On April 21, 2005, Ambassador John Negroponte was confirmed as the first DNI, a position established by the Intelligence Reform and Terrorism Prevention Act of 2004 ( P.L. 108 - 458 ; hereinafter, the Intelligence Reform Act). Retired Admiral Dennis C. Blair became the third individual to serve as DNI when he was confirmed on January 28, 2009. Historically, the Director of Central Intelligence (DCI) had three primary responsibilities that were codified in the National Security Act, as amended. Some also asserted that DCIs lacked adequate legal authorities to establish priorities and to ensure compliance by intelligence agencies beyond the CIA. Rather, the act establishes the new position of Director of the Central Intelligence Agency (DCIA), who will report to the DNI. The act also restates the major responsibilities of the DCIA, which include (1) collecting intelligence through human sources and by other appropriate means (but with no police, subpoena, or law enforcement powers or internal security functions); (2) correlating and evaluating intelligence related to the national security and providing appropriate dissemination of such intelligence; (3) providing overall direction for and coordination of collection by human sources outside the U.S., in coordination with other government departments; (4) performing other functions and duties related to intelligence affecting the national security as the President or DNI may direct (a formulation that, some observers believe, is intended to encompass the planning and carrying out of covert actions); and (5) under the DNI's direction, coordinating relationships between U.S. intelligence services and those of other countries. During Senate confirmation proceedings in January 2009, DNI Blair said he would withhold judgment as to whether the DNI's authorities were sufficient until he had been confirmed and been able to exercise his authorities. But he stated that he would exercise those authorities to the fullest and would advise the President and Congress if he concluded that he needed more. Senate Intelligence Committee Approves New DNI Authorities

The Senate FY2009 bill would have given the DNI several new authorities, including the authority to
increase employee compensation; expand from one year to up to three years the length of time the U.S. government personnel may be detailed to the DNI's office on a non-reimbursable basis; convert competitive service positions and incumbents within the intelligence community to excepted positions; provide enhanced pay authority for critical position in portions of the intelligence community where that authority does not exist; authorize intelligence community elements, under certain circumstances, to adopt compensation, performance management, and scholarship authorities that have been authorized for any other intelligence community element; conduct accountability reviews of significant failures or deficiencies within the intelligence community; use National Intelligence Program funds to address deficiencies or needs that arise in intelligence information access or sharing capabilities; delegate to certain senior officials the authority to protect intelligence sources and methods from unauthorized disclosure; and approve interagency financing of national intelligence centers. Intelligence Authorization Legislation for FY2010

In September 2010 both the House and Senate passed intelligence authorization legislation for FY2010 and the bill was signed by President Obama on October 7 th . He is to conduct initial vulnerability assessments of each major new system, review changes in acquisition costs, and terminate programs unless they are essential as set forth in assessment forwarded to Congress. 2004 Intelligence Reform Act Strengthened DNI Authorities

To strengthen the DNI's authority, Congress in 2004 approved the Intelligence Reform Act, providing the DNI additional powers in certain areas, including in those of personnel, tasking, and acquisition. Fifth, the DNI is authorized to provide budget guidance to those elements of the intelligence community not falling within the NIP. DCI appointment authorities were more limited, both in terms of the degree of concurrence authority and with regard to the number of positions over which the DCI exercised such authority. Whether the DNI's authorities under the act are sufficient to meet the responsibilities set forth in the 2004 act is subject to differing assessments. Among them: (1) will the DNI aggressively assert the new authorities?
In passing the Intelligence Reform and Terrorism Prevention Act of 2004 (P.L. 108-458) in 2004, Congress approved the most comprehensive reform of the U.S. intelligence community since it was created over 50 years ago. Principal among enacted changes was the establishment of a new position of the Director of National Intelligence (DNI) to serve as head of the intelligence community (IC) and principal adviser to the President on intelligence matters related to the national security and to oversee and direct the implementation of the National Intelligence Program.
Some observers have questioned whether the act provides the DNI the authority necessary to effectively carry out these responsibilities. Others assert that the DNI's authorities are significantly stronger than those of the former Director of Central Intelligence (DCI), but suggest that DNIs have failed to aggressively assert the authorities they have been provided.
During his Senate confirmation proceeding in January 2009, DNI Dennis C. Blair said that he would withhold judgment as to whether his authorities were sufficient but over time would advise the President and Congress if he concluded they were not. He also assured Senators that he would exercise his authorities to the fullest. The abrupt announcement of his resignation in May 2010 suggested to some that he had been unable to exercise his authorities to meet his responsibilities and, for some, raised questions about the viability of the DNI position.
In 2007, Admiral Blair's predecessor, DNI Michael McConnell, acknowledged his authorities were stronger than those of the DCI and conceded that he had not issued certain guidance to the IC clarifying the new authorities (the subsequent 2008 revisions to EO 12333, initiated by DNI McConnell, were intended to provide such guidance). Nevertheless, he argued that effectively managing the IC would require authorities in addition to the ones Congress approved in 2004.
The FY2010 Intelligence Authorization Act (P.L. 111-259), signed by President Obama on October 7, 2010, provided a number of enhancements to the DNI's authorities. He is required to assess personnel levels at all intelligence agencies and forward them to Congress at the same time as the President's budget submission. He is also required to undertake initial vulnerability assessments of each major system and is provided with authority to assess critical cost growth in major systems and terminate programs unless Congress is provided with an explanation. The DNI is further granted authority to conduct accountability reviews of elements of the Intelligence Community. These new authorities enhance those included in the Intelligence Reform Act and provide the DNI with additional tools to coordinate all intelligence agencies.
While the DNI's authorities are stronger than those that were available to the DCI, whether they are sufficient to implement the 2004 intelligence reforms mandated by Congress, it has been argued, will continue to depend on several factors, including the degree to which the authorities themselves are adequate, the DNI's willingness to assert those authorities, and the extent to which the DNI receives presidential and congressional support. The provisions in the FY2010 Intelligence Authorization Act permit more extensive congressional oversight in the 112th Congress.