April 28, 2025
The House Transportation and Infrastructure Committee will propose $15 billion to modernize the nation’s air traffic control system and no less than $240 million to upgrade aging contract towers as part of a massive budget reconciliation package. With the ATC reform debate heating up, the U.S. Contract Tower Association has been urging key lawmakers to improve contract towers, provide controllers with better technology, and address controller staffing challenges.
ATC Reform Proposal
Although we have yet to see legislative text, it is our understating that the $15 billion ATC reform package will include $2.64 billion to upgrade air traffic control towers, $1 billion for controller staffing, and $500 million for runway safety improvements. The House GOP package is expected to include:
- $2.64b for ATC tower and TRACON replacement including no less than” than $240m to upgrade contract towers and other sponsor-owned towers;
- $2b for capital investments in the air route traffic control centers (ARTCC);
- $3b for radar system replacement;
- $4.75b for telecom infrastructure replacement;
- $500m for runway safety and airport surface surveillance systems;
- $550m for replacement of unstaffed infrastructure and upgrades such as radio towers;
- $300m for NextGen close-out times such as NOTAM upgrades, DataCom, and PBN;
- $200m for the Don Young Alaska Safety program; and
- $1b for controller staffing recruitment, retention, training, and technology to further support the full staffing provisions in the FAA reauthorization bill.
The funds will be required to be obligated within five years of passage and can be spent over 10 years. The ATC proposal, which includes dedicated funding for contract towers, FAA towers, and sponsor-owned towers, would serve as a meaningful investment in modernizing the facilities, staff, and technology of our nation’s aviation system.
Contract Tower Funding
The House ATC reform package is expected to include $2.64 billion for tower upgrades and TRACON replacement. No less than $240 million of that amount is reserved for contract towers – both sponsored-owned and FAA-owned towers. We’re told that other sponsor-owned towers operated by the FAA will also be eligible for funding in this set-aside.
As a reminder, the Bipartisan Infrastructure Law (BIL) included at least $300 million to repair, replace, and relocate contract towers. And more BIL funding may be on the way. Beginning in FY26, contract towers may receive up to $100 million annually from unobligated Airport Infrastructure Grants that may materialize. Over five years, this could amount to as much as an additional $500 million for contract tower improvements.
The ATC reform debate gives us another opportunity to make the case for more investment and changes to help contract towers. USCTA earlier this month sent a letter to key lawmakers that urges them to take numerous steps to improve controller staffing at contract towers, upgrade aging towers, and provide controllers with better equipment to enhance aviation safety.
USCTA is recommending several policy proposals to help contract tower airports and service providers alike. However, the budget reconciliation process is limited to items related to changes in spending, revenues, and the debt limit. So, it is not a potential legislative vehicle for some of the policy-related proposals on our list.
We will likely see other ATC reform efforts emerge in the weeks ahead. The Senate Commerce Committee is expected to draft a separate ATC reform package that will likely include policy changes. The administration is also planning to unveil its own ATC reform package that could overlap with provisions in budget reconciliation package.
What’s Next?
The House Transportation and Infrastructure committee is planning to mark up its portion of the budget reconciliation package on Wednesday. We will provide additional details about the $15 billion ATC reform proposal when the Committee releases its legislative text.
Related Documents
- USCTA recommendations may be viewed here.
- A USCTA press release on the recommendations may be viewed here.
- The aviation industry’s ATC reform letter may be viewed here.