[6] Plans to create such a center were announced by President George W. Bush in his January 2003 State of the Union address.

After the Christmas 2009 terrorist attempt on Northwest Airlines Flight 253, the NCTC was tasked with creating a process to "thoroughly and exhaustively" prioritize terrorism threat threads; identify follow-up action by intelligence, law enforcement, and homeland security; and enhance the "Terrorist Identities Datamart Environment" database, to add names to watchlists.

[9] In 2012, United States Attorney General Eric Holder granted NCTC the authority to collect, store, and analyze extensive data collections on U.S. citizens compiled from governmental and non-governmental sources for suspicious behavior through pattern analysis and to share the databases with foreign states.

[10][11][12][13] In August 2019, The Daily Beast reported that the NCTC had begun to work on counterintelligence to combat domestic terrorism.

[14] The center analyzes terrorism intelligence including potential domestic threat intelligence; monitors communications internationally and domestically for potential threats; generates actionable information to potentially prevent criminal acts domestically; stores terrorism information; supports U.S. counterterrorism activities using information technology (IT); and plans counter-terrorism activities as directed by the President of the United States, the National Security Council, and the Homeland Security Council.