Homeland Security’s Intelligence Office Costs $348 Million Amid Calls for Major Reform

What's happening

In the wake of the September 11 attacks, the U.S. government established the Department of Homeland Security (DHS) to unify and strengthen the nation’s defenses against terrorism. Among its initiatives was the creation of the Office of Intelligence and Analysis (I&A), intended to serve as a critical link between the broader Intelligence Community (IC) and federal, state, and local law enforcement agencies, as well as key industry partners. The purpose was to ensure that intelligence flowed smoothly across these entities to prevent future attacks by connecting disparate pieces of information that might otherwise be overlooked. This approach was seen as forward-thinking at the time, aiming to close gaps that had previously hindered national security efforts.

Despite its original mission, the Office of Intelligence and Analysis has become a subject of controversy and criticism more than two decades later. Rather than enhancing DHS’s intelligence capabilities, I&A is now viewed by some experts and officials as a costly and inefficient bureaucracy. With an annual budget of approximately $348 million, the office is considered by critics to be the largest misstep in DHS’s formation, draining resources without delivering commensurate value. Its dual role—balancing responsibilities within the Intelligence Community and supporting DHS’s law enforcement functions—has created challenges that complicate its effectiveness and raise concerns about politicization.

The structure of I&A places it in a unique and somewhat precarious position. While other members of the Intelligence Community are barred from engaging in domestic matters, I&A operates at the intersection of intelligence and law enforcement within the United States. This overlapping jurisdiction has led to suspicions that intelligence could be manipulated or biased to serve particular agendas or political pressures. Such concerns are not merely theoretical; the ambiguity surrounding I&A’s role invites scrutiny about the potential for intelligence to be twisted in ways that undermine its integrity and the broader national security mission.

Operationally, I&A does not generate much of its own raw intelligence. Instead, it depends heavily on DHS’s operational components, including U.S. Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), and the United States Secret Service (USSS), for data and analysis. This reliance creates redundancies and inefficiencies, as frontline experts produce insights that I&A then reviews and sometimes overrides before passing them on to senior decision-makers such as the secretary of homeland security or the president. This layering of oversight can slow down the intelligence process and dilute the value of frontline expertise.

What's at stake

There is growing consensus among policymakers and analysts that reforming I&A could yield significant benefits. One proposed approach is to streamline the office into a leaner, briefing-focused entity similar to the State Department’s Bureau of Intelligence and Research (INR) or the Treasury Department’s Office of Terrorism and Financial Intelligence. These offices have more focused missions and smaller budgets—INR’s annual budget is around $84 million, while Treasury’s office requests about $231 million for FY2025. Restructuring I&A along these lines could reduce costs by over $100 million annually, freeing resources for frontline operations without compromising national security.

Despite criticisms, some elements within I&A remain valuable and warrant preservation. Notably, the Fusion Centers operated under its umbrella facilitate critical collaboration between federal intelligence agencies and state, local, tribal, and private sector partners. These centers have proven essential in counterterrorism efforts and disaster response, enabling information sharing that enhances situational awareness and coordination. Maintaining dedicated funding for Fusion Centers—approximately $45 million in recent budgets—is widely regarded as necessary to sustain their positive impact.

Recent developments indicate that DHS leadership is open to reforming I&A. Secretary Kristi Noem has expressed willingness to pursue changes, and reports from mid-2025 suggest plans to reduce I&A’s workforce by up to 75 percent, shrinking it to about 275 personnel focused on core analytical functions. This downsizing aims to eliminate redundancies and refocus the office on its primary intelligence mission. The Trump administration, which has prioritized government streamlining, views this as an opportunity to improve efficiency while safeguarding security.

Looking ahead, successful reform of I&A will likely require close coordination with the Office of the Director of National Intelligence to empower specialized teams within DHS components like CBP, ICE, and USSS. These teams possess unique data and expertise that could be integrated more directly into the Intelligence Community without the bureaucratic middle layer that I&A currently represents. Such a decentralized model could reduce the risk of politicization, improve intelligence quality, and save taxpayer dollars. The coming months will be critical in determining whether these reforms move forward and how they reshape the nation’s intelligence architecture.

As the government considers these changes, observers will be watching how DHS balances cost savings with maintaining robust intelligence capabilities. The lessons of 9/11 underscore the importance of effective information sharing and collaboration across agencies. Reforming the Office of Intelligence and Analysis offers a chance to honor those lessons by creating a more agile, transparent, and fiscally responsible intelligence function within Homeland Security. The timeline for these reforms will likely unfold over the next year, with budget decisions and congressional oversight playing key roles in shaping the office’s future.

Why it matters

I&A was created to connect intelligence across federal, state, local agencies, and industry to prevent terrorist attacks. Currently, I&A is seen as an expensive bureaucracy that complicates rather than improves DHS intelligence efforts. Its dual domestic and intelligence roles raise concerns about potential politicization and manipulation of intelligence.

Operational components like CBP, ICE, and USSS provide raw data, making I&A’s role somewhat redundant and costly. Reforming I&A to a smaller, briefing-focused office could reduce costs significantly while maintaining essential functions. Fusion Centers under I&A remain vital for interagency collaboration and should continue receiving dedicated funding.

Key facts & context

The Department of Homeland Security was established after 9/11 to unify fragmented defenses against terrorism. The Office of Intelligence and Analysis was designed as DHS’s bridge to the broader Intelligence Community. I&A’s FY2025 budget is approximately $348 million under DHS’s Analysis and Operations category.

I&A relies on DHS operational units such as Customs and Border Protection, Immigration and Customs Enforcement, and the Secret Service for intelligence data. The State Department’s Bureau of Intelligence and Research has a budget of about $84 million annually. The Treasury Department’s Office of Terrorism and Financial Intelligence requests around $231 million for FY2025.

Fusion Centers connect federal intelligence with state, local, tribal, and private sector partners and receive about $45 million in funding. Plans reported in July 2025 suggest reducing I&A’s workforce by up to 75 percent to focus on core analysis. Secretary Kristi Noem has expressed openness to reforming I&A responsibly.

The Intelligence Community generally does not engage in domestic matters, a boundary that complicates I&A’s role. Reform efforts aim to empower specialized teams within CBP, ICE, and USSS as full Intelligence Community members. Reducing I&A’s size and scope could free over $100 million annually for frontline security operations.

Timeline & key developments

2025-11-20: Homeland Security's 'Intelligence' Office Costs Taxpayers $348M. Additional reporting on this topic is available in our broader archive and will continue to shape this timeline as new developments emerge.

Primary sources

• dhs.gov PDF
• state.gov PDF
• home.treasury.gov PDF
• dhs.gov PDF

Further reading & references

• (Additional background links will appear here as we cover this topic.)