WashingtonWire - 2004-10-25

Congress Rejects Airport Security Fee Add-On
The U.S. Congress rejected a Bush administration proposal to increase by $435 million the airport security fee paid by U.S. airlines, ending the possibility that additional fees would be passed on to travelers this year in the form of higher ticket prices. The measure is part of a $5.1 billion appropriation for the Transportation Security Administration that is included in a larger $32 billion spending bill to fund the Department of Homeland Security in the fiscal year that began Oct. 1. The U.S. Senate gave final approval to the bill Oct. 11, two days after the House voted 386-0 in its favor. The measure was sent to President Bush for his signature.

The airline industry strenuously opposed TSA's request to more than double the airport security fee to $750 million from $315 million, saying it and passengers already annually pay the government more than $2 billion in such levies. Airlines swallow another $1 billion in security-related costs on top of that, according to the Air Transport Association, the industry's lobbying group, and collect $1.7 billion per year from passengers to pay security costs. "As far as we're concerned, it's a new tax and a tax that U.S. carriers will vigorously oppose," said ATA president and CEO James C. May.

The legislation earmarks $5.7 billion for transportation security, including funding for TSA and $662 million for the federal air marshals program, $50 million more than the amount Bush requested. TSA received $508 million more than Bush requested. Its budget includes $2 billion for passenger screening and $1.46 billion for baggage screening—including $295 million to install explosive detection systems and $118 million to boost air cargo security. The legislation also maintains a cap of 45,000 TSA passenger screeners.

Government Tests Passport Technology
The U.S. government is testing new technologies that eventually may become standard components of electronic passports, the Government Printing Office said. GPO, which is the government's official publisher, said Oct. 14 it awarded contracts to four companies to provide computer chips for the new passports, which will be issued to government employees as early as December. The electronic passports will be rolled out to the general public beginning in the first quarter of 2005, and are expected to be in wide use by the end of next year at all U.S. State Department passport agencies.

"The new technology that will eventually be incorporated into electronic U.S. passports will enhance the security of millions of Americans traveling around the world," said GPO CEO Bruce James. The four companies awarded the contracts for chip designs include Axalto Inc., BearingPoint, Infineon Technologies, and SuperCom Inc. GPO will manufacture test passports based on their designs, and they will be tested by the National Institute of Standards and Technology to ensure they meet durability, security, and electronic requirements.

DHS Director: US-Visit Stops Entrants
Jim Williams, director of the Department of Homeland Security's US-Visit program, last week told delegates to the Association of Corporate Travel Executives global conference in Stockholm DHS has registered more than 1,000 "hits" in matching entrants to the United States with its watch lists of undesirable aliens. Introduced in January, US-Visit takes electronic index finger scans and photographs of every visitor to the country.

Williams said US-Visit has "stopped 280 people from coming in who shouldn't have," raising the question of whether the 720-plus who eventually were let through were erroneously targeted. Williams admitted "we haven't stopped a terrorist yet." All 280 who were apprehended were known criminals, including rapists and drug traffickers.