Intelligence Community Reorganization: Potential Effects on DOD Intelligence Agencies [Updated December 21, 2004]   [open pdf - 87KB]

"Some Members of Congress and independent commissions, most recently the National Commission on Terrorist Attacks Upon the United States, the 9/11 Commission, have argued that a lack of coordination among intelligence agencies contributed to the failure to provide warning of the terrorist attacks of September 2001. In response, in December 2004 Congress passed intelligence reform legislation (P.L. 108-458) that modifies the existing organization of the Intelligence Community and establishes more centralized leadership under a newly created Director of National Intelligence (DNI). As the legislation was being debated in the fall of 2004, attention focused on the extent of the budgetary and administrative authorities to be assigned to the DNI. Significant concerns were expressed by DOD officials, some Members of Congress, and various outside observers that providing the DNI with greater authority and control of intelligence agencies in DOD could jeopardize the increasingly close relationship between these agencies and the operating military forces. The conference committee on intelligence reform legislation (S. 2845) addressed these concerns with language that gave the DNI substantial authorities over intelligence budgets, but not operational control over their activities. The final version of the legislation also provided that the details of budgetary authorities to be exercised by the DNI and other cabinet officers be worked out in accordance with guidelines to be issued by the President after the DNI is appointed."

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CRS Report for Congress, RL32515
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