Retail Policy Update: DHS Shutdown, Iran Conflict, and Congress

As both the House and Senate approach the spring recess, two significant crises have captured public attention.

The Department of Homeland Security (DHS) shutdown has entered its seventh week, creating substantial disruption at airports nationwide. TSA agents are increasingly absent as many seek alternative employment due to withheld pay, coinciding with peak spring break travel and heightened security challenges. Although the House will again vote on legislation to fund DHS, it is anticipated that the Senate will not pass it. Discussions between Senate Democrats and the White House occurred this week but no substantive progress has been reported. In addition, some Senate Republicans have signaled a willingness to fund TSA separately. However, President Trump rejected this approach amid his pressure campaign to pass the SAVE Act. 

In addition to the DHS stalemate, the conflict involving Iran has entered its fourth week, with unclear signals regarding its expected duration. President Trump and Secretary of War Hegseth have issued conflicting statements about possible outcomes, while the ongoing closure of the Strait of Hormuz continues to drive oil and gas prices higher. The President threatened an escalation over the weekend, but by Monday morning indicated that talks had advanced enough to stall an increase in strikes. Further complicating matters, Congress may soon be required to address a war appropriations request worth tens of billions of dollars, facing early opposition from Republican lawmakers.

Despite these major challenges, incremental progress is being achieved on legislative issues affecting retailers, including negotiations related to children’s privacy, organized retail crime, and crypto market structure. RILA remains committed to advocating for robust preemption in privacy legislation, advancing the Combatting Organized Retail Crime Act in the House, and supporting inclusion of the Credit Card Competition Act. The upcoming spring and summer sessions present further opportunities for retailers to secure significant wins; however, much of the legislative agenda will hinge on resolving disruptive concerns within DHS and the Gulf region.

Ultimately, President Trump will have to play a decisive role in addressing these issues, whether it is negotiating with Senate Democrats or establishing an endgame in the Gulf. Throughout these developments, RILA continues to prioritize representation of its members and their interests.