Establishes an Office of Homeland Security, to be headed by a Director of Homeland Security. Grants the Director cabinet-level status. Assigns the Director tasks coordinating the effort by the Federal, State, and local governments to safeguard the nation from terrorism. Directs the Director, among other tasks, to: (1) develop a national strategy for homeland security in consultation with Congress and Federal and State agencies; and (2) establish a national budget for homeland security in collaboration with the Director of the Office of Management and Budget.