Schumer Threatens to Block DHS Funding, Raising Risk of Shutdown
Watch on YouTube ↗  |  February 12, 2026 at 17:23 UTC  |  1:39  |  Bloomberg Markets
Speakers
Dani — Capitol Hill Correspondent
Matt — Anchor

Summary

  • A Department of Homeland Security (DHS) shutdown is "highly likely" this weekend as Senate procedural votes are expected to fail.
  • Democrats (Schumer) are blocking short-term stopgap measures, demanding legislative codification of immigration changes rather than executive actions.
  • Critical Distinction: While the broader DHS (260,000 employees) faces shutdown, ICE is explicitly "shielded" due to $75M in prior funding.
  • At Risk: The Coast Guard, FEMA, and TSA face immediate funding lapses, raising the risk of unpaid work and operational disruptions.
Trade Ideas
Ticker Direction Speaker Thesis Time
AVOID Dani Burger
Anchor, Bloomberg Television
"We're looking at the coast guard, FEMA, and TSA" being impacted by the shutdown, while ICE is shielded. The TSA falls under DHS. During past shutdowns, unpaid TSA agents have staged "sick-outs" (blue flu), causing massive airport security delays. This directly impacts airline efficiency, passenger sentiment, and short-term booking volumes. AVOID or SHORT the travel sector (Airlines/Booking) going into the weekend risk of a TSA slowdown. The shutdown might be resolved hours before the deadline, causing a relief rally in travel stocks.
GEO /CXW
LONG Dani Burger
Anchor, Bloomberg Television
"ICE is probably going to be shielded by any shutdown considering that the agency was given funding to the tune of $75,000,000." The market often sells "DHS-related stocks" indiscriminately during a DHS shutdown headline. However, private prison operators (GEO/CXW) primarily contract with ICE for detention centers. Since ICE funding is legally ring-fenced, these companies face no revenue interruption, creating a mispricing opportunity if they sell off with the broader sector. LONG or WATCH for a dip-buy opportunity on the "DHS Shutdown" headline, knowing the specific sub-agency (ICE) is solvent. Broader market volatility or political rhetoric specifically targeting private detention centers independent of funding status.