WASHINGTON, D.C. – U.S. Department of Transportation (USDOT) Secretary Sean Duffy announced a significant step towards modernizing the nation's air traffic control (ATC) system, citing the "historic investment" from the recently enacted "One Big Beautiful Bill Act." Secretary Duffy affirmed the department's commitment to delivering a state-of-the-art system, stating in a tweet, "It’s @USDOT’s top priority to deliver a brand new air traffic control system. And we are getting it done with the historic investment from the One Big Beautiful Bill! 💪"
The "One Big Beautiful Bill Act" (OBBBA), formally known as P.L. 119-21, was signed into law by President Donald Trump on July 4, 2025, following narrow passage in both the House and Senate via budget reconciliation. This sweeping legislation, which includes tax cuts, immigration provisions, and defense spending, has been met with universal Democratic opposition and is projected to add trillions to the national debt over the next decade. Despite its broader controversial elements, the bill earmarks substantial funding for critical infrastructure projects, including aviation.
For decades, the Federal Aviation Administration (FAA) has grappled with an aging air traffic control infrastructure, with previous modernization efforts like NextGen facing challenges related to cost overruns, schedule delays, and reliance on outdated technology such as copper wires and floppy disks. The need for a comprehensive overhaul has been highlighted by various reports from the Government Accountability Office (GAO) and recent operational disruptions. The new plan aims to replace core infrastructure, including radar, software, hardware, and telecommunications networks, to enhance safety and efficiency.
The OBBBA provides a crucial $12.5 billion specifically for the Federal Aviation Administration to fund air traffic control modernization. This investment is intended to address the long-standing issues plaguing the system, enabling upgrades to telecommunications infrastructure, radar systems, and air traffic control facilities. While substantial, this allocation is considered a "critical down payment" by aviation industry groups like Airlines for America, as some estimates suggest the total cost for a complete overhaul could exceed $30 billion.
The initiative, championed by Secretary Duffy and the Trump administration, seeks to transition the U.S. airspace management from a ground-based radar system to one based on satellite navigation and digital communications. The ambitious goal is to create a system that can manage increasing air travel demands, reduce delays, and provide controllers with reliable, modern equipment. The FAA is tasked with reporting specific expenditures to Congress quarterly, ensuring accountability for the significant investment.