The Passport System Pays for Itself. Its Staff Still Shrank by a Tenth.
Summary
The State Department issued a record 27.3 million passports in fiscal 2025. The consular bureau that processes them started fiscal 2026 with 554 fewer staff positions — a 9.5% cut carried out in the department's 2025 reduction in force — and its own 2027 budget request rebuilds fewer than half of them, leaving staffing 5.3% below the original level.
The system runs on its own fees
Passport and visa fees don't go to the Treasury's general fund. They flow into the Consular and Border Security Programs (CBSP) account, which the FY 2027 Congressional Budget Justification projects will collect and spend $5.6 billion in fiscal 2027 — none of it general appropriations. The single largest fee is the Machine Readable Visa Fee ($2.17 billion), but the fee tied directly to your passport application — the Passport Application and Execution Fee — is projected to bring in $538.7 million on its own, part of the $533 million to $539 million range the department cites across the document for that fee alone.
View data as table
| Machine Readable Visa Fees | $2,169.9M | fee revenue |
|---|---|---|
| Passport Security Surcharge | $1,827.3M | fee revenue |
| Passport Application & Execution Fee | $538.7M | fee revenue |
| W. Hemisphere Travel Surcharge | $510.3M | fee revenue |
| Expedited Passport Fees | $360.0M | fee revenue |
| Other CBSP fees | $211.1M | fee revenue |
| Consular staff salaries | $973.7M | of total spend |
| Spending via partner bureaus | $1,692.2M | of total spend |
| Other CBSP operations | $2,951.3M | of total spend |
On the spending side, $973.7 million pays the salaries of the consular and border-security staff themselves — the exact positions at the center of this story. Another $1.69 billion pays for consular support work performed by other State Department bureaus. The remaining $2.95 billion covers fraud prevention, overseas post operations, and IT modernization. The account is, on paper, fully able to staff itself: it doesn't compete with defense or health spending for headcount. It only has to compete with the rest of the department's 2025 reorganization.
The staff who process them
That reorganization landed on the consular bureau along with everyone else. Per the same Congressional Budget Justification, CBSP-funded positions fell from a 5,829-position ceiling in fiscal 2025 to 5,275 actually on board as of October 31, 2025 — a loss of 554 positions, or 9.5%, tied to the department's Deferred Resignation Program and Reduction in Force. Department-wide, the same document reports an on-board staffing level of 17,236 employees for fiscal 2027, down from a fiscal 2025 baseline, following that same RIF and reorganization.
View data as table
| FY2025 ceiling | 5,829 | position ceiling |
|---|---|---|
| FY2026 on-board | 5,275 | actual, Oct. 31, 2025 |
| FY2027 request | 5,518 | requested on-board level |
The FY2027 request asks to add 243 of those positions back — a 4.6% increase over the FY2026 level — but even fully funded, that leaves the bureau at 5,518 positions, still 311 short of where it stood before the cut. The bureau is asking to rebuild less than half of what it lost, in the same budget document that shows it can afford, in principle, to fund every position it once had.
This is not the department's first run through this cycle. A 2017 hiring freeze left Passport Services similarly short-staffed, and when applications surged afterward, the Government Accountability Office found that roughly 1,200 passport specialists worked more than 250,000 hours of overtime in fiscal 2023 alone just to keep pace with 21.6 million applications that year — nearly 2 million more than the department had planned for. Fiscal 2025's 27.3 million applications is a larger surge than the one that produced that overtime bill, arriving on top of a smaller staff.
The takeaway
- Demand is not the problem. The department issued a record 27.3 million passports in fiscal 2025, per its own reporting — up nearly 3 million from the year before.
- The system pays for itself. Passport and visa fees fund the entire $5.6 billion Consular and Border Security Programs account, including the $973.7 million in salaries for the staff who process applications — no general tax dollars required.
- Staffing didn't follow demand. The same account lost 554 positions — 9.5% — when the department's 2025 reduction in force landed.
- The rebuild is partial. The FY2027 request adds back 243 positions, leaving the bureau 5.3% smaller than its FY2025 ceiling, with more applications to process than ever.
Figures cover the Bureau of Consular Affairs' domestic passport and visa operations funded through the Consular and Border Security Programs account; they do not include overseas post staffing levels or the separate immigration-court and backlogs, which draw on different budget accounts entirely.
Sources
- U.S. Department of State, 2027 Congressional Budget Justification, Department of State, Foreign Operations, and Related Programs — CBSP fee revenue, spending by program, CBSP salaries and partner-bureau spending, and CBSP-funded staff position counts for FY2025–FY2027. state.gov
- U.S. Department of State, Bureau of Consular Affairs — Reports and Statistics, passport issuance by fiscal year, the source for the 27,348,416 FY2025 total. travel.state.gov
- U.S. Government Accountability Office, -25-107164, Passport Processing: State Department Should Identify Milestones and Resource Needs for Its Plans to Avoid Future Delays — the 2017 hiring freeze, the fiscal 2023 application surge, and the 250,000-hour overtime figure. gao.gov
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No tax dollars fund the office that issues your passport. The Bureau of Consular Affairs runs on fees paid by applicants themselves, pooled into a single account and spent back on the staff and systems that process the next application. In fiscal 2025 the department issued 27,348,416 passports — a record, up from 24.5 million the year before. In that same stretch, the account funding the people who process those applications lost more than 1 in 10 of its staff positions to a department-wide reduction in force. Both are matters of public record; neither is a projection.