DHS Shutdown Enters Second Month With Billions in Grants Frozen

The Department of Homeland Security shutdown crossed the one-month mark this weekend with no resolution in sight, freezing billions in grant funding while more than 50,000 TSA agents and screeners work without guaranteed paychecks.

The Scope of the Freeze

DHS funding lapsed on February 14 after lawmakers failed to agree on a spending package. According to a fact sheet from the Senate Appropriations Committee, the following grant programs are entirely inaccessible during the shutdown:

• State Homeland Security Grants
• Urban Area Security Initiative
• Nonprofit Security Grant Program
• Public Transportation Security Grants
• Port Security Grants
• Emergency Management Grants

FEMA's grant management system is offline, meaning state and local governments cannot draw down funds already awarded to them — not just future awards, but existing allocations sitting in the pipeline.

Who's Working, Who's Not

At CISA, only 800 of more than 2,000 employees remain on the job, with the majority furloughed. The agency has canceled cybersecurity assessments for critical infrastructure. TSA screening wait times at major airports have stretched to 37–62 minutes. The Coast Guard cannot issue new credentials or process staff.

FEMA's Disaster Relief Fund holds roughly $4 billion, but only $1 billion is available for current disaster response — a thin margin heading into spring severe weather season.

The Political Impasse

The standoff centers on immigration enforcement. Senate Democrats are refusing to fund DHS unless the bill includes oversight provisions and limits on ICE operations. Republicans and the White House insist on a clean funding bill. A Senate vote to end the shutdown failed on March 12.

What Grant Holders Should Do

Organizations with pending FEMA or CISA applications should expect extended processing delays even after the shutdown ends. Document all shutdown-related costs and missed deadlines — FEMA historically provides extensions after funding lapses. Grant seekers exploring homeland security funding can track reopened application windows through Granted.

For ongoing coverage of how the shutdown affects specific grant programs, check the Granted blog.