Security companies were buoyed last November when the U.S. House of Representatives passed a bill to create a new Department of Homeland Security. The department has $38 billion to spend this year and plans to use it to increase security at key facilities such as nuclear power plants, develop nuclear and bioterrorism detection technologies and enhance border security.

"The government spending will gradually increase, because the money is earmarked," said Cherkasky. "As soon as it gets out to the local authorities, it will start flowing down."


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