Fallout from US government shutdown reignites calls for ATC privatization

The prolonged US government shutdown is reviving a years-old debate over whether the air traffic control system in the United States should be privatized or separated from the Federal Aviation Administration (FAA). 

With thousands of controllers working unpaid six-day weeks and flight reductions in place at 40 of the nation’s busiest airports, lawmakers and policy experts are again questioning whether the FAA’s dependence on annual congressional funding makes the system too vulnerable to political gridlock. 

Robert Poole, director of transportation policy at the libertarian Reason Foundation, said the shutdown “opens a window to have this looked at seriously.” He and other advocates argue that the system’s chronic staffing and modernization problems stem from its structure as a government agency dependent on appropriations. 

They point to models in Canada and the United Kingdom, where independent corporations manage air navigation services. Canada’s Nav Canada, created in 1996, operates as a private, non-profit utility funded by user fees rather than taxes. Supporters say this approach enables steady investment in new technology and shields operations from political disruptions. 

“The FAA’s current setup means you can’t plan long-term capital investments,” said Michael McCormick, professor of air traffic management at Embry-Riddle Aeronautical University. “Separating operations from the regulatory side would let planners modernize more efficiently.”   President Donald Trump backed privatization during his first term, and the idea was part of an infrastructure reform push in 2017-2018. The effort failed after opposition from general aviation groups and some members of Congress who warned that smaller airports and private pilots could face steep new fees. 

Transportation Secretary Sean Duffy has now ruled out privatization, calling it a “distraction” from efforts to modernize the ATC system. “Privatization is a fight that someone else can have at some other point,” Duffy said in August. Instead, the Department of Transportation plans to use $12.5 billion in modernization funding approved earlier in 2025 to accelerate technology upgrades and controller hiring. 

General aviation organizations remain strongly opposed. The Aircraft Owners and Pilots Association (AOPA) said the FAA’s temporary ban on most private flights to 12 major airports during the shutdown shows how critical access is for non-commercial users. 

“General aviation is an essential part of our nation’s transportation and economic fabric,” said AOPA President Darren Pleasance. “This kind of blanket exclusion cannot become the norm.” AOPA reiterated its stance that “handing over our aviation system to private interests will not solve the challenges we face today.” 

The National Business Aviation Association (NBAA) also remains strongly opposed to ATC privatization, warning that it would give large airlines disproportionate control over the airspace. The group argues that the 2017 proposal — dubbed the 21st Century AIRR Act — would have shifted governance to a board dominated by airline representatives and removed congressional oversight of access and fees. 

A Senate appropriations bill passed in July 2025 explicitly prohibits the use of federal funds to “plan, design, or implement the privatization or separation of the air traffic organization functions of the FAA.” Committee members said that had the United States adopted a privatized model before the Covid-19 pandemic, the result could have led to layoffs and service reductions similar to those seen in Canada and Europe. 

Still, advocates of reform say the current shutdown demonstrates the need for a funding model independent of politics. “Having revenue independence would be the single most important step toward reform,” said Cornell University infrastructure expert Rick Geddes. 

For now, the FAA continues to operate under emergency restrictions, with airlines canceling hundreds of flights each day. Whether the latest crisis spurs serious consideration of structural change — or merely revives a familiar political fight — remains to be seen.   The Air Line Pilots Association (ALPA), which represents more than 77,000 pilots at 43 airlines, has voiced support for efforts to modernize the nation’s air traffic system but has not endorsed privatization. The union backs the Department of Transportation’s plan to upgrade technology and staffing within the existing FAA framework, saying the focus should remain on safety and efficiency improvements rather than structural changes. 

The National Air Traffic Controllers Association (NATCA), representing nearly 20,000 controllers and aviation safety professionals, has long opposed any move toward a for-profit model. While open to reforms that ensure stable funding and modernization, NATCA has stated it will oppose any proposal that removes air traffic services from federal oversight or weakens controller workforce protections. The post Fallout from US government shutdown reignites calls for ATC privatization appeared first on AeroTime.

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