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The National Security Agency: Issues for Congress (CRS Report for Congress)

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Release Date Jan. 16, 2001
Report Number RL30740
Report Type Report
Authors Richard A. Best, Jr., Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
Summary:

The National Security Agency (NSA), one of the largest components of the U.S. Intelligence Community, has reached a major watershed in its history. Responsible for obtaining intelligence from international communications, NSA's efforts are being challenged by the multiplicity of new types of communications links, by the widespread availability of low-cost encryption systems, and by changes in the international environment in which dangerous security threats can come from small, but well organized, terrorist groups as well as hostile nation states. NSA's efforts to adjust to the changing geopolitical and technological environment have been strongly encouraged by Congress and reflect a major shift in congressional oversight of the Agency. Although Congress has always approved funding for NSA, for decades routine oversight was limited to a few Members and staff. In the 1970s, congressional investigations of intelligence agencies resulted in greater public attention to NSA and criticism of activities that infringed on the civil liberties of U.S. persons. Subsequently, both the Senate and the House of Representatives established intelligence oversight committees that have closely monitored NSA's operations. The Foreign Intelligence Surveillance Act (FISA) was enacted in 1978 to regulate collection by foreign intelligence agencies of the communications of U.S. persons. The end of the Cold War, the expansion of low-cost encryption and the explosion of communications systems led Congress to take a more public profile in overseeing the large and secretive Agency. Reacting in large measure to congressional concerns, NSA launched two separate management reviews, one by outside experts, the other by longtime Agency officials. Both made strong criticisms of Agency personnel policies, an outmoded organizational structure, and an unwillingness to utilize civilian practices that more effective than those available in-house. The current NSA Director, Lt. General Michael V. Hayden, USAF, has used these analyses to launch a series of major initiatives designed to improve NSA's operations, to attract and reward more qualified people from outside industry, and is developing a major contract for outside support of its non-sensitive Information Technology (IT) functions. A major renewal effort is underway, but observers believe many challenges lie ahead that will require congressional oversight. Many of the reforms in personnel policies recommended are difficult to implement in a government organization, especially in an extremely tight market for technical specialists. The technical complexities of dealing with widespread and sophisticated encryption as well as the proliferation of communications devices remain to be resolved. NSA is, along with other intelligence agencies, not well-positioned to analyze developments among the assortment of terrorist groups and narcotics smugglers around the world that can seriously affect U.S. interests. NSA has also come under heated criticism in the European Parliament for allegedly collecting, in cooperation with the British, commercial intelligence to benefit U.S. corporations.