As of the writing of this paper (July 2002), reform efforts have culminated in a proposed new Federal Department of Homeland Security, which is now being assessed and changed by the U.S. Congress. The proposed Department of Homeland Security is the end stage of a long process in the development of a plan to fight terrorism, both within and outside the country. The basic conclusion by policymakers is that more strategic planning and interagency cooperation is required. This paper argues that the proposed establishment of the Department of Homeland Security is not likely to change the current procedures for assessing and responding to threats against domestic security. The fight against terrorism will continue to be waged under traditional organizational and functional divisions, albeit with an overlay of a new domestic security czar and cabinet department. On the other hand, the effectiveness of counterterrorism operations has been enhanced by a greater degree of cooperation among security agencies, a massive influx of resources and money, and the relaxing of legal constraints on intelligence and investigative authority as well as the power of agencies. The new Department of Homeland Security is a complex structure charged with a multifaceted mission that involves many agencies accustomed to relative independence of operation. The inclusion of 22 agencies in the new department only creates a new setting for the fragmented nature of existing security jurisdictions and policies. The basic obstacles to cooperation still exist and will continue to shape and stifle reform efforts. 18 notes and 72 references