TSA seeks to change funding formula for airport security improvements

The Transportation Security Administration does not agree with a congressional mandate that requires the agency to increase funding to large airports for security improvements, senior administration officials said Thursday.

TSA has signed eight letters of intent to provide funding to nine airports across the country for security improvements. Agency officials said, however, that they want to cover 75 percent of costs for large airports, as opposed to at least 90 percent, which Congress mandated last year.

"TSA believes the current cost share is fair and equitable and that revised allocation formulas could potentially disrupt current [letter of intent] commitments and be detrimental to long-term security effectiveness," retired Navy Rear Adm. David Stone, acting TSA administrator, told the House Appropriations Subcommittee on Homeland Security in prepared testimony Thursday.

The law requires that all commercial airports electronically screen every passenger and bag by the end of this year. Not every airport has the funding to meet that deadline, especially to buy and install explosives detection systems and explosives trace detection equipment. In response, TSA signed eight letters of intent with airports to help them buy and install necessary equipment.

According to the Federal Aviation Administration reauthorization legislation passed by Congress last year, TSA is required to cover at least 90 percent of airport security improvement costs. The airports are responsible for covering the remaining expenses.

The Bush administration's fiscal year 2005 budget request includes language that would set funding levels at 75 percent for large airports and 90 percent for all other airports, essentially overriding the congressionally mandated funding formula.

"TSA is asking Congress to nullify provisions that were adopted late last year requiring the government to contribute 90 percent of the funds for aviation capital security projects at large and medium airports and 95 percent for small airports," said committee Chairman Harold Rogers, R-Ky. "While I recognize that having a lower federal share will allow you to spread out your funding among other airports, it is inconsistent with federal law and with how FAA plans to award airport improvement grants for nonsecurity purposes to airports throughout the United States in 2005."

Asa Hutchinson, the Homeland Security Department's undersecretary for border and transportation security, discussed the funding levels in testimony before the committee in a separate hearing on Thursday.

Hutchinson said shifting from a 75 percent funding formula to a 90 percent formula would penalize airports that came forward early to sign agreements and have received reimbursement already. He added that going to a higher funding level would likely mean TSA would fund fewer projects. According to Hutchinson, at least 12 more airports need help.

Hutchinson said the total amount that TSA plans to spend on reimbursing airports at the 75 percent level is $1.1 billion over four years.

Rogers said it is his understanding that TSA does not plan to issue additional letters of intent on funding for security improvements beyond the eight that already have been signed, which he called a "glaring example" of underfunding.

"We have over 20 large airports throughout the United States that need modifications so that they can operate more efficiently," Hutchinson said. "Without solutions to their baggage screening problems, as air traffic mounts, these airports could fall out of compliance."