Airport Alert: House Appropriations Committee Clears FY23 DHS/TSA/CBP Funding Bill

June 24, 2022

After a lengthy debate, the full House Appropriations Committee approved, on a party-line vote of 32-25, the fiscal year (FY) 2023 funding bill for the Department of Homeland Security (DHS) and its component agencies, including the Transportation Security Administration (TSA) and U.S. Customs and Border Protection (CBP).  In total, the bill provides $60.3 billion in discretionary appropriations for DHS, $2.7 billion above the FY22 enacted level. More than half of this increase is required just to maintain current DHS services. The approved bill included funding for a number of critical airport priorities discussed in further detail below. 

Subcommittee Chair Lucille Roybal-Allard (D-CA) acknowledged in her opening statement that while there is bipartisan agreement on most funding recommendations contained in the bill, there is disagreement on the handling of border and immigration issues. Both Full Committee Ranking Member Kay Granger (R-TX) and Subcommittee Ranking Member Chuck Fleischmann (R-TN) stated that they could not support the bill in its current form because of how certain immigration and border issues are handled.

The Committee considered almost two dozen amendments that largely focused on border security, immigration, and Coast Guard matters. No amendments were approved that changed funding levels for TSA or CBP activities important to airports. An amendment about TSA collective bargaining rights was offered and rejected. 

Transportation Security Administration

A total of $9.77 billion was provided for TSA, an increase of $1.28 billion above FY22 but $280 million below the administration's request. The bill restored $94.1 million in funding for TSA to continue to staff exit lanes at 109 locations instead of shifting those costs to airports and provided $615.8 million for TSA pay compensation, labor rights, and other protections. Additionally, the Committee approved without comment the following items in the FY23 budget request:

• 2,540 additional Transportation Security Officers (TSOs) to meet increasing passenger travel volume. However, the recommendation assumes a slower hiring process in recognition that the final spending bill will likely not be enacted into law by the beginning of FY23;
• $46.1 million for law enforcement officer reimbursement grants;
• $104.5 million to procure, deploy, and test approximately 108 Checkpoint Property Screening Systems, including computed tomography (CT) machines at airport checkpoints;
• $13.94 million to continue to reimburse airports for the purchase and installation of checked baggage explosive detection systems procured shortly after September 11; and 
• $22.34 million for credential authentication technology. 

The report that accompanies the bill contains a brief TSA discussion that highlights additional funding details and recommendations. Of note:

• TSA Personnel Pay and Compensation:
The bill provides $615.8 million for TSA to compensate its workforce at levels that are commensurate with other federal agencies, and to extend other equivalent rights and protections. This amount is $376.1 million less than requested. The report includes the following explanatory language related to TSA personnel system changes. 'Most TSA personnel currently participate in a TSA-specific pay structure that provides compensation at rates significantly lower than similar jobs in the federal civil service. The Administration has proposed changes to the TSA system to make TSA pay commensurate with other federal agencies and to extend other equivalent rights and protections. The Committee supports these changes as a matter of basic fairness to TSA personnel, who play a critical and physically demanding role in ensuring the safety of air transportation, and also because it will help address TSA's long-standing recruitment and retention challenges. The Administration proposed to pay for this change to the TSA pay system through a change to current law that would end the diversion of a portion of passenger security fee revenue to the Treasury. Unfortunately, the Committee is unable to effect that statutory change in a way that would help make available additional resources for fiscal year 2023. Nevertheless, the Committee recommends $615,872,000 for the proposed personnel initiatives, an amount calculated to allow a transition to the new pay system not later than April 1, 2023.' 

• National Deployment Force:
The Committee did not include funding requested for the National Deployment Force (NDF) that supports airport screening operations during emergencies, seasonal demands, severe weather conditions, or increased passenger activity above those normally available at airports even though the report highlights the '300 percent increase in NDF officer deployments thus far in fiscal year 2022.'  In lieu of this funding increase, the Committee directs TSA to provide a briefing on the increased demand for the NDF workforce, which must include a detailed budget and staffing profile for fiscal years 2021 through 2023. 

• Checked Baggage Qualified Products List:
The Committee provides $5 million above the budget request to hire additional support staff to accelerate the opening of a new checked baggage qualification window. The report notes that 'TSA has not opened a qualification window for checked baggage inline screening systems since 2015. In order to take advantage of technological improvements since then, TSA is directed to expedite the update of requirements for checked baggage screening equipment, and to consider establishing a program for enhanced capability within the checked baggage mission space to ensure U.S. airports have access to the best screening technology available from the Transportation Security Equipment Industry. Not later than 60 days after the date of enactment of this Act, TSA shall brief the Committee on the status of implementing such a program and the plan to establish a new qualification opportunity for the industry.' 

• Biometric Identity Validation Tools:
The Committee report supports the development of biometric identity validation tools by both the private and public sector to improve security and facilitate the passenger journey from curb to gate, noting that 'the COVID-19 pandemic highlighted the necessity for the Office of Biometric Identity Management, TSA, and CBP to continue funding and expanding technology programs to decrease touchpoints for domestic and international passengers while also protecting personal identifying information.' 

U.S. Customs and Border Protection (CBP)

In total, the bill provided $15.74 billion for CBP, an increase of $893.1 million above FY22 and $338.1 million above the administration's request. Within this total, $120.1 million is provided for the agency to hire 250 additional CBP officers, 500 technicians, and 500 mission support staff. The additional technicians and mission support staff will permit officers to return to airports and other field locations instead of handling administrative duties. 

Key highlights from the CBP section of the bill and report include:

• User Fee Shortfall:
The bill does not offset CBP's continued user fee revenue shortfall but will revisit this need later in the year.  The report acknowledged that 'the COVID“19 pandemic continues to have a significant impact on the collection of trade and travel fee revenue on which the Office of Field Operations depends for a significant portion of its operations. Because the impact on fiscal year 2023 collections is uncertain and is still being estimated by CBP, the recommendation is based on the budget proposal and fee revenue estimates provided in CBP's budget request, with the understanding that Congress may need to address potential funding shortfalls later in the appropriations process.' 
 
• Resource Allocation Model:
The Committee continues to require CBP to provide resource allocations at the field and office level and to brief on any staffing shortfalls including those on the northern and southern borders as compared to levels prescribed for air, land, and sea ports of entry and at rail crossings.  

• Biometric Exit:
Report language directs CBP to provide a detailed expenditure plan for biometric exit activities within 90 days of the date of enactment, to include a realistic cost estimate for full implementation. The report encourages CBP to continue to deploy a biometric exit capability in the air environment and work in partnership with the air travel industry on the implementation of the Biometric Entry-Exit Program. 

• User Fee Funded Airports:
The report once again strongly encourages CBP to give priority consideration to an application for port of entry status to any user fee airport that served at least 75,000 deplaned international passengers in the previous calendar year. 

• Overtime Cap:
The bill retains the overtime cap at $45,000 for CBP officers and continues to permit the Secretary to waive this cap on an individual basis in the case of immigration emergencies. 

For more information, attached is the bill text, committee report, bill summary, and list of community funded projects

What's Next in the House?

House Majority Leader Steny Hoyer (D-MD) has indicated that he would like the full House of Representatives to pass as many appropriations bills as possible this summer. Based on the past few years, it is unlikely the DHS funding bill will come to the House floor due to its controversial border and immigration provisions and will be wrapped into a larger omnibus spending bill much later in the year. 

Senate Appropriations Updates: 

Chair Patrick Leahy (D-VT) indicated that the Senate Appropriations Committee will begin marking up their FY23 funding recommendations in early July. Exact timing for when the Senate Appropriations Committee will consider FY23 funding recommendations for DHS remains unclear.