DHS Shutdown Update

March 3, 2026

The shutdown of the Department of Homeland Security (DHS) heads into its third week with few signs of actual progress on reopening the department.

  • The U.S. military action against Iran has heightened domestic security concerns, which may move lawmakers toward a deal framework. 

Why it matters: The DHS funding lapse began February 14 amid Democratic pushback on Immigration and Customs Enforcement (ICE) funding. The bill is the last remaining piece of FY 2026 government appropriations.

Democrats sent their last offer to fund the department to the White House on February 16. This offer included the following reforms to the agency as a stipulation of any funding deal:

  • A mandate for body cameras,
  • Judicial warrants before agents can enter private property (rather than administrative warrants,
  • A ban on ICE agents wearing face masks,
  • Stricter use-of-force policy, and 
  • New training standards for agents.

The White House stated that many of those reforms were “non-starters” and did not respond to Democrats with an official counter offer until February 26, nearly two weeks later. 

This past Friday, TSA employees received only a partial paycheck. As the shutdown of the agency heads into its third week, it’s unclear what, if anything, will incentivize lawmakers to come together and work on a solution.

Shutdown Effects: While services such as TSA and FEMA remain active, staff are still unpaid. To the good, ICE received significant funding from the One Big Beautiful Bill Act that it can tap to continue operations.

  • Global Entry suspended: DHS announced that the Global Entry program, which expedites customs processing for pre-approved travelers, is halted for the duration of the shutdown.
  • TSA PreCheck was initially paused, then restored. An earlier decision to suspend TSA PreCheck was reversed after pushback from industry and lawmakers, and the program remains operational, though DHS says it may adjust operations based on staffing constraints.
  • Travel disruptions and staffing strain: Reports show that, despite official program continuations, some airports have temporarily shifted travelers from PreCheck to standard screening lanes due to resource limitations, compounding potential delays.
  • Broader DHS impacts: The shutdown has also affected other areas of the department, including restrictions on FEMA travel and non-disaster response activities under current funding limitations.

The bottom line: Essential DHS employees continue working without pay, while key programs are seeing disruption. We will continue to track developments and share updates.

Contact James Montfort (jmontfort@crefc.org) with any questions.

Contact 

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2026 CRE Finance Council. All rights reserved.

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