The U.S. Congress has passed a new federal budget bill that allocates $12.5 billion to the Federal Aviation Administration (FAA) for the modernization of the nation’s air traffic control (ATC) system. Known as the “One Big Beautiful Bill,” the legislation consolidates long-term funding for infrastructure improvements in communications, surveillance, automation, and control facilities. The bill now awaits the president’s signature.

The FAA will use the funds to address aging systems and technology that have contributed to a series of recent safety incidents, including midair collisions and radar failures at major airports. Industry stakeholders have long pushed for comprehensive investment in ATC modernization, citing outdated radar systems, under-resourced controller staffing, and decades of deferred upgrades.

The legislation authorizes spending through fiscal year 2029 and includes:

  • $4.75 billion for telecommunications infrastructure
  • $3 billion to replace aging radar systems
  • $1.9 billion for a new air route traffic control center
  • $1 billion for terminal radar approach control (TRACON) facilities
    $500 million for runway safety technologies and airport surface surveillance
  • $350 million for unstaffed infrastructure
  • $300 million for information display systems
  • $300 million for data communications, navigation systems, and aeronautical information
  • $100 million for controller training systems

The FAA’s modernization effort builds on the long-running NextGen program but addresses one of its major shortcomings: fragmented funding. Congress has previously supported upgrades through annual appropriations, limiting the agency’s ability to execute a coordinated, long-term plan. This bill marks the first time Congress has committed a multi-year investment of this scale.

According to the Government Accountability Office (GAO), the FAA spent approximately $1 billion per year on NextGen between 2012 and 2023. Experts estimate the full cost to complete ATC modernization may exceed $30 billion.

The funding comes in response to mounting concerns about air traffic safety, including a January 2025 midair collision involving a U.S. Army helicopter and a PSA Airlines regional jet, and multiple ATC equipment failures causing delays at Newark Liberty and other major airports. Aviation trade groups, airport operators, and pilot associations have all called for accelerated modernization.