This testimony of JayEtta Hecker indicates that the proposal to create a statutorily based Department of Homeland Security (DHS) holds the prospect of establishing the leadership necessary in the area of homeland security. It can more effectively establish homeland security as a long-term commitment based in the institutional framework of the Nation's governmental structure. In addition to coordinating the work of executive branch agencies involved in homeland security, the proposal to establish the DHS calls for coordination with State and local governments as well as the private sector in establishing and implementing security measures. A national strategy under the direction of DHS should provide guidance by more systematically identifying the unique capacities and resources of each level of government to enhance homeland security and by providing increased accountability within the intergovernmental system. Performance goals and measures should be established to serve as a common set of criteria that can demonstrate success, promote accountability, and determine areas where additional resources are needed. 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 areas of highest risk and greatest need, promote shared responsibilities by all parties, and track and assess progress toward achieving national preparedness goals. 1 table and a list of related GAO products