Coast Guard awards $172M no-bid contract for two Gulfstream G700 jets for DHS Secretary Noem and leadership

On October 17, 2025, the U.S. Coast Guard approved a no-bid contract to purchase two Gulfstream G700 private jets for use by DHS Secretary Kristi Noem and other senior DHS leadership, at a total estimated cost between $172 million and $200 million. The contract was awarded during a government shutdown that had suspended other federal services. House Appropriations Democrats Rosa DeLauro and Lauren Underwood, citing a Washington Post report, noted that DHS had previously sought funding for a single aircraft at a projected cost of approximately $50 million; the no-bid purchase of two jets at four times that figure bypassed the competitive bidding process required under federal procurement law.

Competitive procurement requirements exist to protect taxpayers from inflated costs and to prevent officials from steering contracts for personal benefit. The contract drew immediate congressional criticism: DeLauro and Underwood alleged the purchase was made to personally benefit Noem and characterized it as an improper use of Coast Guard acquisition authority. Military Times and the Washington Post both reported that the aircraft were intended primarily for use by DHS leadership on official travel, rather than serving Coast Guard operational missions.

The Standing records this as an instance of procurement abuse — awarding a luxury travel contract without competitive bidding, at multiples of the projected cost — and as self-dealing, where a Cabinet official used government procurement authority to acquire high-end personal travel infrastructure during a shutdown that reduced services to the public. The contract was approved the same week the government shutdown began, underscoring the selective prioritization of Cabinet convenience over statutory process.