Homeland Security Paid $464 Million for 10 Used Planes on a No-Bid Contract, Then Parked Them

Since last fall the Department of Homeland Security has spent $464 million on a no-bid contract for 10 used aircraft from Daedalus Aviation Corp., saying they were urgently needed for deportation flights. The New York Times reported on Aug. 14 that the fleet has barely flown. Seven older Boeing 737s have sat for months at an airport in Lake Charles, Louisiana; an internal document said the agency lacked staff to operate them. Three are luxury business jets, one now leased to the FBI to support Director Kash Patel's travel. Daedalus had never held a federal contract; its chair, William Walters, donated $10,000 in 2024 to a political committee tied to then-Governor Kristi Noem.

The purchase used an "unusual and compelling urgency" exemption from competitive bidding. The department has invoked it for more than $29 billion across roughly 500 contracts this term; it accounts for nearly two-thirds of its 2026 contract spending, up from about a quarter in 2025.

Senators Patty Murray and Christopher Murphy wrote on Aug. 12 demanding a full accounting. DHS attributed the contract to Noem's leadership; her spokesperson pointed to successor Markwayne Mullin. Records show it grew by $303 million the day Mullin was sworn in.