T5 B5 W Hempel's Files 1 Of 2 Fdr- 2-22-03 Mfr- Bill Yates- Louis D Crucetti- Karen Fitzgerald- Peter Gregory 180

Commission Sensitive MEMORANDUM FOR THE RECORD WILLIAM YATES ASSOCIATE DIRECTOR, OPERATIONS, CIS/DHA DON CRUCETTI DIRECTOR - FRAUD DETECTION AND CUSTOMER SERVICES Event: Interview of Citizenship and Immigration Services, DHS (Pre9-ll -current) Date: Friday, February 22, 2003 Special Access Issues: None Prepared by: Walter T. Hempel Team Number: 5 (Border Security) Location: CIS Headquarters, 20 Massachusetts Ave, Washington, DC Participants - Non-Commission:

William Yates, CIS/DHS Louis D. Crucetti CIS/DHS Karen Fitzgerald CIS/DHS Peter Gregory, Assistant Counsel, CIS/DHS

Participants - Commission: Janice Kephart-Roberts, counsel Susan Ginsburg, senior counsel Walt Hempel, staff member Note: no classification required Documents provided or requested. Requested: Percentage of fraud by application type, number of IBIS hits, number of IBIS hits that indicate a possible terrorist threat, draft of CIS/ICE MOU on use of ICE special agents to investigate fraud cases Recording: no NOTES: Mr. Yates stated that the Director of Citizenship and Immigration Services (CIS), Eduardo Aguirre, established three priorities for CIS: reduce processing time to six months for most applications, improve customer services and enhance national security. CIS is trying to meet these goals but has not had any significant increases in staffing. CIS is to be supported by fees for service and no appropriations are hi the FY '05 budget except for backlog reduction. The Office of Management and Budget (OMB) would like

to establish a new fee schedule as it believes that the current funding mechanism is broken. On February 2, 2004, CIS released a budget request for FY '05 of $1,711 billion. It requested a 60% increase in funds to reduce the backlog. This budget reflects an increase of $60 million over FY '04. BACKLOG REDUCTION Citizenship The current backlog for naturalization benefits is 621,794 applications (as of September, 2003). Although the number of applications has decreased from 2002, the number of applications processed has decreased by a similar amount. Therefore the backlog for 2002 and 2003 is about the same. Tune and motion studies were conducted in 1997 to determine the fee structure for naturalization applications. CIS is to be totally funded by fees after FY '04. CIS receives all fees for applications except for those filed in the Virgin Islands or Guam. These fees are returned to the governments of these two territories. In 1999, the INS made the reduction of the naturalization backlog a top priority. As of February, 1999, there were 1.8 million form N-400s (Application for Naturalization) pending. This was due to the rapid increase in the number of applications filed. During the mid to late '80s, naturalization applications averaged about 225,000 a year. In the early!990's, the number of applications increased to million^per year. In 1996 and 1997, there were approximately 1.6 million new naturalization applications per year. There are many reasons for this increase in applications. The legalization program of 1986 gave legal resident status to millions of illegal aliens. This allowed them to file for citizenship after being a legal permanent resident for five years. Mexico changed its laws to allow its citizens to be dual nationals, citizens of both the United States and Mexico. Previously if a Mexican citizen naturalized in the United States, they lost their rights to owning property in Mexico. They could now also vote in both countries. The state of California passed a referendum, Proposition 197, which would have restricted state and local benefits to some aliens. (Although this action has been blocked by the courts, many aliens decided to Nationalization services staffing could not keep up with the escalation of applications. There was also a lack of uniformity in processing times and decision making at the many local offices handling these cases. The decision was made to centralize the application process by having most of the applications sent to four Service Centers. These were designed to reduce the backlog by handling the applications more efficiently. Each center serviced a specific geographic area.

However with no staff increases at the Service Centers, the processing times began to slip. The public began to complain about the length of time it took to complete an application. A series of administrative decisions were made that cut processing times. There was still a backlog but more applications were being completed and the goal was to process most applications within 60 days. Again the backlog began to be reduced. Immigration Benefits The problem of lengthy processing times is not limited to applications for naturalization. Applications for other immigration benefits were also backlogged. As of September, 2003, there was a backlog of 5,510,553 pending applications. The volume of applications increased by 25% from 2002 to 2003. Again the increase was due to the large number of aliens requesting adjustment within the United States or qualifying for immigrant visas to enter the United States from abroad. These applications range from immigrant visas based on family relationships to extensions of stay for non-immigrant visitors. The processing time for each type of application is influenced by volume, the priority it is assigned and staffing levels at the Service Centers. Mr. Yates stated that the current "green card" still says INS/Department of Justice. CIS is in the process of designing a new DHS version. The current cards are expensive and difficult to produce. The change over to the new "green card" will occur when the new card design is approved, the production facility is operational and the old card stock has been depleted. National security is a prime consideration in any backlog reduction plan. No one wants to be the person who approved the paperwork for a terrorist. This means that there is less discretion in the processing cases. Applications which previously may have been approved through a broad interpretation of regulations are now being denied. The events of 9/11 caused INS to look at what security background checks were being conducted. The controversy of the post humorous sending of the approved student I-20s to the 9/11 hijackers Atta and Al-Shehhi further focused the issue. Processing times have to be balanced with the needs of national security. BACKGROUND CHECKS Under INS Commissioner James Ziglar, a risk assessment of the naturalization process was conducted. A number of areas of vulnerability were identified. No one document covers the results of the study. The extent of the background checks conducted by CIS are determined by regulation and the possible risks posed by the type of application. Naturalization which gives United States citizenship to an alien requires more background checks then a visitor who wants to stay in the United States a few months more.