Homeland Security Secretary Janet Napolitano paid a visit to the city Wednesday to discuss counterterrorism efforts and also announce a new funding package that will help pay for more police officers for the city's transit system.

The announcement comes one day after the city learned it would not be getting an estimated $650 million in federal COPS funding.

Napolitano says the $35 million grant comes from the Transit Security program. It would put more than 100 additional officers on city subways and buses.

Speaking at The Council On Foreign Relations on the Upper East Side, Napolitano said the Department of Homeland Security is focused on fighting terrorism in a digital age. She highlighted the Mumbai terrorist attacks and how the organizers used GPS and other electronic devices to carry out the bombings.

Napolitano also said the agency is working to refocus counterterrorism efforts in order to make it a shared operation across federal and local agencies.

"The challenge is not just using federal power to protect the country, but also enlisting a broader societal response to the threat that terrorism poses," she said.

The secretary also visited the World Trade Center site and spoke to various law enforcement and city officials at the Staten Island ferry terminal in Lower Manhattan.

During that meeting, she stressed the importance of shared funding and communication.

"It is so important that we have a close connection with local and state law enforcement departments," said Napolitano. "They are really the first eyes on the ground. They are really the ones that see something abnormal, that notice different patterns and we think we can we help them with different analytic capacity, increased access to federal databases."

Later in the day, Napolitano presented the city with the transit security funding package at Grand Central Terminal.

According to law enforcement officials, the funding will allow the New York City Police Department to replace officers currently working as transit cops with new officers funded by the program and move the previous officers into other operations throughout the department.

Senator Charles Schumer says the new money comes with fewer strings attached than the COPS program, which the city was shut out of.

"Under the COPS program, the most the city could get was 50 police officers. This is 120," Schumer said. "That doesn't justify them zeroing us out on the COPS money, but it does mean that New York is going to do better than the other cities that got the COPS money. And we're going to keep on them, fighting both for money for COPS and for more money from the Department of Homeland Security."

Yet, not everyone was satisfied with the new funding.

"They've since given us 120 new transit officers, and we appreciate that," said City Councilman Peter Vallone, who chairs the city public safety committee. "But we need boots above the ground, too. The way they gave a balanced budget, the way the city balanced the budget, is by eliminating the whole police class of 2010. The federal government cannot allow that to happen. [Janet Napolitano] said she would take that concern back to Washington."

Federal officials said the city was denied funding from the COPS program because of its relatively low crime rate.