By J.J. Green
FederalNewsRadio

An announcement regarding the re-organization within the Department of Homeland Security is approaching and FederalNewsRadio has learned there could be a significant change in one of the department's most troubled agencies.

Sources at DHS tell FederalNewsRadio the Transportation Security Agency will be replaced with a new organization likely to be called the Aviation Security Agency.

It is believed that the new organization will have a more limited focus which will handle only aviation and air security issues. TSA currently has responsibility for those areas and maritime, land, and some hazmat issues. But sources say it is likely those functions would be handled by a new smaller group within DHS.

Also being discussed is limiting the mission of Immigration and Customs Enforcement and removing the air marshals from control of that agency and giving that responsibility to the agency which would replace the TSA.

TSA has been the source of considerable embarrassment for the administration because of activities the inspector general has called wasteful, including spending $500,000 for a holiday party, not fulfilling screener training goals, and controversial policies such as the pat-down procedure that outraged female air travelers.

The changes come as DHS Secretary Michael Chertoff puts the finishing touches on his "comprehensive review" of the department's operations.

CQ Homeland Security reports "There are obvious levels of apprehension" among officials whose offices are expected to be altered, according to a transportation industry lobbyist who works closely with the department. The lobbyist said he had sat behind several top-level DHS officials at Chertoff's March 17 speech at George Washington University, when the secretary announced the review, which could upend entire agencies.

"You could see them gulp" when Chertoff gave the news, he said. "They know it's on the line at this point."

Chertoff, a former federal prosecutor and judge, put his deputy, Michael Jackson, in charge of the review, known within the department as "2SR" for "Second Stage Review," and gave him until Memorial Day to complete it and deliver major recommendations to him.

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