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Federal funding for homeland security grew 1.5% in 2026 to $117.0 billion, supported by higher allocations under the OBBBA to core Department of Homeland Security (DHS) components such as immigration enforcement and border security. Earlier in the fiscal year, appropriations were temporarily halted amid congressional gridlock, but the stalemate eased when lawmakers approved a revised funding package that extended support for subagencies, including the Transportation Security Administration (TSA) and the Federal Emergency Management Agency (FEMA), through September 2026. Immigration enforcement activities received additional, more durable backing under the Secure America Act, which provides multi-year funding authority for Immigration and Customs Enforcement and other DHS operations through 2029, helping stabilize budgets for the remainder of the year. In 2026, DHS is channeling a significant share of this funding into large border security and national security projects, including expanded border wall construction financed by OBBBA resources and continued rollout of programs such as the Counter-Unmanned Aircraft Systems Grant Program, which began disbursing funds in 2026. These initiatives will help maintain elevated DHS funding throughout the year.Over the past five years, since 2021, federal funding for homeland security has experienced significant fluctuations driven by shifting national priorities and external circumstances. During the onset of the COVID-19 pandemic, there was a notable increase in funding because of the declaration of a National Emergency and the implementation of Title 42, an executive order that allowed the Border Patrol to restrict migrant entry. This led to a substantial 61.1% surge in homeland security funding in 2020 under the Trump Administration. In contrast, funding adjustments were seen in 2021, reflecting the new administration's shift in policy focus amid the dissipation of pandemic-related exigencies, leading to a recalibration and subsequent decline in funding needs by 2022. As pandemic conditions receded, 2023 saw a resurgence in funding needs driven by immigration-related challenges following the expiration of Title 42, along with scrutiny from various political fronts impacting DHS's operational strategies. Despite periods of cutbacks, especially as reliant CRs served as stopgap financial measures after routine fiscal appropriations ran dry post-September 2024, the DHS has managed to navigate these variabilities effectively. Funding grew at CAGR 5.1% through end of 2026.
Curious about what drives these trends? IBISWorld's analyst coverage on the federal funding for homeland security includes detailled analysis on the current performance, outlook and industries affected.
1980-2032
The total annual budget outlays by the Department of Homeland Security (DHS) represent federal funding for homeland security. The department's stated goal is to prepare for, prevent and respond to domestic emergencies, particularly terrorism. In addition, the department oversees federal agencies dealing with transportation security, customs, immigration, citizenship and border security, as well as the Federal Emergency Management Agency (FEMA), which deals with the federal response to domestic natural disasters. Data presented prior to the DHS' inception in 2002 represent the combined funding of agencies that would later be brought under DHS control. Data and projections are sourced from The White House's Office of Management and Budget. Figures are presented in constant 2017 dollars.
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| Night Vision Equipment Manufacturing in the US |
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| Unmanned Aerial Vehicle (UAV) Manufacturing in the US |
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The federal funding for homeland security in the US in 2026 was $117,021 billion.
The federal funding for homeland security in the US grew by 5.14% in 2026.
IBISWorld’s data and analysis on federal funding for homeland security in the US includes forecasted growth rates over the next five years.