The testimony of Paul Posner focuses on the challenges facing the Federal Government in establishing a leadership structure for homeland security, defining the roles of different levels of government, developing performance goals and measures, and deploying appropriate tools to best achieve and sustain national goals. The testimony is based on a body of GAO's work on terrorism and emergency preparedness, as well as policy options for the design of Federal assistance, the GAO's review of many other studies, and the Comptroller General's recent testimonies on the proposed Department of Homeland Security. It also draws on GAO's ongoing work for the Subcommittee, including an examination of the diverse ongoing proposed Federal preparedness programs and a series of case studies of preparedness issues facing State and local governments. The testimony notes that many aspects of a consolidation of homeland security programs have the potential to reduce fragmentation, improve coordination, and clarify roles and responsibilities; however, the realization of these benefits will require substantial effort and additional resources. Appropriate roles and responsibilities within and between the levels of government and with the private sector are evolving and must be clarified. New threats are prompting a reassessment and shifting of longstanding roles and responsibilities. Further, the national strategy's initiatives often do not provide a baseline set of performance goals and measures upon which to assess and improve preparedness. The choice and design of policy tools, such as grants, regulations, and tax incentives, can enhance the capacity of all levels of government to target those areas of highest risk and greatest need, promote shared responsibility by all parties, and track and assess progress toward achieving national preparedness goals. Related GAO products are listed.