- President Donald Trump rejected a bipartisan proposal to fund TSA agents, extending the ongoing Department of Homeland Security funding impasse.
- Yale professor Jeffrey Sonnenfeld told Stocktwits the decision reflects a broader pattern of resistance to coalition-based policymaking.
- Sonnenfeld noted that every additional dollar in jet fuel prices translates into $100 million in extra airline expenses.
President Donald Trump reportedly rejected a bipartisan deal to fund Transportation Security Administration (TSA) agents, and according to Yale's Jeffrey Sonnenfeld, the reason is that Trump doesn’t like coalitions.
"Trump hates coalitions," he said in an exclusive interview with Stocktwits’ Michele Steele, pointing to a pattern he documented in his recent book “Trump’s Ten Commandments.”
According to him, the North American Free Trade Agreement (NAFTA), the North Atlantic Treaty Organization (NATO), and other such agreements became targets for Trump once they represented collective alignment rather than conflict. The same dynamic, Sonnenfeld argued, is now playing out with the TSA. "That is in fact how a bully is taken down — by collective action," Sonnenfeld said. "He doesn't like to be cornered that way."
The Global Jets ETF (JETS) edged 0.24% higher in morning trade. JETS’ price has fallen more than 10% year to date. Retail sentiment around the fund on Stocktwits trended in ‘neutral’ territory over the past day, while chatter fell to ‘normal’ from ‘high’ levels.
TSA Funding Stalemate Disrupts Travel
The Department of Homeland Security (DHS) remained partially shut on Thursday, with no breakthrough in the talks to reopen the agency.
According to a report by The New York Times, democratic lawmakers demanded new restrictions on federal agents carrying out the president’s deportation crackdown. However, Republicans rejected the proposal. They instead offered to remove money for immigration enforcement from the homeland security spending bill.
Sonnenfeld pointed to a near-identical situation during Trump's first term, when a bipartisan compromise on the Dreamers Act was similarly rejected. "Trump likes the conflict. He thinks he needs a foil,” he told Stocktwits.
Jet Fuel Prices Add Pressure On Airlines
The funding lapse has led to lengthy lines at TSA checkpoints at some major airports. White House press secretary Karoline Leavitt confirmed on Wednesday during a press conference that nearly 500 TSA officers had quit since what she called “the Democrat shutdown” began.
For airlines, jet fuel costs are surging, and most U.S.-based carriers have left themselves exposed. Unlike European airlines, few American carriers hedge their jet fuel prices, leaving them to absorb every spike on the spot market.
Sonnenfeld singled out Delta Air Lines (DAL) as a rare exception, doing hedging well. DAL’s stock edged 0.13% lower in morning trade. Retail sentiment around the company on Stocktwits trended in ‘neutral’ territory over the past day, accompanied by chatter at ‘high’ levels.
Every $1 Increase In Fuel Cost Adds $100 Million In Airline Expenses
Sonnenfeld noted that every additional dollar in jet fuel prices translates into $100 million in extra airline expenses. United Airlines (UAL) chief executive Scott Kirby said on Wednesday that fares could rise by up to 20% if jet-fuel costs remain high because of the war in Iran. He added that if oil prices remain high for an extended period, the broader macroeconomic hit could dent travel demand.
Sonnenfeld said Kirby has acknowledged that costs are on track to rise by 11% this year, adding that this would wipe out roughly twice the carrier's entire profit from last year. UAL’s stock was up 1.66% in morning trade. Retail sentiment, however, remained in ‘bearish’ territory over the past day with chatter at ‘high’ levels.
For updates and corrections, email newsroom[at]stocktwits[dot]com.