H.R. 8770: Spending Aviation Fees for Equipment, Guaranteeing Upgraded and Advanced Risk Detection and Safety Act of 2026

This bill, known as the Spending Aviation Fees for Equipment, Guaranteeing Upgraded and Advanced Risk Detection and Safety Act of 2026 (or the SAFEGUARDS Act of 2026), aims to amend existing aviation security funding practices in the United States. Here’s a detailed breakdown of the key components of the bill:

1. Purpose of the 9/11 Security Fee

The bill asserts that the fees collected from airline passengers, specifically the 9/11 Security Fee, should primarily be used for enhancing aviation security. The key points include:

• The 9/11 Security Fee is intended to support the safety and security of U.S. aviation.
• Revenue from this fee should be exclusively dedicated to activities and programs that improve security, such as:
  • Passenger and baggage screening
  • Upgrades to security technology
  • Support for personnel involved in aviation security
• Using the fee for unrelated purposes undermines public trust and violates its original intent.
• By 2027, all revenue from the 9/11 Security Fee should be used solely for aviation security purposes.

2. Aviation Security Capital Fund Enhancements

The bill proposes amendments to better structure how the Aviation Security Capital Fund works. Major changes include:

• Starting in fiscal year 2027, the first $500 million generated from the 9/11 Security Fee will be deposited into the Aviation Security Capital Fund each year.
• The Transportation Security Administration (TSA) will be responsible for collecting at least $500 million from this fee annually and ensuring it is used for grants or related agreements to boost aviation security.

3. Establishment of the Aviation Security Checkpoint Technology Fund

The bill introduces a new fund specifically for aviation security checkpoint technology. The main elements are:

• A new fund, called the Aviation Security Checkpoint Technology Fund (ASCT Fund), will be established within the Department of Homeland Security.
• After the initial $500 million allocation to the Aviation Security Capital Fund, the next $250 million from the 9/11 Security Fee will be directed to the ASCT Fund starting in fiscal year 2027.
• This fund will be used to support activities related to:
  • Testing of new technologies
  • Procurement of security equipment
  • Deployment and installation of these technologies
  • Ongoing maintenance of security equipment
• The TSA will manage the ASCT Fund and will have the authority to make grants or sign agreements related to these security enhancements.

4. Conforming Changes

To align with the new provisions, certain amendments are made to existing laws regarding the 9/11 Security Fee and relevant funds.

Relevant Companies

• BA (Boeing): As a major manufacturer of aviation security equipment, Boeing could see increased demand for their security technologies due to funding from the new ASCT Fund.
• RTX (Raytheon Technologies): Likely to benefit from potential contracts and support for security systems and technologies as part of the aviation security upgrades funded by this legislation.
• CSC (CSRA): As a provider of various technology solutions, they may find opportunities arising from new investments in aviation security technologies.