Appropriations committee withholds more than $700 million, saying DHS ignored congressional requests for information about its programs.
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Proposals include establishing a centralized policy shop and creating a new agency for preparedness.
Communities around 425 military installations await news of their fate.
Defense secretary working with OMB to restore funding during fiscal 2007 and fiscal 2008 budget cycles.
Move marks the third year the panel has reduced the department's IT funding.
Legislators penalize TSA for pushing rollout of Secure Flight program to 2006.
As Senate passes fiscal 2005 supplemental, House appropriators already begin to discuss adding funds for war costs not covered in fiscal 2006 appropriations.
In light of recruiting difficulties, using Defense authorization bill to require boost in troop levels would be "hollow increase," says Rep. Duncan Hunter, R-Calif.
Union officials say the results are troubling, but agency officials say analysis is informative and helpful.
Former deputy secretary says House committee chairman's effort to punish the agency for not being responsive to lawmakers' requests for information should be taken seriously.