The U.S. Department of Homeland Security said rising costs for construction and materials and delays in acquiring land were factors delaying the barrier's completion.

Officials also say they need more money for the project, The New York Times (NYSE:NYT) reported. Some 341 miles of fencing is in place along the 2,000-mile border. But, the agency said completing the project depends on redirecting $400 million in department funds.

Since 2005, Congress has appropriated $2.7 billion for the project that U.S. President George Bush says is vital to securing the border.