Those in charge of formulating the program also said it won't be implemented until Congress returns in the fall to give Justice Department officials a chance to consult with lawmakers.
The program, called Operation TIPS (Terrorism Information and Prevention System), originally was to begin this month.
It ran into heavy criticism from civil libertarians and many in Congress, who complained the program might lead to spying on Americans in their homes. The House passed a bill last month by Rep. Dick Armey, R-Texas, which would prohibit the program.
Justice officials said in June that utility companies, the Postal Service and trucking companies would be sought as possible participants. The idea was to offer a hot line people could call if they noticed something suspicious during the course of their workday that could be terrorist activity.
But the Postal Service balked at its inclusion and other industries also expressed reservations, saying they didn't want their workers looked upon by customers as potential spies.
The Justice Department no longer is seeking the participation of the Postal Service or utility companies.
"We are not going to target any company or industry that has workers that are going inside people's homes or working around people's homes," said a Justice Department official, speaking on condition of anonymity. The official said the department is "absolutely discouraging" tips on activities within people's homes.
The program will focus on workers who operate on the highways, such as truck drivers, and at U.S. ports of entry.
The Justice Department has not decided who will operate the hot line, but a possible choice is the National White Collar Crime Center. The organization is a nonprofit corporation of law enforcement agencies and state and local prosecution offices.
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