House Transportation Committee Approves Budget Reconciliation Proposal Providing Funding for Contract Towers

April 30, 2025

Today, the House Transportation Committee advanced their section of the larger reconciliation bill, which includes $12.5 billion to modernize the nation’s air traffic control system in unusual party-line vote of 36-30. This amount was reduced from the original $15 billion due to the elimination of a national vehicle fee which cut top-line revenue generated in the bill, requiring a reduction in overall spending. Of the $2.5 billion in cuts to proposed ATC spending, the bill dropped the full $2b for air route traffic control centers (ARTCC) and reduced funding for ATC tower replacement by $480m (to $2.16b overall) but retains the $240m carve out for Contract Tower Program-operated and sponsor-owned towers.
 

To offset some of the spending in the package, the committee rescinded funding for programs that were priorities of the previous administration, including the FAA’s Alternative Fuel and Low-Emission Aviation Technology Program. This program originally provided $300m in funds for SAF and other low-emissions technology, though some funds have already been spent. In justifying the move, the committee stated that “the agency’s role and purpose is ensuring aviation safety - not developing sustainable fuels.”
 
 While Democratic members, including Ranking Member Rick Larsen, stated support for investments in both ATC modernization and Coast Guard funding, all voted in opposition to the final bill. Democrats’ unsuccessful efforts to amend the bill included the follow noteworthy aviation-related amendments:

• Rep. Rick Larsen (D-WA) offered an amendment to prohibit any funds in the bill be used to privatize the air traffic control system and another amendment to protect the Aviation Workforce Development grant program.
• Rep. Julia Brownley (D-CA) offered an amendment to prevent the repeal of the unobligated funds for the FAA Alternative Fuel and Low-Emission Aviation Technology Program and proposed $410m be added to the grant program.
• Rep. Hillary Scholten (D-MI) offered an amendment that would set aside 10% of the ATC tower funds for small hubs that are at least 50 years old.
• Rep. Dina Titus (D-NV) offered amendment to require FAA to submit a report outlining air traffic controller staffing levels at each tower under the Contract Tower Program and if each tower meets minimum staffing levels.
• Rep. Amelia Sykes (D-OH) offered an amendment that would have extended the current Air Terminal Grant program through 2039 with funding of $1b per year.
• Rep. Chuy Garcia (D-IL) offered and withdrew amendment similar to his “Good Jobs for Good Airports” bill,

Next Steps

Once other House committees finish their sections of the larger reconciliation legislation, House leadership will combine the committee products into a single bill to be considered on the House floor. Speaker Johnson has indicated he would like to consider the final bill by Memorial Day but the remaining provisions regarding taxes and healthcare are the most controversial. The Senate is expected to start work on the larger bill once the House passes it.