Key insights
- The White House is considering unilateral action to pay TSA officers amid a partial government shutdown, potentially averting further disruptions at U.S. airports. While no immediate plans are underway, the situation introduces uncertainty and could negatively impact airline stocks if travel is significantly affected. The market impact is currently limited but could escalate if the shutdown persists.
WASHINGTON, March 26 (Reuters) - The White House is weighing unilateral action to pay Transportation Security Administration officers if the Senate cannot quickly agree to a deal on the Department of Homeland Security’s budget, the Washington Post reported on Thursday, citing people familiar with the discussions.
A partial government shutdown has forced 50,000 TSA officers to work without pay since mid-February, leading to major strains at U.S. airports and the longest lines in the agency’s history.
Senate Majority Leader John Thune described the potential plan, which would sidestep Congress, to Republican senators in a closed-door lunch, the Post reported.
Asked about the proposal, White House press secretary Karoline Leavitt said in a statement that "it is true the White House is having discussions about a number of ideas to blunt the impact" of the shutdown but added "no preparations or plans are currently underway".