Kristi Noem DHS Bought Five Jets From a Political Donor at a Steep Markup Before She Left Office

Homeland Security bought five aeroplanes from a political donor's firm at a steep markup on the final day of Kristi Noem's tenure, documents show, adding hundreds of millions to a taxpayer-funded fleet that has barely flown since, raising questions about how the deal was approved and priced.

The Department of Homeland Security (DHS) agreed to pay Daedalus Aviation Corporation $108 million (£81 million) for a Boeing 737 converted into a private jet with a stand-up bar and two bedrooms, which the company had bought months earlier for less than $90 million (£67 million), according to documents reviewed by The New York Times. It also bought two Gulfstream luxury jets for $106 million (£79 million), roughly $23 million (£17 million) more than Daedalus had paid for the pair. The purchases raised questions about DHS's procurement process and oversight.

Two older Boeing 737s completed the final-day deal at $45 million (£34 million) each, prices that aviation specialists told the Times ran far above market value. The five aircraft pushed the Daedalus contract to $464 million (£346 million) for 10 planes without competitive bidding.

The Donor Behind the Deal

Daedalus is chaired by William Walters, a former State Department official whose firm held no federal contracts before 2025. Campaign finance records show Walters gave $10,000 (£7,500) to American Resolve, a political committee connected to Noem, in October 2024. DHS justified skipping open competition by citing 'unusual and compelling urgency', a narrow exemption under federal procurement rules.

A Fleet That Never Flew

The seven Boeing 737s have sat at an airport in Lake Charles, Louisiana, for months because the department has no crews to fly them, according to an internal government document cited by the Times. Three luxury jets were earmarked for travel, and DHS tried to lease two to other agencies, including one lined up for the Federal Bureau of Investigation (FBI).

John Sandweg, a former acting director of Immigration and Customs Enforcement (ICE), said owning a fleet 'would absolutely not make the top ten' of what the agency actually needed. ICE has long chartered private aircraft and borrowed military and Coast Guard planes for removals, making a dedicated fleet hard to justify.

Noem and Mullin Trade Blame

President Trump fired Noem in March 2026 and replaced her with former senator Markwayne Mullin, who runs DHS. The department pinned the purchase on its former leadership, saying the contract was 'made and approved by department leadership before Secretary Mullin was sworn in'.

Noem, now a State Department special envoy, rejects that account and has demanded a retraction from the Times, which stands by its reporting. Records show the contract grew by $303 million (£226 million) on the day Mullin took office.

What Happens Next

Mullin's team says the planes will soon be put to work. DHS intends to start using them for deportation flights within weeks, hiring outside contractors to operate the 737s.

Officials under Noem had claimed the fleet would save $279 million (£208 million) through more efficient routes, a figure the department has never substantiated.

Senators Patty Murray and Chris Murphy have called for an investigation into how a young company whose chairman had political ties won a near half-billion-dollar contract, and what taxpayers got for their money.