It may be making money (something I doubt the TSA is doing much of, given that it is a governmental organization), but it is still useless.
I strongly doubt the TSA staff and operations are exclusively in the hands of a pure government organisation. Most likely they have outsourced the manpower needs, and there's also the huge amount of money spent on detecting equipment, which includes VERY expensive scanners that were never installed. Hence the money argument.
BTW: have you noticed that government departments of that kind NEVER shrink? Ever?