• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Top Stories
President Donald Trump arrives to address the nation from the Cross Hall of the White House on April 1, 2026 in Washington, DC. Photo by Alex Brandon-Pool/Getty Images

Just when it looked like things were getting back to normal for TSA officers, Trump just proposed a game-changing privatization strategy

Not long ago, President Donald Trump issued a memorandum (1) with the Subject line: "Paying Our Great Transportation Security Administration Officers and Employees."

Now he wants to lay off thousands of them. As Reuters reports (2), Trump plans to axe 9,400 Transportation Security Administration (TSA) workers as part of a massive $1.5-billion cut to the federal agency.

Advertisement

What changed?

When he signed the memorandum ordering that TSA workers be paid, Trump was dealing with workers who'd been paid nothing or next to nothing since February, many of them calling off work or quitting as a result, leading to growing lines — and frustration — at U.S. airports.

Since TSA workers started getting paid, those lines have eased, along with public pressure, Time reports (3). Now Trump has switched his focus to another TSA line: a budgetary one.

The proposed TSA cuts are part of Trump's 2027 fiscal year budget request (4). It needs Congressional (5) approval, but if approved, would take effect Oct. 1.

Trump is not recommending the end of airport security. But he is recommending the private sector (6) take over.

"The move would yield cost savings compared to federal screening and begin reform of a troubled federal agency." the budget request reads.

Advertisement

Here's a look at how privatization would work and who stands to gain.

Privatization of airport security

Under the proposal, small airports would have to sign up with the TSA's Screening Partnership Program and pre-approved private contractors would take over their airport security screening. The TSA would still maintain oversight.

As Travel Weekly reveals (7), this program already exists — albeit on a very small scale. Since it was launched in 2004, only 20 commercial airports out of 400 across the U.S. have signed up. Most are smaller, with San Francisco and Kansas City being exceptions.

Trump's proposal states that airports in the program have "demonstrated savings" relative to TSA-run screening programs and estimates savings of up to $52 million (8) from working with private contractors.

One such contractor — BOS Security Inc. — cites (9) a 2011 study that found that private screeners were able to process 65% more passengers per screener than their TSA counterparts.

The libertarian think tank, the Cato Institute notes (10) that privatized air security is not a new idea outside the U.S., either. Canada's Air Transport Security Authority partners with private firms to carry out airport screening, as do the majority of European airports.

Advertisement

So proponents say privatization would mean savings in terms of cost and efficiency.

But AFGE, the union that represents TSA workers, doesn't think that means privatization is a safer option — noting that all airport security screening in the U.S. was run by private contractors before the September 11, 2001 terror attacks.

"It's very important that people understand what privatization is," AFGE TSA Council 100 member Johnny Jones told (11) CNN. "It has nothing to do with your security or your safety. It has everything to do with somebody making a profit."

Must Read

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Who stands to profit

There are numerous commercial security firms already approved as TSA Screening Partnership Program contractors — and who stand to gain from expanded privatization.

Airport security contracts can be worth millions (12), like a proposed Screening Partnership Program contract to provide security at Charles M. Schulz Sonoma County Airport, worth upwards of $20 million.

In addition to Atlanta-based BOS Security Inc. these are some of the key players (13) who may benefit:

Advertisement
  • Akal Security, which currently provides airport screening services in Kansas City, Missouri
  • Covenant Aviation Security, the largest privately owned firm dedicated to airport security in the U.S., including a contract at San Francisco International Airport
  • VMD Corp., which currently provides airport screening at Kansas City, Orlando, Atlantic City, Greater Rochester and Portsmouth in New Hampshire

The next wave of profit in airport security screening may go to firms developing advanced artificial intelligence tools for airport security.

AI apps are already helping (14) screen passengers, baggage and cargo. AI is being paired with CT scanning and sensors to detect explosives and tiny traces of synthetic drugs.

For now, TSA workers are still on duty doing airport security, with Department of Homeland Security spokesperson Lauren Bis crediting Trump for the calm.

"We are grateful to President Trump for ensuring our dedicated TSA officers can continue their critical mission of safeguarding the traveling public," she said in a statement to Time.

Whether those officers will be doing this critical work next year is now no longer certain.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

White House (1); Reuters (2); Time (3); White House (4); Congress (5); Travel Weekly (6, 7); MSN (8); Reason Foundation (9); Cato Institute (10); CNN (11); HigherGov (12); Transportation Security Administration (13); Airports Council International (14)

You May Also Like

Share this:
Laura Boast Associate Editor

Laura Boast is an Associate Editor with Moneywise.com and a lifelong content creator who's worked for Discovery, CBC, Blue Ant Media and Bond Brand Loyalty among other organizations. She’s covered everything from consumer affairs to comets, chimps and cars. She’s obsessed with home design shows.

more from Laura Boast

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.