This is about two hours. I call this hearing of the subcommittee of Homeland Security in order. This is my first hearing as chairman of the subcommittee, and its the subcommittees first hearing to review the fiscal year 2018 budget request which was submitted to Congress Earlier this week. Mr. Boozman i want to begin by thanking secretary of Homeland Security, the honorable john kelly, for being with us today. We know that youre very, very busy and we appreciate you being here today. Secretary kelly we do understand the demands on your schedule. Your testimony is your first appearance before our subcommittee in your new role. I would also like to welcome our subcommittees Ranking Member, the distinguished senator and friend from montana, senator tester. Im also pleased that senator leahy, vice chairman of the full committee has gin joined us. The department of Homeland Security plays a pittal role in keeping americans safe by working to combat terrorism, manage our air, land, and sea borders, administrate migration laws, administer cyberassets. The event in manchester, england, yerl earlier this week remind us why we must focus on the serious challenge of securing our homeland. Mr. Secretary, youve dedicated your career to serving our National Security interest and in just a few months youve proven your ability to lead the department in a very challenging time. This subcommittee will work to support you and the men and women of the department who are working every day to keep us safe. The department is being called on by this president to refocus its resources on certain National Security risks and redouble efforts to enforce our immigration laws. We look forward to learning more about how the department proposes to address these needs while ensuring we do not neglect the other Critical Missions of the department. This budget request gets many things right. Weve seen over the past few months, Border Security and Immigration Enforcement are closely related as the new administration is demonstrating, there are consequences for those entering and staying in the cuventry illegally, with illegal border crossings dropping to us his to historic lows. The budget proposes increased fundings for customs and Border Protection and immigration and customs enforce for both manpower and infrastructure to continue to reduce border crossings. In order to better understand these requirements and make the right choices, the subcommittee must get a more comprehensive plan from the department that detail house we can be smart about investing in Border Security and interior enforcement. Another key component to securing our borders is the United States coast guard which this budget generally supports. In fiscal year 2017 this subcommittee delivered significant investments to enhance the capabilities of the coast guard. We identified funding to continue the modernization of the surface and air fleets and partnered with our defense subcommittee to begin an acquisition of a new polar ice breaker. Well have to work again to provide the resources necessary to enable the coast guard to continue protecting our borders, interdicting Illegal Migrants and drugs, conducting search and rescue missions, ensuring the safe na gation of our water ways and maintaining our defense readiness. This Budget Proposal appropriately acknowledges that the federal government Cyber Network is under constant attack. Im pleased to see that the request has prioritized funding for all four phases of the continuous diagnostics and mitigation program. Other federal agencies must move past the initial c. D. M. Kick start provided by the department and begin properly budgeting for their own investment and utilization of the system. In order to realize its full benefit. Youve rightly noted in your testimony and through this Budget Proposal that the departments work force is its most valuable resource and that taking care of the people that work to keep us safe each day is a top priority. I hope we will Work Together to ensure that the department can improve work force recruitment, development, and retention. Were aware of the unique stresses caused by the intense 2016 president ial election campaign, additional duties increase duties, increased travel, ongoing investigative work, and inherent requirements of president ial protection has stretched the secret service work force thin. These are the brave men and women who put their lives on the line every day to protect top leaders and prevent interference with our most critical institutions. Were optimistic that the Additional Resources provided in the recently enacted appropriations bill will make a real difference for the men and women of the secret service. The work force challenge expand the department, we need to hire and retain more customs officers, more Border Patrol agents, more acquisition experts and more cyber professionals. We want to help you make the department of Homeland Security the best place to work in the entire federal government. While this Budget Proposal makes some smart choices, there are parts of it that are unworkable, whether were talking about a hardworking arkansas family or one of the largest departments in the federal government, when it come time to develop a budget, tough choices have to be made. I have no doubt that many tough decisions were made in preparing the requests but many of the choices reflect in this budget put this subcommittee in a difficult position. For instance, it assumes statutory changes to programs that congress would almost certainly be unable to enact before the fiscal year. From the proposed increase to Airline Passenger fees to the significant reductions to assistance for state and local partners to the failure to invest adequately in research and development, this budget fails to take into consideration many practical realities. We ask for your cooperation as we consult with you and your staff to make the necessary adjustments to allow this budget to work despite the significant challenges. We will likely face a tough appropriations cycle. We will certainly be urged to restore many of the significant reductions propose by this budget. And absent some significant change to the availability of resources, were not going to be able to fund all the priorities it outlines. Congress would have to make these decisions based on shared priorities and with an eye toward riskbased distribution of limited resources. We know we can count on your partnership and guidance throughout this process. Again, mr. Secretary, we appreciate your testimony and willingness to answer questions from members of the subcommittee. Ill now turn to our distinguished Ranking Member, senator tester, and to our full committee chairman, senator cochran, and then to full Committee Vice chairman senator leahy, for opening marks they remarks they may have before asking secretary kelly to proceed. Theen each member will have seven minutes for questions or statements they may have. Senator tester good morning,. Secretary, and thank you the importance of the budget is shown in the fact that we have the chairman and Ranking Member of the full committee. I would be remiss if i didnt first say that our thoughts are with those in manchester, u. K. And those affected by the senseless violence on monday. 1. 5 billion s by in part to help pay for the proposed walen the southern border. Mr. Secretary, your department is one of the few nondefense discretionary agencies that receive an increase in the president s fiscal year 2018 request. In total, the request includes 44. 1 billion,en an increase of 1. 7 billion over the fiscal year 2017 act which we passed a 1. 4 eks ago, which was billion over the previous year. The department you lead has a multitude of diverse missions, Border Security, immigration security, protecting Computer Networks from cyber attacks, making sure air travel is secure, helping reprepare for and respond to natural or manmade disasters, monitoring our coastlines and waterways to save lives, intercept Illegal Drugs and preventing bad actors from invading our ports. The lions share of the increase is dedicated to border enforcement coming on the heels f the 1. 5 billion in the f. Y. 2017 omnibus. Support efforts to secure our border but it has to be done in the right way. Im concerned about whats missing in other priorities, like Aviation Security, maritime security, cyber security. Preparing our communities for natural disasters and the possibility of a terrorist attack. First of all, though, the threat to aviation is very high. In fact, classified briefings on weve had classified briefings on this, in fact. But we also see budget cuts to several security programs. Second, the budget relies on the faulty assumption that an unauthorized increase of Aviation Security fees will be enacted to offset 530 million in budget authority. Third this budget slashes fema preparedness grants by 0 and state and local train big 40 while threats are more diverse than ever. Fourth, and equally troubling, is reserge and development is cut by 21 of the time when we need to be developing leap ahead technologies to stay ahead of our adversaries. I dont think theres a briefing i go to, whether its this or military, that dont talk about the fact that our adversaries are advancing quicker than we are. To cut this budget does not make any sense to me at all. Finally, on Border Security, weve all heard from the president , the wall, the wall, the wall. Frankly, i think we need a better strategy. One that is more Cost Effective, one that focuses on proven technology. One that includes metric and one that respects private property rights. I havent seen such a plan but i guarantee you im going to continue to press for one. We cant spend billions of dollars on a wall at the expense of local Law Enforcement, firefighters, or Airport Security and im not convinced the president s budget makes the investments needed to make america safe. It is critical that the Appropriations Committee take the time to work diligently and pass a budget that strengthens our National Security. I know the chairman has a commitment to that. When i voted for your confirmation, mr. Speaker, and i would do it again today, i said, youre one of the adults in the room that im dependent on to make good decisions for this countrys security. I still believe that. Thank you for being here and i ook forward to this hearing. Senator boodsman thank you. Senator cochran. Senator cochran thank you, we welcome the secretary and wish you the best. We want to know what priorities are for funding. We dont have enough money to do everything for everybody who have requests to make of funding levels in this committee. Thank you for being here. Were anxious to hear your comments about appropriate levels of funding and the priorities we need to consider in the writing of this appropriations bill. Senator boozman thank you. Vice chairman leahy . Senator leahy thank you for the opportunity. Secretary kelly, thank you for being here today. There are many issues to discuss, not the least of which is the topic of todays hearing, the budget the president s Budget Proposal. Which is just delivered to us on tuesday, including his plans for the department of homeland ecurity. Secretary kelly, ive known you a long time, been an admirer of yours. I knew you when you were in the marine corps. So i have marines are expected to speak frankly. I think this Budget Proposal can be summed up pretty quickly. Abysmal. Im not surprised that the budget before us proposed billions of taxpayers dollars to build a misguided wall on the southern border to fund the president s deportation force. Executive orders mandating these things were among the first things President Trump did when e took office. Neither is going to do much to enhance the National Security, Homeland Security or efforts to address concerns about the immigration system. Instead of focusing on real threats, the administration has sought to demonize immigrants, demonize those of certain religions, drive them into the shadows. Isolate our country. Alienate our trading partners to the north and south, and throw taxpayer money at a problem that requires a serious and meaningful and real itselfic practical solution. Im sure you came here today prepared to talk about the southern border. Hope youre prepared to talk about needs along the northern border as well. Vermonts a border state. I live an hours drive from canada. Our largest trading partner is canada. Get our s Community Gets economic infusion from canadians who come to see the great lakes and there are numerous jobs in vermont. But the economy in vermont has taken hits because of the president s actions. Fewer people want to come visit and spend money in our state. I hear story after story of problems crossing our border, which is only an hour from my home. The kind of delays theyre hag theyre having, delays they cannot understand. For all of us, were not more secure. Meanwhile the trump budget cuts billions of dollars from food and nutrition assistance, medical research, Affordable Housing program, heating assistance, victim support program, legal services, education programs, slashing foreign assistance, assistance that defense secretary mattis has said is crit critical to our National Security. The president may claim that this budget advances these security the security of the american people, in reality it makes millions of americans less secure in their daily lives. As i said, ive known you a long time, supported your nomination. But this budget, this budget is really a disservice to the american people. As vice chairman of the committee, im going to work with republicans and democrats to put together a budget that puts americans, puts americans first. Mr. Chairman, i thank you for the opportunity. Senator boozman lets go to our questioning phase. While it may be too early to declare victory, its worth noting that the posture you have taken at the department has resulted in the lowest rate of illegal border crossings we have ever seen. He change has been remarkable. Im sorry. We need your testimony first. Lets go to the testimony. As you can see, were anxious to get out of the blocks. Weve got lots of questions. But again we need to hear from you first. Thank you. Mr. Kelly yes, senator. Chairman boozman, Ranking Member tester, all members of the committee and subcommittee, its a pleasure to be here to answer questions and most importantly in my mind to represent the men and women of the department of Homeland Security. I believe, as i know you do, that the role of government, first and foremost, is to secure its people. Securing the homeland is legal trade and travel adds to our economy. Secure trade is a life of freedom where people can go about their lives without fears, and a sekeer homeland is one of laws where we keep our people safe. It is a pleasure to appear before you to talk about the department of Homeland Security. On a sad note, and one that makes the point tragically, just last night, we lost one of our c. B. P. Officers down in texas, in el paso, stabbed repeatedly in the face by a Cartel Member that he identified himself to and he lost his life. The president s fiscal year 2018 budget request for the department of Homeland Security is never enough. But i think is sufficient to allow me and the men and women to do our jobs. We know that the threats are out there. We know that our Aviation Transportation system in particular is a top prize in the eyes of terrorist organizations. We know that Transnational Criminal Organizations are bringing drugs across the borders in massive amounts by land and see and air. We know our nations cybersystems are under constant attack. We know natural disasters devastate american hometowns. We also know that d. H. S. Is up to the job of protecting the United States against all these threats and many, many more. Last week, the coast guard cutter hamilton offload more than 18 tons of cocaine they have seized in International Waters off the pacific ocean. Thats roughly the wait of the weight of nine cars and is rough an estimated half a billion dollars. The week before that, may 8 through may 14, t. S. A. Discovered 76 firearms in passengers seeking to brd aircraft, loaded firearms. In six weeks, i. C. E. Arrested more than 1,300 gang members in nationwide Gang Enforcement operation. Were making a difference. Were making our nation more secure. We need to fully fund a budget that match ours mission without continuing resolutions and i think this budget approaches that. The president s f. Y. 2018 budget request for 44. 1 billion in net discretionary funding for the department o