Department of Homeland Security Appropriations Act, 2026
Summary
HR7481 is a Democratic-sponsored DHS appropriations bill for FY2026, introduced in February 2026 and referred to two committees. It funds TSA, Coast Guard, Secret Service, CISA, FEMA, and other DHS components, excluding ICE and CBP. At this early stage, passage is uncertain, but the bill highlights intended funding priorities that directly benefit homeland security contractors and cybersecurity vendors.
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Key Takeaways
- 1.HR7481 is an early-stage DHS appropriations bill; passage is uncertain but the funding priorities favor key contractors.
- 2.TSA, Coast Guard, and CISA are major spending areas within the bill, directly benefiting screening, shipbuilding, and cybersecurity companies.
- 3.No immediate market impact; monitor committee action for progress signals.
Market Implications
Given the bill's early stage, no immediate stock price catalysts. However, for long-term positioning, the bill confirms sustained government demand for cybersecurity (CRWD, PANW), airport security (OSIS), and government IT services (LDOS). Coast Guard shipbuilding (HII) remains a multi-year procurement cycle. Investors should not trade on this bill alone but use it as confirmation of sector tailwinds. Absent market data, no price trends to report.
Full Analysis
On February 11, 2026, Rep. DeLauro introduced HR7481, the Department of Homeland Security Appropriations Act, 2026, for the 119th Congress. The bill was referred to the Appropriations and Budget committees. It provides detailed FY2026 appropriations for most DHS agencies except ICE and CBP. This is an appropriations bill, meaning it allocates actual funds rather than authorizing ceilings. The bill includes specific line items: $297.6M for Office of the Secretary operations, $8.9M for procurement, and similar detailed amounts for TSA, Coast Guard, CISA, FEMA, USCIS, and others. The total funding is not fully stated in the snippet but is substantial (likely in the tens of billions).
Key direct beneficiaries include IT and security services providers like Leidos (LDOS), which holds major contracts across DHS for systems integration and cybersecurity. The Coast Guard shipbuilding program supports shipyards like Huntington Ingalls (HII). TSA procurement of screening equipment benefits OSI Systems (OSIS), maker of Rapiscan scanners. CISA cybersecurity initiatives provide tailwinds for endpoint security leaders like CrowdStrike (CRWD).
Because this bill is in early-stage committee referral, its path to enactment is long. It must pass the House, Senate, and be signed into law. Related bills (e.g., HR4213) show similar provisions have progressed, but the current bill has only four actions—all on the introduction date. The 114 cosponsors suggest Democratic support, but bipartisan buy-in will be needed for passage. Investors should watch committee markups and floor schedules. Meanwhile, the bill's specifics reinforce the structural dependence of these DHS contractors on annual appropriations. Actual market impact depends on passage, which is uncertain in an election year (2026 midterms).
Intelligence Surface
Cross-referenced against federal contracts, SEC insider filings & congressional trade disclosures
No confirming evidence found yet from contracts, insider trades, or congressional activity
What the bill does
Appropriations for DHS IT systems and security operations, including TSA, CISA, USCIS, and FEMA.
Who must act
Leidos (prime contractor for DHS IT and security services)
What happens
Increased contract obligations and task orders from DHS for systems integration, cybersecurity, and support services.
Stock impact
Leidos has multi-year contracts with DHS; additional appropriations expand scope and funding ceilings, driving revenue growth in its Civil and Defense segments.
What the bill does
Appropriations for Coast Guard acquisitions, including new cutters and vessels.
Who must act
Huntington Ingalls Industries (shipbuilder for Coast Guard offshore patrol cutters and national security cutters)
What happens
Funding for Coast Guard shipbuilding programs, supporting construction and sustainment contracts.
Stock impact
HII's Ingalls Shipbuilding division is a key supplier for Coast Guard cutter programs; appropriation supports backlog and production rates.
Key Legislators
Connected Signals
Matched on shared policy language across AI analyses, with ticker & timing weight
Stop Secret Spending Act of 2025
National Defense Authorization Act for Fiscal Year 2026
DELOITTE & TOUCHE LLP: $66.8M Department of Veterans Affairs Contract
OPTUM PUBLIC SECTOR SOLUTIONS, INC.: $895M Department of Veterans Affairs Contract
Making appropriations for national security, Department of State, and related programs for the fiscal year ending September 30, 2027, and for other purposes.
CACI, INC. - FEDERAL: $710M General Services Administration Contract
SPREZZATURA MANAGEMENT CONSULTING, LLC: $23.2M Department of Veterans Affairs Contract
Streamlining Procurement for Effective Execution and Delivery and National Defense Authorization Act for Fiscal Year 2026
Related Presidential Actions
Executive orders & memoranda affecting the same sectors or companies
Further Strengthening Actions Taken to Adjust Imports of Aluminum into the United States
This proclamation modifies the Section 232 tariff regime on aluminum imports by authorizing the Secretary of Commerce to establish a program that incentivizes new U.S. investment in primary aluminum production. Companies with approved onshoring plans can import primary aluminum at half the standard Section 232 duty rate, up to the anticipated annual output of their new or expanded facilities, with construction required to start by January 20, 2029. The action aims to boost domestic primary aluminum supply for national security and defense industrial base needs.
Securing America’s Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials
This executive order restricts waivers for foreign-sourced critical materials in defense contracts, effective January 1, 2027, and mandates that defense contractors map their supply chains from raw materials to end products, vet subcontractors for risks, and prohibit covered materials from unreliable foreign suppliers. It directs the Secretary of War to enforce strict compliance, including requiring mitigation plans for any non-compliant materials and establishing penalties for fraud or willful noncompliance.
Regulatory Relief for Certain Stationary Sources to Promote American Chemical Manufacturing Security
President Trump issued a proclamation exempting certain chemical manufacturing facilities from compliance with the EPA's HON Rule for two years, citing unavailability of required technology and national security concerns. The exemption delays emissions-control deadlines and maintains pre-HON Rule standards for listed stationary sources, invoking authority under Clean Air Act section 112(i)(4).
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