S. 2378, SAFEGUARDS Act of 2026

Bill Summary

S. 2378 would reauthorize or institute new programs administered by the Transportation Security Administration (TSA) to fund airport security projects.

The Aviation Security Capital Fund (ASCF), now set to expire in 2028, would be extended through 2036, and annual funding for related programs would be increased from $250 million to $400 million. The ASCF provides mandatory funds to airports for security projects from a portion of the security fees collected from airline passengers.

The bill also would establish the Aviation Security Checkpoint Technology (ASCT) Fund, which would receive $250 million in mandatory funding each year through 2036 from passengers’ fees. The bill would allow TSA to use those amounts without further appropriation to procure equipment for airport security checkpoints.

Finally, S. 2378 would require TSA and the inspector general of the Department of Homeland Security (DHS) to report regularly to the Congress on the bill’s implementation.

Estimated Federal Cost

The estimated budgetary effects of S. 2378 are shown in Table 1. The costs of the legislation largely fall within budget function 400 (transportation).

Basis of Estimate

S. 2378 would amend TSA’s security programs starting this fiscal year. For this estimate, CBO assumes that the bill will be enacted near the end of fiscal year 2026. Because the assumed enactment date is late in fiscal year 2026, most of the provisions would not take effect until 2027; outlays are based on historical spending patterns for the affected programs.

Background

Airline passengers generally pay a $5.60 TSA security fee for each one-way trip that originates at a U.S. airport. In 2025, TSA collected about $4.5 billion in those fees. Under current law, the fees are credited to three separate accounts. Through 2028, the first $250 million collected each year is recorded as mandatory offsetting collections (that is, they are treated as reductions in direct spending) and credited to the ASCF. Amounts in that fund are available to be spent without further appropriation for grants to airports for security projects. Spending from the ASCF is subject to mandatory sequestration, which reduces available budget authority by 5.7 percent annually through 2031 and by 2.8 percent in 2032. Sequestered amounts “pop up” in each following year, effectively shifting a portion of budget authority forward annually through 2033.

The next $1 billion to $2 billion collected each year through 2027 is credited to the general fund as mandatory offsetting receipts and cannot be spent without a future appropriation.[1] All other amounts are recorded as discretionary offsetting collections and are credited against annual appropriations for TSA’s operations and support.

S. 2378 would increase the amounts credited to the ASCF to $400 million annually and extend the fund’s authority through 2036. The bill also would require TSA to credit the next $250 million annually through 2036 to the newly established ASCT Fund. Because total collections would not be affected, enacting the bill would reduce the amounts credited for TSA appropriations and effectively reclassify a portion of the fees as mandatory rather than discretionary.

Direct Spending

CBO estimates that enacting S. 2378 would increase direct spending for grants from the two funds by $4.6 billion over the 2026-2036 period and by $1.4 billion after 2036. The bill also would effectively reclassify $6 billion of existing collections as mandatory and would thus reduce direct spending, on net, by $1.4 billion over the 2026-2036 period (see Table 2).

Aviation Security Capital Fund. The bill would extend the ASCF through 2036 and increase annual funding for related programs to $400 million. Because expenditures from and collections credited to the fund are classified as mandatory, CBO estimates that enacting that provision would decrease net direct spending by $1.0 billion over the 2026-2036 period and increase spending after 2036 by the same amount. Those effects stem from:

• An increase in credited mandatory offsetting collections (which reduce direct spending) of $150 million in 2027 and 2028 and $400 million annually from 2029 through 2036, totaling $3.5 billion over the 2026-2036 period;
• An increase in direct spending outlays of $2.5 billion over the 2026-2036 period for grants to airports for security projects; and
• An increase in direct spending outlays of $1.0 billion after 2036 because outlays lag the credited collections.

Aviation Security Checkpoint Technology Fund. S. 2378 would newly establish the ASCT Fund, which would receive $250 million annually from reclassified TSA security fees through 2036. TSA could spend those amounts without further appropriation to procure checkpoint security equipment and technology.

Because expenditures from and collections credited to the fund would be classified as mandatory, CBO estimates that enacting that provision would decrease net direct spending by $0.4 billion over the 2026-2036 period and increase spending after 2036 by the same amount. Those effects stem from:

• An increase in credited mandatory offsetting collections (which reduce direct spending) of $250 million a year, totaling $2.5 billion over the 2026‑2036 period;
• An increase in direct spending outlays of $2.1 billion over the 2026-2036 period for procuring equipment and technology; and
• An increase in direct spending outlays of $0.4 billion after 2036 because outlays lag the credited collections.

Spending Subject to Appropriation

CBO estimates that implementing S. 2378 would cost $6.0 billion over the 2026-2036 period, assuming appropriation actions consistent with that estimate (see Table 3).

Reclassification of Security Fees. S. 2378 would reclassify a portion of the security fees that TSA collects from each airline passenger as mandatory offsetting collections instead of discretionary offsetting collections. CBO estimates that enacting the bill would reduce discretionary offsetting collections and thus increase spending subject to appropriation by $2.8 billion over the 2026‑2031 period and by $6.0 billion over the 2026-2036 period. That estimate incorporates the assumption that the Congress would not reduce future appropriations by the amount that discretionary offsetting collections would decrease under the bill.

Other Activities. S. 2378 would require TSA to report to the Congress each year on the bill’s implementation. The bill also would direct DHS’s Office of Inspector General to audit the use of funds and report those results to the Congress every two years. Based on the cost of similar activities, CBO estimates that implementing those provisions would cost $1 million over the 2026-2031 period and $2 million over the 2026-2036 period.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 4.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting S. 2378 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2037.

CBO estimates that enacting S. 2378 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2037.

Mandates

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

Estimate Prepared By

Federal Costs: Aaron Krupkin

Mandates: Brandon Lever

Estimate Reviewed By

Ann E. Futrell
Chief, Natural and Physical Resources Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

H. Samuel Papenfuss 
Deputy Director of Budget Analysis

Estimate Approved By