Trump Reshapes Homeland Security with Hardline Appointees as Border and Investment Policies Tighten
Trump Overhauls Homeland Security, Signaling New Era of Border Enforcement and Investment Scrutiny
Hard-Line Allies Join Advisory Council as Administration Expands Powers
President Donald Trump unveiled a reconstituted Homeland Security Advisory Council on Thursday evening, stacking the influential body with conservative loyalists and signaling an intensified focus on immigration enforcement and national security that experts say could reshape America's investment landscape and labor markets.
The announcement, made through Trump's Truth Social platform, named South Carolina Governor Henry McMaster, conservative commentator Mark Levin, former NYPD detective Bo Dietl, and Florida State Senator Joseph Gruters to the advisory council, which provides direct guidance to the Department of Homeland Security on matters of national security.
"Under Secretary of Homeland Security Kristi Noem's leadership, HSAC will work hard on developing new Policies and Strategies that will help us secure our Border, deport Illegal Criminal Thugs, stop the flow of Fentanyl and other illegal drugs that are killing our Citizens, and MAKE AMERICA SAFE AGAIN," Trump wrote in his post.
The revamped council marks a significant escalation in Trump's border security agenda, coming amid a series of controversial policy shifts at DHS that have already drawn scrutiny from civil liberties organizations and international observers.
A Department Transformed Under Noem's Watch
Since her confirmation in January, Secretary Noem has overseen dramatic changes at DHS, including the closure of the department's Office for Civil Rights and Civil Liberties. The $200 million previously allocated to that office has been redirected to fund an anti-immigrant advertising campaign featuring Noem herself, warning potential migrants against attempting to enter the United States.
The DHS Office for Civil Rights and Civil Liberties (CRCL) advises departmental leadership and personnel on civil rights and civil liberties matters. Its core purpose is to ensure that respect for these rights is integrated into all DHS activities and policies, and it investigates related complaints from the public.
"What we're seeing is a fundamental restructuring of DHS priorities," said a Washington-based security analyst. "The department is shifting from a balanced approach that considered both enforcement and rights protection to one almost exclusively focused on enforcement and deterrence."
The transformation extends beyond structural changes. Under Noem's leadership, DHS has revoked temporary protected status for hundreds of thousands of migrants from Venezuela, Cuba, Haiti, and Nicaragua. The department has also intensified Immigration and Customs Enforcement operations in major cities nationwide, leading to what immigration advocates describe as unprecedented numbers of detentions and deportations.
Temporary Protected Status (TPS) is a specific, time-limited immigration status granted by the United States to eligible nationals of designated countries experiencing crises like war or natural disasters. This status allows individuals who cannot safely return home to live and work legally in the U.S. for a defined period.
In one of the administration's most controversial moves, migrants have reportedly been transferred to detention facilities in El Salvador known for human rights violations, sometimes without full due process. Sources within DHS, speaking on condition of anonymity, confirmed that discussions have taken place regarding potential deportation mechanisms that could affect U.S. citizens, particularly those critical of certain U.S. foreign policy positions.
Council Members Signal Administration Priorities
The newly appointed council members reflect Trump's emphasis on aggressive enforcement and loyalty to his policy vision.
Governor McMaster has been one of Trump's earliest and most steadfast allies, supporting the president's immigration policies throughout both administrations. Mark Levin, a firebrand conservative radio host with millions of listeners, has long advocated for stringent immigration policies and enhanced border security measures.
Bo Dietl brings his background as a former NYPD detective and media personality to the council, having previously run for mayor of New York City on a platform that emphasized law and order. Joseph Gruters, a Florida State Senator who previously chaired the Florida Republican Party, has championed some of the strictest state-level immigration policies in the country.
"This isn't just an advisory council—it's a war council," said a former DHS official who served under multiple administrations. "These appointments suggest the administration is gearing up for an unprecedented enforcement campaign that will test the limits of executive authority."
Surveillance Expansion Raises Free Speech Concerns
Among the most controversial of the new DHS initiatives is an expanded surveillance program that screens immigrants' social media for what the department terms "antisemitic activities." This screening can serve as grounds for denying immigration benefits, affecting international students and legal residents.
Civil liberties experts have raised alarms that the program disproportionately impacts those expressing certain political views, particularly regarding Middle East conflicts. Several cases have already emerged of students and workers having visas revoked based on social media posts critical of certain foreign policies.
"The chilling effect on free expression is profound," said a civil liberties attorney who has represented affected individuals. "We're seeing people self-censor out of fear that their immigration status could be jeopardized by expressing political opinions."
Investment Landscape Faces Seismic Shift
Beyond its border security focus, the administration has rolled out an "America First Investment Policy" that creates a two-tier system for foreign investment in the United States. The policy imposes strict scrutiny on investments from designated "foreign adversaries" including China, Russia, Iran, North Korea, Cuba, and Venezuela, while fast-tracking approvals for allies.
Trends in Foreign Direct Investment (FDI) inflows into the United States over the past decade.
| Year | BEA New FDI Expenditures (USD bn) | Net FDI Inflows (USD bn) | FDI Position (USD tn) | Notes |
|---|---|---|---|---|
| 2014 | — | $298.8 (avg 2014–21) | — | BEA average for context |
| 2015 | — | $484 | — | Record inflow |
| 2016 | — | $480 | — | Record inflow |
| 2017 | — | $325–$381 | — | Range reflects source differences |
| 2018 | — | $215–$216 | — | — |
| 2019 | — | $289–$316 | — | — |
| 2020 | — | $112–$137 | — | Pandemic low |
| 2021 | $403 | $403–$476 | — | Post-pandemic rebound |
| 2022 | $177.5 | $257–$409 | — | Decline from 2021 |
| 2023 | $148.8 | $289–$349 | $5.5 | Further decline in new FDI; FDI position at $5.5 trillion |
| 2024* | ~$140–$150 (est., Q1–Q3 annualized) | ~$290–$340 (est.) | $5.6 (est.) | Q1–Q3 flows flat vs. 2023; Q3 FDI $72.5B (down 23% from Q2); position continues rising |
*2024 figures are estimates based on Q1–Q3 data and preliminary sources.
This bifurcated approach extends across numerous sectors deemed sensitive, including technology, critical infrastructure, healthcare, agriculture, energy, and raw materials. The Committee on Foreign Investment in the United States (CFIUS) has been granted expanded powers to review and potentially block investments from adversary nations.
The Committee on Foreign Investment in the United States (CFIUS) is a U.S. government body that reviews certain foreign investments into American businesses. Its main role is to assess the national security implications of these transactions.
"What we're witnessing is a fundamental recalibration of America's approach to global capital flows," said a market strategist at a major investment bank. "The days of relatively open investment regardless of country of origin are over. Now, the source of capital matters as much as the destination."
For investors from allied nations, the new landscape offers unprecedented opportunities. Projects exceeding $1 billion will benefit from streamlined regulatory reviews and expedited environmental assessments. Simultaneously, U.S. investors face new restrictions on outbound investments to adversary nations, particularly in advanced technology sectors such as semiconductors, artificial intelligence, quantum computing, and biotechnology.
"The policy creates clear winners and losers," the strategist added. "Allied capital gets the red carpet, while adversary capital faces a gauntlet of scrutiny that may prove insurmountable."
Labor Markets Brace for Impact
The intensified focus on immigration enforcement has sent shockwaves through industries that rely heavily on immigrant labor. Agricultural producers, construction companies, and food processing plants are already reporting difficulties maintaining adequate staffing levels as workers fear increased raids and deportations.
"We're looking at potential labor shortages that could drive up costs across the supply chain," said an agricultural economist who studies labor markets. "When you combine aggressive enforcement with a historically tight labor market, you create conditions for significant wage inflation in affected sectors."
Employers now face the prospect of more frequent worksite audits and stricter verification requirements for employee eligibility. Many companies have begun contingency planning for potential disruptions, including increased automation and higher wages to attract domestic workers.
Compliance Burden Grows for Market Participants
For both domestic and international businesses, the new policy environment demands heightened vigilance and increased compliance resources. Companies must now conduct more rigorous due diligence on ownership structures and supply chains to avoid entanglements with entities linked to adversary nations.
Foreign companies listed on U.S. exchanges face enhanced audits and ownership reviews, with those deemed to have connections to adversary governments potentially becoming ineligible for U.S. pension plan investments.
"The compliance landscape is shifting under our feet," said a corporate attorney specializing in cross-border transactions. "What was permissible six months ago may now trigger regulatory scrutiny. Companies need to build flexibility into their strategic planning to account for this new reality."
Outlook Remains Uncertain
As the revamped Homeland Security Advisory Council begins its work, analysts anticipate further policy shifts that could reshape both domestic security operations and investment flows. The concentration of hardline voices on the council suggests that the administration's tough stance on immigration and foreign investment from adversary nations will likely intensify rather than moderate.
For markets, the implications remain complex and potentially far-reaching. Sectors dependent on immigrant labor may face headwinds, while those positioned to benefit from reshoring and domestic investment could see tailwinds. The bifurcated approach to foreign investment creates potential opportunities for capital from allied nations while erecting formidable barriers for others.
What remains clear is that the Trump administration's approach to homeland security has evolved beyond traditional enforcement to encompass broader economic and investment considerations that will reverberate throughout the global economy in the months and years ahead.