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U.S. Department of Transportation Reports $12.5 Billion Air Traffic Control Overhaul Progress, Seeks $10-$20 Billion More

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U.S. Air Traffic Control Modernization: Progress, Funding Gaps, and a 2028 Deadline

"We have an analog national airspace system today. We can do better."
— FAA Administrator Bryan Bedford

Overview

U.S. Department of Transportation (DOT) and Federal Aviation Administration (FAA) officials have reported progress in modernizing the nation's air traffic control system using $12.5 billion in previously allocated funds, while requesting an additional $10 to $20 billion to complete the project by the end of 2028.

The upgrades include replacing aging radar, radio, and communications infrastructure—some of which dates to the 1970s and involves floppy disks and out-of-production equipment.

Progress and Infrastructure Upgrades

According to DOT officials, the following upgrades have been implemented since Congressional funding was approved:

  • Copper Wiring: Approximately 50% of copper communications wiring has been replaced with fiberoptic cable, wireless, and satellite connections.
  • Radio Sites: About 270 radio sites have been converted and upgraded.
  • Control Towers: 17 control towers have transitioned to electronic flight strips, replacing paper slips.
  • Airport Ground Tracking: New surface awareness systems have been installed at 54 airports to improve ground tracking of aircraft.
  • General Infrastructure: Over 4,500 FAA sites are receiving new radars, digital voice switches, and training simulators.

Contractor Peraton is overseeing the modernization of four primary system components: communications wiring, radios and voice switches, radar systems, and flight strip technology.

Radar System Replacement

The FAA has awarded contracts to RTX and Spanish firm Indra to replace 612 radar systems nationwide. These systems are scheduled for installation by summer 2028. The new systems will replace 14 distinct existing radar types currently in use.

FAA Administrator Bryan Bedford stated that many existing radar units have exceeded their intended service life, resulting in increased maintenance costs and support challenges. Past technical failures have included radar outages at Newark Liberty International Airport last spring, which led to flight cancellations and delays.

The FAA has not yet provided an estimated cost for the new radar systems.

Funding Status and Additional Requests

Congress has allocated $12.5 billion for the air traffic control system overhaul. The FAA has committed over $6 billion of this amount.

Transportation Secretary Sean Duffy stated that an additional $7 to $10 billion is needed for software development and integration, including artificial intelligence tools. Separately, Duffy indicated that approximately $20 billion in total may be necessary to complete the entire project.

The DOT aims to complete the system overhaul by the end of 2028.

"We are going to need more money for the software side of this build. (Congress is) going to have to find a pathway to get us the rest of that money. We are going to deliver this on time, on budget."
— Transportation Secretary Sean Duffy

AI Integration Plans

DOT officials stated that artificial intelligence will be integrated as a tool to assist controllers, not replace them. According to Duffy, the AI software would analyze flight data up to 45 days in advance and suggest adjustments to flight times to manage schedules and avoid delays.

"AI is a tool, but we do not replace humans in how we manage the airspace."
— Secretary Sean Duffy

Three additional vendors are working with the FAA on AI implementation.

Statements from Officials and Stakeholders

  • FAA Administrator Bryan Bedford: "We have an analog national airspace system today. We can do better."
  • FAA Acting Chief Technology Officer Rebecca Guy: "This creates a safer, faster and reliable network."
  • National Air Traffic Controllers Association President Nick Daniels: "Air traffic control is about saving seconds. Every chance I get to save a second, that's another moment I have to ensure the safety of the American public. When technology handles more of the routine, controllers get to handle more of the critical."

Context and Recent Incidents

The funding request follows two fatal incidents involving air traffic control:

  • A collision last month at New York's LaGuardia Airport that killed two pilots.
  • A collision last year at Ronald Reagan Washington National Airport that killed 67 people.

The National Transportation Safety Board found in the latter incident that controllers had "degraded performance due to the high workload."

In an interview, Bedford stated that the air travel system is safe for the upcoming summer season despite reliance on older technology, noting that equipment failures from last summer have mostly been corrected.

Additional Developments

Spirit Airlines

Bedford commented on the collapse of Spirit Airlines after a failed $500 million government bailout, stating he agreed with the administration's decision not to intervene.

Boeing Oversight

The FAA approved Boeing's request to increase 737 Max production from 42 to 47 jets per month. Bedford indicated another increase to 52 may follow in 60–90 days. He encouraged Boeing to design a new mid-market aircraft (model 797). The FAA expects certification of the 737 Max 7 and Max 10 by end of 2026, and the 777x by spring 2027.

Customs and Border Protection Staffing

Reports indicate the Trump administration is considering plans to reduce Customs and Border Protection staffing at major airports in sanctuary cities, which could affect international travel. Homeland Security Secretary Markwayne Mullin confirmed plans are under consideration but not yet implemented. Airlines for America and Secretary Duffy expressed concerns about potential operational disruptions.