US Senate introduces $30 billion bill for ATC and airport upgrades

The US Senate introduced legislation on September 28, 2026, seeking roughly $30 billion for air traffic control modernization and airport improvements, adding to the $12.5 billion Congress previously approved for a Federal Aviation Administration (FAA) overhaul.

The Modern Skies Act, backed by Transportation Secretary Sean Duffy, would fund new ATC technology, control facilities and airport terminals.

The largest ATC allocation is $10 billion for systems modernization. That includes $7.2 billion for a common automation platform and controller workstation, $2 billion for cloud computing and telecommunications infrastructure, $600 million for strategic traffic-flow management, and $300 million to consolidate terminal air traffic control facilities.

A separate $10 billion allocation would provide $2 billion for control towers and other terminal ATC facilities, including digital tower technology, $3 billion for discretionary Airport Improvement Program grants, and $5 billion for airport terminal development.

The remaining $10 billion would establish a pilot program to modernize or rebuild aging terminals at up to three qualifying medium-hub airports.

Whether the legislation would cover the full cost of the FAA’s modernization effort remains unclear.

A Government Accountability Office report released on September 14, 2026, found that the FAA had not fully calculated what the overhaul would cost. Its estimates left out some government expenses and much of the cost of running and maintaining the new systems.

The FAA estimates it needs about $10.2 billion for the next phase of technology upgrades, plus additional money for facilities, according to the report.

The first phase also remains underfunded by $574 million. The administration has requested $565 million in its fiscal 2027 budget to cover most of that shortfall.

The Senate bill would give the FAA flexibility to move money among its new ATC systems allocations and among previously funded modernization components, subject to reporting requirements. Those provisions could help the agency adjust spending as projects develop, but would not increase the total funding available.

FAA Administrator Bryan Bedford said the legislation would allow the agency to complete its modernization work. The GAO, however, recommended a reliable lifecycle cost estimate and an integrated project schedule to establish what the overhaul will require. The first phase focuses on replacing aging equipment, including copper communications lines, radios and radar systems. It also includes electronic flight strips to replace paper records used by controllers, better tools to track aircraft and vehicles on airport surfaces, and upgrades to weather sensors and cameras. The FAA aims to complete that work by December 2028.

The second phase would introduce new computer systems to help controllers track aircraft and manage traffic more efficiently.The post US Senate introduces $30 billion bill for ATC and airport upgrades appeared first on AeroTime.

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