Senate Commerce Committee Proposes $12.5 Billion for Air Traffic Control Modernization in its Budget Reconciliation Package

June 6, 2025

The Senate Commerce Committee released their proposal for the budget reconciliation bill, which includes $12.5 billion to modernize the nation’s air traffic control system. The ATC portion of the package includes funding for telecommunications and radar upgrades, a new air route traffic control center (ARTCC), runway safety systems, and remote towers. Notably, the proposal does not include specific funding for air traffic control tower modernization or additional controller staffing and training, which were included in the House version of the bill. The top line funding level is the same as the House bill but allocates some of the spending into different programs, including weather system upgrades and remote towers. Additionally, funding for the new ARTCC facility and the TRACON facilities is predicated on consolidation of existing facilities, a requirement that is not included in the House bill.
 
The $12.5 allocation will include the following, with notations on items matching the House version:

• $4.75b for telecommunications upgrades (same as House version)
• $3b for radar system replacement (same as House version)
• $1.9b for construction of a new ARTCC facility contingent on consolidating 3 current centers
• $1b for consolidation and recapitalization of TRACON facilities (same funding as House version but added consolidation requirement)
• $500m for runway safety system upgrades, surface detection technology deployment (same as House version)
• $350m for unstaffed facilities sustainment and replacement (same as House version)
• $300m for enterprise Information display systems (moving away from paper strips/floppy discs)
• $300m NextGen close-out times such as NOTAM upgrades, DataCom, and PBN (same as House version)
• $100m to facilitate ATRCC realignment and consolidation, with requirement to consolidate no less than 10 facilities
• $100m for ATC advance training technology
• $80m for various weather system improvements
• $40m for the Don Young/Alaska safety program (also in House version, though House funded at $260m)
• $50m for the Center for Advanced Aviation Technologies from the 2024 FAA Reauthorization law.
• $50m for remote towers

Unrelated to the funding to modernize the ATC system, Chairman Cruz included a provision that would require the Metropolitan Washington Airports Authority (MWAA) to renegotiate their lease with the federal government every 10 years at minimum and increase the payments to the federal government to no less than $15m each year, which is expected to be a significant cost increase.
 
What’s Next?
Senate leadership has indicated most committees do not plan to hold markups of their portions of the budget reconciliation bill, so it is likely this language will be added to the bill during the floor debate in the Senate with little or no changes. Following Senate consideration, the House and Senate will have to reconcile the two versions of the bill before sending it to the president, which will provide AAAE and our industry partners the opportunity to weigh in to support provisions like additional ATC tower funding and staffing. The Senate has indicated they would like to complete consideration of the bill by the July 4th recess but that effort will continue to be complicated by differences on a number of issues as well as agreement on a final bill, given the very narrow margins in both the House and Senate.