	Introduction

This report examines the Federal Bureau of Investigation's (FBI's) intelligence program and its reform. While the report serves as an update of the FBI's efforts in these areas, a substantial part of its focus is on the implementation on the FBI's intelligence reform in the field. An important question is whether intelligence policy designed by senior level Intelligence Directorate personnel at FBI headquarters, with field input, has been accepted, adopted and implemented within the FBI's field structure. This service would include the Bureau's Counterterrorism and Counterintelligence Divisions and the Directorate of Intelligence. While observers generally agree that the FBI has made substantial progress in reforming its intelligence program, they sharply disagree as to whether the FBI's changes are adequate. Two "Schools of Thought"

The first school of thought argues that the FBI's vision for intelligence reform is sound; the FBI must, however, overcome certain capacity constraints in order to implement successfully its vision. They argue, however, that the FBI has developed a coherent and sound vision for an intelligence program that integrates and leverages what they assert is a synergy between the FBI's criminal and national security missions. As a result, skeptics of the FBI's approach believe the FBI's vision for intelligence reform is fundamentally flawed. Organizational Changes

The FBI is restructuring to support an integrated intelligence program. A central tenet of a high-order functioning intelligence organization is that it is able to harness its collection resources to nationally developed and coordinated intelligence priorities and gaps. While pockets of promise exist, field research indicates that the FBI ' s ability to formally harness intelligence collection ( including systemic accountability mechanisms) to analytically identified intelligence gaps, remains nascent. Congress could confront a number of issues in measuring FBI performance in this critical area. He has (1) established a new DI within the FBI that will have "broad and clear authority over intelligence related functions at the Bureau"; (2) established a new position of Executive Assistant Director for Intelligence (EAD-I); (3) created a new Office of Intelligence to exercise control over the FBI's historically fragmented intelligence program; (4) established a National Joint Terrorism Task Force; (5) established intelligence units in each field office to collect, analyze and disseminate intelligence to FBI Headquarters, and (6) based on the recommendations of the WMD Commission and subsequent White House guidance, created a National Security Branch within the FBI that will integrate "...the FBI's national security mission with the Director of National Intelligence and the Intelligence Community." One observer said, "law enforcement and intelligence don't fit ... law enforcement always wins." Since September 11, 2001, the FBI has been under tremendous pressure to hire, train, and retain intelligence professionals. Budget—Strategic Issues and Options

With respect to the budget, there are both strategic and tactical options. For example, one could fully fund salaries and expenses for additional special agents working, yet tie the appropriation for 500 intelligence analysts to one or more of the following: (1) ensuring that all analysts hired during the last three years at HQ and in the field, have taken the Analytical Cadre Education Strategy-1 course; (2) the development of regional training programs modeled on those provided to other intelligence analysts in the intelligence community; (3) the provision of all intelligence analysts with Internet terminals on their desks; (4) the demonstrated implementation of the expanded human resource authorities (including exemptions from Title 5), including the implementation of a Senior Analytic Service or Senior Intelligence Service within the DI for regional and functional intelligence and/or terrorism threats, (yet not policy advisers); (5) the implementation of new performance evaluation systems for special agents and intelligence analysts that focus on qualitative versus quantitative output, and (6) the development of formal mechanisms to ensure that field intelligence collectors are responsive to filling intelligence gaps assigned to them by the FIGs. They are
Foreign Intelligence .
In the aftermath of September 11, 2001, the Federal Bureau of Investigation (FBI) embarked on a program to reform its intelligence and national security programs. In the nearly four years since 9/11 many experts agree the FBI has made progress in some areas (dissemination of raw intelligence), but some believe that the FBI has shown little progress in other areas (establishing an integrated and proactive intelligence program) while the FBI's budget increased by 68% from FY2000 to FY2005. The Weapons of Mass Destruction Commission has recommended, and the White House has approved, the establishment of a National Security Service within the FBI. This Service would integrate the FBI's Counterterrorism and Counterintelligence Divisions with the FBI's Directorate of Intelligence (DI). Whether this organizational change will yield substantive results is an open question.
There are at least two schools of thought with respect to how the FBI has performed in implementing its intelligence reform initiatives. The "optimists" believe there is a critical synergy between the law enforcement and intelligence disciplines, and that the FBI has successfully made changes throughout its history to respond to the threats of the time. Since the FBI's vision for intelligence reform is sound, success is simply a matter of implementing that vision. Alternatively, the "skeptics" believe that law enforcement and intelligence are distinct disciplines demanding different skill sets to achieve different ends. They argue the FBI's vision is fundamentally unsound, and its ongoing implementation has not yielded an integrated intelligence program. According to this group, intelligence collection remains effectively separated from intelligence analysis at the FBI.
This report analyzes the FBI's overall intelligence reform effort, focusing on the implementation of intelligence reform initiatives in the field. Reform policies designed at FBI Headquarters, with field input, may be of marginal utility unless they are fully and effectively implemented across the 56 FBI field offices. The Congressional Research Service (CRS) examined the FBI's reform initiatives with a focus on the implementation of the field intelligence group concept, at five field offices. Allowing for varying levels of progress across field offices, a central tenet of a high-order functioning intelligence organization is its ability to harness collection resources to nationally developed intelligence priorities and gaps. While areas of promise exist, field research indicates that the FBI's ability to formally harness intelligence collection (including systemic accountability mechanisms) to analytically identified intelligence gaps, remains nascent.
In addition, this report discusses several overall options for Congress in addressing FBI intelligence reform. Organizationally and structurally, Congress could establish a stand-alone domestic intelligence agency. Alternatively, it could codify the recently announced National Security Service within the FBI. Potential areas are outlined for functional oversight, including the FBI-CIA relationship, and the FBI's efforts to stanch terrorism finance. And finally, the report reviews options for addressing the FBI's intelligence budget, both at the strategic and tactical levels.