USCTA Alert

April 29, 2025

This morning the House Transportation and Infrastructure Committee released the bill text for its $15 billion to plan to modernize the Air Traffic Control system and provide dedicated funding to replace outdated contract towers – one of USCTA’s top priorities. The Committee is planning to mark up the legislation tomorrow as part of its portion of a broader budget reconciliation bill.
 
Contract Tower Funding
 
As we indicated yesterday, the $15 billion ATC reform package includes $2.64 billion for air traffic control tower and TRACON replacement. Not less than $240 million of that amount is reserved for contract towers – both sponsored-owned and FAA-owned towers. Other sponsor-owned towers operated by the FAA are also eligible for funding in this set-aside.
 
If enacted into law, the Committee’s proposal would build on the Bipartisan Infrastructure Law, which included at least $300 million to repair, replace, and relocate contract towers. Beginning in FY26, contract towers may receive up to $100 million annually from unobligated Airport Infrastructure Grants. Over five years, this could amount to as much as an additional $500 million for contract tower improvements.
 
USCTA is continuing to urge lawmakers to improve contract towers, provide controllers with better technology, and address controller staffing challenges as Congress considers ATC reform proposals.
 
What’s Next?
 
The Transportation and Infrastructure committee is planning to mark up its portion of the budget reconciliation package tomorrow morning.
 
Related Documents

•    AAAE and USCTA press release may be viewed here.
•    T&I Committee reconciliation bill may be viewed here.
•    T&I Committee press release may be viewed here.
•    USCTA contract tower recommendations may be viewed here.
•    USCTA's press release on contract tower recommendations may be viewed here.
•    The aviation industry’s ATC reform letter may be viewed here.