Alexandra Schmid, who has worked for the TSA for four years, allegedly swiped the cash from the passenger's jacket as it passed through an X-ray conveyor belt around 8:25 p.m. Wednesday in Terminal 4.
Schmid, from Brooklyn, was arrested Wednesday night.
A TSA spokesperson said another officer had witnessed the alleged theft and notified authorities.
"TSA commends the witnessing officer for demonstrating integrity in coming forward and holding the other officer accountable for her actions," TSA spokeswoman Lisa Farbstein said.
Schmid was apparently caught on surveillance video wrapping the money in a plastic glove and walking off with it to the bathroom, Port Authority police spokesman Al Della Fave tells 1010 WINS.
The money has not been recovered and police believe Schmid may have handed it off to an accomplice.
The investigation is ongoing.
Schmid has been charged with grand larceny in the third degree.
The 31-year-old has been suspended pending an investigation.
The passenger flew out of the country last night, according to the TSA.
"The actions of a few individuals in no way reflect on the outstanding job our 50,000 security officers do every day to ensure the security of the traveling public," Farbstein said.
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