US FAA says billions more needed to modernize air traffic control

The Federal Aviation Administration (FAA) warns that the first phase of its ambitious plan to modernize air traffic control will require billions of dollars more than the $12.5 billion Congress has already approved. The cost of phase one is estimated at $16 billion, according to FAA Administrator Michael Bedford, who testified before a U.S. House of Representatives subcommittee.

Bedford stated that the agency is covering the shortfall using its facilities and equipment budget. He urged lawmakers to approve an additional $10 billion for the second phase of the project.

The Government Accountability Office (GAO) criticized the FAA for its cost estimates, stating that it has underestimated the total expenses and failed to provide a detailed schedule for the reforms. The GAO found that the FAA has over 11,000 separate projects in phase one, which it initially estimated at $10.6 billion. Bedford had initially requested $15 billion or $16 billion for phase one, explaining the discrepancy between his initial estimate and the approved funding.

The need for reform stems from decades of complaints about airport congestion and flight delays, as well as a series of technology issues. Congress approved the funding with the goal of addressing the aging air traffic control system and boosting controller hiring. However, the price tag for telecommunications upgrades has risen significantly, from $4.75 billion to $5.91 billion.

The FAA plans to replace outdated telecom copper wires by September 2027. In December, the FAA selected Peraton, owned by Veritas Capital, to oversee the modernization effort, awarding it a $1.5 billion contract.