Homeland Security Shutdown Looms, Travel Industry at Risk

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Update, March 2: Congress reached a deal late Friday to fund DHS for one week while negotiations continue. Read more here.

The House of Representatives today failed to pass a bill that would fund the Department of Homeland Security (DHS) for three weeks while Congress continues seeking a longer-term funding solution. Funding for the department expires at midnight tonight; if Congress fails to reach an agreement before then, DHS will be forced into a temporary shutdown affecting all but the most essential security functions -- which could have a negative impact on the travel industry.

The cause for the weeks-long impasse: Republicans want to attach to any new DHS funding measure provisions limiting the president's executive action on immigration. Democrats, however, refuse to cede ground.

In a statement published yesterday on behalf of the travel industry, U.S. Travel Association President and CEO Roger Dow urged leaders in both the House and the Senate to compromise in order to keep DHS fully operational.

"We urge leaders in both chambers of Congress to quickly arrive at a consensus that ensures DHS remains open and fully funded," Dow said. "The travel sector of the economy is strong, but fragile. Uncertainty is harmful for any business environment, but that is doubly true for travel, which depends upon the public's confidence that our transportation modes are safe and secure. Even though basic security functions would continue in the event of a shutdown, the prospect of delayed paychecks for security personnel could cause morale problems that ripple throughout the system."

Security isn't all that's at stake, however. "In addition to security, DHS performs a number of vital tasks related to travel facilitation that have helped our industry become the economy's second-largest export and support one out of every nine American jobs," Dow continued. "In order to effectively allocate resources, businesses in our sector crave assurance that programs like Global Entry, TSA PreCheck, customs pre-clearance negotiations, and evaluations for the Visa Waiver Program will all remain online.

"Our ultimate wish is that talk of shutdowns disappear from our political culture altogether so that businesses can focus on innovation and growth rather than wring their hands when there are storm clouds over the Beltway."


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