More Details on Senate DHS/TSA/CPB Appropriations Bill

July 28, 2023


As previously reported, the Senate Appropriations Committee approved (24-4) its version of legislation to fund the Department of Homeland Security, including the Transportation Security Administration (TSA) and U.S. Customs and Border Protection (CBP), for the upcoming fiscal year that begins on October 1. Overall, the Senate bill provides $61.3 billion in discretionary appropriations for DHS and its component agencies. 

In terms of airport priorities, the Senate's funding decisions are mixed, especially within TSA. On a positive note, the Senate report includes language urging the agency to delay implementation of the aviation worker screening National Amendment for no less than one year and to reassess the amendment's implementation. However, the Committee eliminated funding or only partially funded a number of key airport priorities, as discussed in more detail below.

Transportation Security Administration

The Senate bill provides a total of $10.9 billion for TSA, $1.15 billion more than the administration's request but $408 million less than the FY23 enacted level. As part of the FY24 request, the administration had 'erroneously assumed' that $1.52 billion in aviation security fees could be diverted to TSA's budget instead of deficit reduction payments as required by statute. The Committee was unable to use those fees for TSA because Congress must first enact a statutory change to end this diversion, which has not occurred. As a result, the Committee could only utilize fees credited to the TSA appropriation. After factoring out these fees, the net discretionary increase is $1.1 billion above the request and $931 million above the FY23 enacted level.

Notable funding items include:
1,900 additional Transportation Security Officers (TSOs), 139 less than requested, to meet the anticipated 4.5 percent increase in passenger travel volume. 
$175 million for canine teams, restoring 50 percent of the proposed cut to state and local-led canine teams.
$13.9 million to support outstanding reimbursement for costs associated with in-line baggage and screening systems procured before 2007.
No funding for TSA's law enforcement officer (LEO) reimbursement grants, which matches the administration request (-$45.9 million).
No funding for computed tomography technology (CT) to screen carry-on baggage at passenger checkpoints, rejecting the administration's request of $81.4 million to procure and deploy this equipment.
No funding for TSA personnel to monitor exit lanes. However, the Committee did not negate the statutory requirement for TSA to continue monitoring exit lanes at those locations where TSA monitored them on December 1, 2013. In AAAE's opinion, this means TSA must continue to staff those exit lanes. 
Fully funds TSA workforce pay equity.

In comparison, the House Committee-passed FY24 DHS appropriations bill fully funds the new TSOs, TSA staff at exit lanes, LEO reimbursement grants, state and local-led canine teams, and CT technology. AAAE will strongly advocate for the inclusion of all of these items in the final DHS spending bill later this year.
 
The report that accompanies the bill contains a brief TSA discussion that highlights additional funding details and recommendations. Of note:

Aviation Worker Screening: As noted above, the Committee report included strong language expressing concern about TSA's aviation worker screening amendment. It states 'The Committee recognizes TSA's authority to deter and detect threats to airport security. The Committee is concerned that the recently issued National Amendment on Aviation Worker Screening (TSA-NA-23-02) that requires airports to significantly increase airport-performed physical screening of employees and may be implemented in a manner that imposes undue burdens on airport operators. Further, the Committee is concerned that the National Amendment will be implemented prior to a thorough cost benefit analysis or risk assessment to justify the change. Furthermore, the National Amendment may place requirements on non-TSA security screeners that exceed their legal authority. The Committee urges TSA to delay the implementation of the National Amendment for no less than one year and to reassess the amendment's implementation, including through soliciting a formal round of notice and comment to examine the benefits to aviation security and the full financial and operational impacts of this proposal on airports.' This outcome reflects the outcry Senators heard from airports and AAAE about the costs and difficulty in implementing this requirement in a short time frame.   However, this language does not have the force of law so TSA can choose to abide by or ignore this guidance. 

Pay Equity: The Senate includes $1.1 billion, as requested, to achieve pay parity for the TSA workforce, especially in improving pay for frontline transportation security officers, and to annualize the FY23 pay raise that went into effect earlier this month. The Committee report notes that 'this is to ensure TSA is staffed and funded in order to allocate the appropriate number of officers at airports to avoid long lines and excessive wait times and ready to meet the needs across the enterprise as passenger volumes increase at security checkpoints.' Also, the report notes that 'since the initiative was announced last year, it has allowed TSA to address recruiting and retention challenges and highlights that TSA attrition is down nearly 50 percent compared to the beginning of fiscal year 2023, while hiring is up.'
 
Registered Traveler (RT) Program: The Committee expresses concern about the RT program, citing recent security incidents involving RT service providers. The report directs TSA to notify the Committee within 30 days of security incidents involving RT service providers, provide a report detailing their plan to address vulnerabilities created by RT service providers, and strongly encourages TSA to verify the identity of all passengers including those enrolled in and escorted by RT service providers.

Facial Recognition Technology: Because the Committee is disappointed with the TSA's communication plans to the general public about the roll-out of the new facial recognition technology, the report directs 'TSA to ensure passengers are informed of their option to forgo the use of facial recognition or facial matching technology in airports, via spoken announcements and other methods, where Credential Authentication Technology [CAT] is deployed at individual security checkpoints or kiosks for identity verification.'  Further, TSA must provide more details to Congress about how the use of facial recognition technology does not infringe on constitutional and statutory protections for due process, nondiscrimination, privacy, and freedom of speech and association.

In-Line Baggage Handling and Screening Systems: The Senate encourages TSA to continue 'to support the expansion of Explosive Detection Systems (EDS) at small airports to enhance security across the airport system and offer improved capabilities such as: greater ability to differentiate threats using the standalone EDS, reduced processing time for the baggage being screened, and reduction of manual screening to exceptions identified by the EDS.' 
 
U.S. Customs and Border Protection (CBP)

In total, the bill provides $18.1 billion for CBP, $1.6 billion above the administration's request. Key highlights from the CBP section of the bill and report include:

CBP Officers: The bill includes funding to hire 700 additional CBP officers, 550 more than requested. These officers will be deployed to the nation's ports of entry, including airports, to reduce wait times for people and goods entering the United States. 

Workload Staffing Model and Airport Staffing: The Committee encourages CBP to ensure appropriate staffing levels are maintained at the top 10 U.S. air ports of entry, as determined by passenger enplanements as measured by the Federal Aviation Administration. 

Preclearance: The Committee supports expansion of the preclearance program, as an opportunity for increased traveler volume, increased revenue, and new flight routes. The report urges CBP to reengage in negotiations with international airports on expansions to the existing preclearance program by prioritizing airports that were previously identified for possible preclearance locations in 2015 and 2016 and that have the highest number of travelers arriving in the U.S. each year. 

Reimbursable Service Programs: The FY23 appropriations act required CBP to provide each air, land, and sea port operator with information on baseline service levels and report to the Committee quarterly on its adherence to these baseline levels. The report highlights that the Committee has not received its reports, which are to address staffing shortages, requirements for facility and security upgrades, and plans for technology recapitalization; the process used to decide how initiatives are funded; a justification for the scope of the requests; and how CBP will negotiate with port operators and incorporate their feedback into the development of plans to address future facility and security needs.
Further, the Senate modifies the reporting requirement to a semi-annual basis. 

CBP Mobile One Application: The report includes lengthy language about CBP's mobile one application and numerous reporting requirements. Of note, CBP is directed to provide a deployment plan including the user rate for each service available on the mobile application as of the date of enactment of this act, a description of additional services and features that will be implemented by the end of fiscal year 2024, and its plan to address accessibility and technical problems (including problems with facial recognition technology).
 
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.

User Fees: The report highlights that since fiscal year 2021, Congress has provided more than $1.8 billion to CBP to offset the impacts of reduced fees collected as a result of COVID-19 impacts to international travel.  The Committee directs CBP 'to manage and oversee CBP fee funding to ensure current year operational requirements are balanced against the continuing requirement to build and maximize a carryover balance. If fee collections during fiscal year 2024 exceed current projections and carryover requirements, CBP shall refrain from obligating those available funds until it briefs the Committee on options for the use of those funds to include for hiring additional CBP officers and mission support staff.'

What's Next?

As we have reported, the House Appropriations Committee approved its version of the FY24 DHS/TSA/CBP spending bill in June. That bill has not yet been - and will not likely be - considered by the full House. Ultimately, leaders will need to reconcile differences between the House and Senate bills, a task that will be exceedingly difficult. As we have repeatedly noted, the Democratically-controlled Senate is moving to fund the federal government at the FY23 spending levels, in accordance with the debt ceiling deal approved earlier this spring. In contrast, House Republicans are funding the federal government at the FY22 level, which is $120 billion below the Senate, and are working aggressively to find additional government-wide cuts. 

More details from the Committee documents can be found here:
Summary document
FY24 DHS Appropriations Senate bill, as amended 
FY24 DHS Appropriations Senate report, as amended 
Congressionally directed spending projects