With the US Congress about to adjourn, a partial government shutdown has paralyzed airports, and the dollar is facing a crisis of confidence.
2026-03-26 09:56:23
The U.S. Congress is scheduled to begin a two-week recess on Friday (March 27), and negotiations on funding for the Department of Homeland Security (DHS) have stalled, leading to a large-scale absence of Transportation Security Administration (TSA) security personnel. Long lines have formed at airports across the country, severely disrupting travel for passengers. Democrats and Republicans are blaming each other for the chaos, and negotiations are progressing slowly.
Tens of thousands of DHS employees, including TSA security personnel, are about to face working without pay again, with more people expected to go unpaid on Friday, further exacerbating the chaos at the airport.
Due to funding shortages, a large number of TSA security personnel are on leave or absent, leading to a significant drop in airport security efficiency and long queues in many areas. Passengers have reported missing important appointments such as funerals and work meetings. Democrats point out that Republicans have rejected proposals to fund the TSA separately nine times, while insisting that the DHS funding issue must be resolved as a whole.
It is worth noting that Immigration and Customs Enforcement (ICE) received $75 billion in funding under the previous "Beauty Act" and is still able to operate normally and pay salaries, but other DHS departments, including the TSA, have been partially shut down.
Republicans proposed a compromise: first, provide funding for DHS's divisions excluding ICE, and then handle the ICE budget separately through a reconciliation process. This plan aimed to circumvent Democratic obstruction, but Democrats considered it a "malicious" proposal and refused to proceed.
Senate Minority Leader Chuck Schumer announced that Democrats had submitted a counter-proposal and accused Republicans of "changing their stance and moving the goalposts." Democrats have insisted on reforming ICE and have repeatedly pushed for separate funding for the TSA, but these efforts have been blocked by Republicans.
Democrats accused Republicans of refusing to pay TSA security personnel, causing chaos at airports, and said the Republican proposal lacked sincerity. Schumer stated, "Republicans have refused to fund the TSA nine times, and now they're accusing us of changing our stance. This is nonsense and malicious."
Republicans countered that Democrats were not taking negotiations seriously, with Senate Majority Leader John Thune stating, "This is not a serious proposal at all; they know they're going in circles." White House Press Secretary Carolyn Levitt accused Democrats of creating chaos, saying Trump wanted to end the "Democratic shutdown" immediately.
Trump expressed his "dissatisfaction" with any current agreement that does not include full funding for DHS and urged Republican lawmakers not to rush into adjourning the session and to continue negotiations, even during the Easter holiday. He emphasized his desire to end the government shutdown as soon as possible but insisted that the funding issue must be fully resolved.
Congress was originally scheduled to begin its two-week recess on Friday, but Trump's call has put some lawmakers under pressure to extend the negotiations. There are currently no clear signs of a breakthrough in the negotiations .
In the short term, if Congress fails to reach an agreement before the recess, TSA security chaos will worsen, leading to longer delays at more airports and increased passenger dissatisfaction. In the long term, a prolonged funding impasse at DHS could impact key areas such as border security, emergency response, and air travel.
The partisan divide between the two parties has made negotiations more difficult, and any breakthrough will require finding a balance between ICE reform and the overall funding package. Markets and the public will be closely watching the progress of negotiations before the weekend, and whether Trump will exert further pressure.
As the global reserve currency, the US dollar's credibility rests on the stable operation and predictable policies of the US government. The current deadlock in Department of Homeland Security funding negotiations, leading to unpaid work for Transportation Security Administration employees and chaos at airports, with both parties passing the buck and failing to reach an agreement, exposes the dysfunction of the US political system.
This risk of a government shutdown and political infighting could undermine international investors' confidence in the efficiency of US governance. When markets doubt the US government's ability to maintain critical public services, the safe-haven appeal of dollar assets will be eroded, potentially prompting some funds to seek more stable alternatives.
If the funding issues persist, they could further impact key areas such as border security and emergency response, increasing downside risks to the US economy and further dragging down the dollar's performance. During Thursday's Asian trading session, the dollar index fluctuated narrowly around 99.60.
(US Dollar Index Daily Chart, Source: FX678)
At 9:55 AM Beijing time, the US dollar index is currently at 99.61.
Tens of thousands of DHS employees, including TSA security personnel, are about to face working without pay again, with more people expected to go unpaid on Friday, further exacerbating the chaos at the airport.
Chaotic situation at TSA security check
Due to funding shortages, a large number of TSA security personnel are on leave or absent, leading to a significant drop in airport security efficiency and long queues in many areas. Passengers have reported missing important appointments such as funerals and work meetings. Democrats point out that Republicans have rejected proposals to fund the TSA separately nine times, while insisting that the DHS funding issue must be resolved as a whole.
It is worth noting that Immigration and Customs Enforcement (ICE) received $75 billion in funding under the previous "Beauty Act" and is still able to operate normally and pay salaries, but other DHS departments, including the TSA, have been partially shut down.
Republican proposal and Democratic response
Republicans proposed a compromise: first, provide funding for DHS's divisions excluding ICE, and then handle the ICE budget separately through a reconciliation process. This plan aimed to circumvent Democratic obstruction, but Democrats considered it a "malicious" proposal and refused to proceed.
Senate Minority Leader Chuck Schumer announced that Democrats had submitted a counter-proposal and accused Republicans of "changing their stance and moving the goalposts." Democrats have insisted on reforming ICE and have repeatedly pushed for separate funding for the TSA, but these efforts have been blocked by Republicans.
The two parties blamed each other.
Democrats accused Republicans of refusing to pay TSA security personnel, causing chaos at airports, and said the Republican proposal lacked sincerity. Schumer stated, "Republicans have refused to fund the TSA nine times, and now they're accusing us of changing our stance. This is nonsense and malicious."
Republicans countered that Democrats were not taking negotiations seriously, with Senate Majority Leader John Thune stating, "This is not a serious proposal at all; they know they're going in circles." White House Press Secretary Carolyn Levitt accused Democrats of creating chaos, saying Trump wanted to end the "Democratic shutdown" immediately.
Trump's stance and Congressional recess
Trump expressed his "dissatisfaction" with any current agreement that does not include full funding for DHS and urged Republican lawmakers not to rush into adjourning the session and to continue negotiations, even during the Easter holiday. He emphasized his desire to end the government shutdown as soon as possible but insisted that the funding issue must be fully resolved.
Congress was originally scheduled to begin its two-week recess on Friday, but Trump's call has put some lawmakers under pressure to extend the negotiations. There are currently no clear signs of a breakthrough in the negotiations .
Market Outlook and Risks
In the short term, if Congress fails to reach an agreement before the recess, TSA security chaos will worsen, leading to longer delays at more airports and increased passenger dissatisfaction. In the long term, a prolonged funding impasse at DHS could impact key areas such as border security, emergency response, and air travel.
The partisan divide between the two parties has made negotiations more difficult, and any breakthrough will require finding a balance between ICE reform and the overall funding package. Markets and the public will be closely watching the progress of negotiations before the weekend, and whether Trump will exert further pressure.
weakening market confidence in the US dollar
As the global reserve currency, the US dollar's credibility rests on the stable operation and predictable policies of the US government. The current deadlock in Department of Homeland Security funding negotiations, leading to unpaid work for Transportation Security Administration employees and chaos at airports, with both parties passing the buck and failing to reach an agreement, exposes the dysfunction of the US political system.
This risk of a government shutdown and political infighting could undermine international investors' confidence in the efficiency of US governance. When markets doubt the US government's ability to maintain critical public services, the safe-haven appeal of dollar assets will be eroded, potentially prompting some funds to seek more stable alternatives.
If the funding issues persist, they could further impact key areas such as border security and emergency response, increasing downside risks to the US economy and further dragging down the dollar's performance. During Thursday's Asian trading session, the dollar index fluctuated narrowly around 99.60.
(US Dollar Index Daily Chart, Source: FX678)
At 9:55 AM Beijing time, the US dollar index is currently at 99.61.
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