Key facts
- The FAA needs more funding from Congress to complete phase one of its $10.6 billion air traffic control reform plan.
- A government report by the GAO found the FAA has underestimated the total costs of operating the new system.
- The GAO stated the FAA has not fully assessed the costs of operating the new system or set a detailed schedule for completing reforms.
- Congress previously approved $9 billion for phase one of the reforms, which is set to cost $10.6 billion.
- The FAA is using $1 billion from its current year budget and needs an additional $574 million for phase one.
The Federal Aviation Administration (FAA) requires additional funding from Congress to finalize the initial phase of its air traffic control modernization plan, according to a report released by the Government Accountability Office (GAO). The GAO also indicated that the FAA has underestimated the operational expenses for the new system and has not established a precise timeline for reform completion.
The GAO report warned that the FAA's pursuit of rapid implementation carries risks of cost uncertainty and potential disruptions, increasing the likelihood of historical issues such as cost overruns, delays, and unmet performance targets. Congress had previously allocated $9 billion towards the first phase of the reforms, which is estimated to cost $10.6 billion. The FAA is currently utilizing $1 billion from its existing budget and requires an additional $574 million to proceed.
According to the GAO's findings, the FAA's Brand New Air Traffic Control System (BNATCS) aims for accelerated modernization of communication, surveillance, weather, and training systems, with Phase 1 targeted for completion by December 2028. In July 2025, Congress appropriated $12.5 billion for BNATCS, with most funds designated for Phase 1. The FAA plans to develop new automation systems for Phase 2, estimating a need of approximately $10.2 billion, though a start and end date for this phase remain undetermined. As of May 2026, the FAA reported replacing 2,560 of 5,170 copper wires with fiber optic cables.
The GAO noted that the FAA has not developed a comprehensive lifecycle cost estimate for BNATCS, with officials providing only high-level program estimates for Phase 1 that excluded government and most operational costs, as well as all costs for Phase 2. Furthermore, an integrated master schedule for Phase 1 is lacking, with 11,389 individual project schedules that are not synchronized, potentially leading to site installation conflicts and impacts on controller operations. The GAO's analysis, based on decades of experience with acquisitions and FAA modernizations, highlights that these risks increase the probability of cost overruns, delays, and missed targets, potentially leading to reliance on outdated systems, increased flight delays, and safety incidents.
Transportation Secretary Sean Duffy stated in April 2026 that the project is largely on track for completion before President Donald Trump leaves office, despite some workstreams being slightly behind schedule. He emphasized the need for more funding to transition the system from analog to digital. The overall cost of the plan has been stated by Duffy to exceed $31 billion, with Congress having allocated $12.5 billion in the previous summer.