Measure to provide war, border security, Gulf Coast recovery and avian flu funding also sets discretionary spending cap for fiscal 2007.
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New director says he is no longer sure when agency will be near full capacity, cites bureaucracy as a problem.
But a lack of support is hampering growth of the work-from-home concept in the government, consultants say.
Department directive issued last week restricts the transmission of agency data.
Failure of program to expedite screening for frequent fliers to move past development stage also frustrates legislators.
Agency typically has held its waste and fraud rate to between 1 percent and 3 percent, but Katrina overwhelmed systems, official says.
Measure designed to steer Pentagon away from hefty emergency funding requests; would affect the fiscal 2008 budget.
Implementation would satisfy November court order.
Institution's board this week reiterated its support for the contract.
Good leaders know when to crack down.