Key facts
- The first phase of modernizing the U.S. air traffic control system will cost $16 billion.
- Congress previously approved $12.5 billion for air traffic control reforms.
- The FAA is seeking at least $10 billion more for phase two of the project.
- The FAA has over 11,000 separate projects in phase one.
- The price tag for telecommunications upgrades has jumped $4.75 billion to $5.91 billion.
The Federal Aviation Administration (FAA) has stated that the initial phase of its plan to modernize the U.S. air traffic control system will cost billions more than Congress has allocated. According to FAA head Bedford, phase one will require $16 billion, exceeding the $12.5 billion approved by Congress last year. This funding included $9 billion for modernization and $3.5 billion for facilities construction. The FAA is covering the current shortfall from its facilities and equipment budget.
Bedford urged lawmakers to approve at least another $10 billion for phase two of the project, emphasizing the agency's efforts to scale up and execute the modernization correctly. A recent report from the Government Accountability Office (GAO) indicated that the FAA may have underestimated the total operating costs for the new system and has not established a detailed schedule for completing the reforms. The GAO noted that phase one encompasses over 11,000 separate projects, which the FAA had previously estimated would cost $10.6 billion.
Congress had provided funding to address issues with the aging air traffic control system, aiming to improve airport congestion, reduce flight delays, and resolve technology problems. The GAO also highlighted a significant increase in the cost of telecommunications upgrades, which has risen by $4.75 billion to $5.91 billion. Bedford stated that outdated copper telecom wires are expected to be fully replaced by September 2027. In December, the FAA awarded a $1.5 billion contract to Peraton, owned by Veritas Capital, to manage the modernization effort.