Boeing, Airbus, and Major Airlines Urge Congress for $20 Billion Air Traffic Modernization

A coalition of more than 50 aviation organizations asked Congress on July 15 for 20 billion dollars to modernize the U.S. air traffic control system, saying partial funding could leave aging equipment and strained operations in place.

The Modern Skies Coalition sent its request to Speaker Mike Johnson (R-LA) and Senator John Thune (R-SD). Members include Boeing, Airbus, Airlines for America, the U.S. Travel Association and the Air Line Pilots Association.

The proposed installment would follow $12.5 billion approved in 2025 under the One Big Beautiful Bill. Transportation Department officials have described that funding as a “down payment.”

The coalition wants Congress to finance upgrades at hundreds of aging facilities, new tools for controllers and more advanced systems for managing airspace. The industry also reports a shortage of nearly 3,000 air traffic controllers.

“Our nation's aviation system is a key national asset, but it is under increasing strain. Partial funding risks stranded investments, prolonged reliance on obsolete systems, higher lifecycle costs, and continued operational strain across the National Airspace System (NAS),” the coalition said in its July 15 letter.

The request arrives as Federal Aviation Administration modernization remains a major issue during President Donald Trump’s second term. Advocates say aging infrastructure continues to contribute to operational disruptions, delays and safety concerns.

The overhaul sets deadlines for networks, radios and digital flight strips

The initial allocation and the proposed installment would bring planned federal funding to roughly $32.5 billion. The broader program, which the administration calls the Brand-New Air Traffic Control System, combines facility work with communications, radar, software and staffing upgrades.

The planned network connections would use fiber, satellite and wireless technology. Controllers would also receive new radios and radar systems to replace equipment dating back to the 1960s.

Nearly 90 airports would move from paper flight strips to digital versions by 2028. The proposed phase also targets the elimination of manual tracking methods, including paper strips and floppy disks that some facilities still used as late as early 2026.

Bryan Bedford, the FAA administrator, said the work would require complete facility overhauls rather than another round of limited repairs.

“Modernization will require moving beyond incremental fixes to full facility overhauls, including telecom upgrades, radar replacements, and cloud-based compute layers.”

The next phase, known as BNATCS, would support software-defined airspace and artificial-intelligence-powered traffic management. The research identifies Palantir and Air Space Intelligence as firms involved in partnerships connected with that effort.

Airlines want the full system funded rather than isolated upgrades

Chris Sununu, president and CEO of Airlines for America, said carriers support a complete modernization effort instead of disconnected improvements.

“Modernization is absolutely key. But you can't just put in one piece of the puzzle. The whole thing has to be there.”

The coalition brings together airlines, aircraft manufacturers, unions and travel organizations. That membership gives the request support from groups that operate flights, manage air traffic, represent workers and depend on passenger movement.

Transportation Secretary Sean Duffy has put the remaining requirement at between $19 billion and $20 billion after the first allocation.

“We have $12.5 billion in the Big Beautiful Bill to start the process, [and] we need another $19 billion to $20 billion to complete it. We can't start the process until Congress gives us the money.”

The 2025 funding began work on physical infrastructure, including the transition from copper communications systems to fiber. The requested funds would extend that work to software-defined airspace, cloud-based computing, radar, radios, high-speed connections and digital flight data.

The coalition says the investment would help improve landing approaches, reduce congestion-related ground stops and lower delays. It also argues that the United States must maintain its position in aviation as European and Asian countries deploy newer satellite-based navigation systems.

Controller recruitment remains tied to the construction plan

New equipment would not remove the staffing gap. The industry says nearly 3,000 controller positions remain unfilled, and the proposed funding includes expanded recruitment and training.

Controllers have faced mandatory six-day workweeks, which the research associates with burnout and safety concerns. Additional hiring could reduce that workload while adding personnel to the upgraded facilities.

Senator Maria Cantwell (D-WA) and Representative Rick Larsen (D-WA) support modernization but have emphasized worker protections. They introduced the Aviation Funding Solvency Act to keep controllers paid during a potential government shutdown and limit further staffing attrition.

The worker-protection proposal adds a separate condition to the infrastructure debate. Supporters of modernization must also address the employees who would operate the replacement systems.

Congress has a possible funding vehicle, but critics challenge the structure

Senator Jerry Moran (R-KS), chairman of the Aviation Subcommittee, said a funding bill proposed for later this year could carry the additional money. Representative Sam Graves (R-MO), chairman of the House Transportation and Infrastructure Committee, has expressed support for the Brand New Air Traffic Control System Plan.

The proposal faces criticism over both its cost and its financing model. The Reason Foundation and some fiscal conservatives have called the roughly $32.5 billion price tag “needlessly high.”

They have pointed to Canada’s Nav Canada as an alternative. That model would place air traffic control in a non-government, nonprofit entity funded through user fees rather than taxpayer billions.

The competing approaches would produce different answers about who operates the system and how future upgrades receive funding. The coalition’s letter instead asks Congress to close the current funding gap through a federal appropriation.

Digital projects are already moving ahead while lawmakers weigh the request

Some modernization work has entered operation before Congress decides on the additional funds. On July 13, Leidos’ digital flight strip system went live in Austin, Texas, which became the 18th major airport to make the transition.

The Austin project provides an early example of the paper-to-digital shift targeted across nearly 90 airports by 2028. It also gives the broader plan a live operational component rather than a purely future timetable.

On July 16, Duffy launched the “Modern Skies” transparency website. The public can use it to track the progress of over 10,000 local modernization projects in real time.

Congress now faces a choice between the coalition’s broader federal funding request and alternatives that would change how air traffic control is financed and managed. The proposed bill later this year could become the next legislative test for the system’s overhaul.