Mises
The Trump transition team on Wednesday announced that he is nominating South Dakota governor Kristi Noem as the next head of the Department of Homeland Security (DHS). In the coming weeks, we’ll hear a lot about Noem’s personal politics and origins. We’ll also hear about how the DHS is, as the AP puts it, “one of the biggest government agencies that will be integral to his vow to secure the border and carry out a massive deportation operation.”
Unfortunately, all this misses the most important point about the DHS which is that the DHS was invented in 2002 to justify more government spending, to reward political allies, and to influence local governments with federal grants.
For voters who supported Trump because they thought a Trump presidency might actually reduce government waste, they should now be asking why Trump is appointing any new DHS head at all. The only thing Trump should do with the DHS is abolish it.
For younger readers, or people with terrible memories, this might sound radical or extreme. But, I can assure you, dear reader, that the United States somehow managed to get along for more than 225 years before this department was created twenty-two years ago by Congress and the Bush Administration.
Much of what the Department does today was not new in 2002, of course. The federal government already had a border patrol, and it already collected tariffs on imports. The Coast Guard was alive and well. The Secret Service already existed, as did various agencies related to nuclear energy and the inspection of agricultural projects.
But, the DHS has always been more than just a reorganization of existing agencies. The DHS has overseen new slush funds for domestic police departments. It is the DHS that has largely facilitated the militarization of local police forces. As Wired put it in 2020, “the Homeland Security Grant Program has funneled billions of dollars to law enforcement agencies to acquire military-grade equipment.”
Nonetheless, the creation of the DHS has done nothing to make the border more secure, or to facilitate the enforcement of tariffs. The DHS has never been necessary to patrol US coastal waters. Rather, federal bureaucrats and elected officials pursued the creation of this new enormous government department for political reasons.
The DHS was created to be a cabinet-level agency, and the thing about cabinet-level status is that the move makes it easier for the bureaucrats in charge of the agencies to politically agitate for more government spending in their favor, and to push bigger government in general. It’s no coincidence that as the US government has grown ever larger and more intrusive, so has the number of cabinet-level agencies. So, now we have the EPA, the SBA, and the departments of HUD, Energy, and Education all provided with more direct access to the president and the media. Everything they do is deemed “essential.” Everything they do, we’re told, is a matter of national importance.
DHS is no different. When the 9/11 attacks occurred, they exposed the sheer incompetence, laziness, and inefficiency of government security and defense organizations. Year after year, hundreds of billions of dollars were poured into these organizations — in addition to the countless billions spent on the Pentagon. But when they were shown to be asleep at the switch, what happened? Rather than have their budgets cut, and senior officials fired in droves — as should have happened — George W. Bush and his cronies decided that what the federal government really needed was a new department into which billions more in taxpayer money could be poured.
The was politically important in the sense that making DHS a department made it easier to call for every more funding for its constituent agencies.
It has certainly worked.
Prior to the creation of the DHS, “homeland security” functions were rarely funded at levels exceeding $20 billion per year. Since 2002, though, federal spending on these functions—now consolidated into the DHS—has soared. Since 2001, the total budget for these activities has nearly tripled, rising from $28 billion in 2001 to $112 billion in 2024. (That’s in inflation-adjusted 2023 dollars.) Since the Cold War ended, by the way, spending on so-called homeland security has increased by more than six-fold.
Since 2001, has it really become almost three times more expensive—in inflation adjusted terms, mind you—to patrol the border, to collect tariffs, and to check luggage for guns at the airport? It is difficult to see how.
What we do know is that the DHS has become an important pass-through for government largesse. Some of this goes to local governments, and these dollars give the federal government more power by providing yet another carrot the feds can hold out to local politicians. Billions more goes into the FEMA black hole which spends prodigiously on federal agents who use DHS dollars as a means of punishing their political opponents.
While the Department was created in response to the 9/11 attacks, the Department does nothing to address anything like a 9/11-style attack. All the agencies that were supposed to provide intelligence on such attacks — the FBI for instance, which failed miserably on 9/11 — already exist in other departments and continue to enjoy huge budgets. Meanwhile, the Transportation Security Administration — an agency that has never caught a single terrorist—has managed to smuggle at least $100 million worth of cocaine.
Once upon a time, “homeland security” was supposed to be the job of the Department of Defense. but, it seems the Pentagon has been too busy in Ukraine or Iraq to trouble itself with the defense of the borders and airspace of the United States. In spite of having been freed of its responsibility for “the homeland,” however, the Pentagon’s budget just keeps getting bigger. In 2024, it was at a thirteen-year high and remains—in inflation adjusted terms—above the levels of Reagan’s Cold War spending spree. Pentagon spending is up by 57 percent, inflation-adjusted, since 2001.
There is no doubt, however, that heading the Department in Washington will be great for the career of Kristy Noem. She’ll get invited to cabinet meetings, go on national TV, and generally enjoy the pampered life of a high-ranking bureaucrat. Meanwhile, American taxpayers will pay more and more, in depreciating dollars, for yet another federal department.
Originally Posted at https://mises.org/
NHC
