The Department of Homeland Security Requests a Significant Increase in Funding in the 2016 Budget

Companies specializing in cyber or border security expect to benefit from future DHS spending, finds Frost & Sullivan

Jul 22, 2015, 07:30 ET from Frost & Sullivan

MOUNTAIN VIEW, Calif., July 22, 2015 /PRNewswire/ -- The Department of Homeland Security (DHS) requested a total discretionary funding of approximately $51.95 billion for 2016. This request is 5.7 percent higher than 2015's, mainly due to the steep hike in requests from the Customs and Border Protection (CBP) and the Immigration and Customs Enforcement (ICE).

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Analysis from Frost & Sullivan, US Department of Homeland Security Budget (, finds the DHS spent $49.59 billion in 2014 and estimates this to reach $51.40 billion in 2019. The request, published by the Office of Management and Budget will reveal some key programs devised to protect U.S. critical infrastructure and offer insights into the type of future technologies the government will be looking to procure.

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Demand has intensified to strengthen the U.S. cyberspace, reinforce security at the northern and southern borders and ports of entry with advanced technologies and implement better controls to deter illegal immigration. If the new Secretary of Homeland Security, Jeh Johnson, signs off on the 2016 request it will open up significant opportunities for market entrants.

"The DHS continues to grow both in manpower and mission requirements," said Frost & Sullivan Aerospace & Defense Senior Industry Analyst John Hernandez. "The rising requests for salaries and expenses will, however, inhibit procurement and much needed equipment upgrades."

Unlike the Department of Defense (DoD), the DHS does not forecast spending for five-year terms, publicize program expenditures or project milestones. This lack of a detailed program information restrains market participants and potential entrants from planning their offerings more efficiently.

However, shortly after taking office, Johnson issued a memo to component leaders in the DHS instructing them to take steps to improve planning, programming, budgeting and execution across the department. To comply with the directives, any solution offered must be dynamic enough to be applied across DHS components.

"Collaboration among all DHS agencies is vital to avoid misuse of time, effort and funds," observed Hernandez. "The security of U.S. critical infrastructure will demand that both government and commercial participants work together efficiently to identify solutions."

US Department of Homeland Security Budget is part of the Defense ( Growth Partnership Service program. Frost & Sullivan's related studies include: 2025 Vision for the Aerospace Industry, 3D Printing in Aerospace—Revolution or Evolution?, Global Business Aircraft Market and Global Military Land Vehicles Open Systems Architecture. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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US Department of Homeland Security Budget

Kayla Belcher
Corporate Communications – North America
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SOURCE Frost & Sullivan