The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations

^Pr^ep^ar^{ed f}^o^r^M^e^m^b^ers^an^d^Com^mⁱ^t^t^ees^of^C^ong^r^e^ss

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the lead federal law
enforcement agency charged with administering and enforcing federal laws related to the
manufacture, importation, and distribution of firearms and explosives. Congress transferred ATF’s
enforcement and regulatory functions for firearms and explosives from the Department of the
Treasury to the Department of Justice as part of the Homeland Security Act (P.L. 107-296). ATF
is also responsible for investigating arson cases with a federal nexus, as well as criminal
violations of federal laws governing the manufacture, importation, and distribution of alcohol and
tobacco.
From FY1999 to FY2008, Congress increased ATF appropriations from $541.6 million to nearly
$1.008 billion, an increase of 86%. The FY2008 funding includes $984.1 million for salaries and
expenses and $23.5 million for construction. For the same 10 years, with some fluctuation, ATF
staffing increased from 3,969 to 4,880 full-time equivalent (FTE) positions, a 23% increase.
Despite increased funding, the acting ATF Director, Michael Sullivan, recently testified before
Congress that ATF is currently operating under a $37 million shortfall, as funding for ATF salaries
and expenses was not increased for FY2008. Meanwhile, Congress has provided an additional $4
million in the Supplemental Appropriations Act, 2008 (P.L. 110-252), for ATF operations in Iraq.
For FY2009, the Administration has requested $1.028 billion and 4,942 FTE positions for ATF
salaries and expenses, or $44 million and 62 FTE positions more than the amounts appropriated
for FY2008 ($984 million, not counting the $4 million supplemental). According to ATF, the
FY2009 request would be allocated among ATF budget decision units in the following amounts:
$740 million (72%) for firearms compliance and investigations, $267.2 million (26%) for arson
and explosives investigations, and $20.6 million (2%) for alcohol and tobacco diversion. The
House Appropriations Committee-approved draft FY2009 Commerce, Justice, Science, and
Related Agencies (CJS) appropriations bill would provide $1,054.2 million for ATF, $70 million
(4.6%) more than the FY2008 enacted level and $26 million (2.6%) more than the FY2009
request. The Senate-reported bill (S. 3182) would provide $1,042.8 million, $35 million (3.5%)
more than the FY2008 enacted level and $15 million (1.5%) over the FY2009 request.
On the Southwest border with Mexico, firearms violence has spiked sharply in recent years as
drug trafficking organizations have reportedly vied for control of key smuggling corridors into the
United States. In March 2008, President Felipe Calderón called on the United States to increase
its efforts to suppress gun trafficking from the United States into Mexico. The House has passed a
bill (H.R. 6028) that would authorize to be appropriated over three years, for FY2008 through
FY2010, a total of $73.5 million to increase ATF resources dedicated to stemming illegal gun
trafficking into Mexico. Similar authorizations are included in S. 2867, H.R. 5863, and H.R.

5869. This report will be updated as needed.

ATF Mission..............................................................................................................................1
Funding and Staffing, FY1999-FY2008...................................................................................2
FY2008 Iraq Supplemental Appropriation................................................................................3
FY2009 Request........................................................................................................................4
House and Senate Action on FY2009 ATF Budget...................................................................4
Firearms Budget Program.........................................................................................................5
Violent Crime and Gangs....................................................................................................5
Compliance Inspections of Licensed Gun Dealers.............................................................6
Project Gunrunner...............................................................................................................7
Arson and Explosives Budget Program....................................................................................9
Alcohol and Tobacco Budget Program.....................................................................................9
Table 1. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Appropriations for
Salaries and Expenses, FY1999-FY2008.....................................................................................2
Author Contact Information..........................................................................................................10

his report provides an overview of the Bureau of Alcohol, Tobacco, Firearms and
Explosives (ATF) budget and operations, with a focus on the Administration’s FY2009
budget request for ATF. It will be updated as needed to reflect congressional action on the T

FY2009 Commerce, Justice, Science, and Related Agencies Appropriations bill, the
appropriations bill that includes the ATF account.
Located in the Department of Justice (DOJ), the ATF is the lead federal law enforcement agency
charged with administering and enforcing federal laws related to the manufacture, importation,
and distribution of firearms and explosives. As part of the Homeland Security Act, Congress
transferred ATF’s enforcement and regulatory functions for firearms and explosives to the DOJ ¹
from the Department of the Treasury, adding “explosives” to ATF’s title. ATF is also responsible
for investigating arson cases with a federal nexus, as well as criminal violations of federal laws
governing the manufacture, importation, and distribution of alcohol and tobacco. The regulatory
aspects of those alcohol and tobacco laws are the domain of the Tax and Trade Bureau (TTB), ²
which was established at Treasury following ATF’s transfer to DOJ.
As a law enforcement agency within the DOJ, ATF’s first priority is preventing terrorist attacks ³
within the United States. ATF is responsible for countering the illegal use and trafficking of
firearms and explosives, and the criminal diversion of alcohol and tobacco products as an illegal
source of funding for terrorist activities. In criminal investigations, ATF agents have reportedly
uncovered foreign terrorists and their supporters bootlegging cigarettes as part of larger terrorist-⁴
financing operations in the United States. With those responsibilities, ATF special agents are ⁵
partners on DOJ’s Joint Terrorism Task Forces.
As shown below, however, the lion’s share of ATF’s resources are allocated to its firearms
compliance and investigations program. While the ATF periodically checks the records of
federally licensed gun dealers, the major focus of the firearms program is the reduction of
firearms-related violence.

¹^P^.^L.¹⁰⁷^-²⁹^6,¹¹^{6 S}^t^at^{. 21}³⁵^.
²^A^T^{F w}^a^s^or^ig^ina^lly^e^s^t^a^blis^he^{d a}^s^a^s^e^pa^r^a^te^bur^e^a^uⁱⁿ^the^D^e^pa^r^t^m^e^{nt of}^the^T^r^e^a^s^ur^y⁽^D^OT⁾^{in 19}⁷²^by^T^r^e^a^s^ur^y
^Dep^a^rtmen^t^Ord^e^{r No}^.¹²⁰^-¹^.^W^h^{ile AT}^{F traces its o}^r^igⁱⁿ^{s b}^ack^to^t^h^{e f}ⁱ^{rst f}^e^d^e^{ral ta}^x^oⁿ^dⁱ^st^illed^s^pⁱ^r^{its in}¹⁷⁹¹^{, its}
^fⁱ^re^a^r^m^r^e^g^u^la^tor^y^re^s^pons^ibil^itie^s^c^aⁿ^la^rg^e^l^y^be^tr^aced^b^{ack t}^o^t^h^e¹⁹³⁴^Natⁱ^oⁿ^a^l^Fⁱ^rearm^s^Act^(NF^A^).^A^s^t^h^{e NF}^Aⁱ^s
^e^sse^ntia^ll^y^a^ta^x^la^w^,^{it w}^a^{s a}^d^mⁱ^niste^r^e^dⁱⁿ^itia^lly^by^the^De^pa^rt^m^e^{nt of}^the^T^r^e^a^s^ury^’^{s Bure}^a^u^of^Inte^rna^l^Re^v^e^nue
⁽^B^I^R⁾^a^{nd i}^t^s^Mis^c^e^lla^ne^o^u^s^T^a^x^Uⁿ^{it. I}ⁿ¹⁹⁴²^,^the^fⁱ^r^e^a^r^m^eⁿ^f^o^r^c^em^eⁿ^{t dut}^ie^s^w^e^r^e^tr^aⁿ^sf^e^r^r^e^{d to B}^I^R^’^s^A^l^c^{ohol T}^a^x
^Uⁿ^{it (}^A^T^U⁾^.^Iⁿ¹⁹^52,^the^B^I^R^w^a^s^r^e^or^g^a^niz^e^d^a^{nd r}^e^na^m^e^{d the}^Iⁿ^t^e^rⁿ^a^l^R^e^v^e^nue^Se^r^v^ic^e⁽^I^R^S)^a^nd^the^fⁱ^r^e^a^r^m^a^nd
^t^o^b^acco^p^r^o^g^ram^s^w^e^r^e^t^r^an^sferre^d^t^o^A^T^U,^w^hⁱ^c^h^{was ren}^a^m^e^d^,^t^h^{e A}^l^c^{ohol a}ⁿ^d^T^ob^acco^T^a^{x Di}^vi^sⁱ^oⁿ^(A^T^T^D).
^Foll^ow^ing^the^G^{un C}^oⁿ^t^r^o^l^A^c^{t of}¹⁹^68,^the^A^T^TD^w^a^s^gⁱ^v^e^{n r}^e^s^pons^ibili^ty^f^o^r^e^x^plos^iv^e^s^a^s^w^e^{ll, a}^{nd w}^a^s^r^e^nam^e^d
^the^A^l^c^{ohol, T}^o^b^acco^an^d^Fⁱ^{rearms Di}^vi^si^oⁿ^(A^T^F^D).^S^ee^G^e^o^r^g^e^T^h^o^m^{as Ku}^ri^an^,^E^dⁱ^t^o^rⁱⁿ^Chⁱ^e^f^,^{A H}ⁱ^s^t^or^ic^{al G}^u^ide
^t^o^t^h^{e U.}^S^.^Go^vern^m^en^t^,^Vic^k^{i H}^e^r^r^m^a^{nn, “}^A^lc^{ohol, T}^o^b^acco^an^d^Fⁱ^rear^m^s^,^Bu^reau^o^f^,^”^(Ne^w^Yo^rk,¹⁹⁹⁸⁾^,^pp^.³⁹^-⁴¹^.
³^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^O^f^fⁱ^c^e^of^the^A^ttorⁿ^ey^G^e^ne^r^a^l,^Ste^w^a^r^ds^{of t}^h^e^Am^e^r^ic^an^D^r^e^a^m^:^FY²⁰⁰⁷^—FY²⁰¹²
^Str^a^te^gic^Plaⁿ^,^avai^l^a^b^l^{e at}^ht^t^p^:^/^/^www^.^u^sd^o^j^.^g^o^v^/^j^m^d^/^m^p^s/^st^rat^e^gi^c2⁰⁰⁷^-²⁰¹²^/ⁱⁿ^d^e^x.^h^t^m^l^,^l^a^st^acce^ssed^oⁿ^M^a^y¹³^,
²⁰⁰^8.
⁴^Sa^{ri Horw}^itz^{, “}^C^ig^a^r^e^tte^S^m^ug^g^lⁱⁿ^g^Lⁱ^nk^e^d^{to T}^e^rrorism^,”^Wa^shⁱⁿ^g^t^on^P^o^st^{, J}^u^ne⁸^,²⁰⁰⁴^,^{p. A}¹^.
⁵^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^O^f^fⁱ^c^e^of^the^Iⁿ^s^p^e^c^t^or^G^e^ne^r^a^l,^T^h^e^Dep^a^r^t^m^en^t^of^Ju^stⁱ^{ce’s T}^e^rro^ri^s^m^T^a^{sk F}^o^rces^{, I-}
²⁰⁰^5-⁰⁰^{7, J}^u^ne²⁰⁰⁵^.

From FY1999 to FY2008, Congress increased ATF appropriations from $541.6 million to nearly
$1.008 billion, an increase of 86%. The FY2008 funding includes $984.1 million for salaries and
expenses and $23.5 million for construction. Congress appropriated the latter amount for the
construction of an ATF National Center for Explosives Training and Research. As Table 1 shows,
for the same 10 years, with some fluctuation, ATF staffing increased from 3,969 to 4,880 FTE ⁶
positions, a 23% increase. Of the $984.1 million appropriated for FY2008 for salaries and
expenses, DOJ budget documents indicate that the Administration plans to allocate the following
amounts to ATF’s three budget decision units:
• $708.6 million (72%) towards firearms compliance and investigations,
• $255.9 million (26%) towards arson and explosives investigations, and
• $19.7 million (2%) towards alcohol and tobacco diversion efforts.⁷
• The acting ATF Director, Michael Sullivan, recently testified before Congress
that the ATF is currently operating under a $37 million shortfall for FY2008, as
funding for salaries and expenses was not increased for this fiscal year when ⁸
compared to FY2007.
Table 1. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Appropriations
for Salaries and Expenses, FY1999-FY2008
^{Salaries and Expenses}
^Fiscal^Appr^opriation^{Full-Time Equivalent (FTE)}^a^Permanent
^Year^{(in $000)}^Positions^Positions
¹⁹⁹^{9 $54}^1,57⁴^3,96⁹^N/A
²⁰⁰^{0 $56}^5,95⁹^4,22¹^4,49²
²⁰⁰^{1 $77}^1,14³^4,64³^5,04⁹
²⁰⁰^{2 $82}^3,31⁶^5,02⁹^5,14³
²⁰⁰^{3 $82}^6,80¹^5,11¹^5,23¹
²⁰⁰^{4 $82}^7,28⁹^4,73⁵^b^4,86²^b
²⁰⁰^{5 $87}^8,46⁵^4,88⁵^5,07³
²⁰⁰^{6 $91}^1,81⁷^5,04⁰^5,12⁸
²⁰⁰^{7 $98}^4,09⁷^5,05³^5,12⁸
²⁰⁰^{8 $98}^4,09⁷^c^4,88⁰^d^4,95⁶^d

⁶^T^h^e^s^e^s^t^affⁱ^ng^am^ounts^d^oⁿ^o^{t re}^f^l^e^c^t^F^T^{E pos}^iti^ons^prov^ide^d^f^o^{r l}^a^w^eⁿ^f^o^rc^em^eⁿ^{t a}^v^a^ila^bility^pay⁽^L^E^A^P⁾^,^ov^e^r^tim^e
^pa^y^,^or^FT^{E pos}^iti^ons^f^uⁿ^d^e^d^w^{ith r}^e^im^bur^s^a^ble^r^e^s^our^c^e^s^.
⁷^D^u^e^{to r}^o^uⁿ^dⁱ^ng^{, t}^h^e^s^e^a^m^ounts^do^not^tota^l^pre^cⁱ^s^e^ly^{to $9}^84.^{1 m}^illio^{n. U}^.^{S. D}^e^pa^rtm^e^{nt of}^J^u^s^tic^e^,^Bure^a^u^of
^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^x^p^l^o^sⁱ^v^es,^Coⁿ^g^ressi^oⁿ^a^l^B^u^d^g^e^t^S^u^b^mⁱ^ssi^oⁿ^,^Fⁱ^scal^{Year 2}⁰⁰⁹^,⁽^F^eb^ru^ary²⁰⁰⁸⁾^,
^Ex^{hibit B}^—^Sum^m^a^r^y^o^f^R^e^quir^e^m^e^nts^.
⁸^C^ong^r^e^s^sⁱ^ona^{l Q}^u^a^r^te^r^l^y^,^T^r^aⁿ^s^c^rⁱ^pt^of^the^“^H^ous^e^A^ppr^o^p^rⁱ^a^tio^ns^Subc^om^m^itte^e^{on C}^o^m^m^e^r^c^e^,^J^u^s^tic^e^,^Sc^ie^nc^e^,^a^nd
^R^e^la^te^{d A}^g^eⁿ^cⁱ^e^s^H^o^lds^H^e^a^r^ing^{on t}^h^e^Fis^c^a^l²⁰⁰⁹^B^udg^e^t^f^o^r^the^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^aⁿ^d^Fⁱ^rearms,^”^A^p^ri^l⁹^,
²⁰⁰^8.

^Source:^{CRS prese}^{ntation of ATF funding a}^{nd staffing data}^preseⁿ^{ted in Departme}^{nt of J}^{ustice b}^udget
^{submissions to Congres}^{s for FY2}^003-FY2⁰⁰^9.
^a.^{A full-time equivalent (FTE) position repr}^esents^{the amo}^{unt of}^fuⁿ^{ding necessary}^{to provide for a si}^ngle
^{position for an entire y}^{ear. Not a}^{ll positi}^{ons (new, temporary, and}^{part-time) are f}^{ully funded for t}^h^e^entire
^{year. New positions, for exam}^{ple, are often pa}^{rtially funded, as suc}^{h positions are filled incrementally and at}
^{some point during t}^{he fiscal year.}^{Hence, t}^{hey do not re}^{quire f}^{ull funding for t}^{he first}^year.
^b.^{The decrease of}³⁷^{6 FTE positions and}³⁶^{9 pe}^rmane^nt^{positions for FY200}^{4, as compared with}^FY200^3,
^{reflects the}^fu^{nding that}^remaine^{d at the Depart}^{ment of t}^{he Treas}^{ury for t}^{he r}^{egulatory compone}ⁿ^{ts of}
^{ATF, which were designated the}^{Trade and Tax Burea}^{u, whe}^{n the}^{ATF enforcement}^compone^{nts w}^ere
^transfe^{rred to the De}^partme^{nt of}^{Justice as t}^{he Bu}^{reau of Alcohol, Tobacco, Firearms and Ex}^plosives,
^purs^uant^{to the Homeland Sec}^uri^{ty Act (P.L. 107-2}^96).
^c.^{For FY2008, Congre}^{ss also app}^{ropriated $2}^{3.5 million for an ATF construction ac}^count.
^d.^{The decrease of}¹⁷^{3 FTE positions and}¹⁷^{2 pe}^rmane^nt^{positions for FY200}^{8, as compared with}^FY200^7,
^{reflects adjustment}^{s to base a}^nd^{other tech}^{nical adjustments to t}^h^e^{ATF budget that}^{were made to}
^{eliminate “holl}^{ow” or “unfu}^nded”^positions.
Since its transfer to the DOJ in FY2003, ATF has also reported permanent positions, in addition
to FTE positions. The FY2008 appropriation provides for 4,956 permanent positions, including

2,428 special agents, 773 industry operations investigators (formerly inspectors) and investigative ⁹

research specialists, and 1,755 “other” positions.
The Supplemental Appropriations Act, 2008 (P.L. 110-252; H.R. 2642), includes $4 million for ¹⁰
ATF operations in Iraq (H.R. 2642). According to DOJ, ATF is establishing an attache office in ¹¹
the U.S. Embassy in Baghdad. This office is charged with a threefold mission to
• create an Iraq Weapons Investigation Cell to investigate and account for U.S.
government-issued munitions;
• establish an ATF Combined Explosives Cell, which will seek to identify the
source countries for explosives recovered in Iraq; and
• engage in targeted investigations of cigarette theft and other diverted contraband ¹²
throughout the country.
Since December 2003, ATF has also been providing post-blast explosives investigative training to ¹³
Iraqi police forces.
A previous Senate-passed version of H.R. 2642 also included $15 million for “Project
Gunrunner,” an initiative to suppress cross-border gun trafficking from the United States to
Mexico, which is described in greater detail below. This funding was not included in the enacted
supplemental appropriation, however.

⁹^Ibid^{., Ex}^hⁱ^bit^I—De^ta^{il of}^P^e^rm^aⁿ^eⁿ^t^Positi^ons^by^Ca^te^g^o^r^y^.
¹⁰^For^f^u^r^t^he^r^inf^o^r^m^a^{tion, s}^e^e^C^R^S^R^e^por^{t R}^L³⁴⁴⁵^1,^FY2⁰⁰⁸^Sprⁱⁿ^g^Su^pple^m^eⁿ^t^a^{l A}^ppr^oprⁱ^a^tio^ns^an^{d FY}²⁰⁰⁹^Br^id^ge
^Appro^p^ria^tio^{ns for}^M^ilitary^Ope^r^a^tio^{ns, I}ⁿ^te^rnat^io^nal^Aff^a^{irs, a}ⁿ^d^Othe^{r Purp}^ose^s⁽^P^{.L. 1}^10-²⁵²⁾^,^b^y^Ste^phe^{n D}^a^g^g^e^tt
^et^al^.
¹¹^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^“^F^a^c^t^She^e^{t: D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^Ef^f^o^r^t^sⁱⁿ^I^r^a^q,”^Fe^br^ua^r^y^13,²⁰^08.
¹²^Ibid^.
¹³^Ibid^.

For FY2009, the Administration has requested $1.028 billion and 4,942 FTE positions for ATF, or
$44 million and 62 FTE positions more than the amounts appropriated for FY2008 ($984 ¹⁴¹⁵
million). Of the difference, $42.8 million and 56 FTE positions are base adjustments. For
Southwest border enforcement, the FY2009 request includes a budget enhancement of $948
thousand and 6 FTE positions (12 permanent positions). According to ATF, the FY2009 request
would be allocated among ATF budget decision units in the following amounts:
• $740 million (72%) for firearms compliance and investigations,
• $267.2 million (26%) for arson and explosives investigations, and
• $20.6 million (2%) for alcohol and tobacco diversion.¹⁶
The FY2009 budget request would provide funding for 4,978 permanent positions, including

2,428 special agents, 785 industry operations investigator and investigative research specialists, ¹⁷

and 1,765 other positions.
The Administration budget request includes increases for specific purposes by decision unit. The
Southwest border enforcement increase mentioned above is the only requested ATF budget
enhancement for FY2009. Although Congress does not appropriate monies for the ATF (or any
other DOJ agency) by decision unit, the appropriators often address whether such increases are to
be provided in report language and more rarely in the bill language for the salaries and expenses
account itself. As a consequence, the requested amounts for decision units are binding in the
sense that the appropriators are aware of the increases that were provided for and how they would
affect the decision unit totals. In addition, if funding is shifted from one decision unit to another,
statutory budget reprogramming requirements are usually triggered, under which the DOJ and its
agencies are required to notify and seek the approval of the Appropriations Committees. ATF
budget decision units, or budget programs, are described in greater detail below.
On June 25, 2008, the House Appropriations Committee approved a draft FY2009 Commerce,
Justice, Science, and Related Agencies (CJS) appropriations bill that would provide $1,054.2

¹⁴^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁹^,⁽^F^e^b^r^u^a^r^y²⁰⁰⁸⁾^,^Ex^hi^{bit B}^—^S^u^m^m^a^r^y^of^R^e^quir^e^m^e^nts^.
¹⁵^F^o^{r m}^o^st^{DOJ agen}^ci^es,^t^h^{e cu}^rren^t^A^d^mⁱⁿⁱ^st^ratⁱ^oⁿ^h^a^s^o^f^t^eⁿ^m^a^d^e^“b^{ase ad}^j^u^st^m^eⁿ^t^{s” t}^o^t^h^{e nu}^m^b^{er o}^f^F^T^E^an^d
^pe^rm^aⁿ^eⁿ^{t positio}^{ns t}^h^a^t^w^e^re^c^onside^r^e^d^“^a^u^t^horiz^e^d^”^(f^un^de^d^or^a^ppro^p^ria^t^e^d^f^o^{r) a}^s^pa^rt^of^e^s^tim^a^ting^aⁿ^a^g^eⁿ^c^y^’^s
^ba^s^e^budg^e^t^{. T}^h^e^ba^s^e^b^udg^e^t^e^s^s^e^ntia^lly^r^e^pr^e^s^eⁿ^ts^aⁿ^e^s^ti^m^a^te^{d le}^v^e^{l of}^r^e^s^our^c^e^s^tha^t^aⁿ^a^g^eⁿ^cy^w^oul^{d ne}^e^d^to
^pr^ov^ide^t^h^e^aⁿ^ticⁱ^p^a^t^e^d^le^v^e^{l of}^s^e^r^v^ic^e^s^f^o^r^the^c^u^r^r^e^{nt f}ⁱ^s^c^a^l^y^e^a^r^{in the}^ne^x^t^fⁱ^s^c^a^l^y^e^a^r^{. I}ⁿ^the^pa^s^t^,^ba^s^e^budg^e^t^s^dⁱ^d
^not^inc^l^u^d^e^a^d^j^u^stm^e^{nts to the}^nu^m^b^e^r^of^pe^r^m^aⁿ^eⁿ^{t p}^o^s^itio^{ns, a}ⁿ^d^theⁿ^u^m^b^e^r^of^“^a^u^t^horiz^e^d^”^pe^rm^aⁿ^eⁿ^{t p}^o^siti^ons
^w^a^s^g^e^ne^r^a^ll^y^s^t^a^tic^{, unle}^s^s^c^h^aⁿ^g^e^{d by}^C^ong^r^e^s^s^by^inc^r^e^a^s^ing^or^de^c^r^e^a^s^ing^f^unding^a^s^s^o^cⁱ^a^t^e^d^w^ith^thos^e^pos^iti^ons^.
^A^s^ha^ppe^ne^{d in}^the^FY²⁰⁰⁸^b^udg^e^t^cy^c^l^e^,^the^A^d^mⁱ^nis^t^r^a^tion^ha^s^p^e^rⁱ^odic^a^lly⁽^a^{bout e}^v^e^r^y^{10 y}^e^a^r^s⁾^pr^o^pos^e^d
^e^lim^ina^ting^“^hollow^”^positi^ons,^f^o^{r w}^h^ic^{h the}^m^odu^la^{r c}^o^sts^aⁿ^{d u}^nde^r^l^yⁱ^ng^a^s^s^u^m^p^tions^a^r^eⁿ^o^l^oⁿ^g^e^r^s^u^f^f^ic^ie^{nt to}
^f^{und th}^os^e^p^o^s^itio^ns^{. A}^u^th^oriz^e^d^{or f}^unde^d^p^o^s^iti^ons^a^r^e^g^e^ne^ra^lly^dis^p^la^y^e^{d by}^{job s}^e^rie^s^{in a}^“^T^a^b^le^of^O^r^g^a^niz^a^tion”
^{in t}^h^e^a^g^eⁿ^cy^’^s^budg^e^t^s^ubm^is^sⁱ^ons^{to C}^ong^r^e^s^s^.
¹⁶^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁹^,⁽^F^e^b^r^u^a^r^y²⁰⁰⁸⁾^,^Ex^hi^{bit B}^—^S^u^m^m^a^r^y^of^R^e^quir^e^m^e^nts^.
¹⁷^Ibid^{., Ex}^hⁱ^bit^I—De^ta^{il of}^P^e^rm^aⁿ^eⁿ^t^Positi^ons^by^Ca^te^g^o^r^y^.

million for ATF, $70 million (4.6%) more than the FY2008 enacted level (including $23.5 million
for construction) and $26 million (2.6%) more than the FY2009 request. House draft report
language indicated that the House bill would provide an increase of $5 million for “Project
Gunrunner,” a Southwest border initiative to reduce illegal gun trafficking from the United States
to Mexico.
On June 19, 2008, the Senate Appropriations Committee reported a bill (S. 3182; S.Rept. 110-
397) that would provide $1,042.8 million, $35 million (3.5%) more than the FY2008 enacted
level and $15 million (1.5%) over the FY2009 request. Senate report language indicated that the
Senate bill would provide an increase of $15 million to expand ATF’s Violent Crime Impact
Teams (described below).
Both House draft and Senate report language expressed the Appropriations Committees’
continued support of ATF’s National Integrated Ballistic Information Network (NIBIN). Through
NIBIN, federal, state, and local law enforcement agencies are able to image markings on bullets
and cartridge cases and compare crime firearms evidence. The FY2006 budget for NIBIN was
$22.8 million.
ATF’s firearms budget program funds activities related to administering and enforcing federal
laws related to the manufacture, importation, and distribution of firearms. The principal focus of
ATF’s firearms-related activities, however, is the reduction of firearms-related violence. As part
of this focus, the ATF has dedicated increased resources in recent years toward investigating the
criminal activities of violent street gangs, ensuring that federally licensed gun dealers comply
with the law, and suppressing gun trafficking.
As a full partner in the President’s Project Safe Neighborhoods (PSN), which was initiated in
FY2001, ATF has joined with DOJ attorneys and other federal law enforcement agencies, along
with state, local, and tribal authorities, to investigate and prosecute offenders, with a particular
focus on armed violent and career criminals. ATF also leads the Attorney General’s Violent Crime ¹⁸
Impact Teams (VCITs) in 29 cities in an effort to reduce the number of homicides and other ¹⁹
violent crimes committed with firearms. According to ATF, the VCITs assist state and local
authorities by
• systematically investigating all firearms-related leads;
• responding to all street recoveries of firearms and interviewing those involved to
determine the source of the firearms;

¹⁸^T^hos^e^c^itie^s^a^r^e^A^l^buque^rq^ue^{, N}^M^{; A}^tla^nta^,^G^A^{; Ba}^lti^m^o^re^{, MD}^;^Ba^{ton R}^oug^e^,^L^A^{; Bir}^m^ing^h^am^{, A}^L^{; Cam}^d^eⁿ^{, N}^J^;
^C^o^lum^bus^{, O}^H^;^Fr^e^sⁿ^o^{, C}^A^{; G}^r^ee^ns^bor^{o, N}^C^{; H}^a^r^t^f^o^r^d^,^C^T^{; H}^ous^{ton a}^{nd L}^a^r^e^{do, T}^X^{; L}^a^s^Ve^g^a^s^,^N^V^{; L}^o^s^Aⁿ^g^e^le^s^,
^C^A^{; Me}^s^a^,^A^Z^{; Mia}^m^{i, FL}^{; Milw}^a^u^k^e^e^,^W^I^{; Minne}^a^polis^{, MN}^{; N}^e^w^O^r^le^aⁿ^s^,^LA^{; O}^r^la^ndo,^FL^;^P^h^il^a^d^e^l^phia^aⁿ^d
^Pⁱ^tts^b^u^r^g^h,^P^A^{; R}ⁱ^c^h^m^ond,^VA^{; S}^a^{n B}^e^rⁿ^a^dⁱ^no,^C^A^{; Sa}^{n J}^u^aⁿ^,^PR^;^T^a^m^p^a^,^FL^;^T^u^c^s^{on, A}^Z^{; T}^u^ls^a^,^O^K^;^a^nd
^W^a^s^h^ing^t^{on, D}^.^C^.
¹⁹^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^aⁿ^d^Fⁱ^re^ar^m^s^,^“^A^T^F^F^act^S^h^eet^:^A^T^F^-^L^e^d^Vⁱ^o^l^en^t^Cri^m^e
^Im^pa^c^t^T^e^a^m^{s Initia}^tiv^e^,^”^Ma^y²⁰^07.

• targeting and investigating violent and career criminals, and removing them from
the streets;
• infiltrating criminal groups through undercover operations and confidential
informants;
• tracing all recovered guns used in crime to determine their origin;
• imaging and storing all ballistic evidence in the National Integrated Ballistic
Information Network (NIBIN); and
• inspecting and, when appropriate, investigating corrupt federal firearms ²⁰
licensees.
Under the VCIT initiative, defendants referred by ATF for prosecution in gang-related
investigations have increased from 403 in FY2000 to 4,381 in FY2007, nearly a tenfold ²¹
increase.
ATF inspects federal firearms licensees (FFLs) to monitor their compliance with the Gun Control ²²
Act (GCA) and to prevent the diversion of firearms from legal to illegal channels of commerce.
In the past, despite its crime-fighting mission, ATF’s business relationships with the firearms
industry and larger gun-owning community have been a perennial source of tension, which from ²³
time to time has been the subject of congressional oversight. Nevertheless, under current law,
ATF Special Agents and Industry Operations Inspectors are authorized to inspect or examine the ²⁴
inventory and records of an FFL without search warrants under three scenarios:
• in the course of a reasonable inquiry during the course of a criminal investigation
of a person or persons other than the FFL;
• to ensure compliance with the record keeping requirements of the GCA—not
more than once during any 12-month period, or at any time with respect to
records relating to a firearm involved in a criminal investigation that is traced to
the licensee; or

²⁰^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁷⁽^F^e^b^r^u^a^r^y²⁰⁰⁶⁾^,^p^.⁴⁷^.
²¹^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁹⁽^F^e^b^r^u^a^r^y²⁰⁰⁸⁾^,^p^.²²^.
²²^{18 U}^.^S.C^.^C^h^a^p^te^r⁴⁴^{, §}⁹²¹^e^t^s^e^q.
²³^F^o^{r exam}^p^l^e,ⁱⁿ^t^h^e¹⁰⁹^th^Cong^re^{ss, the}^Ho^use^Judicⁱ^a^r^y^Cri^m^e^subc^om^m^itte^e^he^{ld tw}^{o ov}^e^r^sig^h^{t he}^a^r^ing^s^e^x^a^m^ining
^A^T^{F f}ⁱ^r^e^a^r^m^s^eⁿ^f^o^r^c^em^eⁿ^{t ope}^r^a^tⁱ^ons^a^t^g^uⁿ^s^h^ow^s^{in R}ⁱ^c^h^m^ond,^Vir^g^inia^,ⁱⁿ²⁰⁰⁵^{. A}^T^{F a}^g^eⁿ^ts^r^e^por^te^dly^pr^ov^ide^d
^s^t^a^t^e^a^{nd loc}^a^l^la^w^eⁿ^f^o^r^c^em^eⁿ^{t of}^fⁱ^c^e^r^s^w^{ith c}^onf^ideⁿ^tia^{l inf}^o^r^m^a^{tion f}^r^om^ba^c^k^g^r^{ound c}^h^e^c^k^f^o^r^m^s⁽^A^T^F^For^m
⁴⁴⁷^3s⁾^,^s^o^t^h^a^t^th^os^e^of^fⁱ^c^e^r^s^c^oul^{d pe}^r^f^or^m^r^e^sⁱ^de^ncy^c^h^e^c^k^s^{on pe}^r^s^ons^w^{ho ha}^{d o}^t^he^r^w^is^e^le^g^a^ll^y^p^u^r^c^ha^s^e^{d f}ⁱ^r^e^a^r^m^s
^a^t^thos^e^g^uⁿ^s^h^ow^s^.^Q^u^e^s^tions^w^e^r^e^a^l^s^o^r^a^is^e^d^a^s^{to w}^h^e^t^he^r^A^T^F^a^g^eⁿ^ts^ha^{d pr}^of^ile^{d g}^un^pur^c^h^a^s^e^r^s^a^t^thos^e^g^uⁿ
^sh^o^w^{s o}ⁿ^t^h^{e b}^a^{sis o}^f^{race, eth}ⁿⁱ^c^ity^{, an}^d^g^eⁿ^d^e^{r. See U.}^S.^Coⁿ^g^res^s^{, Ho}^u^s^{e o}^f^Rep^r^esen^tativ^{es, Co}^mm^{ittee o}ⁿ^th^e
^J^udicⁱ^a^r^y^,^Subc^om^m^itte^e^{on C}^r^im^e^,^T^e^r^r^o^rⁱ^sm^{, a}^{nd H}^o^m^e^la^{nd Se}^c^u^r^ity^,^O^v^er^sⁱ^{ght H}^e^arⁱⁿ^g^{on t}^h^e^B^u^r^e^{au of}^Alc^o^hol^,
^To^b^a^cco^{, F}ⁱ^rea^r^{ms, a}ⁿ^d^Ex^p^l^o^s^iv^{es (}^{BATFE) Pa}^{rts I &}^{II: Gu}ⁿ^S^h^o^w^En^fo^rcemen^t^{, Fe}^br^ua^r^y^{15 a}ⁿ^d^28,²⁰⁰⁶^{. A}^l^s^o^s^e^e
^D^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^O^f^fⁱ^c^e^of^t^h^e^Iⁿ^s^p^e^c^t^or^G^e^ne^r^a^l,^The^Bur^e^a^u^{of Alc}^o^h^o^l,^To^bac^c^o^,^Fir^e^ar^m^s^a^{nd Ex}^plos^iv^e^s^’
^Iⁿ^v^e^s^tigativ^e^O^p^e^r^a^tio^ns^at^G^u^{n S}^how^s^{, I}^-²⁰^07-⁰⁰^{7, J}^une²⁰^07.
²⁴^{18 U}^.^S.C^.^§⁹²³⁽^g⁾⁽¹⁾⁽^B⁾^.

• when such an inspection or examination is required for determining the
disposition of one or more firearms in the course of a criminal investigation.
In July 2004, the DOJ Office of Inspector General (OIG) reported on ATF inspections of FFLs.
Among other things, the OIG reported that ATF inspected the operations of 4.5% of the 104,000 ²⁵
FFLs in FY2002. According to ATF, 10,106 firearms compliance inspections were conducted in ²⁶
FY2007, covering about 9.3% of the nearly 109,000 FFLs in that fiscal year.
On the Southwest border with Mexico, firearms violence has reportedly spiked sharply in recent
years as drug trafficking organizations (DTOs) have competed for control of key smuggling ²⁷
corridors into the United States. Beginning in December 2006, Mexican President Felipe
Calderón responded by deploying elements of the Mexican Army and federal police to trouble ²⁸
spots around Mexico, including on the northern frontier. The DTO’s, however, are reportedly
buying semiautomatic versions of AK-47 and AR-15-style assault rifles, other military style ²⁹
firearms, and .50 caliber sniper rifles in the United States. With those rifles and other small
arms, the DTOs are reportedly achieving parity in terms of firepower in shootouts with the ³⁰
Mexican Army and law enforcement. In March 2008, President Calderón called upon the United ³¹
States to increase its efforts to suppress the flow of U.S. firearms into Mexico.
ATF reports that there are 6,647 FFLs in the United States operating in the Southwest border ³²
region of Texas, New Mexico, Arizona, and California. Moreover, DTOs are increasingly
sending surrogates (straw purchasers) across the border to buy 10 to 20 military-style firearms at ³³
a time from FFLs. The firearms are reportedly routinely smuggled into Mexico in smaller ³⁴
shipments of four or five firearms as part of a process known as the “ant run.”
During FY2006 and FY2007, ATF dedicated approximately 100 special agents and 25 industry
operations investigators to a Southwest border initiative known as “Project Gunrunner” to disrupt
the illegal flow of guns from the United States to Mexico. In FY2007, ATF agents investigated ³⁵
187 firearms trafficking cases and recommended 465 defendants for prosecution. By the end of

²⁵^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^O^f^fⁱ^c^e^of^the^Iⁿ^s^p^e^c^t^or^G^e^ne^r^a^l,^Iⁿ^s^p^e^c^tions^{of Fir}^e^ar^m^s^D^e^ale^r^s^by^t^h^e^Bur^e^au^of
^Alc^o^h^o^{l, T}^o^b^a^c^c^o^,^Fir^e^ar^m^s^an^d^Ex^plos^iv^e^s^{, R}^e^por^{t N}^u^m^b^e^r^I^-²⁰⁰⁴^-⁰^05,⁽^J^uly²⁰⁰⁴⁾^,^{p. x}ⁱ^.
²⁶^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁸^,⁽^F^e^b^r^u^a^r^y²⁰⁰⁷⁾^,^p.²⁹^.
²⁷^A^nna^Gⁱ^l^m^our^{, “}^G^ulf^W^a^r^—^P^r^e^s^s^u^r^e^Mo^unts^on^Me^xⁱ^c^o^’^s^G^u^lf^C^a^r^t^e^l^,”^Jaⁿ^e^{’s In}^t^e^l^lⁱ^g^eⁿ^{ce R}^evi^ew^,^Dece^m^b^{er 3}^,
²⁰⁰^7.
²⁸^Ibid^.
²⁹^Sa^ra^Mille^{r L}^l^aⁿ^a^,^“^U^{S G}^{uns A}^r^m^Me^xⁱ^c^o^{’s Drug}^W^a^rs,”^C^h^rⁱ^s^tⁱ^{an Sc}^ie^nc^e^M^onit^o^r^,^Jul^y¹⁹^,²⁰⁰⁷^,^p.^1.
³⁰^{Oscar Becer}^a,^“Fⁱ^rⁱⁿ^{g L}ⁱⁿ^e^—T^ra^ckiⁿ^{g M}^e^xi^co^{’s Il}^l^e^gal^W^ea^pons^,”^Jaⁿ^e^{’s In}^t^e^l^lⁱ^g^eⁿ^{ce R}^evi^ew^{, A}^p^r^{il 2}⁸^,²⁰^08.
³¹^Ibid^.
³²^A^T^{F br}^ie^fⁱ^ng^pr^ov^ide^d^t^o^C^R^S^oⁿ^Ma^y^{5, 20}⁰⁸^.
³³^S^t^raw^p^u^r^ch^{ases o}^ccu^{r w}^h^en^gu^{ns are p}^u^r^ch^ased^f^r^o^m^lⁱ^cen^sed^guⁿ^d^eal^{ers b}^y^elⁱ^gⁱ^b^l^e^p^e^rsoⁿ^s^an^{d t}^h^en^kn^o^wⁱⁿ^gl^y
^traⁿ^s^f^e^rre^{d to pro}^hⁱ^b^ite^d^pe^rs^ons^.^Stra^w^purc^h^a^s^e^s^a^r^e^ille^g^a^{l unde}^r^U^.^{S. la}^w^{(18 U}^.^S^.^C.^{§ 9}^24(a⁾⁽¹⁾⁽^A^)).
³⁴^{Oscar Becer}^a,^“Fⁱ^rⁱⁿ^{g L}ⁱⁿ^e^—T^ra^ckiⁿ^{g M}^e^xi^co^{’s Il}^l^e^gal^W^ea^pons^,”^Jaⁿ^e^{’s In}^t^e^l^lⁱ^g^eⁿ^{ce R}^evi^ew^{, A}^p^r^{il 2}⁸^,²⁰^08.
³⁵^Sta^t^e^m^eⁿ^{t of}^W^illiam^H^oov^e^r^,^A^s^sⁱ^s^t^aⁿ^{t D}ⁱ^re^c^t^{or f}^o^{r Fie}^l^d^O^p^e^r^a^tⁱ^ons^{, B}^u^re^a^u^of^A^l^c^ohol,^T^ob^acco^,^Fⁱ^rearm^s^an^d
^Ex^plos^iv^e^s^{, be}^f^o^r^e^the^Su^bc^om^m^itte^e^{on t}^h^e^W^e^s^t^e^r^{n H}^e^mⁱ^s^phe^r^e^{, C}^o^m^m^itte^e^{on For}^e^ig^{n A}^f^f^a^ir^s^,^Hous^e^of
^Re^pre^s^eⁿ^ta^tiv^e^s^{, c}^onc^e^r^ning^“^U^.S^{. Oblig}^a^tio^{ns u}^nde^{r t}^h^e^Mé^ri^da^In^itia^tiv^e^,^”^Fe^brua^ry^{7, 20}⁰⁸^.

FY2008, ATF plans to have 148 special agents and 55 industry operations investigators deployed
to the Southwest border to bolster that initiative at a conservatively estimated cost of $32.2 ³⁶
million.
In addition, the ATF FY2009 budget request includes $948 thousand to fund 12 industry
operations investigator positions to bolster efforts already underway as part of Project ³⁷
Gunrunner. This is the only program increase/budget enhancement in the ATF FY2009 budget
request. As described above, draft report language accompanying the House Appropriations
Committee-approved FY2009 CJS appropriations bill indicates that the House bill includes $5
million for Project Gunrunner. Senate report language accompanying S. 3182 (S.Rept. 110-397),
however, is silent as to whether such an increase would be provided under that bill. The Senate,
however, had included $15 million for Project Gunrunner in the FY2008 supplemental
appropriations bill (H.R. 2642), but that funding was not included in the enacted appropriation
(P.L. 110-252).
ATF also maintains a foreign attache in Mexico City to administer an Electronic Trace
Submission System (ETSS), also known as the eTrace program, for Mexican law enforcement
authorities. From FY2005 through FY2007, ATF traced just over 11,700 firearms recovered by
Mexican authorities, and approximately 90% of those firearms were traced back to the United ³⁸
States. In January 2008, ATF announced that e-Trace technology would be deployed to an
additional nine U.S. consulates in Mexico (Mérida, Juarez, Monterrey, Nogales, Hermosillo, ³⁹
Guadalajara, Tijuana, Matamoros, and Nueva Laredo). The number of traces performed by ATF
for Mexican authorities this fiscal year, FY2008, has increased markedly. For example, from
March 10 to April 9, 2008, ATF has traced nearly 2,000 firearms recovered by Mexican
authorities, as compared with the 11,700 firearms traced over a three-year period, FY2005-⁴⁰
FY2007. Successful firearm traces are instrumental in developing investigative leads in
homicide and gun trafficking cases. According to ATF, some of those cases uncover corrupt FFLs ⁴¹
who are involved in larger criminal conspiracies to smuggle firearms into Mexico.
On May 14, 2008, the House Committee on Foreign Affairs ordered reported the Mérida Initiative
to Combat Illicit Narcotics and Reduce Organized Crime Authorization Act of 2008 (H.R. 6028;
S.Rept. 110-673). This bill would authorize to be appropriated over three years, for FY2008
through FY2010, a total of $73.5 million to increase the number of ATF positions dedicated to
Project Gunrunner ($45 million) and assign ATF agents to Mexico ($28.5 million). The House
passed this bill on June 10, 2008, by a roll call vote of 311 to 106 (Roll no. 393). Similar
authorizations are included in the Southwest Border Violence Reduction Act of 2008 (S. 2867,
H.R. 5863, and H.R. 5869).

³⁶^C^R^S^c^onv^e^r^s^a^tions^w^{ith B}^u^r^e^a^u^of^A^l^c^ohol,^T^ob^acco^,^Fⁱ^rearm^s^an^d^E^x^p^l^o^sⁱ^v^es,^Offⁱ^{ce o}^f^L^e^gi^sl^atⁱ^v^{e Aff}^aⁱ^r^s,^M^a^y
^{14, 20}⁰⁸^.
³⁷^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁹⁽^F^e^b^r^u^a^r^y²⁰⁰⁸⁾^,^Ex^hi^{bit C}^—^Pr^og^r^a^m^Iⁿ^c^r^e^a^s^e^s^/^Of^f^s^e^t^s^by^De^cⁱ^sⁱ^on^Uⁿ^it.
³⁸^A^T^{F br}^ie^fⁱ^ng^pr^ov^ide^d^t^o^C^R^S^oⁿ^Ma^y^{5, 20}⁰⁸^.
³⁹^B^u^r^e^a^u^of^A^l^c^ohol,^T^ob^acco^,^Fⁱ^r^ear^m^s^an^d^E^x^p^l^o^sⁱ^v^es,^Offⁱ^{ce o}^f^P^u^b^lⁱ^c^Aff^aⁱ^r^s,^“^A^T^F^E^x^p^aⁿ^d^s^E^f^f^o^rt^{s t}^o^Co^m^b^at
^I^lle^g^a^{l Flow}^of^Fir^e^a^r^m^s^{to Me}^xⁱ^co,”^J^a^nua^r^y^16,²⁰^08.
⁴⁰^A^T^{F br}^ie^fⁱ^ng^pr^ov^ide^d^t^o^C^R^S^oⁿ^Ma^y^{5, 20}⁰⁸^.
⁴¹^Ibid^.

ATF’s arson and explosives budget program covers activities related to administering and
enforcing federal laws governing the manufacture, importation, and distribution of explosives, as
well as investigating arson cases with a federal nexus. Among law enforcement agencies, the ATF
is recognized for its investigative expertise in responding to both arson and explosive incidents.
The Attorney General (AG), for example, made the ATF responsible for maintaining a
consolidated database of all arson and explosive incidents that occur in the United States.
Reportedly, as part of the department’s law enforcement information-sharing program, this and
other databases are to be linked and made Web-accessible, and first responders anywhere in the
United States are to have access to critical information about arson and explosive cases ⁴²
nationwide.
Congress made ATF responsible for more closely regulating the explosives industry in the United ⁴³
States under the Safe Explosives Act. The Act made ATF responsible for fully investigating all
explosive thefts and losses, as well as providing background checks for licensees and permittees
to prevent prohibited persons from acquiring explosives. This Act also requires ATF to inspect
explosive licensees and permittees every three years to ensure that all explosive materials are
properly stored and accounted for. ATF reports that there are about 12,000 licensees and
permittees nationwide, so that to comply with the Act, about 4,000 inspections would need to be ⁴⁴
conducted by ATF annually. According to ATF, 3,291 explosives compliance inspections were ⁴⁵
conducted in FY2007, or about 28% of licensees/permittees. The FY2009 budget request
includes no new resources for this program, as compared with FY2008.
In March 2005, the DOJ OIG reported that ATF could improve its implementation of the Safe
Explosives Act. The OIG also found “critical deficiencies” in the background check and clearance ⁴⁶
process designed to prevent prohibited persons from gaining access to explosives.
The ATF alcohol and tobacco budget program covers expenses related to agency efforts to
counter a rising trend in the illegal diversion of tobacco products, as well as the illegal movement
of distilled alcohol products. According to the General Accounting Office (now the Government
Accountability Office), the illegal diversion and smuggling of cigarettes in the United States ⁴⁷
results in an unknown but significant loss in tax revenues. In addition, ATF criminal intelligence
indicates that cigarette bootlegging is a lucrative criminal venture that terrorist groups have used

⁴²^T^h^e^Fe^de^r^a^{l B}^u^r^e^a^u^of^Iⁿ^v^e^s^tig^a^{tion r}^e^por^te^dly^c^ontinue^s^t^o^m^a^inta^{in its}^owⁿ^bom^{b da}^ta^c^eⁿ^te^r^de^s^p^ite^the^A^G^’^s
^m^e^m^o^ra^ndum^{. Se}^e^J^e^rr^y^Ma^rk^{on, “}^F^{BI, A}^T^{F Ba}^ttle^f^o^{r Contr}^o^l^of^Ca^s^e^s^:^Coope^ra^tio^{n L}^a^g^s^D^e^s^p^ite^Me^rg^e^r^,”
^Wa^shⁱⁿ^gt^on^Po^st^{, Ma}^y^10,²⁰⁰⁸^,^{p. A}¹^.
⁴³^P^.^L.¹⁰⁷^-²⁹^6,¹¹^{6 S}^t^at^{. 22}⁸⁰^.
⁴⁴^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁷⁽^F^e^b^r^u^a^r^y²⁰⁰⁶⁾^,^p^.⁵³^.
⁴⁵^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^B^u^r^e^a^u^of^A^l^c^{ohol, T}^ob^acco^,^Fⁱ^rearm^s^an^d^E^xpl^o^sⁱ^v^es,^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^udge^t
^Subm^is^sⁱ^on^{, Fis}^c^al^Ye^ar²⁰⁰⁹⁽^F^e^b^r^u^a^r^y²⁰⁰⁸⁾^,^p^.⁴⁸^.
⁴⁶^U^.^{S. D}^e^pa^r^t^m^e^{nt of}^J^u^s^tic^e^,^O^f^fⁱ^c^e^of^the^Iⁿ^s^p^e^c^t^or^G^e^ne^r^a^{l, R}^e^vⁱ^e^w^o^f^the^B^u^r^e^a^u^of^A^l^c^{ohol, T}^o^b^acco^,^Fⁱ^rearms
^a^{nd Ex}^pl^os^iv^e^s^’^I^m^plem^eⁿ^ta^tion^of^the^Sa^f^e^Ex^plos^iv^e^s^A^c^{t, R}^e^por^{t N}^u^m^b^e^r^I^-²⁰⁰^5-⁰⁰⁵^,⁽^M^a^r^c^h²⁰⁰⁵⁾^,^p.³⁷^.
⁴⁷^U^.^{S. G}^e^ne^r^a^{l A}^c^c^ountiⁿ^g^O^f^fⁱ^c^e^,^Cⁱ^gar^e^tte^Sm^ug^gli^ng:^Fe^de^r^a^{l La}^w^Enf^o^r^c^e^m^eⁿ^t^Effor^t^s^an^{d Se}^iz^ur^e^s^Iⁿ^c^r^e^a^sⁱ^ng^,
^GAO-04-6^{41 (}^M^a^y^2004),^p.^7.

and would possibly use in the future to finance their activities.⁴⁸ The FY2009 budget request
includes no new resources for this program, as compared with FY2008.
^W^illia^m^J^.^Kr^o^u^se
^Sp^{ecialist i}ⁿ^Do^m^e^{stic Sec}^u^rⁱ^t^y^an^d^Crⁱ^m^{e P}^o^lic^y
^w^k^rou^s^e^@^crs^.^l^o^c.g^o^v^,^7-²²²⁵

⁴⁸^Ibid^{., p. 7.}