Intelligence Reform and Terrorism Prevention Act of 2004

As a result of studies of inadequate intelligence that may have contributed to the 9-11 Attacks, the Intelligence Reform and Terrorism Prevention Act of 2004 (Public Law 108-458) instituted major reforms of the United States intelligence community. Previously, the Director of Central Intelligence headed both the community and the Central Intelligence Agency. This Act created the Office of the Director of National Intelligence to take over the DCI's community-wide functions, abolished the DCI position and created the Director of the Central Intelligence Agency.

Some essentially community-related functions of the CIA, such as the National Intelligence Council, moved to the ODNI, as well as interagency ones such as the Counterterrorism Center.

The main outstanding issue is that the DNI does not have full budgetary authority over the intelligence agencies of the U.S. Department of Defense.