This report describes the Presidentâ€TMs proposal for FY2004 appropriations for the Department of Homeland Security (DHS). It summarizes the Presidentâ€TMs FY2004 budget request for DHS programs, as submitted to the Congress February 3, 2003, and the congressional response to that proposal. It compares the Presidentâ€TMs FY2004 request to current estimates of the FY2003 amounts for programs and activities that were transferred to DHS after its establishment on January 24, 2003, nearly 4 months after the start of FY2003. On July 10, 2003, the Senate Committee on Appropriations reported its version of H.R. 2555 (S.Rept. 108-86) The Senate bill would provide DHS with $28.5 billion in discretionary funds for DHS for FY2004. On June 24, 2003, the House amended and passed H.R. 2555, the Department of Homeland Security Appropriations Act, 2004. The House bill (H.Rept. 108-169) would provide DHS with $29.4 billion in discretionary appropriations for FY2004, compared to the current estimate of $28.9 billion for FY2003. The Presidentâ€TMs request was $28.4 billion. The DHS bill includes appropriations for: the DHS Directorate of Border and Transportation (including the Transportation Security Administration, funded at an estimated $16.5 billion in FY2003; the Directorate of Emergency Preparedness and Response, $3.4 billion; the Directorate of Information Analysis and Infrastructure Protection, $0.2 billion; and the Directorate of Science and Technology, $0.6 billion. Other DHS programs funded in the bill include the U.S. Coast Guard, funded at $6.3 billion in FY2003, and the U.S. Secret Service, $1.0 billion. DHS programs include the activities formerly conducted by the Federal Emergency Management Agency (FEMA) and the U.S. Customs Service, and most of the activities formerly operated by the Immigration and Naturalization Service (INS). This report will track legislative action and congressional issues related to the FY2004 DHS appropriations bill, with particular attention paid to discretionary programs. However, the report does not follow specific funding issues related to mandatory DHS programs â€" such as retirement pay â€" nor does it systematically follow any legislation related to the authorization or amendment of DHS programs. This report will be updated to follow the legislative progress of FY2004 appropriations for DHS.