Homeland Security Grant Enhancement Act of 2004

Homeland Security Grant Enhancement Act of 2004 - Amends the Homeland Security Act of 2002 to establish an Interagency Committee to Coordinate and Streamline Homeland Security Grant Programs.

Provides that the Office for State and Local Government Coordination (OSLGC) within the Office of the Secretary of the Department of Homeland Security (DHS) shall be headed by a Director appointed by the President.

Transfers administration of the firefighter assistance grant program and the Office for Domestic Preparedness (ODP) to OSLGC.

Establishes a Homeland Security Information Clearinghouse within OSLGC.

Authorizes the Secretary to award homeland security grants to States. Specifies the permissible and impermissible uses for grant funds. Requires State grant applications to include certification that the State has prepared a three-year homeland security plan.

Requires the Secretary to use ten percent of the funds appropriated for the Homeland Security Grant Program for discretionary grants to high threat areas. Establishes a formula for awarding the remaining funds. Requires grant recipients to use 80 percent of grant funds for local entities and first responders and to provide non-Federal matching funds.

Instructs the Secretary to assist States in establishing interim performance measures and subsequently to set, and ensure State compliance with, national performance standards.

Provides penalties for a grant recipient's noncompliance with any grant program provision of this Act.

Requires the Director of ODP to allow any State to request approval to reallocate previously received homeland security funds among the categories of equipment, training, exercises, and planning.