Despite concerns about Townsend's past as a Democratic appointee, Secretary of State Condoleezza Rice hired her for the National Security Council in Spring 2003 at the urging of counterterrorism chief John A. Gordon and Homeland Security Advisor Richard A. Clarke. In December 2003, she coordinated government terrorism responses that led to the grounding of flights from Europe during the holiday season. She was appointed Assistant to the President for Homeland Security and Counterterrorism on May 28, 2004. During her tenure, she oversaw an intelligence reorganization and conducted the first post-9/11 review of the White House's anti-terrorism campaign. Townsend served as the public face of the Bush administration while it was under criticism for allegedly overreacting to dated intelligence in its decision to raise terrorist threat levels during an election season. She also inspected Iraq's Abu Ghraib prison as an envoy of President Bush. Townsend was tapped to implement broad changes in the intelligence community recommended by a presidential commission headed by former Senator Chuck Robb and U.S. District Judge Laurence Silberman.