Chaos reigned at airports across the country last weekend, with thousands of travelers reportedly waiting in hours-long security lines thanks to staffing shortages. Transportation Security Administration (TSA) and Coast Guard workers have turned to food banks for assistance after weeks without pay. But amid a partial government shutdown aimed at curtailing the Department of Homeland Security’s mass arrests and deportations, federal agents have continued their anti-immigrant crackdown unabated — and for now, there’s not much anyone can do.
DHS has gone without funding for four weeks in a standoff over immigration enforcement. Congressional Democrats say the lapse will continue until the White House agrees to a number of changes at ICE and CBP. But while major parts of DHS are affected, ICE and CBP still have plenty of money at their disposal. Trump’s signature One Big Beautiful Bill Act (OBBBA), which passed by the narrowest of margins last fall despite universal Democratic opposition, gave the agencies a combined $170 billion to put towards immigration enforcement through 2029. Much of this money went to ICE, which received $45 billion toward the construction of new detention centers and $30 billion to hire and train personnel. The appropriations currently under debate would give ICE additional funding on top of this $75 billion. This kind of multi-year funding is unusual, and it’s insulated the agencies from political pressure.
Relying on the OBBBA’s funds, ICE has continued arresting immigrants — including a Nashville-based journalist who frequently reports on the agency, who has a pending asylum claim — and detaining them in substandard facilities. Despite the shutdown, Customs and Border Protection has continued scouting additional locations for its “smart wall” along the US-Mexico border, and briefly considered building a barrier through Big Bend National Park in Texas. (The agency has since dropped the plan, likely due to local pushback.) Most DHS employees, including TSA officers and CBP agents, are currently going without pay, though they will receive backpay when funding resumes.
Democrats are demanding a series of compromises to re-fund DHS for this fiscal year. They have called for “targeted enforcement” rather than roving patrols, an end to racial profiling, a “reasonable use of force policy,” and expanded training for officers. Democratic lawmakers, who have compared ICE and CBP’s plainclothes officers to a “paramilitary police,” want DHS to prohibit masks and standardize uniforms for agents in the field. They’ve also requested that officers wear body cameras, as well as IDs displaying their agency, last name, and unique officer number.
“These are common-sense reforms, ones that Americans know and expect from law enforcement,” Senate Minority Leader Chuck Schumer said at a January press conference. So far, these requests have gone nowhere.
ICE deported an estimated 56,000 people during the 43-day funding lapse last fall and held approximately 65,000 people in detention during the same timeframe.
Democrats have notched one high-profile victory in the fight: Trump fired DHS secretary Kristi Noem last Thursday ahead of a House vote to fund DHS. But most Democrats aren’t content with Noem’s ouster. “The problems at this agency transcend any one person,” Schumer said at a press conference after last Thursday’s vote. “The rot is deep. The president has to end the violence and rein in ICE.” The House passed the appropriations bill after her firing, but Senate Democrats didn’t budge.
“It’s not like Kristi Noem was involved in negotiating anything,” added House Minority Leader Hakeem Jeffries (D-NY). It has long been understood that Trump adviser Stephen Miller runs the show at DHS regardless of who the secretary is. “We were dealing with the White House before, and we’re going to continue to deal with the White House at this point,” Jeffries said.
There’s little reason for the administration to give in to Democrats’ demands. The White House and congressional Republicans have blamed the shutdown on “Radical Left Democrats,” claiming their refusal to fund DHS is putting Americans at risk. Though essential federal employees continue to work through the shutdown — in some cases without pay — Republicans have warned that the funding lapse may prevent DHS from responding to “threats against our homeland” in light of the Trump administration’s recent invasion of Iran. Even if individual officers have to go without pay, the unprecedented funding ICE and CBP received from the OBBBA mean the agencies’ operations can continue.
Last year’s government shutdown provides insight into ICE and CBP’s operations. ICE deported an estimated 56,000 people during the 43-day funding lapse last fall and held approximately 65,000 people in detention during the same timeframe. But because its operations were funded from OBBBA appropriations, ICE claimed in court filings, the agency didn’t have to grant entry to Democratic lawmakers who sought to monitor conditions in federal detention centers as part of their oversight duties.
The effects of the shutdown aren’t equally distributed among DHS’s various component agencies. Ironically, given that Congress created DHS in response to the September 11th airplane attacks, the agency that has experienced the most disruptions so far is the TSA. Agents received roughly 30 percent of their pay last week but will not be paid again until DHS is funded, according to the Times. Ports of entry, including airports, are still mostly operational. Though DHS initially claimed TSA Precheck would be suspended amid the shutdown, the program is currently running at most airports. Global Entry, which is handled by CBP, is largely suspended.
US Citizenship and Immigration Services (USCIS), the agency that handles naturalizations, green cards, and other benefit applications, remains operational. Unlike other DHS agencies, USCIS is almost entirely fee-funded, meaning it is largely unaffected by the federal funding debate. Immigration courts also remain open, since the Executive Office for Immigration Review (EOIR), the federal agency that oversees the immigration court system, is under the purview of the Department of Justice.
Some DHS employees, however, are out of work amid the shutdown. Sen. Tim Kaine (D-VA) said on Sunday that Democrats want to fund most DHS component agencies — including the TSA, Coast Guard, and the Federal Emergency Management Agency (FEMA), and the Cybersecurity and Infrastructure Security Agency — separately.
Roughly 15 percent of FEMA workers are currently furloughed, while the remaining 85 percent are expected to work without pay. The New York Times reports that FEMA’s disaster relief fund is equipped to handle “current and anticipated” emergency response activities. Its response to a major disaster, however, “would be seriously strained,” Gregg Phillips, the associate administrator for the agency’s Office of Response and Recovery, said in federal testimony last week.
Nearly two-thirds of Cybersecurity and Infrastructure Security Agency employees are furloughed. Many of the 888 employees the agency has deemed “essential to protecting life and property” have had to work without pay.
“Let’s just pass those funding bills,” Kaine said. Let’s confine the ICE and CBP reform discussion just to those two agencies and fund the others. Thus far, Republicans have blocked those efforts.”
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![This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch
What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?
The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.
The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.
This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.
Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.
Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?
“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling syringes in tree trunks and gangs patrolling the streets. “In 1982, the local church was occupied by the English Collective of Prostitutes for 12 straight days.” Then, in the early 2000s, a real estate developer had a dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.
There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.
Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.
Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.
“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”
Image Credits:Phoenix Court
Top founders want to stay
Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.
“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.
Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.
Image Credits:Synthesia
Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.
Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.
“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK This former notorious red-light district is now one of the world’s top AI hubs | TechCrunch
What every U.K. AI startup wants to know these days is, how can I get office space in King’s Cross?
The area is so hot that a VC firm allegedly recently won a deal by promising a founder office space in the neighborhood. “We stop at nothing to win deals [for] and to support” founders, “including helping them source office space when needed,” the firm told me when asked about the rumor, declining to confirm or deny any details.
The neighborhood’s popularity began back in 2016 when DeepMind — then newly acquired by Google — moved in. Soon after, a flood of AI startups followed, wanting to be around the Google DeepMind magic. Today, they hope to take advantage of the cluster of AI talent there.
This has transformed King’s Cross into one of the world’s top AI hubs, rivaled only by San Francisco and Beijing. Around London, it’s known by the sobriquet “Knowledge Quarter,” as it’s home to names like OpenAI, Meta, Isomorphic Labs, Cusp AI, Wayne, Recursive, and, a little farther down the road, Synthesia and Anthropic. The European Technology Network (ETN) just moved into a glossy new office nearby, while University College London sits around the corner.
Mixed in with the new developments are trendy food spots like Hoppers and BAO. Hop a train from King’s Cross, and founders can be in Cambridge in 45 minutes to source talent or can be in Paris in two hours to strike a deal.
Who would have guessed that a little more than 20 years ago, this was one of the seediest areas in London?
“In the ’80s, crack and heroin made the area a major narcotics market,” Hussein Kanji, an investor at Hoxton Ventures, said, recalling syringes in tree trunks and gangs patrolling the streets. “In 1982, the local church was occupied by the English Collective of Prostitutes for 12 straight days.” Then, in the early 2000s, a real estate developer had a dream and, well, “now it is the AI hotbed of the United Kingdom,” Kanji said. “What a change.” Around 18 months ago, his portfolio company BioCorteX moved from the neighborhood Holborn to the Jellicoe building in King’s Cross, hoping to be near the action. “Lots going on in London right now,” Nik Sharma, co-founder of BioCorteX, told me. “Lots of hyperscalers moving in.” That includes, reportedly, Jeff Bezos’ AI company Prometheus, which is also said to be in talks to move into the Jellicoe.
There are around 3,600 AI startups in London, which, together, have raised around .1 billion out of the .8 billion raised in the city since late July, according to Dealroom. Since the start of June, AI-related startups have leased more than 1 million square feet of office space in London, according to the real estate firm Knight Frank. With that, prime rents in King’s Cross have risen 18% over the past three years, Chris Dunn, a commercial insight associate at the firm, told me. That percentage represents only the largest leases encompassing at least 10,000 square feet, like the ones OpenAI and Prometheus are signing. The shorter deals go for even more, he said, and now the vacancy rate for conventional office space is just 0.9%. “Demand has outstripped supply,” he continued.
Today, one of the big topics of the area is sovereignty. It was a wake-up call for many when Anthropic shut off access to Mythos and Fable this summer, leaving some in the ecosystem to conclude: “We’d better look after ourselves,” Saul Klein, co-founder of the VC firm Phoenix Court, told me.
Phoenix Court is located in the King’s Cross area and has three portfolio companies in the vicinity, including Olix (which just announced a .3 billion valuation), Early Health and CoMind. Robin Klein, co-founder of the firm, said the shutdown of Fable and Mythos access was a “small but sharp reminder that Europe can’t simply rent its AI capabilities and capacity; it needs to build and hold some of its own.” King’s Cross, he said, is where much of this building is actually happening.
“The bigger question,” he continued, “is whether the U.K. builds the infrastructure, compute, energy, capital, to make this self-reliance durable, rather than just hosting outposts of U.S. labs.”
Image Credits:Phoenix Court
Top founders want to stay
Simon Kohl, founder of Latent Labs, has offices in King’s Cross and San Francisco. The London office, at the moment, is growing faster, and he’s more bullish than ever on the ecosystem, he said. “The mood right now feels less like London trying to catch up and more like London becoming one of the default places to start a serious AI company,” he said. Look around and you are likely to see Wayve testing its autonomous cars. Founded in 2017 by co-founder Alex Kendall, the unicorn is one of London’s biggest success stories.
“Ten years ago, building a frontier AI company from London felt like an unusual choice,” Kendall told me. “Now it feels like an obvious one.” Wayve moved into King’s Cross in 2018 looking for a space that could double as a garage — “a rare combination in Central London,” Kendall said. He has watched the ecosystem mature around him — and it’s now evident that a startup can stay in London, raise serious capital, hire world-class AI talent, and remain globally competitive, he said. Down the street from Anthropic’s new 158,000-square-foot office is the AI agent builder Sierra and the AI video platform Synthesia.
Laura Gonzalez Florez, Synthesia’s chief of staff and head of people, says the company moved into its glossy new office building a year ago to accommodate its growing team. They were drawn to the area for the same reason as everyone else: “It’s very close to the airport … very close to where a lot of investors are,” she said.
Image Credits:Synthesia
Around two-thirds of Synthesia’s engineers are remote, Gonzalez Florez said, letting the company tap into an affordable, international, and diverse talent pool and helping it scale faster. “From London, we can hire and work, without any problem, people from anywhere, from Slovenia to Portugal,” she said.
Unsurprisingly, London’s AI boom is also causing a talent war.U.K. AI job postings have skyrocketed in the past few years, per data from PwC. When Anthropic announced it moved into town earlier this year, it listed, for example, a salary range of £260,000 to £630,000 for a machine learning research engineer when the average salary in London for the same role is around £102,000. Some founders in the U.K., like those in Silicon Valley, are being forced to raise more and bigger rounds to keep up.
“The real test is whether more globally significant AI companies are founded, funded, and scaled from the U.K., while continuing to attract the world’s best talent to build them here,” Zain Ali, founder of the King’s Cross-based AI legal firm Centuro, told me. “If that continues to happen, King’s Cross won’t just be an AI hub. It’ll become one of the U.K.’s most important strategic assets.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Thisformernotorious #redlight #districtis #nowone #worlds #top #hubs #TechCrunchUK](https://techcrunch.com/wp-content/uploads/2026/08/DM9A2852.jpg?w=680)

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