....In the debate over that legislation, the most contentious elements dealt with working out the DNI's relations with the heads of Cabinet departments, particularly Defense. In 15 of the 24 sections of the amended Executive Order 12333 that detail the DNI's authority, he is given what one senior intelligence official describes as 'the pen,' meaning final sign-off authority. For example, the DNI has authority to require an agency to give access to and to disseminate all intelligence information -- even materials that in the past were kept inside special compartments by Pentagon agencies. ....

....Gates credited solving the contentious Defense Department issues in EO 12333 to Mike McConnell, a former Navy admiral and now DNI; Michael V. Hayden, a former Air Force general and now CIA director; James R. Clapper Jr., another former Air Force general and now undersecretary of defense for intelligence; and himself. He said they 'trust each other, and we spent a lot of time together working through a lot of these problems. To be honest, I think with a different cast of characters it probably could not have been done.'

But EO 12333 says the DNI 'shall oversee and direct the implementation of the National Intelligence Program and execution of the National Intelligence Program budget.' There is no mention of the Military Intelligence Program or the military intelligence budget, which runs about $10 billion annually. When it comes to this area the congressional language remains, giving the DNI essentially only broad consultation authority and the power to shift some Pentagon money around.