US senators introduced legislation on September 28, 2026 that would pour roughly $30 billion into air traffic control modernization and airport infrastructure, on top of the $12.5 billion Congress has already approved for the Federal Aviation Administration's overhaul.

The Modern Skies Act, backed by Transportation Secretary Sean Duffy, would fund new ATC technology, control facilities and airport terminals. Its structure splits the money into three equal blocks of $10 billion, each aimed at a distinct part of the system.

The largest ATC allocation — $10 billion for systems modernization — includes $7.2 billion for a common automation platform and controller workstation, $2 billion for cloud computing and telecommunications infrastructure, $600 million for strategic traffic-flow management, and $300 million to consolidate terminal air traffic control facilities.

A second $10 billion tranche would direct $2 billion to control towers and other terminal ATC facilities, including digital tower technology, $3 billion to discretionary Airport Improvement Program grants, and $5 billion to airport terminal development.

The remaining $10 billion would establish a pilot program to modernize or rebuild aging terminals at up to three qualifying medium-hub airports.

Cost question remains open

Whether the bill covers the full cost of the FAA's modernization effort remains unclear — and the government's own watchdog has quantified the gap in knowledge. A Government Accountability Office report released on September 14, 2026 found that the FAA has not fully calculated what the overhaul will cost. The agency's estimates exclude some government expenses and much of the cost of operating and maintaining the new systems once deployed.

The FAA estimates it needs about $10.2 billion for the next phase of technology upgrades, plus additional money for facilities, according to the report. That figure sits uncomfortably beside the $10 billion systems-modernization allocation in the Senate bill, which must also stretch across cloud infrastructure, traffic-flow tools and facility consolidation.

The first phase of the overhaul is already underfunded by $574 million. The administration has requested $565 million in its fiscal 2027 budget to cover most of that shortfall, leaving a residual gap even before the new legislation is considered.

Flexibility without more money

The bill would give the FAA authority to move money among its new ATC systems allocations and among previously funded modernization components, subject to reporting requirements. Those provisions could let the agency adjust spending as projects develop. They would not, however, increase the total funding available — a constraint that matters if lifecycle costs run above current estimates.

FAA Administrator Bryan Bedford said the legislation would allow the agency to complete its modernization work. The GAO takes a more conditional view: it recommended the agency produce a reliable lifecycle cost estimate and an integrated project schedule to establish what the overhaul will actually require.

What the first phase buys

The first phase focuses on replacing aging equipment, including copper communications lines, radios and radar systems. It also funds electronic flight strips to replace the paper records controllers still use, better tools to track aircraft and vehicles on airport surfaces, and upgrades to weather sensors and cameras. The FAA aims to complete that work by December 2028.

The second phase would introduce new computer systems to help controllers track aircraft and manage traffic more efficiently — the capability that underpins any capacity gains airlines and airports expect from the broader program.

For carriers and hub operators, the practical consequences are straightforward. Terminal development dollars and the medium-hub pilot program translate directly into gate and concession capacity, while ATC systems spending determines whether the agency can hit its December 2028 deadline for replacing equipment that dates, in some cases, to the copper-line era. Whether $30 billion is enough to finish the job is a question the GAO says nobody can yet answer.