The Indicator from Planet Money
The Indicator from Planet Money

Tracing the tax that's supposed to fund TSA

March 26, 2026

AI Summary

5 min read

Amid ongoing government shutdown chaos at U.S. airports, TSA workers have gone unpaid for over a month, even as travelers continue paying a passenger security fee—about $11 for round-trip tickets—that was meant to fund their salaries. The fees are collected, but the money isn't reaching the workers, raising questions about how this "9/11 tax" actually works.

Origins of the Passenger Security Fee

Right after 9/11, Congress created the TSA as a new agency needing funds for thousands of employees screening passengers and luggage. The 2001 law introduced a hypothecated tax: a fee on airline tickets paid by passengers, plus a monthly fee from airlines. This earmarked revenue directly supported airport security, aligning costs with users—travelers and carriers—who benefited from safer flights. Tax experts like Adam Hoffer of the Tax Foundation note that such taxes work well when tightly linked to the program, similar to gas taxes funding roads, ensuring those using the service pay for it.

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What you'll learn

  • 1 (00:11) **Intro to TSA Shutdown Crisis** - Hosts introduce unpaid TSA workers amid government shutdown despite ongoing passenger security fees
  • 2 (01:15) **Post-9/11 TSA Creation and Funding** - Explains origins of TSA agency and built-in airline ticket fees
  • 3 (02:00) **Hypothecated Taxes Explained** - Tax Foundation's Adam Hoffer defines earmarked taxes linking revenue to specific spending
  • 4 (03:25) **2013 Law Diverts TSA Fees** - Bipartisan legislation under Obama redirects fees to federal deficit reduction
  • 5 (04:21) **Shutdown Blocks TSA Access to Fees** - Fees flow to general fund, unavailable during partial shutdown
  • 6 (04:58) **TSA Worker Angela Grana's Story** - Union rep describes living paycheck-to-paycheck and inability to afford work
  • 7 (05:47) **Workforce Exodus and Career Tradeoffs** - Thousands call off, hundreds quit for better pay despite losing pensions

+ Full timestamped outline available in the app

Show Notes

Every time you buy a ticket that leaves a U.S. airport, you pay a fee that’s supposed to help fund the TSA. So why have TSA workers been working without pay? Today on the show, we explore the history behind an earmarked tax and its very personal impacts.

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