First, we did rank everybody by risk, and New York comes out number one.

And I have to say, I agree with some of the criticisms that some have made about that state program which allocates the grant money on a very rigid formula all across the country, with a certain percentage to each state.

We always monitor the flow of information, intelligence, threat streams to see whether we have any indication there's some imminent. We work hard to identify potential cells and disrupt them. This is one of the reasons we put so much emphasis on intelligence gathering.

We don't really have the ability to enforce the law with respect to illegal work in this country in a way that's truly effective...We haven't been able to require every employer to enter a system in which they check the work status of their employees and determine whether they're legal, and without that, we don't really have the ability to enforce the law with respect to illegal work in this country in a way that's truly effective. And that would be the single greatest additional weapon we could use if we're serious about tackling this problem.

Even the kinds of ingredients you can find in your own kitchen can be used to make bombs. So the problem is with the people and not with the tools.

We now have capabilities in science and technology that raise the very realistic possibility that a small group of terrorists could kill not only thousands of people, as they did on September 11th, but hundreds of thousands of people. And that has changed the dimension of the threat we face.

The larger point is this: We've invested over half a billion dollars in New York since this department was stood up. We've given New York more money, by more than double, than any other city in the country.