FAA Administrator Bryan Bedford told lawmakers on September 15 that Phase One of the Brand New Air Traffic Control System (BNATCS) will cost $16 billion, roughly $3.5 billion more than the $12.5 billion Congress appropriated in last year's budget reconciliation law.

Testifying before the House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies, Bedford's disclosure highlights a shortfall that the Modern Skies Coalition — a group of more than 50 aviation organizations — estimates at $20 billion when the wider program is counted. The hearing comes as the FAA continues to manage the aftermath of the January 2025 midair collision near Ronald Reagan Washington National Airport that killed 67 people, an outcome an NTSB final board meeting in January tied to systemic FAA and U.S. Army failures in airspace design, safety oversight and risk management.

How big is the gap?

The Government Accountability Office reported just before the hearing that the FAA had identified a $574 million remaining balance for Phase One systems modernization after accounting for reconciliation funding and $1.011 billion from fiscal 2026 annual appropriations. Bedford's $16 billion Phase One estimate puts the program further in the red than reconciliation funding alone covers.

Republicans control both chambers and the White House. Rep. Steve Womack (R-AR), the Republican chair of the subcommittee, used his prepared remarks to invoke the failure of the predecessor program. "NextGen fell short, as we all know," Womack said. "This effort cannot fail."

What else is the administration fielding?

Bedford was confirmed as FAA administrator in July 2025 and has worked with Transportation Secretary Sean Duffy on what the agencies describe as the largest reorganization in FAA history, creating offices for safety, air traffic modernization and advanced technology.

In June, the FAA awarded Air Space Intelligence a 12-year, $875 million contract to build the Strategic Management of Airspace, Routes, and Trajectories (SMART) system. The FAA began deploying the AI-powered tool in the Washington area in September to assist with congestion and delays. Duffy told reporters the technologies will "fundamentally reshape how the airspace is managed." Airlines for America CEO Chris Sununu praised the rollout. Airlines initially raised concerns about SMART but became more supportive after the FAA clarified that the initial deployment would not change existing air traffic procedures.

Duffy has separately sought between $6 billion and $10 billion from Congress for broader integration of artificial intelligence into air traffic management, on top of at least $7 billion in additional funding he has requested beyond the administration's existing budget topline.

How does the controller workforce fit in?

The FAA's current workforce plan calls for hiring at least 2,200 air traffic controllers in fiscal 2026, 2,300 in fiscal 2027 and 2,400 in fiscal 2028. The agency also reduced its overall full-staffing target to 12,563 certified professional controllers, down from a previous target of 14,633. The FAA said the new figure reflects forecast demand and findings from a Transportation Research Board review of staffing models. The National Air Traffic Controllers Association (NATCA) said it did not help shape the new workforce plan and is reviewing it after release.

A September 4 investigation reported that hundreds of current and former controllers signed a letter criticizing FAA workforce policies and raising concerns about staffing, scheduling and safety. A controller from the New York Center who retired in August said he left after more than two decades amid deteriorating working conditions.

Compensation is a flashpoint. Congress authorized a 3.8% pay increase for controllers and appropriated $140 million for it in legislation President Trump signed in April. Controllers have received the 1% governmentwide federal employee raise; the remaining 2.8% remains unpaid. Bedford has linked the additional compensation to improvements in workforce utilization and operational efficiency. Sens. Tammy Duckworth (D-IL) and Dick Durbin (D-IL) wrote to Bedford in September criticizing the decision.

What happens next?

The administration aims to complete the new ATC system by the end of 2028, including replacing copper lines with fiber, upgrading communications systems and deploying new digital voice switches. GAO has warned that the FAA has not yet developed a lifecycle cost estimate or integrated master schedule for the broader modernization effort, leaving thousands of individual projects to be sequenced without a comprehensive roadmap.

The House Appropriations Committee completed its work on the fiscal 2027 THUD appropriations bill in June, approving the measure 34-27. Full committee chairman Rep. Tom Cole (R-OK) said the committee's priorities for the FAA include "safety, security, and efficiency." Whether Congress moves additional funding before the end of 2028 will determine whether the $3.5 billion gap Bedford disclosed in September becomes the principal constraint on the program's first major phase.