SAFEGUARDS Act of 2026

**What happened:** Rep. Strong (R-AL) introduced HR8770 on May 12, 2026, referred to the House Homeland Security Committee. The bill creates a dedicated Aviation Security Capital Fund (ASCF) of $500M/year from FY2027 onward, sourced from the existing 9/11 Security Fee paid by airline passengers. This fee has historically been deposited into the general fund, with only a portion diverted to TSA equipment. The bill mandates 100% of the first $500M collected be deposited into the ASCF, ending that diversion. **Money trail distinction:** This is an AUTHORIZATION bill — it establishes the policy and funding mandate for the ASCF, but the actual spending requires annual appropriations. However, because the mechanism is a RING-FENCED fee (not general tax revenue), once appropriated, the $500M annual stream is structurally guaranteed as long as passenger volumes generate it. This is stronger than a typical discretionary authorization. The bill does not appropriate; it mandates that TSA must collect at least $500M and deposit it into the fund annually. **Structural winners:** The primary beneficiary is OSI Systems, through its Rapiscan subsidiary — the purest public TSA screening equipment supplier. Rapiscan has ~35% of TSA checkpoint X-ray and CT scanner contracts. The guaranteed $500M/yr expands TSA's addressable equipment budget by ~75% versus recent baseline (~$200-300M/yr). Lockheed Martin ($LMT) and Raytheon participate in smaller integrated security programs. Note: The bill does NOT affect airlines directly — it's a reallocation of passenger fees, not a new tax on carriers. No airline tickers are included. **Timeline:** Bill is early stage (referred to committee, no hearings yet). Precedents for similar fee-ring-fencing bills (e.g., the 2018 FAA reauthorization's airport improvement program) show 12-18 month legislative timelines. A standalone bill has lower probability than being folded into a larger FAA reauthorization (the current law expires in FY2027). Track committee markup in Q3-Q4 2026.