The Trump administration’s plan to modernize the nation’s aging air traffic control infrastructure will cost more than initially anticipated.
U.S. Transportation Secretary Sean Duffy said Tuesday that the administration will seek an additional $30 billion for the project, on top of $12.5 billion already secured through the One Big Beautiful Bill Act, which was signed into law last summer. The DOT initially framed the $12.5 billion as a “down payment” toward a total planned outlay of about $31.5 billion, but it now appears that the federal government will actually need another $30 billion on top of the money already allocated. The new combined figure of $42.5 billion would be more than $10 billion over initial estimates.
Duffy announced the new spending target in a speech before the Aero Club of Washington, according to a report from Reuters. He said the $30 billion would be used to enhance ATC technology, support a common automation platform, upgrade airport terminals, and build new ATC towers.
“If we don’t do it now, when are we going to do it?” Duffy said, according to Aviation International News. “This is a moment in time where we can truly completely revolutionize the systems that we use, the efficiency that we drive, in the NAS. This can change the experience for so many Americans, and it’s a big part of our economy.”
Duffy, the administration’s point man for the modernization project, has frequently reminded reporters and lawmakers that the $12.5 billion approved last year will cover only part of the needed upgrades. His comments Tuesday were the first public sign that the overhaul will cost considerably more than once expected.
The modernization campaign, announced in the spring of 2025 and already underway, will replace outdated infrastructure such as radar, software, hardware, and telecommunications networks. Copper wiring is being replaced with fiber, satellite, and wireless connections, and new digital voice switches, radios, and surveillance systems are being installed at ATC centers and towers.
Industry groups such as the Modern Skies Coalition and the National Business Aviation Association quickly came out in support of Duffy’s remarks, arguing that additional investments will help reduce outages and stabilize the national airspace. The Modern Skies Coalition pointed specifically to Monday’s ATC failure in the Northeast, which canceled and delayed hundreds of flights at New York-JFK, LaGuardia, Philadelphia, and Newark, New Jersey.
“Yesterday’s disruptions to the NAS demonstrate how critical it is to replace the antiquated technology and outdated systems that underpin our nation’s air traffic control infrastructure,” the group said. “The progress made over the past year has shown what is possible when we invest in modernizing the NAS, but there is more work to do.”
