This taken from the official .gov website;
DHS was created by the Department of Homeland Security Act of 2002, and is an outgrowth of the Office of Homeland Security established by President George W. Bush after Sept. 11, 2001
http://mediamatters.org/items/200512190015
NY Times distorted Democratic position on Homeland Security legislation
Summary: A New York Times article about the renewal of the USA Patriot Act misleadingly characterized the Democratic position about the creation of the Department of Homeland Security (DHS), stating only that Democrats held up passage of the bill because of a dispute over labor rights. But it failed to note that Democrats were among the original and leading proponents of a cabinet-level DHS and that Republican opposition to the idea delayed the creation of the department for nearly twice as long as the Democrats' delay.
http://archives.cnn.com/2002/ALLPOLITICS/11/25/homeland.security/
Bush initially resisted the idea of a new department, which had been championed primarily by Democrats in the wake of the attacks. But Bush embraced the concept in June and used the issue effectively on the campaign trail this past fall, criticizing Democrats who differed with him over the issue of labor rights within the new department
It was the Dems that originally wanted it and Reps were against it. Bush caved.