House Republicans back bill to redirect TSA security fee revenue to airport upgrades

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House backs TSA fee bill

Highlights

House Republicans introduced the bipartisan SAFEGUARDS Act to require TSA's $5.60 9/11 Passenger Security Fee revenue be used exclusively for airport security.
Roughly $15 billion in security fee revenue has been diverted to the Treasury for deficit reduction since 2014, reducing funds for screening and security investments.
Industry groups and major airlines support the bill, citing its potential to accelerate airport security upgrades as U.S. travel demand rises ahead of major global events.

Bill targets fee diversion and TSA funding

As reported by the House Committee on Homeland Security, members led by Subcommittee on Emergency Management and Technology Chairman Dale Strong are introducing the SAFEGUARDS Act, a bipartisan measure that requires revenue from the Transportation Security Administration's 9/11 Passenger Security Fee to be used for aviation and airport security. The fee currently stands at $5.60 for a one-way plane ticket.

Committee backers say a significant share of that revenue has been diverted to the Treasury for deficit reduction since 2014. They say about $15 billion has been redirected over the past decade, while screening and other passenger security investments need additional funding.

The bill is co-sponsored by Rep. Tim Kennedy, Homeland Security Committee Chairman Andrew R. Garbarino, Subcommittee on Border Security and Enforcement Chairman Michael Guest, Rep. Ryan Mackenzie and Rep. Gabe Evans. Similar legislation has also been introduced by Sen. Jerry Moran and marked up in the Senate Commerce Committee.

Airlines and airport groups push modernization case

Supporters argue the measure would help the TSA fund newer checkpoint and baggage screening systems as U.S. travel demand grows and the country prepares for the 2026 FIFA World Cup, America 250 celebrations and the 2028 Olympics. Lawmakers backing the bill say travelers should be able to expect that security fees collected on tickets are spent on aviation protection rather than unrelated federal purposes.

Industry groups and airlines including U.S. Travel Association, American Airlines, Southwest Airlines and the American Association of Airport Executives are backing the measure. They say ending the diversion of fee revenue would improve airport efficiency, strengthen threat detection and speed long-delayed security upgrades across large and small airports nationwide.

Our earlier article on Clark County, Nevada’s airport system bonds explained how the airport entered the market with AA-rated refunding and revenue bonds supported by steady passenger traffic and strong liquidity. We noted that the stable outlook was underpinned by a resilient origin-and-destination passenger base and declining debt service needs, while key watch items included exposure to leisure demand and variable-rate debt risks.

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