also. The provision
appears as section 612 P.L. 107-67.
Another section (section 621, FY2001) recommended for elimination by both the
Bush and Clinton administrations, is that which requires that no funds may be
obligated or expended for employee training that does not directly relate to the
employee’s official duties, that contains elements likely to induce high levels of
emotional response or psychological stress in some participants, that does not notify
employees of content in the course or post-course evaluation, that contains any
methods or content “associated with religious or quasi-religious belief systems or
‘new age’ belief systems,” and that is offensive to, or designed to change,
participants’ personal values or lifestyles away from the workplace. The language
affirms the agencies’ responsibilities to train staff for the performance of official

CRS-37

as section 621 in the act.
Section 622 (FY2001) prohibits the use of funds to require and execute
employee non-disclosure agreements without those agreements having whistle-blower
protection clauses. The Bush proposal would eliminate that provision, which has
been in the bill for over ten years. The provision appears as section 622 in the act.
Section 627 (FY2001) requires approval by the Committees on Appropriations
of release of any “non-public” information such as mailing or telephone lists to any
person or any organization outside the federal government. That provision would be
eliminated under the President’s proposal. It appears as section 625 in the act.
Federal employees in executive agencies are required (section 629, FY2001) to
“use official time in an honest effort to perform official duties.” That requirement, in
the bill since FY1999, has been slated for elimination by both the Bush and Clinton
budget proposals. The argument has been that the ethics statutes, in fact, place that
same requirement on all federal personnel. The provision appears as section 627 in
the act.
There were four new sections proposed in the President’s budget:
!to extend to October 1, 2002 the franchise fund pilot programs established
under the Federal Financial Management Act of 1994 (P.L. 103-356) ( budget
proposal section 628; P.L. 107-67, section 634 );
!to amend P.L. 93-346 to require that the Secretary of the Navy provide for
utilities, including electrical, at the official residence of the Vice President
(budget proposal section 629; section 635 in the act; an amendment on the
House floor to strike this language was rejected);
!to amend P.L. 93-346 to authorize and direct the Secretary of the Navy to
accept donations of money or property or use at official functions in or about
the official residence of the Vice President (budget proposal section 630; H.R.
2590, section 636 in the act; an amendment on the House floor to strike this
language was rejected); and
!to provide that the heads of the White House Office, the Executive Residence
at the White House , the Office of the Vice President, the Domestic Policy
Staff, and the Office of Administration would have full employment authority
over all federal personnel (from any branch) detailed to any of their respective
entities (budget proposal section 631; section 637 in the act).
See the section on federal child care policies below for a discussion of changes
proposed to those policies (section 633, FY2001, budget proposal and P.L. 107-67
section 624).
There are several general provisions which the Bush budget would eliminate
because they were made permanent through the FY2001 legislation. See “Status and
Legislative History” above for information on House floor amendments which were
adopted.

CRS-38

Terrorism
According to the Office of Management and Budget, several accounts under this
appropriation (Department of the Treasury, Bureau of Alcohol, Tobacco, and
Firearms, U.S. Customs Service, U.S. Secret Service, and the General Services
Administration) receive funding for functions related to countering terrorism. With
the exception of the Counterterrorism fund account within the Department of the
Treasury, none of the agencies carry a line account specifically funding
counterterrorism, or terrorism responses. Certain accounts have been allocated funds
from the Emergency Response Fund established through P.L. 107-38. Also, under
the provisions of P.L. 107-38, a further supplemental appropriation is authorized.
The Administration submitted specifics for the allocation of funds under such an
emergency supplemental and P.L. 107-117 appropriated funds. There has been
established, within the Executive Office of the President and Office of Homeland
Security.
The role of the Department of the Treasury relates to both its statutory missions
and the capabilities of its law enforcement groups. Although the Federal Bureau of
Investigation is the lead agency for several functions, the Customs Service has the
lead in preventing terrorist from entering the United States, the Secret Service is
responsible for protection of officials and facilities and has the lead in providing
security plans to prevent terrorist incidents at National Special Security Events, such
as the 2002 Olympics; and the Bureau of Alcohol, Tobacco and Firearms is the lead
on firearms and explosives. The Department itself has a general responsibility for the
support and security of the nation’s financial structure.
The General Services Administration has the responsibility for the management
and oversight of federal buildings and federal real property. Under the Government
Information Security Reform Act of 2000, (P.L. 106-398) the GSA is directed to
assist agencies in fulling their responsibility to maintain procedures for detecting,
reporting, and responding to security incidents. In this latter regard, GSA operates
the Federal Computer Incident Response Center (FedCIRC), whose purpose it is to
ensure that the government has a central focal point for handling computer security
related incidents, can withstand or quickly recover from attaches against its
information systems, and has a centralized computer security information-sharing
program.
Counterterrorism Activity Funding — OMB Annual Report
The Office of Management and Budget is required to submit an Annual Report
on Combating Terrorism. The most recent of these was issued in August 2001
[http://www.whitehouse.gov/omb/legislative] and provides some details on the
funding for these agencies.
That report notes that the FY2002 Budget request suggested modifications to
the Treasury Counterterrorism Fund
In order to provide greater flexibility in managing counterterrorism programs, in
which the needs for funding are often temporary and unforeseen, the

CRS-39

fund that has been established at the Department of Justice. As proposed, the
Treasury Counter-terrorism Fund would still be used only for the costs of
providing support to counter, investigate, or prosecute terrorism, including rewards
in connection with these activities. Although expenditures would not have to be
designated emergency requirements, any amount provided from the Fund would
be available only after notice of its proposed use had been transmitted to the
Congress and such amount had been apportioned pursuant to 31 U.S.C. 1513(b).
This would ensure adequate Congressional oversight of Fund expenditures, while
permitting its use in all appropriate circumstances. (page 83)
Please note that Table 2 does not include a specific line amount for the fund.
Although no explanation is provided, it is assumed, since the funding amounts
correspond to those for the Fund, that the figures under the Departmental Offices are
those for the Fund. The House Committee on Appropriations data provided for
tracking the accounts shows that the FY2001 enacted $54.9 million, the President’s
request was $44.9 million, the House- passed version would fund the account at $36.9
million, and the Senate version, as reported, is $44.9 million (see Table 7 below).The
Senate report indicates a recognition of the varied responsibilities held by the Treasury
bureaus and indicates the expectation that these funds would be used to reimburse
them for activities including travel, transportation, and other support services.⁵⁵
Table 2 provides funding information drawn from the tables at the end of the
OMB report (pages 92, 98-100). Please note that OMB does not indicate whether
these are budget authority figures or outlays.
Table 2. Department of the Treasury and General Services
Administration Funding to Combat Terrorism Including Defense
Against Weapons of Mass Destruction
(in millions of dollars)
Agency or AccountFY2001FY2002
EnactedRequest
Department of the Treasury$432.3$419.4
Alcohol, Tobacco, and Firearms31.531.7
Departmental Offices54.944.9
Engraving and Printing6.06.0
Federal Law Enforcement Center3.43.4
Financial Management Service3.12.4
Internal Revenue Service18.621.2
Treasury IG for Tax Administration5.86.0
U.S. Customs Service81.471.7
U.S. Secret Service227.7232.2
General Services Administration
Public Buildings Service, Federal Protective Service105.9105.6

⁵⁵ Senate report, p. 13.
CRS-40

Subsequent to the September 11, 2001 attacks, Congress enacted P.L. 107-38,
the Emergency Supplemental Appropriations Act for Recovery from and Response
to Terrorist Attacks on the United States, FY2001.⁵⁶ The Emergency Response Fund
has been established and the President may allocate funds (up to a total of $20 billion)
as necessary to support the recovery, response, and national security activities as
dictated by circumstances related to the attacks. Congress has been notified of six
allocations affecting accounts covered by the Treasury and General Government
Appropriations. The funds in five (September 21 and 28, October 5, November 8 and
30) were made available immediately. The other allocation was forwarded to
Congress November 5, with funds to be made available to the Department of the
Treasury immediately and to the U.S. Postal Service after a 15-day congressional
review period.⁵⁷ P.L. 107-38 also authorized the emergency supplemental enactment
of an additional $20 billion. The Administration sent forward its recommended
allocations under that measure. Congress made some changes and included the
supplemental appropriation as Division B of the FY2002 Department of Defense
Appropriation.
To date, the allocations for accounts within the Treasury and General
Government appropriation total $370.9 million. The two largest single allocations to
accounts usually funded by this appropriation are $51 million to the President’s
Unanticipated Needs fund and $175 million to the Postal Service. Table 3 presents
information on allocations to those accounts. Details on purposes are provided as
available. P.L. 107-117 funds the covered accounts for a total of $1,283.4 million.
See Table 4 for details.
Emergency Supplemental Authorized Under P.L. 107-38
In addition to the $20 billion in the Emergency Response Fund, P.L. 107-38, the
Emergency Supplemental Appropriations Act for Recovery from and Response to
Terrorist Attacks on the United States, FY2001, authorizes an emergency
supplemental of up to $20 billion, for the purposes of response and recovery. P.L.
107-117 appropriates a total of $1,283.4 million for the accounts covered by the
Treasury and General Government appropriation.⁵⁸ The allocations are not identical
to those described as sent from the Administration. See Table 4 for details.
On October 16, the Administration detailed to Congress how those funds should
be allocated. Several accounts within the Treasury and General Government

⁵⁶ P.L. 107-38; Sept. 18, 2001; (H.R. 2888, 107^t^h Congress). See Terrorism Funding:
Congressional Debate on Emergency Supplemental Allocations, a CRS Report (RL31187).
⁵⁷ The texts of the allocation communications from the Administration to Congress can be
found at [http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html]. Estimates No. 15, 17,
18, 20, 21, 22, and 23 contain information on all such allocations for all appropriated funds
government wide.
⁵⁸ P.L. 107-117 (H.R. 3338); Jan. 10, 2002; 115 Stat. 2230.
CRS-41

Administration:
The $315.2 million in funding proposed for the Treasury Department would
provide: $114.2 million for the customs Service to improve and expand airport and
aviation security as well as increase efforts of inspectors at high-risk seaports and
land borders; $104.8 million for the Secret Service to fund necessary, additional
expenses incurred due to the attacks, and $96.2 million for other Treasury
Department emergency expenses, including $37.2 million for the Internal Revenue
Service to replace damaged equipment in their New York offices.
This proposal would provide $50.0 million to enable the Executive Office of^t^h
the President to meet additional requirements in response to the September 11
terrorist attacks and to ensure the continuity of support and services to the
president and Vice President of the United States.
A total of $200.5 million is requested for the Federal Buildings Fund [GSA]
to increase security services nationwide at Federal buildings, for replacement space
costs in New York City, for additional security equipment nationwide, and other
security costs.
In addition, $7 million would be allocated to the National Archives and Records
Administration. The total Administration allocations would have been $512.7 million
for these accounts.
On December 20, 2001, Congress cleared H.R. 3338 (Department of Defense
Appropriations, 2002) for the President’s approval. Division B of P.L. 107-117,
signed January 10, 2002 is the Emergency Supplemental Appropriation and provides
$1,283.4 million for accounts under discussion in this report.
Office of Homeland Security
During his September 20, 2001 speech before a joint session of Congress on the
September 11, 2001 terrorist attacks on America, President George W. Bush
announced that he was creating the Office of Homeland Security as a Cabinet-level
position reporting directly to him.⁶⁰ The President also announced that Pennsylvania
Governor Tom Ridge would head the office. President Bush issued Executive Order

13228 on Monday, October 8, 2001 establishing within the Executive Office of the

⁵⁹ Communication from the Office of Management and Budget, with a cover letter from
President George Bush to the Speaker of the House of Representatives, dated Oct. 16, 2001
(Estimate No. 19), as required under P.L. 107-38
[http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html].
⁶⁰ U.S. President (George W. Bush), Weekly Compilation of Presidential Documents, vol.
37, Sept. 24, 2001, p. 1349. See also: U.S. Library of Congress, Congressional Research
Service, Homeland Security: the Presidential Coordination Office, CRS Report No.
RL31148, by Harold C. Relyea.
CRS-42

and coordinate the implementation of a comprehensive national strategy to secure the
United States from terrorist threats or attacks. On October 5, $25,000,000 was
allocated from the Emergency Response Fund for the Office of Homeland Security.
Tom Ridge, who resigned as Governor of Pennsylvania on October 5, 2001 ,
was sworn in on October 8 and will serve as Assistant to the President for Homeland
Security. The New York Times reported that Mr. Ridge moved into a West Wing
office, will have a staff of 100, and "was given a $25 million start-up budget." Mr.
Ridge will also serve as a member of the Homeland Security Council, also established
by President Bush by Executive Order 13228 on October 8.
The press has provided considerable discussion of the office, its funding, and its
operation prior to the executive order. Government Executive quoted White House
spokesman Ari Fleischer as saying that the President would establish the office by⁶²
executive order and that Mr. Ridge would serve as an assistant to the President. At
a press briefing on September 21, 2001, Mr. Fleischer stated that questions of funding
and staff for the office are still being considered; a combination of new staff and
loaned staff from the Department of Justice and other departments could be used.⁶³
The Washington Post reported that Mr. Ridge “will have his own budget and
‘significant’ staff” and will “recommend the parameters.”⁶⁴ According to
Congressional Quarterly, Senators Bob Graham, Chairman of the Senate Select
Committee on Intelligence, Joseph Lieberman, Chairman of the Senate Committee on
Governmental Affairs, and Dan Burton, Chairman of the House Committee on
Government Reform and Oversight want the new office to be established by⁶⁵
legislation and given budget authority. Although Mr. Ridge did not officially resign
the governorship until October 5, 2001, the Harrisburg, PA. Patriot-News reported
that “much of the next two weeks will be spent in close contact with administration,
law enforcement and intelligence officials to begin organizing and staffing the new
office.” The newspaper quoted a White House official as saying that “the
administration is working with Congress on legislation to provide independent budget⁶⁶

authority.”
⁶¹ Executive Order 13228, signed Oct. 8, 2001; 66 FR 51812, Oct. 10, 2001
⁶² Tom Shoop, “Bush Creates Homeland Defense Agency,” Government Executive, Sept. 20,

2001.

⁶³ White House Press Briefing, Sept. 21, 2001.
⁶⁴ Ellen Nakashima and Bradley Graham, “Direct Authority Called Key in Homeland
Agency,” Washington Post, Sept. 22, 2001, p. A07.
⁶⁵ Alan K. Ota, “Hill Chairmen Demand Role in Oversight of Ridge’s Office,” CQ Monitor
News, Sept. 21, 2001.
⁶⁶ Brett Lieberman, “Ridge to Oversee Federal Agencies’ Terrorism Response,” The Patriot-
News, Sept. 22, 2001. Available on the Internet at [http://www.patriot-news.com/], visited
Sept. 24, 2001.
CRS-43

Table 3. Emergency Response Fund Allocations ⁶⁷
Emergency Response Fund Allocations
Account Allocation Date Purpose
Support the immediate response and recovery needs of the
approximately 1,000 Treasury employees who were located
in or near the World Trade Center complex, most of whose$6,100,0009/21/01
offices were destroyed. These funds will also be used to
establish a Foreign Terrorist Assets Tracking Center, as well$9,400,00011/8/01
as fund Customs Service air support for counterterrorism$60,0009/21/01
activities. [This general statement was presented as including
IRS as well.]
ⁱ^{ki/CRS-RL31002} The November 8 allocation provides the necessary
^g/wresources for staff facilities, equipment, and other support
^s^.orfor the Air Transportation Stabilization Board, recently$110,0009/21/01
^le^akcreated, in anticipation of appropriations passage for that
^://wikipurpose. N.B. That funding was not included in the
^h^ttpsubsequent supplemental appropriation.$1,530,0009/21/01

⁶⁷ Unless otherwise noted, the information on the table is in communications from the Office of Management and Budget, with a cover
letter from President George Bush to the Speaker of the House of Representatives, dated Sept. 21, 2001 (Estimate No. 15) and Sept.

28, 2001 (Estimate No. 17), dated Oct. 5, 2001 (Estimate No. 18), Nov. 5, 2001 (Estimate No. 21), Nov. 8, 2001 (Estimate No. 22),

and Nov. 30, 2001 ( Estimate No. 23), as required under P.L. 107-38 [http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html].
CRS-44

Emergency Response Fund Allocations
Account Allocation Date Purpose
The November 5 allocation for the Customs Service is to
support 100 State-activated National Guard troops for three
months to enhance security and expedite U.S. Customs$21,000,0009/21/01
Service checks at U.S.-Canadian ports of entry.$2,337,00011/5/01
$14,700,000 9/21/01
⁶⁸
$1,920,0009/21/01Response funding: security, grief counseling, overtime,
travel, mail and telephone operations
ⁱ^{ki/CRS-RL31002}
^g/w$2,170,0009/21/01Response and Recovery funding: security expenses,
^s^.orinvestigative, replacement of destroyed office equipment,
^le^akautomobiles, overtime, travel, and per diem.
^://wiki$450,0009/21/01Response and Recovery funding: overtime, reimbursement
^h^ttpfor police protection, wiring of temporary locations, replace
destroyed data infrastructure and equipment, installation
hardware.
$36,714,00011/30/01Includes resources for increased overtime and travel for
Secret Service officers and agents.

⁶⁸ IRS document provided to CRS by IRS Office of Legislative Affairs, Oct. 4, 2001, details the purpose of the funds.
CRS-45

Emergency Response Fund Allocations
Account Allocation Date Purpose
$175,000,00011/05/01These resources include: $100 million for an initial purchase
of irradiation equipment to sanitize the mail; and $75 million
for the costs of personnel protection equipment (e.g., gloves,
masks, barrier creams), first response/environment testing
kits and services, site clean-up and medical goods and
services, and public education materials.
ⁱ^{ki/CRS-RL31002}$500,0009/21/01Install protective window film for Executive Office of the
^g/w President
^s^.or
^le^ak$6,688,0009/28/01Relocation of Eisenhower Executive Office Building
^://wikipersonnel and other security needs
^h^ttp$25,537,00010/5/01To support the establishment of the Office of Homeland
Security and for other security-related purposes. According
to staff at the Office of Management and Budget, $25 million
will go to the Office of Homeland Security and $537,000
will go to the Office of the U.S. Trade Representative.

CRS-46

Emergency Response Fund Allocations
Account Allocation Date Purpose
$2,300,0009/28/01For use of New York High Intensity Drug Trafficking Areas
task forces to replace destroyed equipment in order to
ensure continued operations.
$4,800,00010/5/01To support the establishment of a NSC Directorate to
Combat Terrorism.
$51,000,00010/5/01No explanation except to provide for “other urgent security-
ⁱ^{ki/CRS-RL31002}related activities.”
^g/w
^s^.or
^le^ak$8,600,0009/21/01Support increased security coverage of federal buildings;
purchase security equipment; structural studies of seven
^://wikifederal locations affected by the New York City disaster;
^h^ttpovertime and travel costs for law enforcement personnel; and
other security costs.
$370,916,000

CRS-47

Table 4. Emergency Supplemental Allocation Request and Enactment
Emergency Supplemental Allocation Request and Enactment
Account Amount Purpose
RequestEnacted
$9,400,000$0To cover administrative expenses related to the Air Transportation
Stabilization Board. The Departmental Offices bureau is responsible for
providing staff, supplies, facilities, and equipment for the Board to
ⁱ^{ki/CRS-RL31002}administer the guaranteed loan program for the airline industry
^g/w$2,032,000$2,032,000To enable the Treasury IG for Tax Administration to replace equipment
^s^.orand offices destroyed by the terrorist attack in New York.
^le^ak
^://wiki$1,700,000$1,700,000To hire additional financial intelligence support staff and expand itsSecure Compartmentalized Intelligence Facility in response to the
^h^ttpSeptember 11^th terrorist attacks. The additional staff will assist the
financial crimes/money laundering component of the investigation into
the World Trade Center and Pentagon attacks.

CRS-48

Emergency Supplemental Allocation Request and Enactment
Account Amount Purpose
RequestEnacted
$13,846,000$23,000,000To enable FLETC to provide basic and advanced training to the law
enforcement community in response to the terrorist attacks. FLETC
anticipates training additional Federal Aviation Administration Sky
Marshals, Immigration and Naturalization Service agents, Border Patrol
inspectors, and other law enforcement personnel.
The conference report stipulates that $9,154,000 is provided for training
costs associated with new hiring by law enforcement agencies.
$0$8,500,000Expedite acquisition of architectural and engineering services for the
construction of facilities at Cheltenham, Maryland, training facility.
ⁱ^{ki/CRS-RL31002}
^g/w
^s^.or
^le^ak
$600,000$0To enable FMS to conduct vulnerability assessments, develop and
^://wikimaintain Emergency Management, Disaster recovery and Contingency
^h^ttpPlans, and conduct security tests and exercises at all FMS facilities.
$31,431,000$31,431,000For overtime and travel for ATF agents; the replacement of vehicles,
radios, computers, technical equipment and other investigative equipment
lost at World Trade Center offices; additional personnel for terrorism
investigations; and enhancement of ATF’s explosives detection canine
program.
Enacted designates $5,200,000 which may be used for necessary
expenses of site acquisition, construction, operations, maintenance and
repair of the special purpose canine training facilities in Front Royal,
Virginia.

CRS-49

Emergency Supplemental Allocation Request and Enactment
Account Amount Purpose
RequestEnacted
$107,500,00$392,603,000To improve and expand airport and aviation security as well as increase
0efforts of inspectors at high-risk seaports and land borders. Funding is
also included for the cost of equipment replacement that was destroyed in
the attack.
Availability of $245,505,000 is pending submission of a financial plan
“based upon a comprehensive assessment of the most effective uses of
the Service’s resources...for protection along the Northern Border ,
Southwest Border, and at critical seaports.” Not less than $10,000,000
is designated for the Southwest Border; $18,300,000 for a commercial
backup data facility; and $21,300,000 to support overseas initiatives to
ⁱ^{ki/CRS-RL31002}counter money laundering such as that used to finance terrorist or
^g/wcriminal activity.
^s^.or
^le^ak$6,700,000$6,700,000To support increased air security necessary since September 11, 2001.
^://wikiProcurement, Air and Marine
^h^ttpInterdiction Programs
$16,658,000$12,990,000To enable IRS to replace equipment and offices destroyed in New York
City. It will also fund customer service to help taxpayers impacted by the
Managementattack, and enhance security at critical IRS facilities.
$4,544,000$4,544,000To enable IRS to replace equipment and offices destroyed and to increase
its participation in investigative activities to combat terrorism
$15,991,000$15,991,000To enable IRS to replace equipment destroyed and to ensure the
continued protection of the nation’s taxpayer data.

CRS-50

Emergency Supplemental Allocation Request and Enactment
Account Amount Purpose
RequestEnacted
$104,769,00$104,769,000For overtime and travel for Secret Service agents; the replacement of
0vehicles, radios, computers, technical equipment, and protective
equipment lost at World Trade Center offices; additional personnel;
technical equipment and training for terrorism detection, investigations,
and preparedness; and additional security measures for the White House.
$0$500,000,000To enable the Postal Service to protected postal employees and postal
customers from exposure to biohazardous materials, to sanitize and
ⁱ^{ki/CRS-RL31002}screen the mail, and to replace or repair Postal Service facilities
^g/wdestroyed or damaged in New York City as a result of the September
^s^.or11,2001 terrorist attacks. No funds may be used to sanitize mail until
^le^akUSPS submits to Congress an emergency preparedness plan to combat
the threat of biological and chemical substances in the mail.
^://wiki
^h^ttp
$50,040,000$50,040,000To enable the Executive Office of the President to meet additional
requirements in response to the September 11 terrorists attacks and to
ensure the continuity of support and services to the President and Vice
President of the United States.
Note: The text of H. Rept. 107-350 in the Congressional Record shows
$126,512,000 being appropriated. However, the explanatory remarks
show $50,040,000. Since $126,512,000 is the amount for the next
account, it is assumed that was a typographical error.

CRS-51

Emergency Supplemental Allocation Request and Enactment
Account Amount Purpose
RequestEnacted
$200,500,00$126,512,000To increase security services nationwide at federal buildings, for
0replacement space costs in New York City, for additional security
equipment nationwide, and other security costs.
$4,818,000$1,600,000For additional guard services at NARA-owned facilities.
$2,180,000$1,000,000For building security upgrades at NARA-owned facilities, including
ⁱ^{ki/CRS-RL31002}entrance barriers, magnetometers, and security cameras.
^g/w
^s^.or $572,709,00 $1,283,412,00
^le^ak 0 0
^://wiki
^h^ttp
U.S. Office of Management and Budget, Estimate #19--Emergency Supplemental (Emergency Supplemental Appropriations Act for Recovery
from and Response to Terrorist Attacks on the United States, FY 2001)--10/17/01. [http://w3.access.gpo.gov/usbudget/fy2002/amndsup.html], visited
Jan. 2, 2002.
“Conference Report on H.R. 3338, Department of Defense Appropriations Act, 2002,” Congressional Record, daily edition, vol. 147, Dec. 19,

2001, H. Rept. 107-350. See “Division B—Transfers from the Emergency Response Fund Pursuant to Public Law 107-38" pp H10503, at H10530-

10532 (for provisions) and H10816-H10817 (for explanatory language). As of Jan. 2, 2002, the legislation was pending presidential approval.

CRS-52

Federal Personnel Issues
Pay
General. Under the Federal Pay Comparability Act of 1990 (FEPCA), federal
white collar employees, paid under the General Schedule and related salary systems,
are to receive annual adjustments based on two separate mechanisms. The first is the
adjustment to base pay which is based on changes in private sector salaries as
reflected in the Employment Cost Index (ECI). The rate of pay adjustment is
supposed to be the percentage rate of change in that element of the ECI, minus .5.
For January 2002, the base pay adjustment is 3.6%.
The President’s budget proposes a federal civilian pay increase of 3.6% in⁷⁰
January 2002. However, the proposal does not indicate how the pay increase would
be split between basic pay and locality-based payments for the General Schedule and
related pay systems. The FY2002 budget resolution (H.Con.Res. 83) as agreed to in
the House March 28, 2001 and in the Senate April 6, 2001, expresses the sense of the
Congress that there should be parity between military and civilian pay adjustments.
President Bush recommended a 4.6% increase in military pay. The President did not
submit an alternative plan by the end of August, which would indicate that the
national General Schedule pay adjustment will be at the mandated ECI level of 3.6%.
The deadline for an alternative plan related to locality based payments was the end of
November.
P.L. 107-67 provides for a General Schedule increase of 4.6%. On July 17, the
House Committee adopted an amendment which would bring the FY2002 civilian pay
raise to $4.6%. On July 25, the House, in adopting the rule (H.Res. 206) and
subsequently passing H.R. 2590, provided $27.9 million for partial costs associated
with the 4.6% increase. S. 1398, as introduced, would fund the pay increase at 4.6%.
(See also, CRS Report RL30744, Federal Pay: FY2002 Salary Adjustment, and CRS
Report 94-971, Pay and Retirement Benefits for Federal Employees: Increases Since

1969).

Executive Order 13249, signed December 28, 2001, sets out the pay schedules.
It establishes an average 4.6% pay increase for the General Schedule. All employees
receive the 3.6% base pay adjustment. The locality-based comparability payments
bring the net increases up by about 1% on average. The net adjustments range from
4.52% to 5.42%, with the Washington, D. C. area General Schedule employees
receiving a 4.77% increase.
Federal Wage System. The Federal Wage System (FWS) is designed to
compensate the federal blue collar, or skilled labor, force at rates prevailing in local
wage areas for like occupations. If the statutory system were allowed to be managed
as planned, the wage rates and the rates of adjustment in the over 130 wage areas
would vary, according to the labor costs and compensation in the private sector. For
the last several years, Congress has limited the rates of adjustment, based on the rates

⁷⁰ FY2002 Budget, Analytical Perspectives, p. 139.
CRS-53

that, in certain high costs areas, some FWS wages would exceed the salaries paid to
General Schedule supervisors. Wages in lower cost areas will be allowed to increase
according to the findings of the wage surveys but the high cost area wages will be
capped.
The House committee, expressing concern about the adequacy of the wage
surveys utilized in determining the cost of labor for Bureau of Prisons wage grade
positions, would require a review and report by OPM within 90 days of enactment.
OPM is also required to report on a proposal to realign a wage area in California.
P.L. 107-67 limits the wage grade adjustments to those received by the General
Schedule. P.L. 107-117 extends the Monroney Amendment out-of-area survey
application to Department of Defense personnel.
Members of Congress, Judges, and Other Officials. Under the Ethics
Reform Act of 1989, as amended, pay adjustments for federal officials, including
Members of Congress and judges, are also based on ECI calculations, but for a
different 12-month period. The ECI calculations dictate a pay adjustment in January
2002 of 3.4%. However, the statute limits those adjustments to the rate of adjustment
for base pay of the General Schedule. Therefore, hypothetically, if General Schedule
base pay were adjusted at the rate of 3.3% or below, that would have been the
maximum rate of adjustment in salaries of federal officials for January 2002.
Unlike that for Members of Congress and executive branch officials, the annual
pay increase must be specifically authorized for judges. The authorization for the
January 2001 pay increase is in the Commerce, State, Justice and Judiciary
appropriation (P.L. 107-77, section 305). At no time, since the authorization was
required, have the judges received lower adjustments than the other officials.
Because the mechanism described above is automatic, there is no bill language
necessary to establish the pay adjustment for January 2002. During debate on the
Treasury bill rule and provisions there was very brief discussion about whether the bill
would allow an increase in pay for Members. The act (P.L. 107-67) is silent with
regard to Member pay. (See also, CRS Report RS20278, Judicial Salaries: Current
Situation; CRS Report 98-53, Salaries of Federal Officials; CRS Report RL30014,
Salaries of Members of Congress: Current Procedures and Recent Adjustments, CRS
Report 97-1011, Salaries of Members of Congress: Payable Rates and Effective
Dates, 1789-2001; and CRS Report RS20388, Salary Linkage: Members of
Congress and Other Federal Officials.)
President. Pursuant to the Treasury and General Government Appropriations
Act, 2000 (P.L. 106-58), effective noon, January 21, 2001, the President receives a
salary of $400,000 per annum. Since 1969, Presidents had been paid a salary of
$200,000. No further action on presidential pay is expected. Former Presidents
receive a pension equal to the rate of pay for Cabinet Secretaries (currently $161,200)
and the pension is adjusted automatically as those pay rates are changed. (See also,

⁷¹ H.R. 2590 conference agreement section 613, Conference Report, p. 71.
CRS-54

Officials.)
Federal Employees Health Benefits Program
The Federal Employees Health Benefits Program (FEHBP) is a program
through which the Office Personnel Management contracts with health insurance
carriers for group health coverage for federal civilian employees and retirees. It is a
contributory program and the employees may choose from a selection of plans. A
requirement that FEHBP cover prescription contraceptives was first included in the
FY1999 appropriations legislation.
The budget proposes elimination of this requirement. The House Committee on
Appropriations voted to retain the coverage provision. Below are data on
contraceptive coverage in plans participating in the Federal Employees’ Health
Benefits Program (FEHBP). The Office of Personnel Management (OPM), which
manages the FEHBP, compiled the data from 1998 plan benefit brochures.
Snearly 500 plans are listed as having contracts with OPM to provide health
insurance or comprehensive care (primarily Health Maintenance Organizations)
for federal employees and annuitants in 1998. Of these plans, 7 are fee-for-
service plans open to any federal employee or annuitant world wide; 7 are fee-for
service plans available to employees of certain agencies only (such as rural letter
carriers or the foreign service). However, as a practical matter, most federal
workers and annuitants have a choice of about 10 plans, depending on where
they live. These 10 plans would include the 7 fee-for-service plans open to all
FEHBP participants and 2 or 3 HMOs operating in a given geographic area.
SThere are 4.1 million employee and retiree FEHBP policy holders (many of
whom have family members included on their policy).
SThe 7 government-wide fee-for-service plans have an “X” next to them in the
left margin. To the right of those plan names is the number of enrolled policy-
holders.
SThe “CS” heading for the rightmost column means Catholic Sponsored.
SThe check mark in the right margin means the plan offers no prescription
contraceptive coverage, although it may offer family planning and sterilization.
The checks with a slash are the CS plans.
SNationwide, sterilization is the most popular means of birth control among
mature women who have completed their families.
(See also, CRS Report RL30336, The Federal Employees Health Benefits Program,
and CRS Report RS20818, Federal Employees Health Benefits Program: Brief
Facts.)

CRS-55

The Senate passed its amended version of H.R. 2590 on September 19, 2001,
which included the same federal child care provisions included in the committee-
reported bill S.1398 (with accompanying S.Rept. 107-57). The bill recommends that
the pilot project permitting Executive agencies (with the exception of the General
Accounting Office) to use their appropriated funds to help subsidize child care
expenses for their lower paid employees be made permanent. These provisions,
included in section 631 of the bill, mirror those included in section 629 of House bill
H.R. 2590, passed by the House on July 25, 2001, as well as those in the President's
budget request). The conference report (H. Rept. 107-253) filed on October 26, 2001
adopted this same language.
The provisions in this year’s act are identical, with one addition, to the language
found in section 633 of H.R. 5658, as enacted through P.L. 106-554. The provisions
authorize use of appropriated funds (salaries and expenses accounts) to provide child
care in a federally owned or leased facility, either directly or through contract, for
civilian employees of the agency. The funds used are to be applied so as to improve
affordability of the service for lower income personnel. The Committees on
Appropriations are to be notified before implementation.
P.L. 107-67 (as would have both the House and Senate versions and the budget
request) adds language which would authorizing payment to licensed or regulated
child care providers "in advance of services rendered, covering agreed upon periods,
as appropriate." (See also, Child Care Issues in the 107th Congress, CRS Report
RL30944.)
Federal Retirement
The funding in the OPM accounts reflects the government’s contribution to the
Federal Employees’ Retirement System and the Civil Service Retirement System.
Both systems require contributions by employees. In addition, there is a Thrift
Savings Plan (TSP) created by the Federal Employees’ Retirement System Act of

1986 (P.L. 99-335) as a retirement savings plan for civilian federal employees.

Under the terms of FERS Act, employees covered by the Federal Employees’
Retirement System are permitted to contribute to the TSP the lesser of 10% of pay
or the maximum deferral permissible under section 402(g) of the Internal Revenue
Code ($10,500 in 2001). Employees covered by the Civil Service Retirement System
are permitted to contribute the lesser of 5% of pay or the maximum deferral
permissible under IRC § 402(g). As amended by P.L. 106-554, the maximum
allowable employee contribution to the TSP will increase by 1 percentage point each
year for five years. The percentage-of-pay limitations on contributions to the TSP
will then be eliminated. However, employee contributions to the TSP will remain
subject to the limits applicable under IRC § 402(g). Beginning with the open season
that starts May 15, 2001, employees covered by FERS will be allowed to contribute
up to 11% of pay to the TSP, and those under CSRS will be allowed to contribute up
to 6% of pay to the TSP. These maximum permissible contributions will rise by 1
percentage point each year until they reach 15% for FERS and 10% for CSRS in

CRS-56

be abolished, and employees will be subject only to the contribution limits then
prevailing under IRC § 402(g). (See also, CRS Report RL30023, Federal Employee
Retirement Programs: Budget and Trust Fund Issues.)
Privacy Provisions
P.L. 107-67 retains (section 639) provisions from the House-passed version of
the bill (section 638) continuing, in modified and expanded form, a limitation on
federal agency monitoring of personal information on use of the Internet. The initial
version of the prohibition appeared in the Transportation appropriations bill (section

501) funding some Treasury appropriations accounts for FY2001 (P.L. 106-346).

Some confusion existed concerning the section’s application to all executive agencies
or only those funded by the Treasury appropriations bill. The new language approved
by the conferees eliminates this confusion, saying, none of the funds “made available
in this or any other Act may be used by any Federal agency” for the following
purposes:
(1) to collect, review, or create any aggregate list, derived from any means,
that includes the collection of any personally identifiable information relating to
an individual’s access to or use of any Federal Government Internet site of the
agency; or
(2) to enter into any agreement with a third party (including another
government agency) to collect, review, or obtain any aggregate list, derived from
any means, that includes the collection of any personally identifiable information
relating to an individual’s access to or use of any nongovernmental Internet site.
Specified exceptions to these limitations include:
(1) any record of aggregate data that does not identify particular persons;
(2) any voluntary submission of personally identifiable information;
(3) any action taken for law enforcement, regulatory, or supervisory
purposes, in accordance with applicable law; or
(4) any action described in subsection ... (1) that is a system security action taken
by the operator of an Internet site and is necessarily incident to the rendition of the
Internet site services or to the protection of the rights or property of the provider of
the Internet site.
2002 Winter Olympics and Paralympics
Several of the agencies funded through the Treasury and General Government
appropriations bill are providing support to the 2002 Winter Olympics and
Paralympics hosted by the United States in Salt Lake City, Utah. The total Treasury
and General Government funding, $137,680,000 (FY2001 enacted) and $59,956,000
(FY2001supplemental, PL. 107-20) included only funding directly related to the
games. It is noted that there are “many Federal costs that indirectly assist the
Olympics and Paralympics but whose primary purpose was not to assist the Games.”
Those costs are not included in this budget presentation.

CRS-57

the conference report it was stated that $59,956,000 was provided “to reimburse any
agency of the Department of the Treasury or other Federal agencies for costs
associated with providing operational and perimeter security at the 2002 Winter
Olympics, as proposed by the Senate. The conferees expect that this funding will be
provided to the following agencies, as shown in the following table. Adjustments to
this funding can be made subject to the standard reprogramming and transfer
guidelines:
“Agency/Department: Recommendations:
Department of the Treasury$10,523,000
13,813,000
4,931,000
19,530,000
58,000
2,729,000
40,000
334,000
Department of Agriculture
U.S. Forest Service$ 1,300,000
Department of Interior$ 1,300,000
U.S. Bureau of Land 312,000
Management 195,000
U.S. Fish and Wildlife Service
Department of Justice$ 4,891,000"
No breakdown within Treasury was provided with regard to which functions
would be funded at which level. The supplemental funds for FY2001 would be used
to reimburse Department of the Treasury’s bureaus and other federal agencies
providing operational and perimeter security support. The funding was also for
overtime, travel and other related costs such as lodging and equipment. It should be
noted that a recent General Accounting Office study stated that through FY1999 the
total Olympic support spending from all federal sources was $1.3 billion.⁷³

⁷² P.L. 107-20, July 24, 2001 and U.S. Congress, Conference Committee, 2001, Making
Supplemental Appropriations for the Fiscal Year Ending September 30, 2001, and For^th
Other Purposes, conference report to accompany H.R. 2216, H. Rept. 107-148, 107 Cong.,^st

1 sess. (Washington: GPO, 2001), p. 34.

⁷³ U.S. General Accounting Office, Olympic Games: Federal Government Provides
significant Funding and Support, GAO report GGD-00-183 (Washington: September 2000).
CRS-58

support funding levels can be broken down in the following manner. The Treasury
Department was funded at $10,122,000 in FY2001, with $51,624,000 proposed for
FY2002 (FY2002 figures from President’s budget). The funding is designated for
counter terrorism and law enforcement activities. Specifically, with the FY2002
proposal in parentheses, the agencies within the department responsible for Olympic
support are U.S. Secret Service ($19,530,000), U.S. Customs Service ($18,745,000),
Bureau of Alcohol, Tobacco and Firearms ($10,523,000), Financial Crimes
Enforcement Network ($58,000), IRS-Criminal Investigation ($2,728,000), and
Departmental Offices ($40,000). The Office of National Drug Control Policy
received $3,000,000 for its anti-doping activity. The General Services Administration
would receive $1,544,000 for security, housing, and drug testing ($919,000) and
housing and security for the Paralympics ($635,000). GSA was funded for FY2001⁷⁴
at $3,310,000 for Olympic support.
The House Committee on Appropriations stated, in their report,
The Committee is also concerned that the President’s initial request did not include
the $60.6 million necessary to support Treasury law enforcement’s role in the
upcoming 2002 Winter Olympics; the Committee is nonetheless pleased that the
President submitted a request for these funds within the fiscal year 2001
supplemental appropriations bill. Because these funds would not be spent until
fiscal year 2001 had closed, the committee has included funding for these efforts⁷⁵
in fiscal year 2002, which when they are needed.
However, the House, in adopting the rule on, and passing, H.R. 2590 amended
the reported version and struck the funding in support of security at the Olympics.
(Note: The nearly 60 million dollars in funds provided for Olympic support in the
2001 supplemental are available until September 30, 2002) The Senate position was
not discussed during the July 26 mark up of their appropriations provisions. Funds
previously allocated for security at the Olympics have been reallocated as follows:
$2.9 million for the Customs Air and Marine Interdiction Program; $2 million for the
Customs Service for intellectual property rights enforcement; $4.7 million for the
Treasury’s Federal Law Enforcement Training center; $2.4 million for additional
HIDTAs; $20 million for GSA construction activities; and $27.9 million for partial
costs associated with pay parity for civilian employees. S. 1398, as reported by the
Senate Committee on Appropriations, does not contain any new funding for security
at the Winter Olympic Games in Salt Lake City. As passed by the Senate, H.R. 2590
is also silent on the issue. The House conference report on H.R. 2590 (H. Rept. 107-
253)does not restore or include funding for the Salt Lake Olympic Games. On final
passage, no additional funds were provided for Olympic security (P.L. 107-67, 115
Stat. 514). It should be noted however, that an additional 20 million dollars have been
added to Olympic security efforts from the President’s Emergency Response Fund.

⁷⁴ FY2002 Budget, Analytical Perspectives, pp.431- 434.
⁷⁵ House Report, p. 3.
CRS-59

Cuban Travel Restrictions
While the House approved an amendment to ease the U.S. embargo on Cuba by
prohibiting spending for administering or enforcing Treasury Department regulations
related to Cuba travel, ultimately Congress did not include the provision in the
conference report to H.R. 2590 (House Rpt. 107-253).
During July 25, 2001, floor action on H.R. 2590, the House debated two
amendments that would ease U.S. sanctions on Cuba, approving one that would
prohibit spending for administering Treasury Department regulations restricting travel
to Cuba and rejecting the second that would prohibit Treasury Department funds from
administering the overall U.S. embargo on Cuba. The first amendment, (H. Amdt.
241) offered by Representative Flake (which amended H. Amdt 240 offered by
Representative Smith), would prohibit funding to administer the Cuban Assets
Control Regulations (CACR) with respect to any travel or travel-related transaction.
The CACR are administered by the Treasury Department’s Office of Foreign Assets
Control. The Flake amendment was approved by a vote of 240 to 186, compared to
a vote of 232-186 for a similar amendment in last year’s Treasury Department
appropriations bill.
The second amendment (H. Amdt 242), offered by Representative Rangel, would
have prohibited the use of Treasury Department funds to implement or enforce the
economic embargo of Cuba. This amendment failed by a vote of 201-227, a much
narrower margin compared to a similar amendment to last year’s Treasury
Department appropriations bill that was rejected by a vote of 174-241.
Ultimately, the House provision regarding Cuba travel restrictions was not
included in the conference report to H.R. 2590 (House Rpt. 107-253). While the
Senate version of the bill, approved September 19, 2001, did not include such a
provision, Senator Byron Dorgan noted during floor debate that he had intended to
offer an amendment on the issue, but that he decided not to because he did not want
to slow passage of the bill. Senator Dorgan had indicated that he would support the
House provision when it came in conference, but ultimately the House-Senate
conference report on the bill did not include the Cuba provision. In light of the
changed congressional priorities in the aftermath of the September 11 attacks on New
York and Washington, conference negotiators reportedly did not want to slow
passage of the bill with any controversial provisions. Moreover, the Bush
Administration had threatened to veto the Treasury bill if it included the Cuba travel
provision. (Also see: CRS Report RL30806, Cuba: Issues for Congress, and CRS
Report RL31139, Cuba: U.S. Restrictions on Travel and Legislative Initiatives in the

107^th Congress.)

Major Funding Trends
The House and Senate Appropriations Committees approve allocations to the
various appropriations subcommittees. The House agreed to a budget resolution on

CRS-60

version of H.Con.Res. 83 on April 6, 2001, by a vote of 65 to 35.⁷⁷ On May 9, 2001,
the House agreed to the conference report. ⁷⁸ The Senate agreed to the conference⁷⁹
report the next day. On October 12, the House Budget Committee reported H.R.

3084, for the purpose of adjusting the government-wide discretionary funding cap for⁸⁰

FY2002. The House and Senate Appropriations Committees allocate the
discretionary funding levels (302(b)) allocations to each of the subcommittees.⁸¹
On June 13, 2001, the House Committee on Appropriations announced that the
FY2002 discretionary spending budget authority allocation for the Treasury
subcommittee would be $16,880 million.⁸² With the mandatory allocation at $15,478
million, the total would $32,358 million. On July 23, the committee revised the
discretionary budget authority allocation to $17,021 million.⁸³ On September 20,
2001, the House further revised the allocations, providing a discretionary budget
authority allocation of $17,022 million with the mandatory allocation unchanged.⁸⁴
On October 9, new allocations were reported, however, the Treasury allocation was
unchanged.⁸⁵

⁷⁶ U. S. Congress, House, Committee on the Budget, Concurrent Resolution on the Budget,
Fiscal Year 2002, 107^th Cong., 1^st sess., H. Rept. 107-26, a report to accompany H.Con.Res.
83, March 23, 2001 (Washington: GPO, 2001). The vote was 222 - 205 (Roll no. 70). Text
of the resolution and the report can be accessed through: [http://www.house.gov/budget].
⁷⁷ Congressional Budget for the United States Government for the Fiscal Years, 2001-2011,
Congressional Record, daily edition, vol. 147, April 6, 2001, p. S3696.
⁷⁸ Congressional Budget for the United States Government for the Fiscal Years, 2001-2011,
Congressional Record, daily edition, vol. 147, May 9, 2001, p. H2049. The vote was 221-

207 (Roll no. 104).

⁷⁹ Congressional Budget for the United States Government for the Fiscal Years, 2001-2011,
Congressional Record, daily edition, vol. 147, May 9, 2001, p.S4545-4581 and May 10,

2001, pp. S4776-4793. The vote was 53-47 (Vote Number 98).

⁸⁰ As of 4 p.m. Oct. 12, the report number reference was not available.
⁸¹ The Web sites for the Committees, found through [http://www.senate.gov] and
[http://www.house.gov], provide the allocations for each of the subcommittees.
⁸² U.S. Congress, House, Committee on Appropriations, Report on the Suballocation of
Budget Allocations for Fiscal Year 2002, 107^t^h Cong., 1^st sess., H. Rept. No. 107-100
(Washington: GPO, June 13, 2001)
⁸³ U.S. Congress, House, Committee on Appropriations, Report on the Suballocation of
Budget Allocations for Fiscal Year 2002, 107^t^h Cong., 1^st sess., H. Rept. No. 107-153
(Washington: GPO, July 23, 2001)
⁸⁴ U.S. Congress, House, Committee on Appropriations, Report on the Suballocation of
Budget Allocations for Fiscal Year 2002, 107^t^h Cong., 1^st sess., H. Rept. No. 107-208
(Washington: GPO, Sept. 20, 2001)
⁸⁵ U.S. Congress, House, Committee on Appropriations, Report on the Suballocation of
Budget Allocations for Fiscal Year 2002, 107^th Cong., 1^s^t sess., H. Rept. No. 107-230
(Washington: GPO, Oct. 9, 2001)
CRS-61

discretionary budget authority of $16,972 million.⁸⁶ On September 19, the committee
changed the Treasury allocation to $17,118 million.⁸⁷ The October 11 report from⁸⁸
the committee maintains that allocation.
According to data received October 26 from the House Committee on
Appropriations, the conference agreement provides $17,069,000 in discretionary
funding. The House Committee on Appropriations recommended, and the House
passed, a total of $17,021,000,000 in discretionary resources for accounts in H.R.
2590. S. 1398, as introduced and reported by the Senate Committee on
Appropriations and H.R. 2590, as passed by the Senate, would provide a
discretionary spending level of $17,117,550.
Table 5. Appropriations for the Treasury, Postal Service,
Executive Office of the President, and General Government,
FY1997 to FY2001
(in billions of current dollars)^a
FY1997 FY1998 FY1999 FY2000 FY2001
24.102 25.585 27.122 28.257 30.8
Source for FY2000: U.S. Congress, House, Committee on Appropriations.
^a These figures, in current dollars, include CBO adjustments for permanent budget authorities,
rescissions, and supplementals, as well as other elements factored into the CBO scorekeeping
process. For a brief presentation on CBO scorekeeping see: U.S. Congressional Budget Office,
Maintaining Budgetary Discipline: Spending and Revenue Options (Washington: GPO, 1999). The
appendix beginning on p. 281 provides the “Scorekeeping Guidelines,” as found in the conference
report to the Balanced Budget Act of 1997. Also available at [http://www.cbo.gov/].

⁸⁶ U.S. Congress, Senate, Committee on Appropriations, Allocation to Subcommittees of
Budget Totals from the Concurrent Resolution for Fiscal Year 2002, 107^th Cong., 1^st sess.,
S. Rept. No. 107-34 (Washington: GPO, June 21, 2001).
⁸⁷ U.S. Congress, Senate, Committee on Appropriations, Further Revised Allocation to
Subcommittees of Budget Totals for Fiscal Year 2002, 107^th Cong., 1^st sess., S. Rept. No.

107-65 (Washington: GPO, Sept. 19, 2001).

⁸⁸ U.S. Congress, Senate Committee on Appropriations, Further Revised Allocation to
Subcommittees of Budget Totals for Fiscal Year 2002, 107^th Cong., 1^st sess., S. Rept. No.

107-81 (Washington: GPO, Oct. 11, 2001).

CRS-62

Table 6. Treasury, Postal Service, Executive Office of the
President, and General Government Appropriations, FY2002, by
Title and Major Accounts
(In millions, without CBO scorekeeping)
FY2001 FY2002 House Senate
TitleEnactedRequestPassedPassedP.L. 107-67
I. Treasury$14,038.2$14,631.7$15,032.2$14,908.6$15,041.9
II. USPS95.9143.7143.7143.7143.7
III. EOP 700.3731.7752.0755.5747.5
IV. Agencies15,740.416,528.216,536.916,555.416,559.9
Total $30,574.7 $31,968.3 $32,350.1 $32,296.4 $32,378.4
Source: House Committee on Appropriations, provided October 26, 2001. FY2001 figures include
application of 0.22% across-the-board rescission and the FY2001 supplemental funding through P.L.

107-20.

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and General Government Appropriations
(in thousands of dollars)
Funds allocated to these accounts through the Emergency Response Fund pursuant to P.L. 107-38 and P.L. 107 117 are
FY2001 Supplementals
Enacted^{P.L. 107-38}
IncludingFY2002HouseSenate^{P.L. 107-}
Supp.(1) RequestPassedPassedP.L. 107-67¹¹⁷
222,337 181,768 174,219 187,322 177,142 15,500

62,150 70,828 68,828 69,028 68,828 --

30,932 32,932 30,932 32,932 28,932 --

32,827 35,150 35,508 35,150 35,424 --

118,166 122,342 123,474 123,799 123,746 2,032

9,978 0 10,000 -8,000 2,000 --

32,493 45,155 45,837 45,702 45,837 1,760

54,879 44,879 36,879 44,879 40,000 --

153,350 122,602 129,666 139,751 139,114 31,500

103,248 106,487 107,576 106,965 107,576 --

255,972 211,594 213,211 212,316 212,850 110
771,143 803,521 806,816 821,421 810,316 32,961
0 0 10,000 16,000 13,000
2,279,294 2,385,226 2,669,289 2,555,922 2,688,049 437,340

182,699 185,370 187,927 187,318 186,953 --

1,000 1,000 1,000 1,000 1,000 --

8,888,926 9,422,387 9,457,439 9,450,387 9,437,079 --

3,661,166 3,783,347 3,808,434 3,786,347 3,797,890 14,910

144,681 146,000 146,000 146,000 146,000 --

3,366,380 3,533,198 3,538,347 3,535,198 3,538,347 6,714
1,522,416 1,563,249 1,573,065 1,563,249 1,563,249 16,441

71,593 396,593 391,593 419,593 391,593 --

CRS-64

Enactedntals^{P.L. 107-38}
IncludingFY2002HouseSenate^{P.L. 107-}
Supp.(1) RequestPassedPassedP.L. 107-67¹¹⁷

140,6900000--

833,806 860,469 923,569 902,967 924,072 141,483

14,038,200 14,631,710 15,032,170 14,908,859 15,041,918 --

13,903,877 -- -- -- -- --

------------
(-30,925) -- -- -- -- --
(55,000) -- -- -- -- --
28,936 76,619 29,000 76,619 29,000 675,000

67,093 67,093 67,093 67,093 67,093 --

– – 47,619 – 47,619
(-205)--------

95,888 143,712 143,712 143,712 143,712 --

0 237,775 139,255 0 0 --

390 (450) (450) 450 450 --

53,171 (54,165) (54,651) 54,165 54,651 --

10,876 (11,914) (11,695) 11,914 11,695 --

966 (8,625) (8,625) 8,625 8,625 --

3,665 (3,896) (3,925) 3,896 3,925 --

353 (314) (318) 314 318 --

4,101 (4,192) 4,211 4,192 4,211 --

4,023 (4,119) (4,142) 4,119 4,142 --

7,149 (7,447) (7,494) 7,447 7,494 4,800
43,641 (46,032) (46,955) 46,032 46,955 82,765

68,635 (70,521) 70,752 70,519 70,752 --

24,705 (25,100) 25,267 25,096 25,263 --

35,974 40,000 40,000 42,000 42,300 --

CRS-65

Enactedntals^{P.L. 107-38}
IncludingFY2002HouseSenate^{P.L. 107-}
Supp.(1) RequestPassedPassedP.L. 107-67¹¹⁷
206,046 206,350 233,882 226,350 226,350 2,300

233,086 247,600 238,600 249,400 239,400 --

998 (1,000) (1,000) 1,000 1,000 51,000

2,4940000--

700,273 731,725 751,967 755,519 747,531 --

701,815 -- -- -- -- --

(-1,465) -- -- -- -- --

4,149 4,498 4,629 4,498 4,629 --

40,411 41,411 43,689 43,993 43,689 --

25,003 26,378 26,524 26,378 26,524 --

657,968 474,476 459,021 466,550 472,081 --

476,523 276,400 276,400 276,400 284,400 135,112

276,4000000--

137,406 138,499 137,947 145,749 143,139 --

34,444 36,025 36,478 36,025 36,346 --

0 20,000 5,000 5,000 5,000 --

2,511 3,552 3,196 3,376 3,196 --

7,0840000--

29,372 30,375 30,555 30,375 30,555 --

1,9961,746000--

0 0 2,500 1,996 1,996 --

1,248 1,309 1,309 1,309 1,309 --

CRS-66

Enactedntals^{P.L. 107-38}
IncludingFY2002HouseSenate^{P.L. 107-}
Supp.(1) RequestPassedPassedP.L. 107-67¹¹⁷

310,834 252,714 272,278 285,214 283,214 --

208,946 244,247 244,247 244,247 244,247 1,600
-6,084 -6,612 -6,612 -6,612 -6,612 --
101,536 10,643 24,643 41,143 39,143 1,000

6,436 4,436 10,000 6,436 6,436 --

9,663 10,060 10,117 10,060 10,117 --

14,608,948 15,633,378 15,634,078 15,633,378 15,634,078 --

93,888 99,036 99,636 99,036 99,636 --

1,357 1,398 1,498 1,398 1,498 --

5,427,166 6,145,000 6,145,000 6,145,000 6,145,000 --

35,000 33,000 33,000 33,000 33,000 --

8,940,051 9,229,000 9,229,000 9,229,000 9,229,000 --

11,122 11,784 11,891 11,784 11,891 --

37,223 37,305 37,809 37,305 37,305 --

15,740,361 16,528,204 16,536,920 16,555,360 16,559,908 --

15,709,978 -- -- -- -- --

(15,709,978) -- -- -- -- --
est. (34,562)----------

276,400 -- -- -- -- --

Conference Report on H.R. 5658,as enacted through P.L. 106-554, Congressional Record, vol. 146, Dec. 15, 2000, p. H12230-
Chart showing Treasury and General Government accounts in detail appears on p. H12249-H12258. Accounts differing from
and P.L. 106-275, as amended. Data
have the latitude to disperse the funds to accounts within the EOP. In effect the request and the House-passed totals for FY2002
the funding levels reported by the House Committee

CRS-67

General Government Function (800)
The budget is organized by broad functions. The General Government function
(often referred to as the 800 function because of its numerical designation)
encompasses the central management activities of the executive and legislative
branches. Several of the appropriations bills fund accounts which would fall within
the general rubric of this function. Major activities identified with the General
Government function include federal financial management, such as tax collection,
currency, and governmentwide accounting; personnel management, and general
administrative and property management. In summary the discretionary budget
authority for function 800 in FY2002 is proposed at $14,773 million, the mandatory⁸⁹
outlays at $1,798 million, with an additional $7 million proposed.
The four executive branch agencies responsible for these activities are the
Department of the Treasury, the General Services Administration, the Office of
Personnel Management; and the Office of Management and Budget. Each of these
is discussed below with regard to the funding decisions during the course of the
appropriations cycle. However, in the context of the function as a whole, initiatives
and expectations for the four agencies by the Bush Administration are set out here.
Department of the Treasury
The Department of the Treasury is the federal government’s financial agent,
produces currency, develops tax policy, and has law enforcement responsibilities. The
budget projects that, in FY2002, the department will collect an estimated $2.2 trillion
in tax and tariff revenues; issue more than $2 trillion in marketable securities and
savings bonds to finance government activities; and produce 7.5 billion Federal
Reserve Notes, 12 billion postage stamps, and 27 billion coins.
Internal Revenue Service. The President’s budget requests $397 million
to modernize computer systems and requests follow-on funding for the Staffing Tax
Administration for Balance and Equity (STABLE) initiative begun in FY2001. Four
targets for critical IRS performance measures in FY2002 are to improve customer
satisfaction; to continue to improve customer service through its toll-free assistance;
to receive 38 % (up from 28% in 2000) of individual returns filed electronically; and
to reverse the drop in enforcement activity by closing over 300,000 field tax
examinations.
Financial Management Service (FMS). In FY2002, FMS plans to increase
the percentage of Treasury payments electronically, to increase the total dollar
amount of federal government receipts collected electronically; and to increase the
amount of delinquent debt referred from federal agencies to FMS for collection.
Bureau of the Public Debt. The bureau plans to issue at least 95% of over-
the-counter bonds within three weeks of their purchase; to conduct all marketable

⁸⁹ FY2002 Budget, Budget, pp. 137-141 for a discussion of the function and pp. 151-220 for
detailed functional tables.
CRS-68

of the time.
U.S. Mint. The FY2002 performance goals for the U.S. Mint are to introduce
the fourth five-State series in the 50 States Commemorative Quarter Program and to
maintain high levels of customer service.
Bureau of Engraving and Printing. The bureau plans to continue to meet
all Federal Reserve and U.S. Postal Service orders and prevent more than 0.05 notes
per million from being returned by the Federal Reserve because of counterfeit
deterrence defects.
General Services Administration
The General Services Administration (GSA) provides management of space,
products, and services to support the administrative needs of federal agencies. In
terms of goals, in FY2002:
!the Public Buildings Service plans to deliver 65% of its construction and 82%
of its repair projects on schedule and within budget;
!the Federal Technology Service projects a 15% reduction in monthly line
charges for local telephone service;
!the Federal Supply Service seeks to reduce its costs of operations in the Supply
and Procurement Business Line by 17%; and
!the volume of purchases made with federal credit cards is expected to total
$20.4 billion, a 17% increase over 2000.
Since GSA provides services to agencies on a reimbursable basis, the agency
budgets fund most of GSA’s activities. The details of GSA direct funding is found
in the discussion below and on Table 7. The budget projects obligations of $18
billion through GSA’s revolving funds. The agency also affects federal spending
through its delegation of authority for real property disposal, building operations, and
the procurement of pharmaceuticals. GSA will administer contracts through which
agencies will purchase more than $27 billion in goods and services outside the
agency’s revolving funds.
Office of Personnel Management
The Office of Personnel Management (OPM) provides human resource
management (HRM) leadership and services to federal agencies and employees. In
FY2002 OPM projects that it will
!implement a fully-functional, on-line workforce planning system to meet the
President’s goal to flatten the federal hierarchy and help federal agencies align
human resources with accomplishment of agency mission and goals;
!expand access to federal employment information by partnering with private
sector companies to increase links to the USAJOBS web site and improve user
satisfaction;
!increase by 10% the number of agencies with HRM accountability systems
aligned with strategic missions and objectives;

CRS-69

of 1998 (overseeing contractors and sustaining the integrity of the health
program for federal employees); and
!conduct 15 nationwide agency oversight reviews, including reviews of
executive branch agencies outside Title 5, to ensure federal agencies use merit
principles in personnel actions.
Office of Management and Budget
The Office of Management and Budget (OMB) is responsible for the
development and execution of the federal budget. It also coordinates the review and
examines the effectiveness of agency programs policies and procedures and has
substantial involvement in interagency activities. Among the significant government
wide statutes it implements are the Chief Financial Officers Act, the Government
Performance and Results Act, the Government Management and Reform Act, the
Clinger-Cohen Act, and the Federal Acquisitions Streamlining Act.
Tax Incentives
As part of its general government function, the federal government provides
substantial tax incentives that benefit state and local governments. These would
include tax-exempt borrowing for public purposes, taxpayer deductions of state and
local income tax, certain credits to corporations doing business with Puerto Rico and
other U.S. possessions, and taxpayer credits for state inheritance and estate taxes
against federal estate taxes.

CRS-70

Glossary of Budget Process Terms
The following definitions are selected from the “Glossary of Budgetary Terms,” as
found in CRS Report 98-720, Manual on the Federal Budget Process, by Robert
Keith in consultation with Alan Schick.
Account. A control and reporting unit for budgeting and accounting.
Appropriation. A provision of law providing budget authority that permits federal
agencies to incur obligations and to make payments, of the Treasury for specified
purposes. Annual appropriations are provided in appropriations acts; most permanent
appropriations are provided in substantive law.
Authorization. A provision in law that authorizes appropriations for a program or
agency.
Budget Authority. Authority provided by law to enter into obligations that normally
result in outlays. The main forms of budget authority are appropriations, borrowing
authority, and contract authority.
Budget Resolution. A concurrent resolution passed by both Houses of Congress,
but not requiring the signature of the President, setting forth the congressional budget
for at least the next five fiscal years. The budget resolution sets forth various budget
totals and functional allocations, and may include reconciliation instructions, to
designated House or Senate committees.
Continuing Resolution. An act (in the form of a joint resolution) that provides
budget authority to agencies or programs whose regular appropriation has not been
enacted after the new fiscal year has started. A continuing resolution usually is a
temporary measure that expires on a specified date or is superseded by enactment of
the regular appropriations act. Some continuing resolutions, however, are in effect
for the remainder of the fiscal year and are the means of enacting regular
appropriations.
Direct Spending. Budget authority, and the resulting outlays, provided in laws other
than annual appropriations acts. Appropriated entitlements are classified as direct
spending. Direct spending is distinguished by the Budget Enforcement Act from
discretionary spending and is subject to the PAGO rules. It is also referred to as
“mandatory spending.”
Discretionary Spending. Budget authority, and the resulting outlays, provided in
annual appropriations acts, but not including appropriated entitlements.
Federal Funds. All monies collected and spent by the federal government other than
those designated as trust funds. Federal funds include general, special, public
enterprise, and intragovernmental funds.
Mandatory Spending. See “Direct Spending.”

CRS-71

will require payment.
Outlays. Payments made (generally through the issuance of checks or disbursement
of cash) to liquidate obligations. Outlays during a fiscal year may be for payment of
obligations incurred in prior years or in the same year.
PAGO (Pay-as-You-Go) Process. The procedure established by the Budget
Enforcement Act to ensure that revenue and direct spending legislation does not add
to the deficit or reduce the surplus. PAGO requires that any increase in the deficit or
reduction in the surplus due to legislation be offset by other legislation or
sequestration. PAGO is enforced by estimating the five-year budgetary effects of all
new revenue and direct spending laws.
Reconciliation Process. A process established in the Congressional Budget Act by
which Congress changes existing laws to conform tax and spending levels to the levels
set in a budget resolution. Changes recommended by committees pursuant to a
reconciliation instruction are incorporated into a reconciliation bill.
Revolving Fund. An account or fund in which all income derived from its operations
is available to finance the fund’s continuing operations without fiscal year limitation.
Scorekeeping. Procedures for tracking and reporting on the status of congressional
budgetary actions affecting budget authority, receipts, outlays, the surplus or deficit,
and the public debt limit.
Supplemental Appropriation. Budget authority provided in an appropriations act
in addition to regular or continuing appropriations already provided. Supplemental
appropriations acts sometimes include items not included in regular appropriations
acts for lack of timely authorization.
Trust Funds. Accounts designated by law as trust funds for receipts and
expenditures earmarked for specific purposes.
User Fees. Fees charged to users of goods or services provided by the federal
government. In levying or authorizing these fees, Congress determines whether the
revenue should go into the U.S. Treasury or should be available to the agency
providing the goods or services.

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For Additional Reading
Congressional Documents
U.S. Congress, House, Committee on Appropriations, Treasury, Postal Service, and
General Government Appropriations Bill, 2002, a report to accompany H.R.^th^st

2590, 107 Cong., 1 sess., H.Rept. 107-152, July 23, 2001 (Washington: GPO,

2001).

_____, Committee on Conference, Making Supplemental Appropriations for the
Fiscal Year Ending September 31, 2001, and for Other Purposes, a conference
report to accompany H.R. 2216, 107^th Cong., 1^st sess., H. Rept. 107-148, July

19, 2001 (Washington: GPO, 2001).

_____, Committee on Rules, Providing for Consideration of H.R. 2590, Treasury
and General Government Appropriations Act, 2002, a report to accompany H.^th^st
Res. 206, 107 Cong., 1 sess., H. Rept. 107-158, July 24, 2001 (Washington:
GPO, 2001).
CRS Products
Appropriations.
CRS Report RL30202. Appropriations for FY2000: Treasury, Postal Service,
Executive Office of the President, and General Government, coordinated by
Sharon S. Gressle.
CRS Report RL30502. Appropriations for FY2001: Treasury, Postal Service,
Executive Office of the President, and General Government, coordinated by
Sharon S. Gressle.
Cuba.
CRS Report RL30806. Cuba: Background and Current Issues for Congress, by
Mark P. Sullivan.
CRS Report RS20409. Cuba: U.S. Restrictions on Travel and Legislative Initiatives^th
in the 106 Congress, by Mark P. Sullivan.
Federal Employee Child Care Policy.
CRS Report RL30944. Child Care Issues in the 107th Congress, by Melinda T.
Gish.
Federal Employee Health Benefits Policy.
CRS Report RL30336. The Federal Employees Health Benefits Program, by
Carolyn L. Merck.

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by Carolyn Merck.
CRS Report RS20644. Long-term Care Insurance for Federal Personnel, by
Carolyn L. Merck.
CRS Report RL30254. Long-term Care: The President’s FY2001 Budget Proposals
and Related Legislation, by Carol V. O’Shaughnessy, Bob Lyke, and Carolyn
L. Merck.
Federal Employee Retirement Policy.
CRS Report RL30023. Civil Service Retirement Programs: Financing and Budget
Status, by Patrick Purcell.
CRS Report 94-971. Pay and Retirement Benefits for Federal Employees: Increases
Since 1969, by Pat Purcell.
Federal Salary Policy.
CRS Report RL30359. Federal Pay: FY2001 Salary Adjustment, by Barbara L.
Schwemle.
CRS Report RL30744. Federal Pay: FY2002 Salary Adjustment, by Barbara L.
Schwemle.
CRS Report RS20278. Judicial Salaries: Current Situation, by Sharon S. Gressle.
CRS Report 94-971. Pay and Retirement Benefits for Federal Employees: Increases
Since 1969, by Pat Purcell.
CRS Report RS20709. Presidential Transition 2000-2001: Background and Federal
Support, by Stephanie Smith.
CRS Report 98-53. Salaries of Federal Officials, by Sharon S. Gressle.
CRS Report RL30014. Salaries of Members of Congress: Current Procedures and
Recent Adjustments, by Paul E. Dwyer.
CRS Report 97-1011. Salaries of Members of Congress: Payable Rates and
Effective Dates, 1789-2001, by Paul E. Dwyer.
CRS Report RS20388. Salary Linkage: Members of Congress and Other Federal
Officials, by Sharon S. Gressle.
CRS Report RS20114. Salary of the President Compared with That of Other
Federal Officials, by Sharon S. Gressle.
CRS Report RS20111. Travel Costs of the President, Vice President, and First
Lady, by Rogelio Garcia.

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CRS Report RL31148. Homeland Security: the Presidential Coordination Office,
by Harold C. Relyea
Human Resources Management Organizations.
CRS Report RL30194. Merit Systems Protection Board: Background, Strategic and
Performance Plans, and Congressional Oversight, by Barbara L. Schwemle.
CRS Report 98-773. Office of Personnel Management: Background, Strategic and
Performance Plans, and Congressional Oversight, by Barbara L. Schwemle.
CRS Report RL30450. United States Office of Special Counsel: Background,
Strategic and Performance Plans, and Congressional Oversight, by Barbara L.
Schwemle.
Postal Service.
CRS Report RL31069. Postal Service Financial Problems and Stakeholder
Proposals, by Nye Stevens
CRS Report RS21025. The Postal Revenue Forgone Appropriation: Overview and
Current Issues, by Nye Stevens
CRS Report RS20921. Semipostal Stamps: Authorization, Revenue, and Selection
Criteria, by Nye Stevens
Terrorism.
CRS Electronic Briefing Book (ebter1), Terrorism Briefing Book: Legislative Issues,
[http://www.congress.gov/brbk/html/ebter1.shtml]
Treasury Department and Agencies.
CRS Issue Brief IB10071. Gun Control Legislation in the 107^th Congress, by
William J. Krouse, Jr.
CRS Report RL30536. IRS: Status of Restructuring and Reform at the Opening of^th
the 107 Congress, by Sylvia Morrison.
CRS Report RL31040. National Integrated Ballistics Information Network (NIBIN)
or Law Enforcement, by William C. Boesman and William J. Krouse, Jr.
CRS Report RL31019. Terrorism: Automated Lookout Systems and Border Security
Options and Issues, by William J. Krouse, Jr. and Raphael Perl.
CRS Report RL31230. U.S. Customs Service Authorization, FY2002 Budget, and
Related Border Management Issues, by William J. Krouse.

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Syracuse University, Maxwell School of Citizenship and Public Affairs, Government
Performance Project, Grading Government, (Syracuse, NY: Syracuse University,
February 1999).
U.S. Congressional Budget Office, Budget Options, February 2001 (Washington:
GPO, 2001). [Available on CBO Web site.]
--------, Maintaining Budgetary Discipline: Spending and Revenue Options
(Washington: GPO, 1999). [Available on CBO Web site.]
U.S. Department of the Treasury, U.S. Customs Service, U.S. Customs Service
Strategic Plan (FY97-02), by Commissioner of Customs George Weiss,
(Washington: U.S. Customs Service, August 1, 1997).
U. S. Executive Office of the President, Office of Management and Budget, A
Blueprint for a New Beginning, A Responsible Budget for America’s Priorities,
(Washington: GPO, 2001).
U.S. General Accounting Office, High Risk Series: An Update, GAO report
GAO-01-263, (Washington: January 2001)
——-, High Risk Series, IRS Management, GAO Report HR 97-8 (Washington:
February 1997).
——-, Customs Service: Comments on Strategic Plan and Resource Allocation
Process, GAO Report GGD-98-15, (Washington: October 16, 1998).
——-, Major Management Challenges and Program Risks: Department of the
Treasury, GAO report OCG-99-14, (Washington: October 21, 1998).
——-, Performance and Accountability Series, Major Management Challenges and
Program Risks: A Governmentwide Perspective, GAO report GAO-01-241,
(Washington: January 2001).
——- Major Management Challenges and Program Risks: Department of the
Treasury, GAO report GAO-01-254, (Washington: January 2001).
——-, Major Management Challenges and Program Risks: U. S. Postal Service,
GAO report GAO-01-262, (Washington: January 2001).

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Information regarding current and past budgets (including budget documents), the
federal budget process, and duties and functions are available at the following web
sites.
Congressional Budget Office (CBO)
[http://www.cbo.gov]
General Accounting Office (GAO)
[http://www.gao.gov]
National Commission on Restructuring the Internal Revenue Service
[http://www.house.gov/natcommirs/main.htm]
Office of Government Ethics
[http://www.usoge.gov]
Office of Management and Budget (OMB)
[http://www.whitehouse.Gov/OMB/index.html]
Office of Management and Budget, Statements of Administration Policy (SAPS)
[http://www.whitehouse.Gov/OMB/legislative/sap/index.html]
For general access to federal agencies, use the gateway provided at:
[http://www.firstgov.gov]

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