US Department of Homeland Security Shutdown for 37 Days, Travel Nightmare Continues Across America, Dollar Experiencing Chronic Bleeding?

Huitong Finance APP News — On Monday, March 23, the U.S. Department of Homeland Security (DHS) has been partially shut down for 37 days, making it one of the longest government operation crises in recent years. The shutdown is directly caused by a budget impasse and political standoff in Congress, preventing DHS from securing sufficient funds to operate normally.

The Department of Homeland Security confirmed that airports across the country are experiencing unprecedented chaos due to this crisis, affecting major hub airports as well as small and medium-sized airports.

Severe Congestion and Delays at Airport Security Checkpoints

The Transportation Security Administration (TSA), responsible for passenger security screening, has been hit hardest by the shutdown. Security lines have extended to several hours, with long queues at many airports, forcing travelers to queue early in the morning or miss flights.

Under normal circumstances, TSA security lanes operate efficiently, but current staffing shortages have led to a surge in closed lanes, significantly degrading the passenger experience. Social media is flooded with videos and complaints about airport chaos.

Staff Absences and Salary Issues at DHS

As a sub-agency of DHS, TSA is most directly affected by the shutdown. Employees have not received paychecks for weeks, and many frontline security personnel are choosing to skip work, take leave, or resign to cope with financial pressures.

The rising absenteeism has directly weakened security staffing levels. Even those who continue working find it difficult to cover all lanes. TSA morale is low, and unions have repeatedly urged Congress to pass funding bills to restore normal salaries.

Overall Chaos at U.S. Airports and Chain Reactions

The shutdown’s ripple effects have impacted the entire U.S. aviation system: widespread flight delays, increased cancellations, baggage handling backlogs, and crowded boarding gates. Major hubs like Chicago O’Hare, Atlanta Hartsfield-Jackson, and Los Angeles International Airport are most affected, with some security wait times exceeding 3-4 hours at certain times.

Airlines have been forced to adjust schedules and increase compensation measures, but overall operational efficiency has plummeted, leading to higher travel costs and time losses for passengers.

Causes of the Shutdown and Its Impact on the Aviation Industry and Economy

The root cause of the shutdown lies in ongoing partisan deadlock over the FY2026 budget, with DHS being a key department. TSA’s annual budget is approximately $8-9 billion, mainly for personnel salaries and equipment maintenance. If funding is cut off, operations will grind to a halt.

This crisis has caused direct economic losses of billions of dollars to the aviation industry and indirectly affected tourism, business, and logistics chains. A prolonged shutdown could also weaken national security image and increase terrorism risks. Public pressure is pushing Congress to accelerate negotiations.

Impact on the US Dollar

This shutdown represents a “chronic credit erosion” rather than an “acute shock” to the dollar. In the short term, it may limit dollar appreciation by dragging down economic data and dampening confidence, but it is unlikely to reverse the trend driven by monetary policy and fundamental factors. On Monday, March 23, during Asian trading hours, the US dollar index hovered around 99.60 with narrow fluctuations.

If the shutdown continues to expand into the spring travel peak and causes substantial deterioration in consumption or employment data, market risk pricing for the dollar could further increase.

(Dollar Index daily chart, Source: EasyForex)

Editor’s Summary

The DHS shutdown lasting over a month has fully transmitted the crisis to the civil aviation system. TSA staff have gone weeks without pay, leading to widespread absenteeism, with security lines stretching for hours and widespread flight delays becoming the norm at airports nationwide. The root causes are the congressional budget deadlock and political standoff. In the short term, airline efficiency and passenger experience are severely impacted, with economic losses continuing to grow. The crisis exposes the fragility of U.S. federal government operations. If the shutdown persists, the recovery of the aviation industry will be severely disrupted, and both national security and public confidence will face dual challenges. Congress needs to break the deadlock and restore funding quickly, or chaos will further spread into the spring travel season. As of 9:16 Beijing time, the dollar index is at 99.56.