This report provides an overview of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) budget and operations. Legislative Developments

On April 14, 2011, Congress passed the Department of Defense and Full-Year Continuing Appropriations Act, 2011 ( H.R. Hence, ATF's FY2011 appropriation is $1.113 billion. Besides ATF's multiple rifle sales reporting proposal, another emerging issue related to the ATF budget and operations includes the agency's conduct of a Phoenix, AZ-based investigation known as "Operation Fast and Furious." ATF Mission

Located in 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 DOJ from the Department of the Treasury (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. ATF Appropriations

In the 10-year period from FY2001 through FY2010, Congress increased direct appropriations for the ATF by 50.2%, from $771.0 million to $1.158 billion. Most of this funding has been dedicated to ATF efforts to reduce firearms trafficking from the United States to Mexico. Previously, Congress provided annual appropriations authorizations, for FY2006 through FY2009, in the Department of Justice Authorization Act of 2005 ( P.L. 109-162 ) (see Appendix ). In the 111 th Congress, no action was taken on bills to reauthorize or increase ATF appropriations. The FY2011 budget request included $1.163 billion for ATF. As Table 1 shows, the FY2010 appropriation of $1.121 billion included $1.115 billion for salaries and expenses and $6 million for construction. The Administration, however, requested no funding for ATF construction for FY2011. This amount included
$35.2 million in base adjustments (less certain offsets and other reductions) and 46 FTE positions; $11.8 million and 37 FTE positions for Project Gunrunner; and and $1.2 million and 3 FTE positions for Emergency Support Function #13. On July 22, 2010, the Senate Appropriations Committee reported its FY2011 CJS appropriations bill ( S. 3636 ; S.Rept. In the absence of an enacted FY2011 CJS appropriations bill, the 112 th Congress passed a series of CRs, which the President signed into law ( P.L. These CRs temporarily funded most federal agencies, including ATF, at their FY2010 enacted level of funding. Under this act, for FY2011 Congress has funded the ATF salaries and expenses account at slightly below its FY2010 enacted level of funding (reduced by two-tenths of a percent). Also, to ramp up Project Gunrunner, the American Recovery and Reinvestment Act (ARRA; P.L. The ATF FY2011 budget request included $1.163 billion, including $11.8 million to annualize the 37 positions (21 SAs) previously funded under the ARRA ( P.L. As described above, Congress provided ATF with $37.5 million in supplemental appropriations for FY2010 ( P.L. 111-230 ) for Project Gunrunner, as requested by the Administration. This bill would have authorized a total of $73.5 million to be appropriated over three years, for FY2008 through FY2010, to increase the number of ATF positions dedicated to Project Gunrunner ($45 million) and assign ATF agents to Mexico ($28.5 million).
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 (DOJ) 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. Congress authorized appropriations for ATF in the Department of Justice Authorization Act of 2005 (P.L. 109-162) for FY2006 through FY2009; however, the 111th Congress did not consider legislation to reauthorize annual appropriations for DOJ or ATF.
From FY2001 through FY2010, Congress increased direct appropriations for the ATF from $771.0 million to $1.158 billion. The FY2010 appropriation amount includes $37.5 million in supplemental appropriations for Project Gunrunner (P.L. 111-230). With this supplemental, Congress has provided ATF with $86.5 million in budget increases over three fiscal years, FY2008 through FY2010, to combat gun trafficking. Most of this funding has been allocated to Project Gunrunner, an ATF initiative to reduce gun trafficking across the Southwest border, or other projects to assist the government of Mexico.
For FY2011, the Administration requested $1.163 billion for ATF, an increase of 3.8% over the agency's initial FY2010 appropriation ($1.121 billion), which included $1.115 billion for salaries and expenses and $6 million for construction. For Project Gunrunner, the request included $11.8 million to annualize 37 positions that were previously funded by the American Recovery and Reinvestment Act (P.L. 111-5). It also included $1.2 million to enable ATF to coordinate state and local law enforcement efforts in the event of a national emergency and, thus, fulfill the Attorney General's Emergency Support Function (ESF) #13 obligations under the National Response Framework (NRF). The FY2011 request assumed $35.2 million and 46 FTE positions in base adjustments, less offsets and other reductions. The Senate Appropriations Committee reported a bill (S. 3636) that would have matched the FY2011 request, but no further action was taken on that bill. In the absence of an enacted FY2011 CJS appropriations bill, Congress passed a series of continuing resolutions (CRs) that temporarily funded ATF at its FY2010 enacted level.
On April 14, 2011, Congress passed the Department of Defense and Full-Year Continuing Appropriations Act, 2011 (H.R. 1473; P.L. 112-10) and funded ATF for the rest of FY2011 at its FY2010 enacted level, reduced by two-tenths of a percent. Hence, ATF's FY2011 appropriation is $1.113 billion. Other emerging issues related to the ATF budget and operations include a proposal to require multiple rifle sales reports from Southwest border state gun dealers and the agency's conduct of a Phoenix, AZ-based investigation known as "Operation Fast and Furious." This report complements CRS Report RL34514, The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Budget and Operations for FY2008, FY2009, and FY2010. For the FY2011 budget cycle, this report will be updated as needed. For coverage of ATF's FY2012 budget request, see CRS Report RL32842, Gun Control Legislation.