House intelligence bill cuts technical programs, beefs up human capabilities

The House this week passed the first intelligence authorization bill since the U.S. intelligence community was restructured, approving an estimated $42 billion for public and covert activities in 2006.

Of particular note, the bill cuts funding for some classified technical programs in favor of beefing up spending on human intelligence activities. The bill also recommends that the new director of national intelligence develop a process for performing a Quadrennial Intelligence Review starting in 2008, and also directs the Pentagon to provide a comprehensive inventory of Defense Department intelligence programs. The bill was developed by the House Intelligence Committee.

"Looking at the [intelligence] community as a whole today, the committee finds continuing gaps in capabilities and fundamental flaws in the management of resources and personnel that should ultimately remedy those gaps," committee members wrote.

The bill is the first authorization measure passed by the House since the intelligence community was overhauled through the 2004 Intelligence Reform and Terrorism Prevention Act. That act established the new director of national intelligence position, which was filled by John Negroponte. The DNI oversees the nation's 15 intelligence agencies.

The majority of the bill is classified. The committee, however, noted that the proposed intelligence budget that President Bush sent to Congress in February requested only 40 percent of needed funding for counterterrorism operations. Members said they approved 100 percent of counterterrorism funding needs.

But the bill authorizes almost $450 million and 817 full-time personnel for Negroponte's office in 2006.

Several other measures the committee authorized include: increasing investment in U.S. human intelligence activities, including training, infrastructure and global capabilities; improving intelligence analysis training, coverage and depth; reducing or eliminating funding for redundant or unjustified technical collection systems; improving the structure and management of disparate elements within the intelligence community's information technology systems; and increasing counterintelligence resources and capabilities.

With regard to technical programs, the committee noted that the budget request was weighted too heavily toward expensive systems: "Again, the [intelligence] community has resisted terminating even badly flawed major systems acquisitions and investing the resulting savings in human capabilities. The committee's position in this year's authorization makes a number of recommendations to significantly reposition funding from technical programs to human intelligence and analysis. The committee recognizes these are significant changes, but believes strongly that these major decisions must be made."

Some Democrats, however, objected to the cuts to technical programs.

"One area where this legislation can be improved is in its approach to technical systems," said Rep. Jane Harman, D-Calif., committee ranking member. "I am concerned that we have made sudden, drastic cuts to certain programs that may lead to a gap in our intelligence capabilities and erode the industrial base needed to develop critical capabilities in the future. I am committed to addressing this problem as this bill moves to conference."

An amendment that would have reduced Negroponte's authority to shift personnel between intelligence agencies was dropped.

The intelligence reform law gives Negroponte the power to transfer up to 100 personnel annually throughout the intelligence community. The amendment would have required the DNI to wait for a response from the appropriate congressional committee before he could transfer personnel. For example, if Negroponte wanted to move personnel from a Defense Department agency, he would have to notify the House and Senate Armed Services Committees and wait for a response. If no response came, then the move wouldn't be allowed.

The committee recommended that the DNI undertake a formal, periodic review of the intelligence community, much like the Pentagon's Quadrennial Defense Review.

"Such a strategic review, and the resulting forward-looking strategy, could identify the breadth and depth of the threats, the capabilities existing and needed to combat those threats, and better identify the alignment of resources, authorities and personnel needed to support those required capabilities," committee members stated. "Therefore, the committee recommends that the director of national intelligence develop a process for a Quadrennial Intelligence Review by the end of fiscal year 2008."

The committee also said it did not have full visibility over some Defense intelligence programs, and ordered the Defense secretary to provide the armed services and intelligence committees a comprehensive inventory of such programs within six months.

"Specifically, the committee notes that individual services may have intelligence or intelligence-related programs such as science and technology projects or information operations programs related to Defense intelligence that are embedded in other service budget line items, precluding sufficient visibility for program oversight," committee members wrote. "Greater transparency into these programs and projects will enhance congressional oversight and permit identification of potentially duplicative programs in other services."