Hearing Report: DOT Secretary Duffy Discusses ATC Modernization and Other Issues During House Transportation Committee Hearing

July 16, 2025

Department of Transportation Secretary Sean Duffy appeared before the House Transportation and Infrastructure Committee today for an oversight hearing on the Department’s policies, programs, and budget priorities. During the wide-ranging hearing, lawmakers expressed strong bipartisan support for efforts to modernize the nation’s air traffic control system and boost air traffic controller staffing and quizzed Secretary Duffy on the status of pending grants, efforts to transition to fluorine-free firefighting foam, and other aviation and transportation topics.
 
Secretary Duffy commended Congress for the inclusion of $12.5 billion for ATC modernization efforts as part of the recently enacted reconciliation package but indicated that $31.5 billion in resources was ultimately needed to build the aspirational “brand new” ATC system of the future to include new/upgraded equipment, technology, and facilities. He noted that DOT and FAA intend to utilize latitude available in the procurement process and select a single integrator to effectively serve as a project manager so that the various necessary upgrades can happen simultaneously. Duffy noted the importance of moving quickly but in a way that does not jeopardize safety.  
 
“Today’s skies are busier than ever,” Duffy said in his written testimony. “Drones, air taxis, and commercial spacecraft are all entering congested airspace managed by in some cases obsolete technology. Floppy disks, copper wire, and antiquated radar are piecing together an aging system overdue for something new. Under our plan, airports built in the days of propeller planes will be equipped with the latest fiber and satellite technology designed for jet-age airspace. The One Big Beautiful Bill passed by this chamber gives our department a roughly $12 billion down payment to implement our state-of-the-art design. Our Department has also moved swiftly to streamline the hiring process for new air traffic controllers. In May, we launched a spring initiative to supercharge our controller fleet with lucrative bonuses to controllers who delay retirement. We have already cut months off the hiring pipeline and are enrolling dozens into the FAA’s prestigious academy this summer. These actions are critical to reaching the goal of hiring 2,500 new controllers in 2026. Recent changes at Newark Liberty International Airport have demonstrated the effectiveness of our proposal to fix this aging system. After short outages spooked fliers and delayed travelers, we reinforced air safety with fiber optics, replaced outdated copper connections, and expedited construction of a new runway. We completed these overdue renovations in record time. As a result of our progress, Newark airport had its best June on time departure rate ever. Newark airport also had the lowest cancel rate compared to JFK and LaGuardia. Our plan is to bring these changes nationwide.”
 
Committee Chair Sam Graves (R-MO) also touted the $12.5 billion investment in ATC upgrades in the reconciliation bill, noting that the funds will allow the Administration to immediately get to work to replace critical telecommunications infrastructure and radar systems, invest in runway safety and airport surveillance projects, and replace antiquated air traffic control facilities. Committee Ranking Member Rick Larsen (D-WA) indicated that his top priorities for ATC modernization are increasing FAA’s ATC and aviation safety workforce to meet growing airspace demand; expediting deployment of critical runway safety technology; and replacing outdated ATC infrastructure, notably telecommunications. 
 
The discussion of ATC modernization comes on the heels of yesterday’s successful AAAE/A4A/GAMA/NBAA/NATCA/AOPA ATC Modernization Summit held in Washington. During the comprehensive, one-day event, key lawmakers and industry leaders agreed that there is a historic opportunity to make meaningful progress in modernizing aging equipment, technology, and facilities. There was also consensus that more needs to be done to ensure that the promises of ATC modernization are realized. AAAE’s Karen Kuhlman highlighted some of the key take-aways from the conference during a segment on ABC News
 
On other items of note during the hearing, Ranking Member Larsen and other committee members asked Duffy about the status of pending grants, with Larsen noting that DOT has yet to release 1,300 grants approved by the previous administration. “I urge you to get on with the review of the remainder of these grants because we are leaving construction jobs on the table without these grants going out the door,” Larsen said. In response, Secretary Duffy noted that the Department originally had 3,200 grants to review and is making progress with the review process. He indicated that they hoped to complete grant reviews by “late summer or early fall.”