Following the September 11 attacks, fighting international terrorism has become one of the United States' principal policy priorities. While external efforts to combat terror around the globe are more prominent, domestic measures represent an equally significant commitment to protect the homeland. In a recently published study, AEI's Veronique de Rugy provides a detailed review of American spending practices on homeland security, and finds that federal anti-terrorist disbursements in 2006 will top $50 billion—spent both within and outside the agencies of the recently created Department of Homeland Security. De Rugy concludes that a large portion of homeland security spending decisions are made on a political basis rather than on a sound cost-benefit analysis, resulting in misallocated homeland security funds that could compromise American security. At this AEI event, a panel of experts will discuss the study and its policy implications.