Airport Security Costs & TSA Reimbursement
Aviation security at U.S. commercial airports operates through a cost-sharing structure: the Transportation Security Administration (TSA) funds passenger screening operations ($11.5 billion total FY 2026 appropriation), but airport operators bear costs for law enforcement officer (LEO) presence, physical security infrastructure, and certain checkpoint support functions. The September 11 Security Fee—collected from air carriers and remitted to TSA—is the primary funding source ($5.60 per one-way trip since 2014), but a portion is diverted to the Treasury General Fund for deficit reduction. The FY 2026 appropriations bill expands federal airport security capital funding: the Aviation Security Capital Fund (ASCF) doubles from $250 million to $500 million annually, and a new Aviation Security Checkpoint Technology Fund allocates $250 million to checkpoint technology and biometrics. Airports that lose appropriations for LEO reimbursement or exit-lane staffing must absorb those costs within operating budgets or terminal rates. This article maps each cost category, current reimbursement status, and financial planning considerations.
2026-03-06 — Initial publication
Overview
Aviation security at U.S. commercial airports operates through a cost-sharing structure involving the Transportation Security Administration (TSA), airport operators, air carriers, and passengers. TSA, created by the Aviation and Transportation Security Act of 2001 (ATSA, Pub. L. 107-71), is the federal agency responsible for screening passengers and property at airports under 49 U.S.C. § 44901. Airport operators, in turn, bear costs for law enforcement, physical security infrastructure, access control, and certain checkpoint support functions under 49 U.S.C. § 44903.
The boundaries of this cost-sharing arrangement have shifted over the past two decades through congressional appropriations decisions, fee restructurings, and periodic attempts to transfer costs from the federal budget to local airport operators.
The September 11 Security Fee
The primary funding mechanism for TSA operations is the September 11 Security Fee, authorized under 49 U.S.C. § 44940. Air carriers collect the fee from passengers at the time of ticket purchase and remit it to TSA.
The fee has been restructured once since inception:
| Period | Fee Structure | Statutory Authority |
|---|---|---|
| February 1, 2002 – July 20, 2014 | $2.50 per enplanement, maximum $5.00 per one-way trip, $10.00 round trip | ATSA § 118 (Pub. L. 107-71) |
| July 21, 2014 – present | $5.60 per one-way trip, $11.20 round trip (flat fee regardless of connections) | Bipartisan Budget Act of 2013 (Pub. L. 113-67) |
Fee Diversion
The Bipartisan Budget Act of 2013 both raised the fee and directed that a portion of the revenue—$0.60 of each $5.60 collected—be deposited into the Treasury's General Fund for deficit reduction rather than funding TSA operations. In FY 2023, total security fee collections reached approximately $4.6 billion, of which approximately $1.6 billion was diverted to the General Fund. The FY 2024 DHS Appropriations Act reduced the diversion amount to $760 million and returned $800 million to TSA.
Aviation Security Infrastructure Fee (ASIF) — Repealed
A separate fee, the Aviation Security Infrastructure Fee (ASIF), was imposed on air carriers based on each carrier's calendar year 2000 screening costs. The Bipartisan Budget Act of 2013 repealed the ASIF effective October 1, 2014. TSA published a final rule confirming cessation on September 23, 2014.
TSA Budget and Screening Operations
The FY 2026 DHS appropriations bill, released January 20, 2026, provides $11.5 billion in total appropriations for TSA. After factoring out user fee offsets, the net appropriation is $8 billion.
Key line items in the House version of the FY 2026 bill:
| Line Item | FY 2026 Amount |
|---|---|
| Frontline screening workforce | $5.533 billion |
| Computed Tomography (CT) checkpoint baggage systems (CPSS) | $300 million |
| Law Enforcement Officer (LEO) Reimbursement Program | $45.9 million |
The Trump Administration's FY 2026 budget request proposed reducing TSA funding by $247 million relative to FY 2025 levels, including the elimination of approximately 2,600 TSA positions—roughly half from exit lane staffing at 99 airports. The final bipartisan FY 2026 bill rejected those proposed reductions and restored funding for exit lane staffing, LEO reimbursement, and the canine program.
Airport-Borne Security Cost Categories
Airport operators incur security costs across several categories. Some are partially reimbursed by the federal government; others are borne entirely by the airport.
Law Enforcement Officer (LEO) Presence
Under 49 U.S.C. § 44903, TSA requires airport operators to provide law enforcement officers (LEOs) at or near passenger security screening checkpoints. TSA screeners do not carry firearms and do not have authority to detain individuals or make arrests; LEOs provide that capability.
Airports have met this requirement through various arrangements: dedicated airport police departments, agreements with local or county law enforcement agencies, or contracts with external providers. The structure and cost of these arrangements varies by airport based on local jurisdiction capabilities and labor market conditions.
The LEO Reimbursement Program. TSA established the LEO Reimbursement Program to partially reimburse airports for LEO costs at screening checkpoints. At its peak, approximately 300 airports held LEO reimbursement agreements with TSA. The program has historically covered between 25% and 40% of LEO salary costs attributable to checkpoint duty.
Named examples from public records:
- Tampa International Airport (TPA): Approximately $700,000 per year from the LEO Reimbursement Program
- Metropolitan Washington Airports Authority (DCA/IAD): Federal reimbursement covered 40% of the cost to employ six officers across Reagan National and Dulles International
- Ontario International Airport (ONT): $321,200 annual impact when FY 2024 funding was eliminated
Funding history and current status. The program has been funded at approximately $45 million per year in years when Congress appropriated funds. The Further Consolidated Appropriations Act, 2024 (FY 2024) eliminated LEO reimbursement funding entirely, shifting the full cost to airport operators. The final FY 2026 appropriations bill restores LEO reimbursement funding ($45.9 million in the House version).
The LEO requirement itself is statutory and does not depend on the availability of federal reimbursement. When reimbursement is unavailable, airports absorb the cost within their operating budgets.
Exit Lane Staffing
TSA assumed responsibility for staffing exit lanes—the points where arriving passengers exit the sterile area—at 99 airports. At airports where TSA does not staff exit lanes, the airport operator provides staffing or installs automated exit-lane technology.
The Trump Administration's FY 2026 budget proposed eliminating TSA exit-lane positions, reclassifying exit lanes as "access control" rather than screening and therefore not a TSA responsibility. TSA Acting Administrator Ha Nguyen McNeill testified before the House Appropriations Committee on May 20, 2025, that this would affect approximately 1,300 positions across 99 airports.
Airport industry associations analyzed the cost impact of transferring exit-lane staffing responsibility from TSA to airport operators. The final bipartisan FY 2026 appropriations bill restored TSA exit lane staffing, maintaining the federal cost responsibility for these positions.
Canine Teams
State and local law enforcement-handled explosives detection canine teams supplement TSA's federal canine program. TSA has historically provided a stipend for qualifying canine teams operating at airports. Funding for state and local canine team reimbursement has followed a similar pattern to the LEO program—funded at approximately $34.1 million in years when appropriated, eliminated in certain fiscal years, and restored in the FY 2026 bill.
Physical Security Infrastructure
Airport operators bear the capital and operating costs for physical security systems that are not part of TSA's screening function. These include:
- Access control systems: Credentialing, badge issuance, and electronic access control for airport workers with access to Security Identification Display Areas (SIDAs)
- Perimeter security: Fencing, intrusion detection systems, and vehicle barriers
- Closed-circuit television (CCTV): Surveillance cameras throughout terminal and airfield areas
- Terminal hardening: Bollards, blast-resistant construction, and landside security measures
- Cybersecurity: TSA Security Directive SD 1580/82-2022-01 imposes cybersecurity requirements on airport and airline operators of TSA-regulated systems, adding compliance and technology costs
These costs appear in airport operating budgets and, for capital items, are eligible for AIP or BIL-era grant funding to the extent they qualify as airport development under 49 U.S.C. § 47102.
Aviation Security Capital Fund (ASCF) and Airport Security Improvement Grants
Under 49 U.S.C. § 44923, the Aviation Security Capital Fund (ASCF) provides grants to airports for security improvement projects, with a particular focus on terminal modifications needed to install in-line checked baggage screening systems.
The FAA Reauthorization Act of 2024 restructured the fund's revenue allocation from the September 11 Security Fee:
| Period | Allocation to ASCF | Additional Allocation |
|---|---|---|
| FY 2004 – FY 2025 | First $250,000,000 from security fee collections | — |
| FY 2026 and each year thereafter | First $500,000,000 from security fee collections | Next $250,000,000 → Aviation Security Checkpoint Technology Fund (ASCTF) |
Eligible projects under the ASCF include terminal modifications, in-line baggage screening system installation, and other capital improvements that support the installation and use of explosives detection equipment. The federal share is 90% of eligible project costs. Of the amount available each fiscal year, up to $50,000,000 may be used for discretionary grants.
The doubling of the ASCF deposit (from $250 million to $500 million) and the creation of the ASCTF ($250 million) beginning in FY 2026 constitute a total of $750 million per year in security fee revenue dedicated to airport security capital and checkpoint technology—a $500 million annual increase over the prior structure.
The Screening Partnership Program (SPP)
Under 49 U.S.C. § 44920, airport operators may apply for their screening operations to be performed by private companies rather than TSA employees, through the Screening Partnership Program (SPP). Private screeners operate under TSA oversight, follow all TSA screening procedures, and use TSA-approved equipment.
As of mid-2025, 22 airports participate in the SPP, including San Francisco International Airport (SFO), Kansas City International Airport (MCI), and Sarasota-Bradenton International Airport (SRQ).
The current SPP IDIQ contract, with a $3.3 billion ceiling, expires May 31, 2026. TSA is procuring a replacement IDIQ with a projected ceiling of $5.5 billion over a 10-year base period. TSA's July 2025 Request for Information solicited proposals for fully integrated, "turnkey" screening solutions that incorporate biometrics, AI-based threat detection, and digital identity verification alongside traditional staffing.
TSA Acting Administrator McNeill testified on May 20, 2025 that "privatization has always been part of the TSA screening construct" and that "nothing is off the table" when considering new models for screening modernization.
SPP participation does not change the airport's LEO, exit lane, or physical security cost obligations. Those costs remain with the airport regardless of whether screening is performed by federal or private personnel.
How Airport Security Costs Flow Through Rates and Charges
Airport security costs—whether reimbursed by TSA or not—affect the airport's cost structure and, by extension, airline rates and charges. The treatment depends on the airport's rate-setting methodology:
Under a residual methodology, unreimbursed security costs are included in the airline cost center and recovered through landing fees or terminal rents. Reductions in TSA reimbursement (such as the FY 2024 elimination of LEO funding) flow through directly to higher airline rates.
Under a compensatory methodology, security costs allocated to the terminal cost center are recovered through terminal rental rates charged to airlines. Security costs in the airfield cost center are recovered through landing fees. Unreimbursed LEO and exit lane costs that the airport absorbs reduce net revenue available for debt service coverage and other purposes.
Asheville Regional Airport (AVL) includes "airline security fees" in its revenue budget to cover LEO personnel costs and contractual costs for exit lane and aviation employee screening.
Summary of Federal Security Reimbursement Programs
| Program | Statutory Basis | Annual Funding Level | FY 2026 Status |
|---|---|---|---|
| Passenger screening (TSA workforce) | 49 USC § 44901 | ~$6.1 billion (FY 2026 House bill) | Funded; Administration proposed $247M cut rejected by Congress |
| LEO Reimbursement Program | 49 USC § 44903 | ~$45 million (when funded) | Restored in FY 2026 final bill |
| Exit lane staffing (TSA) | Appropriations-driven | ~$111 million (airport cost if transferred) | TSA staffing restored in FY 2026 final bill |
| State/local canine teams | Appropriations-driven | ~$34 million (when funded) | Restored in FY 2026 final bill |
| ASCF grants (checked baggage/terminal) | 49 USC § 44923(h) | $500 million starting FY 2026 | Statutory; doubled from $250M |
| ASCTF (checkpoint technology) | 49 USC § 44923 (as amended) | $250 million starting FY 2026 | New fund created by FAA Reauthorization Act 2024 |
Considerations for Airport Finance Teams
Several dimensions of the security cost structure may be relevant for budgeting and planning:
- Appropriations volatility. The LEO, exit lane, and canine programs are funded annually through the DHS appropriations process. Funding has been eliminated, restored, and proposed for elimination again across successive fiscal years. The LEO program was zeroed out in FY 2024, proposed for elimination in the FY 2026 President's Budget, and restored in the final FY 2026 bill. Airport budgets that depend on continued reimbursement carry appropriations risk.
- ASCF expansion. The doubling of the ASCF from $250 million to $500 million annually starting in FY 2026, plus the new $250 million ASCTF, creates additional federal capital for checked baggage screening infrastructure and checkpoint technology. Airport capital plans that include in-line baggage system installations or terminal modifications for screening may be eligible for grants under these expanded funds.
- SPP evolution. The transition from the current $3.3 billion SPP IDIQ to a potential $5.5 billion replacement contract, with an expanded scope covering technology integration, may affect airports considering privatized screening. SPP participation decisions involve complex trade-offs between operational control, staffing flexibility, and cost.
- Security fee revenue trends. The September 11 Security Fee generates revenue tied to passenger volume. The $4.6 billion collected in FY 2023 reflects post-COVID traffic recovery. The proportion of fee revenue returned to TSA versus diverted to the General Fund determines the federal resources available for screening operations and technology. The FY 2024 partial restoration and FY 2026 ASCF expansion represent movement toward reduced diversion.
Sources and Further Reading
- 49 USC § 44901, Screening passengers and property
- 49 USC § 44903, Air transportation security
- 49 USC § 44923, Airport security improvement projects
- 49 USC § 44940, Security fees
- Airlines for America, "Government-Imposed Taxes on Air Transportation"
- AAAE/USCTA, "Appropriations Leaders Unveil Final FY26 Spending Bills," January 20, 2026
- Monday Morning Group, "Restore Funding for LEO Grants and Canine-Team Reimbursements," April 2025
- U.S. Travel Association, "TSA Airline Passenger Security Fees" Fact Sheet
DWU Consulting provides financial advisory services to airports and government entities. This article is for informational purposes only and does not constitute financial, legal, or regulatory advice. Data cited is current as of the dates indicated; readers are encouraged to verify figures against primary sources. Congressional appropriations are subject to change in each fiscal year. This article was drafted by an AI language model and reviewed for factual accuracy against primary government sources and published appropriations documents before publication.