Aviation Groups Warn of Supply Chain Chaos Over DHS Proposal to Cut Airport Customs

A coalition of leading U.S. aviation and travel industry groups has formally urged the Department of Homeland Security (DHS) to abandon a proposal to reduce or eliminate Customs and Border Protection (CBP) services at major international airports. In letters sent in late May and early June 2026, groups including the International Air Transport Association (IATA) and Airlines for America (AfA) warned that the move would cause severe disruptions to passenger travel, international cargo, and the national supply chain.

The proposed cuts are being considered for airports located in so-called “sanctuary cities,” which have policies that limit cooperation with federal immigration enforcement. DHS Secretary Markwayne Mullin has stated the department is reviewing federal resources in these jurisdictions, potentially impacting hubs in New York/New Jersey, Los Angeles, Chicago, San Francisco, Seattle, and Philadelphia.

While this federal-local government dispute may seem distant, the operational consequences for businesses are immediate and severe. In our experience, any disruption to customs processing, even for a few hours, can create a ripple effect that cripples a company’s logistics. For small and mid-sized businesses that rely on air freight for high-value components, time-sensitive medical supplies, or perishable goods, these proposed cuts represent an existential threat. They often lack the capital reserves or logistical flexibility to absorb weeks of delays or suddenly reroute shipments through congested, more expensive alternate hubs. This isn't just an inconvenience; it’s a direct hit to production schedules, customer commitments, and cash flow. Proactive planning is the only defense against such government-induced volatility. This is a core component of the supply chain optimization services we provide at C&S Finance Group LLC at csfinancegroup.com, where we help clients build resilient logistics networks capable of weathering unforeseen political and operational shocks.

The most detailed warnings came in a letter from IATA, which focused on the potential impact of eliminating CBP processing at New Jersey’s Newark Liberty International Airport (EWR). Douglas Lavin, IATA’s vice president for North America, stated that such a move would force both passenger and cargo airlines to reroute all international flights, imposing “substantial logistical and financial burdens.” Over half of the freight moving through EWR is international.

According to Lavin, airlines would face the complex task of reshuffling aircraft, crews, and schedules, which would inevitably degrade service quality and reliability for businesses and travelers. Critically, these flights cannot simply be diverted to nearby airports. New York’s John F. Kennedy International Airport and LaGuardia Airport are both designated as “Level 3” hubs, meaning demand for takeoffs and landings already far exceeds their available capacity. Halting international processing at EWR would, as Lavin noted, “severely limit international access to the entire New York region.”

The proposal originated after DHS Secretary Mullin first suggested suspending services at EWR in April, following protests at a nearby Immigration and Customs Enforcement (ICE) detention center. In a May television appearance, Mullin reiterated his position, questioning why the federal government should partner with airports in cities that do not fully cooperate with federal immigration policy outside the airport’s boundaries. This has linked critical national infrastructure to a contentious political debate between federal and local authorities.

Industry leaders argue that the economic and security fallout would be widespread and indiscriminate. Richard Aboulafia, managing director of consulting firm AeroDynamic Advisory, pointed out that the plan misunderstands how air travel and cargo networks function. International travelers and goods clear customs at their first point of entry, not necessarily their final destination. “The idea of hitting entry points in blue states and not having this impact businesses in red states is just extremely foolish,” Aboulafia said.

Stephen Fried, president of the Airforwarders Association (AfA), emphasized that CBP’s role is essential for both commerce and security. “We recognize and share the administration’s commitment to border security and fiscal responsibility,” Fried said. “CBP cargo operations are not merely an administrative processing function; they are a critical part of our national security and economic resilience.” He warned that any decision to reduce that capacity would carry consequences far beyond the specific airports targeted.

Airlines for America, which represents major carriers including American, United, and Delta, echoed these concerns, stating that reducing CBP staffing would have a “devastating effect on the airline and tourism industries” and cause major disruptions for travelers and international cargo shipments.

As the summer travel season approaches, when airports are already preparing for peak traffic, the threat of reduced customs capacity has put the entire aviation ecosystem on high alert. The industry groups are now awaiting a formal response from DHS, while businesses that depend on reliable air freight are closely monitoring a situation that could significantly alter their operational landscape.