The Transportation Department (DOT) and Federal Aviation Administration (FAA) are backing legislation that would provide roughly $30 billion for air traffic control and airport modernization, on top of $12.5 billion Congress previously approved for the FAA’s Brand New Air Traffic Control System.
Previously, FAA Administrator Bryan Bedford told Congress the agency would need another $20 billion to modernize its air traffic control system.
Sen. Eric Schmitt, R-Mo., introduced the Modern Skies Act on Sept. 28. According to a DOT press release and the bill text, the measure would divide the new funding among air traffic control technology, airport infrastructure, and a pilot grant program for transitional airports.
“To finally fix air travel for the American people, we need to pass the Modern Skies Act,” Transportation Secretary Sean Duffy said. “This bill will give us the funding we need to modernize the digital architecture powering air traffic control, replace crumbling aviation infrastructure, and build world-class airports across the country.”
The bill would provide $10.1 billion for air traffic control modernization. That total includes $7.2 billion for a common automation platform and workstation, $2 billion for cloud and telecommunications infrastructure, $600 million for air traffic flow management technologies, and $300 million for consolidation of air traffic control facilities.
Another $10 billion would support airport infrastructure. The funding would include $5 billion for airport terminal development projects, $3 billion for discretionary airport grants, and $2 billion for air traffic control towers and related digital technology.
The remaining $10 billion would fund a pilot grant program for new terminals, capacity upgrades, and cargo expansions at transitional airports, which DOT said “lack access to capital but service between 5 million and 25 million passengers annually.”
The legislation would give the transportation secretary authority to transfer funds among covered accounts and require quarterly expenditure reports to Congress beginning 180 days after enactment.
“The Modern Skies Act will launch a new era of American aviation by building a world-class system that works better for air traffic controllers, airlines, and, most importantly, passengers,” Schmitt said.
The One Big Beautiful Bill in 2025 provided $12.5 billion for air traffic control system modernization. That effort includes telecommunications upgrades, new radios and radars, and electronic flight strips.
DOT said that money is expected to fund deployment activity through the end of 2028. In its fiscal year 2027 budget, DOT included $4 billion to “complement the $12.5 billion investment provided in FY 2025.” Congress has not fully appropriated the FY 2027 budget yet.
“The $12.5 billion Congress provided is a critical down payment to replace outdated infrastructure, but we can’t stop at simply replacing old technology,” Bedford said. “If we do, we’ll have a more reliable system, but many of the inefficiencies built into today’s system will remain.”
“We need to finish rebuilding our nation’s air traffic control system with the technology and automation that will improve efficiency and strengthen the safety and resiliency of our airspace,” Bedford added. “The Modern Skies Act will allow us to complete this work and fully modernize the National Airspace System.”