Trump administration has found only $20 mn in funds for wall: Report

Fully walling off or fencing the entire southern border would cost $21.6 billion

Donald Trump
Donald Trump
Reuters
Last Updated : Mar 02 2017 | 9:12 AM IST
President Donald Trump’s promise to use existing funds to begin immediate construction of a wall on the U.S.-Mexico border has hit a financial roadblock, according to a document seen by Reuters.

The rapid start of construction, promised throughout Trump's campaign and in an executive order issued in January on border security, was to be financed, according to the White House, with "existing funds and resources" of the Department of Homeland Security.

But so far, the DHS has identified only $20 million that can be re-directed to the multi-billion-dollar project, according to a document prepared by the agency and distributed to congressional budget staff last week.

The document said the funds would be enough to cover a handful of contracts for wall prototypes, but not enough to begin construction of an actual barrier. This means that for the wall to move forward, the White House will need to convince Congress to appropriate funds.

An internal report, previously reported by Reuters, estimated that fully walling off or fencing the entire southern border would cost $21.6 billion - $9.3 million per mile of fence and $17.8 million per mile of wall.

A symbolic wall and a pinata representing the U.S. President Donald Trump is seen during a protest outside the U.S. embassy, in Mexico City, Mexico January 20, 2017.

DHS officials did not respond to a request for comment on this story.

Trump has said he will ask Congress to pay for what existing funds cannot cover and that Mexico will be pressured to pay back U.S. taxpayers at a later date.

Republican House Speaker Paul Ryan has said he will include funding for a border wall in the budget for next fiscal year. He has estimated the cost to be between $12 billion and $15 billion.

Many Republican lawmakers have said they would vote against a plan that does not offset the cost of the wall with spending cuts.

In the document it submitted to Congress, the DHS said it would reallocate $5 million from a fence project in Naco, Arizona, that came in under budget and $15 million from a project to install cameras on top of trucks at the border.

The surveillance project was awarded to Virginia-based Tactical Micro, but was held up due to protests from other contractors, according to the DHS document. Tactical Micro could not be reached for comment.

The DHS only searched for extra funds within its $376 million budget for border security fencing, infrastructure and technology, so it would not have to ask for congressional approval to repurpose funding, according to the document.

Contractors cannot begin bidding to develop prototypes until March 6 but more than 265 businesses already have listed themselves as "interested parties" on a government web site.

Those interested range from small businesses to large government contractors such as Raytheon.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Next Story