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Supply-side policies include efforts to disrupt and reduce the supply of drugs into the United States as well as practices that make it more difficult for illicit drug users to obtain drugs. These approaches can be contrasted with demand-side policies, which are aimed at lowering demand for drugs through prevention and treatment measures.

U.S. drug control policy has always been comprised of both supply-side and demand-side measures. For most of U.S. history, supply-side policies have received the majority of funding in America's “drug war.” Further, the percentage of federal drug control funding going to supply-side policies has increased over time. For example, the percentage of the nation's drug war budget devoted to supply-side policies has increased from 54.4 percent in fiscal year (FY) 2002 to 64.9 percent in FY 2009, and was 65.7 percent in FY 2010. Meanwhile, the percentage of the nation's drug war budget devoted to demand-side policies has decreased from 45.6 percent in FY 2002 to 35.1 percent in FY 2009. It stood at only 34.3 percent in FY 2010.

In the FY 2011 request from the Office of National Drug Control Policy (ONDCP) to Congress, the supply-side policies of domestic law enforcement, interdiction, and international spending make up 64.0 percent of the Federal drug control budget; the remaining 36.0 percent consists of funding for the demand-side policies of treatment and prevention.

Beginning in 2003, ONDCP changed its budget format to exclude costs related to federal law enforcement, judicial, and correctional practices. This had the effect of reducing the appearance of the overall size of the federal drug control budget; governments were still spending the money but it was just not shown in the budget. This also had the effect of creating the perception that federal drug control policy spending is more balanced that it really is; by removing costs associated with law enforcement, courts, and prisons, this means the portion of the total drug war budget spent on prevention and treatment appears as a larger percentage of the overall budget.

Critics of U.S. drug control policy have argued that demand-side measures are more effective and thus should actually receive a higher portion of the nation's drug control budget. Government officials, including from the ONDCP, have suggested federal drug policy is already “balanced” and effective.

Types of Supply-Side Policies

The major types of supply-side policies include domestic law enforcement, interdiction, and international spending. Domestic law enforcement includes investigations led by town, city, county, state, and federal policing agencies. These investigations produce arrests of suspects and seizures of illicit drugs as well as drug paraphernalia. Law enforcement agencies also eradicate drugs produced within the United States and seize and destroy the facilities where they are produced.

Law enforcement also engage in asset forfeiture as part of supply-side policies of the drug war. Asset forfeiture occurs when police agencies seize property thought to be involved in a drug business or purchased using proceeds from drug sales. Police agencies have the authority to seize cash, cars, homes, and any other property as part of a drug investigation.

Asset forfeiture was approved by the Comprehensive Crime Control Act of 1984, which established two forfeiture funds, one at the U.S. Department of Justice (with money coming from forfeitures by the Drug Enforcement Administration [DEA] and the Federal Bureau of Investigation [FBI]) and another by the U.S. Department of Treasury (with money from Customs and the Coast Guard). Citizens who lose their property must prove they are innocent of drug charges to get their property back, and even then, they may not get it all back because there are processing fees that must be paid first. Law enforcement agencies also get to keep part of the money they seize, raising the criticism of potential conflicts between eradicating drugs from communities and simultaneously relying on drugs in the community to raise funds.

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